South Loop residents oppose DePaul arena









The prospect of a DePaul University men's basketball arena being constructed on land just north of McCormick Place is drawing strong opposition from the Prairie District Neighborhood Alliance, a South Loop residents' organization, according to a letter released Tuesday.
 
A survey of 700 neighbors of the site, conducted by the community group, found more than 70 percent oppose construction of a Blue Demons arena there, Tina Feldstein, president of the organization, stated in the letter.
 
An arena would not fit within the residential and historic character of the area and could put two landmark structures, the Harriet F. Rees House and the American Book Co. building, at risk, the letter stated. It would also add to traffic congestion and potential rowdiness in an area already overburdened when conventions are in progress at McCormick Place or major events, including Chicago Bears games, are taking place at Soldier Field, Feldstein said in an interview.
 
"We're not against vibrant development, which hotel and retail would bring," Feldstein said. And the group would support an arena at an alternate site on the Near South Side, she said.
 
The letter was written in support of an alternate plan for the so-called "Olde Prairie" blocks, which is being put forward in bankruptcy court by developers Pam Gleichman, Karl Norberg and Gunnar Falk. Their plan calls for hotel and retail development on property directly north of the McCormick Place administrative offices and West Building on Cermak Road.
 
If they lose control of the property, it is expected to go up for auction, making it possible for the Metropolitan Pier and Exposition Authority, the state-city agency that owns McCormick Place, or other parties to make a run at it.
 
DePaul is weighing several sites, including property near McCormick Place and the United Center on the Near West Side. As well, the Allstate Arena in Rosemont is fighting to retain the team.
 
The neighborhood's opposition adds to resistance by Ald. Robert Fioretti, whose 2nd Ward includes McCormick Place.
 "That is not a place to put an arena -- far away from the school," he said. "I think there are traffic issues related, and it would be a bad deal for taxpayers in these economic times."

Fioretti noted such a project likely would require public subsidy.
 
The Olde Prairie blocks have not been officially designated as a potential site for a DePaul arena, but Fioretti said it is his understanding that they are being seriously considered.
 
Jim Reilly, chief executive officer of the exposition authority, known as McPier, has publicly acknowledged that there have been talks with DePaul. A spokeswoman on Tuesday said it would be premature to comment further at this point.

A DePaul spokesperson could not be reached for immediate comment.
 
Chicago Mayor Rahm Emanuel has said he would like DePaul to bring men's basketball back to the city. A spokesman declined comment beyond that.
 kbergen@tribune.com | Twitter @kathy_bergen



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City, bartender ask court to set aside 'code of silence' verdict









Mayor Rahm Emanuel's administration asked a federal judge Monday to set aside a jury verdict in the infamous videotaped beating of a female bartender by an off-duty Chicago police officer — essentially agreeing to pay the woman $850,000 now in return for erasing the jury's finding that a police "code of silence" protected the cop.


The unusual request is an attempt to prevent last month's damaging verdict from being cited by lawyers in other lawsuits against the Police Department. The former bartender filed the motion jointly with the city; she stands to quickly collect the jury award she won without risking the chance of losing on appeal or having the trial judge reduce the amount.


It will be up to U.S. District Judge Amy St. Eve to weigh the interests of the parties involved in the lawsuit against the interest of the public in having the record of the jury's verdict stand. City lawyers said they plan to appear before the judge Monday.





The city battled Karolina Obrycka's lawsuit for five years, arguing that former Officer Anthony Abbate's attack on her, which was caught on security video and eventually went viral on the Internet, was the action of an off-duty officer and not the responsibility of the Chicago Police Department.


As part of her case against the city, Obrycka's lawyers argued that a pattern and practice of covering up police corruption and misconduct exists in the department. Moreover, she argued, Abbate behaved with a sense of impunity because he believed fellow officers would protect him. The jury agreed in its Nov. 13 verdict.


Although the city argued in Monday's court papers that the jury's verdict was "ambiguous" and tied to the peculiar circumstances of the Abbate case, lawyers also wrote that they want the verdict removed from the record because it could influence other lawsuits against the Police Department, of which there are many.


In a statement, Corporation Counsel Stephen Patton said the city reached out to Obrycka after the administration determined it didn't want to appeal the verdict.


"From the city's perspective, vacating the judgment eliminates the risk that the judgment will be misused in a way that hinders the city's ability to defend itself in future cases," Patton said.


The city also argued in the motion that the misconduct in the Abbate case happened several years ago and things are different now. The old Office of Professional Standards, which investigated the Abbate case, was renamed and reconfigured in the wake of the scandal. Also, city lawyers noted that there is a new mayor as well as a different police superintendent.


While the city's effort to erase the jury's verdict would not strike down the record of testimony in the trial, it does pose some risks to the public good, experts said.


"By allowing the kind of agreed-upon whitewash of the jury verdict, it tends to increase the possibility of future bad conduct," said Richard Zitrin, a law professor at the University of California Hastings College of the Law, who has testified before Congress about secret settlements in police misconduct cases.


"The problem is that the lawyer representing the plaintiff has a duty to do what's right for the plaintiff, and that duty does not include a duty to do what's right for the public as a whole."


Obrycka's lawyer, Terry Ekl, did not respond to calls for comment Monday. City officials also did not immediately answer questions about the move.


In the memorandum filed Monday, the city cited some legal precedents supporting the move to vacate the jury verdict. But federal courts have not always agreed with such motions when public misconduct issues are involved.


In a 2000 case in Virginia, after a federal jury found for a plaintiff in a police excessive force lawsuit, both sides filed a motion to vacate the verdict in favor of a settlement. In that case, the judge wrote, "the public's interest in judicial economy, finality of judgment and the integrity of the courts outweighs the parties' interest in having the verdict vacated."


Lawyer Christopher Smith, who has represented several plaintiffs in lawsuits against the Chicago Police Department, said claims of a pattern and practice of coverups are allowed into cases rarely and on narrow terms.


Applying the precedent from the Abbate verdict to other lawsuits is challenging, he said. However, given the circumstances of the case — the fact that Abbate was off-duty and in a bar — the verdict made a strong statement.


Because the jury decided that the department covered up for a drunken off-duty cop attacking somebody in a bar, the case shows "it's so well-known to officers that no matter what we do, we know we're going to get backed up," Smith said. "No matter how far away (the alleged behavior) was from a police action, there's always a police influence if there's a code of silence."


dheinzmann@tribune.com





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$120 tablet that runs both Android and Linux to launch in early 2013












For anyone who has ever used his or her Android tablet and wished that it could double as a desktop-style device, PengPod has a product just for you. Ars Technica reports that the new PengPod tablet, which runs both Android and Linux, has met its crowd-sourced fundraising goals and will so on sale in January for $ 120 a 7-inch model and $ 185 for a 10-inch model. According to Ars, the tablet will be able to “dual-boot Android 4.0 and a version of Linux with the touch-friendly KDE Plasma Active interface.” Overall, the tablet received funding of nearly $ 73,000, or around 49% more than the $ 49,000 that the company had been seeking.


Get more from BGR.com: Follow us on Twitter, Facebook












Linux/Open Source News Headlines – Yahoo! News


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Katt Williams Arrested After Alleged Bar Rampage












LOS ANGELES (TheWrap.com) – Katt Williams didn’t have much to laugh about this weekend after the comedian was arrested in Seattle, following an incident at a bar during which Williams allegedly attacked a woman with a cigarette, according to the Seattle Police Department.


According to police Williams – born Micah Williams – “exchanged words” with other customers at the World Sports Grille in the city’s South Lake Union area Sunday afternoon and “brandished a pool cue” at the bar’s manager.












At one point, police say, Williams – who was in town to perform at the Paramount Theatre – followed a family outside of the bar and flicked a lit cigarette into their car, striking a woman just below the eye. He also threw a rock at the car, according to police.


Police showed up at the establishment just before 2:30 in the afternoon and, after a struggle to get Williams into the patrol car, transported him to the West Precinct. Williams was booked into the King County Jail for investigation of assault, harassment and obstruction, police said.


A representative for Williams has not yet responded to TheWrap’s request for comment.


According to TMZ, he has been released on bail.


The bar incident wasn’t Williams’ only brush with police this weekend. According to the Seattle Police Department, after the 41-year-old comedian’s show Friday night, three fans claimed Williams attacked them when they tried to take a picture with him after the show. Williams’ denied the allegation, saying that the fans had forced their way into his dressing room, and no arrests were made.


Williams told police after the Friday night incident that he planned to cancel Saturday’s show and leave town, but apparently didn’t.


Celebrity News Headlines – Yahoo! News


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With Some Hospitals Closed After Hurricane Sandy, Others Pick Up Slack





A month after Hurricane Sandy struck New York City, unexpectedly shutting down several hospitals, one Upper East Side medical center had so many more emergency room patients than usual that it was parking them in its lobby.




White and blue plastic screens had been set up between the front door and the elevator banks in the East 68th Street building of that hospital, NewYork-Presbyterian/Weill Cornell. The screens shielded 10 gurneys and an improvised nursing station from the view of people obliviously walking in and out of the soaring, light-filled atrium.


“It’s like a World War II ward,” Teri Daniels, who had been waiting a day and a half with a relative who needed to be admitted, said last week.


Since the storm, a number of New York City hospitals have been scrambling to deal with a sharp increase in patients, forcing them to add shifts of doctors and nurses on overtime, to convert offices and lobbies to use for patients’ care, and even, in one case, to go to a local furniture store to buy extra beds.


At Beth Israel Medical Center, 11 blocks south of the Bellevue Hospital Center emergency room, which was shuttered because of storm damage, the average number of visits to the E.R. per day has risen to record levels. Visits have increased by 24 percent this November compared with last, and the numbers show no sign of dropping. Hospital admissions have risen 12 percent compared with last November.


Most of the rise in volume is from patients who had never been to Beth Israel before. An emergency room doctor at the hospital described treating one patient who said he had been born at Bellevue and had never before gone anywhere else.


Emergency room visits have gone up 25 percent at NewYork-Presybterian/Weill Cornell, which in Bellevue’s absence is the closest high-level trauma center — treating stab wounds, gun wounds, people hit by cars and the like — in Manhattan from 68th Street south. Stretchers holding patients have been lined up like train cars around the nursing station and double-parked in front of stretcher bays.


In Brooklyn, some patients in Maimonides Medical Center’s emergency room who need to be admitted are waiting two or three days for a bed upstairs, instead of four or five hours. Almost every one of the additional 1,100 emergency patients this November compared with last November came from four ZIP codes affected by the storm and served by Coney Island Hospital, a public hospital that was closed because of storm damage.


The number of psychiatric emergency patients from those same ZIP codes has tripled, in a surge that began three days before the hurricane, perhaps fueled by anxiety, as well as by displacement from flooded adult homes or programs at Coney Island Hospital, doctors said.


The Maimonides psychiatric emergency room bought five captain’s beds — which do not have railings that can be used for suicide attempts — at a local furniture store, to accommodate extra patients. The regular emergency room had to buy 27 new stretchers after the hurricane, “and we probably need a few more,” the department’s chief, Dr. John Marshall, said.


The emergency room and inpatient operations of four hospitals remain closed because of flooding and storm damage. Besides Bellevue and Coney Island, NYU Langone Medical Center and the VA New York Harbor Healthcare System, both near Bellevue on the East Side of Manhattan, are closed.


While the surge in traffic to other hospitals has been a burden, it has also been a boon, bringing more revenue.


On the Upper East Side, the storm has helped Lenox Hill Hospital, which has a history of financial problems. It took two or three wards that had been turned into offices and converted them back to space for patients. Emergency room visits are up 10 percent, and surgery has been expanded to seven days a week from five.


“We usually operate at slightly over 300 beds, and now we’re at well over 550,” Carleigh Gustafson, director of emergency nursing, said.


Conversely, administrators at the shuttered hospitals, especially NYU Langone, a major teaching center, worry that their patients and doctors are being raided, with some never to return.


NYU’s salaried doctors are being paid through January, on the condition that they do not take another job. But at the same time, they need a place to practice, so NYU administrators have been arranging for them to work as far away as New Jersey until the hospital reopens. Lenox Hill alone has taken on close to 300 NYU doctors, about 600 nurses, and about 150 doctors in training, fellows and medical students.


Obstetricians and surgeons from the closed hospitals have been particularly disadvantaged, since they are dependent on hospitals to treat their patients. Many displaced surgeons have been reduced to treating only the most desperately ill, and operating on nights and weekends, when hospitals tend to be least well staffed.


“I think there’s no question that a lot of people have postponed anything that they can postpone that is elective,” said Dr. Andrew W. Brotman, senior vice president at NYU.


In mid-November, Dr. Michael L. Brodman, chairman of obstetrics at Mount Sinai Medical Center, sent out a memo saying his department had taken on 26 NYU physicians, as well as nurses and residents, but “clearly, that is too much for us to handle long term.”


Since then, 15 of the physicians have gone to New York Downtown Hospital, while Mount Sinai has retained 11 doctors and 26 nurses.


“We are guests in other people’s homes,” Dr. Brotman of NYU said, “and we are guests who have to some degree overstayed their welcome.”


Joanna Walters contributed reporting.



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Public-private group wins bid for delinquent mortgages













A foreclosure consultation event


A homeowner with a delinquent mortgage speaks with a mortgage specialist at a JPMorgan Chase foreclosure consultation event in New York in 2011.
(Shannon Stapleton/Reuters File Photo / December 3, 2012)





















































A public-private partnership headed by the Illinois Housing Development Authority has emerged as one of the winning bidders in a September auction of delinquent mortgages held by the Federal Housing Administration.
 
Mortgage Resolution Fund will use $25 million of federal hardest-hit funds awarded to the state to buy 324 delinquent loans on Chicago-area properties. The loans, which were part of a neighborhood stabilization pool have an unpaid principal balance of about $62 million and the properties are valued at $40 million.
 
After the note sale closes, homeowners whose delinquent mortgages are part of the loan pool will be contacted by a new servicer in early 2013 that will offer to write down the principal balance of the loans and set up more affordable repayment terms to eligible homeowners. Those homeowners pay no cost to receive the loan modifications.
 
"We want to help as many borrowers as possible achieve long-term stability so they can stay in their homes without the fear of foreclosure," said Mary Kenney, executive director of the Illinois Housing Development Authority.
 
Separately, Florida-based Bayview Acquisitions LLC submitted a winning bid of about $70 million for 1,430 other Illinois loans in a neighborhood stabilization pool that had an unpaid principal balance of about $269 million and an estimated property value of $155 million. Another 299 delinquent Illinois mortgages were sold as part of other pools.
 
Nationally, the note sale involved about 9,400 distressed loans. Bids were submitted to U.S. Department of Housing and Urban Development in September.
 
HUD said plans to sell another 10,000 to 15,000 distressed loans during the first quarter of 2013, and at least 40,000 during the next year in an effort to remove distressed loans from its portfolio.
 
mepodmolik@tribune.com | Twitter @mepodmolik




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Orange Bowl bid, new coach cap wild weekend for NIU









It was an incredible weekend for the Northern Illinois football program.

A 44-37 double-overtime victory over Kent State in the Mid-American Conference championship game kicked off the exhilaration Friday night at Ford Field in Detroit. That was followed by the announcement on Saturday that Dave Doeren had accepted the coaching position at North Carolina State.

On Sunday came the historic news that the Huskies were bound for Miami on New Year's Day to face Florida State in the Orange Bowl, becoming the first team from the MAC to earn a berth in a BCS bowl game.

"We're 12-1," NIU quarterback Jordan Lynch told ESPN. "We faced tons of adversity this year. We won tons of games. … We definitely deserve to be in there."

Capping things off, the school announced Sunday night the head coaching vacancy had been filled by promoting offensive coordinator Rod Carey.

"It has been crazy; it has been nuts. That's the only way to explain it," said Carey, who agreed to a five-year contract. "But it has been good. All of that has been wonderful … and what a privilege for our kids to go to the Orange Bowl. They were so excited they could barely stand up."

While some college observers vehemently argued that NIU didn't belong in the game, Florida State coach Jimbo Fisher told reporters in Tallahassee that he had no such qualms.

"You don't get in this game unless you're a good football team," Fisher said. "It's easy for talking heads to say that (NIU doesn't belong). They've earned the right to be here, they've earned the right to have this opportunity.

"We know we're going to get an inspired opponent, an opponent that's going to be ready to prove something."

NIU now has its third coach in three years. Jerry Kill left after the 2010 season to take the head coaching job at Minnesota. Doeren was 23-4 in just two seasons on the DeKalb campus. NIU athletic director Jeff Compher is hoping for a smooth transition from Doeren to Carey.

"That's why they did what they did in such a short amount of time," Carey said. "Because I have been here and they want the transition to be as seamless as it can be.

"I don't have any reason today to sit here and say that I want to go somewhere else. Listen, I was born in Madison, Wisconsin, and I went to high school in Minneapolis, Minnesota. Joe Novak (former NIU head coach) was the defensive coordinator at Indiana when I played there. So my ties and my knowing about NIU have gone back a long time. And I have wanted to be at this place for a lot of different times in my career. And I finally got here and now this has happened. I don't know why I would want to go anywhere else."

It is not yet clear how many other members of the NIU coaching staff will join Doeren at N.C. State.

"It will be a challenge; I don't know how it will all play out," Carey said. "But I do know that this staff just won back-to-back MAC championships. And as far as I am concerned, it's the finest staff I've worked with. So I would love to coach with all of these guys for a long time."

This year, Carey helped mold an offensive line of five new starters that helped Lynch become one of the best dual-threat quarterbacks in the nation. Carey transitioned into the role of offensive coordinator after the first game of the season when Mike Dunbar had to step away from that role while battling a serious illness.

"Mike Dunbar is one of the most high-character people and unbelievable people I have ever been around," Carey said. I have learned more from that man … he and coach Doeren I have learned more from."

fmitchell@tribune.com

Twitter@kicker34



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Obama salutes entertainers taking a Washington bow












WASHINGTON (Reuters) – Music legend Led Zeppelin was recognized on Sunday alongside entertainers from stage and screen for their contributions to the arts and American culture at the Kennedy Center Honors, lifetime achievement awards for performing artists.


The eclectic tribute in Washington, alternated between solemn veneration and lighthearted roasting of honorees Academy Award-winning actor Dustin Hoffman, wisecracking late-night talk show host David Letterman, blues guitar icon Buddy Guy, ballerina Natalia Makarova and Led Zeppelin.












“I worked with the speechwriters – there is no smooth transition from ballet to Led Zeppelin,” President Barack Obama deadpanned while introducing the honorees in a ceremony in the White House East Room.


Friends, contemporaries and a new generation of artists influenced by the honorees took the stage in tribute.


Dustin Hoffman is a pain the ass,” actor Robert DeNiro said in introducing Hoffman, the infamously perfectionist star of such celebrated films as “The Graduate” and “Tootsie.”


“And he inspired me to be a bit of a pain in the ass too,” DeNiro said with a big smile.


At a weekend dinner for the winners at the State Department, Secretary of State Hillary Clinton noted that the performing arts often requires a touch of diplomacy as she toasted Makarova, a dance icon in the former Soviet Union when she defected in 1970.


Tiler Peck of the New York City Ballet, who performed in “Other Dances,” one of Makarova’s signature roles, said she has studied her idol’s technique for years.


“This is a role she created,” Peck said.


Despite the president’s misgivings about his own speech, the performance at the Kennedy Center navigated the transition from refined ballet to gritty blues music when the spotlight turned to Guy, a sharecropper’s son who made his first instrument with wire scrounged from around his family’s home in rural Louisiana.


“He’s one of the most idiosyncratic and passionate blues greats, and there are not many left of that original generation…,” said Bonnie Raitt, who as an 18-year-old blues songstress was often the warm-up act for Guy.


George “Buddy” Guy, 76, was a pioneer in the Chicago blues style that pushed the sound of electrically amped guitar to the forefront of the music.


“You mastered the soul of gut bucket,” actor Morgan Freeman told the Kennedy Center audience. “You made a bridge from roots to rock ‘n roll.”


In a toast on Saturday night, former President Bill Clinton talked of Guy’s impoverished upbringing and how he improvised a guitar from the strands of a porch screen, paint can and his mother’s hair pins.


“In Buddy’s immortal phrase, the blues is ‘Something you play because you have it. And when you play it, you lose it.’”


It was a version of the blues that drifted over the Atlantic to Britain and came back in the finger-rattling rock sound of Led Zeppelin.


Jimmy Page, 68, was the guitar impresario who anchored the compositions with vocalist Robert Plant, 64, howling and screeching out the soul. Bassist/keyboardist John Paul Jones, 66, rounded out the band with drummer John Bonham, who died in 1980.


The incongruity of the famously hard-partying rock stars sitting in black tie under chandeliers at a White House ceremony was not lost on Obama.


“Of course, these guys also redefined the rock and roll lifestyle,” the president said, to laughter and sheepish looks from the band members.


“So it’s fitting that we’re doing this in a room with windows that are about three inches thick – and Secret Service all around,” Obama said. “So, guys, just settle down.”


The gala will be aired on CBS television on December 26.


(Reporting By Patrick Rucker and Mark Felsenthal)


Music News Headlines – Yahoo! News


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Call That Kept Nursing Home Patients in Sandy’s Path


Chang W. Lee/The New York Times


Workers were shocked that nursing and adult homes in areas like Rockaway Park, Queens, weren’t evacuated.







Hurricane Sandy was swirling northward, four days before landfall, and at the Sea Crest Health Care Center, a nursing home overlooking the Coney Island Boardwalk in Brooklyn, workers were gathering medicines and other supplies as they prepared to evacuate.




Then the call came from health officials: Mayor Michael R. Bloomberg, acting on the advice of his aides and those of Gov. Andrew M. Cuomo, recommended that nursing homes and adult homes stay put. The 305 residents would ride out the storm.


The same advisory also took administrators by surprise at the Ocean Promenade nursing home, which faces the Atlantic Ocean in Queens. They canceled plans to move 105 residents to safety.


“No one gets why we weren’t evacuated,” said a worker there, Yisroel Tabi. “We wouldn’t have exposed ourselves to dealing with that situation.”


The recommendation that thousands of elderly, disabled and mentally ill residents remain in more than 40 nursing homes and adult homes in flood-prone areas of New York City had calamitous consequences.


At least 29 facilities in Queens and Brooklyn were severely flooded. Generators failed or were absent. Buildings were plunged into a cold, wet darkness, with no access to power, water, heat and food.


While no immediate deaths were reported, it took at least three days for the Fire Department, the National Guard and ambulance crews from around the country to rescue over 4,000 nursing home and 1,500 adult home residents. Without working elevators, many had to be carried down slippery stairwells.


“I was shocked,” said Greg Levow, who works for an ambulance service and helped rescue residents at Queens. “I couldn’t understand why they were there in the first place.”


Many sat for hours in ambulances and buses before being transported to safety through sand drifts and debris-filled floodwaters. They went to crowded shelters and nursing homes as far away as Albany, where for days, they often lacked medical charts and medications. Families struggled to locate relatives.


The decision not to empty the nursing homes and adult homes in the mandatory evacuation area was one of the most questionable by the authorities during Hurricane Sandy. And an investigation by The New York Times found that the impact was worsened by missteps that officials made in not ensuring that these facilities could protect residents.


They did not require that nursing homes maintain backup generators that could withstand flooding. They did not ensure that health care administrators could adequately communicate with government agencies during and after a storm. And they discounted the more severe of the early predictions about Hurricane Sandy’s surge.


The Times’s investigation was based on interviews with officials, health care administrators, doctors, nurses, ambulance medics, residents, family members and disaster experts. It included a review of internal State Health Department status reports. The findings revealed the striking vulnerability of the city’s nursing and adult homes.


On Sunday, Oct. 28, the day before Hurricane Sandy arrived, Mr. Bloomberg ordered a mandatory evacuation in Zone A, the low-lying neighborhoods of the city. But by that point, Mr. Bloomberg, relying on the advice of the city and state health commissioners, had already determined that people in nursing homes and adult homes should not leave, officials said.


The mayor’s recommendations that health care facilities not evacuate startled residents of Surf Manor adult home in Coney Island, said one of them, Norman Bloomfield. He recalled that another resident exclaimed, “What about us! Why’s he telling us to stay?”


The commissioners made the recommendation to Mr. Bloomberg and Mr. Cuomo because they said they believed that the inherent risks of transporting the residents outweighed the potential dangers from the storm.


In interviews, senior Bloomberg and Cuomo aides did not express regret for keeping the residents in place.


“I would defend all the decisions and the actions” by the health authorities involving the storm, said Linda I. Gibbs, a deputy mayor. “I feel like I’m describing something that was a remarkable, lifesaving event.”


Dr. Nirav R. Shah, the state health commissioner, who regulates nursing homes, said: “I’m not even thinking of second-guessing the decisions.”


Still, officials in New Jersey and in Nassau County adopted a different policy, evacuating nursing homes in coastal areas well before the storm.


Contradictory Forecasts


The city’s experience with Tropical Storm Irene last year weighed heavily on state and city health officials and contributed to their underestimating the impact of Hurricane Sandy, according to records and interviews.


Before Tropical Storm Irene, the officials ordered nursing homes and adult homes to evacuate. The storm caused relatively minor damage, but the evacuation led to millions of dollars in health care, transportation, housing and other costs, and took a toll on residents.


As a result, when Hurricane Sandy loomed, the officials were acutely aware that they could come under criticism if they ordered another evacuation that proved unnecessary.


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Heat is on Groupon's Andrew Mason









In June 2011, Groupon Inc. Chief Executive Andrew Mason took the stage at a conference hosted by influential technology blog AllThingsD.


When co-executive editor Kara Swisher asked him whether an initial public offering was coming soon, he shot her what she later dubbed his "death stare."


The audience laughed and broke into applause.





The tone was decidedly more subdued last week, when Mason found himself at another tech industry confab, fielding questions from Business Insider's Henry Blodget, this time about whether Groupon's directors were going to fire him at their meeting the next day. AllThingsD had reported a day earlier, citing anonymous sources, that Groupon's board of directors was considering replacing Mason with a more experienced CEO to lead the Chicago-based daily deal company's turnaround.


The contrast between those two appearances underscores the swift and dramatic tumble of Mason's standing in tech and business circles within a few years. The young founder and CEO graced the cover of Forbes in 2010 and was named Ernst & Young's National Entrepreneur of the Year in the "emerging" category a year later.


Those accolades are a far cry from the cloud hanging over Mason, 32, and the company he launched four years ago. The leak to AllThingsD appeared to be deliberately timed to embarrass the executive, forcing him to field questions about his own competence at a scheduled appearance. This public hint of internal strife has fueled speculation around Mason's fate even as other public tech companies, such as Facebook and social game-maker Zynga, have also seen their stock prices drop since their IPOs.


Groupon's board met Thursday and took no action on the CEO's job, with company spokesman Paul Taaffe saying the board and management were "working together with their heads down to achieve Groupon's objectives."


Markets, however, seemed unconvinced. Groupon's beleaguered stock closed slightly higher Thursday but dropped 8.7 percent to $4.14 Friday. Shares debuted at $20 in November 2011.


Investors "want experience in leadership," said Raman Chadha, a clinical professor at DePaul University and co-founder of the Junto Institute for Entrepreneurial Leadership, a training program for startup founders. "And as a result, where Andrew's background was cool and sexy — and maybe even bordering on amusing — when Groupon was a pure startup, that's in the mindset of those of us who are observers and supporters … and fellow entrepreneurs. I think in the minds of the investor community and Wall Street, (it's different) because now the company has a lot more to lose. And if it's going to fall, it's going to fall really hard and really far."


For Chadha, Mason's unconventional pedigree as a music major-turned-startup-founder was part of the appealing, media-friendly story of Groupon's origin. The company was launched as recession-weary consumers were eager for deals, and it achieved rapid growth while earning a reputation for antics like decorating a conference room in the style of a fictional, possibly deranged tenant of Groupon's headquarters who had lived there before the startup moved into the offices.


The scrutiny of Groupon was tremendous given the "high-flying" nature of the company, said David Larcker, a corporate governance expert at the Stanford Graduate School of Business.


"You have a founder as CEO," he said. "He's the public face of the company. He has set the culture. All of that stuff."


That culture, driven in large part by Mason, turned from a lovable quirk to a major liability as the company ran into controversy over its poorly received Super Bowl ads in February 2011 and a series of missteps in the run-up to its IPO. Then, within months of its public debut, it disclosed an accounting flaw that forced it to restate financial results.


The larger question surrounding Groupon is the long-term viability of its basic business model. The company has been expanding offerings beyond its core daily deals, which have seen growth rates tail off. It's also dealing with a recession in the key European market as well as continued competition in the U.S.


But the biggest challenge facing Mason now is probably his own performance, or rather the perception that he isn't up to the task of running the global, publicly traded business worth billions that he founded but that now needs a turnaround. The stock is down 80 percent from its IPO price.


"It's an oft-told, oft-expected story that the genius entrepreneur steps aside when he or she succeeds at building a company big enough to need an experienced CEO," said Erik Gordon, a business professor at the University of Michigan.


The example Gordon and others cite is Google, which flourished after its co-founders Larry Page and Sergey Brin made way for a more seasoned executive in Eric Schmidt.


"The Google guys did it, and the results were spectacular," Gordon said.


Chadha said many startups tend to become more corporate in outlook, and less quirky, as they grow, because they bring in experienced executives from large companies that may have difficulty adapting to an entrepreneurial culture or reject it outright as not professional enough.


"I think that's where Google is very different," Chadha said. "(The company) sought out entrepreneurial, startup types — people that became part of their management team." That free-form element of Google's culture comes out in such things as the Google doodles — the offbeat tributes to notable anniversaries or famous people that pop up on the main search page.


Mason has acknowledged areas where Groupon needs to improve and has hired senior executives with experience at more mature tech companies. That hasn't always worked either. Margo Georgiadis, who came from Google as chief operating officer, returned to that company after five months.


Whether there's still room for Mason on the top management team remains to be seen. He was direct in his interview last week with Blodget, offering a minimum of jokes as he focused on discussing the job he and others at Groupon must accomplish.


"I care far more about the success of the business than I care about my role as CEO," he said.


A year ago, when he spoke to author Frank Sennett for his book "Groupon's Biggest Deal Ever," Mason was unapologetic about his management style.


"You only live once, and all I'm doing is being myself," he told Sennett. "I think a normal CEO is trying to appear in some way that's not actually them. That's probably not what they're like."


In the same book, former President and Chief Operating Officer Rob Solomon offered this blunt assessment of his ex-boss: "Andrew at thirty-five and forty is going to hate Andrew at twenty-nine and thirty; I guarantee it."


Melissa Harris and Bloomberg News contributed.


wawong@tribune.com


Twitter @VelocityWong





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