Paul Vallas Gains Late Financial Support From Chicago Developers

The clock is winding down and Chicago’s mayoral race will soon be settled. In anticipation, developer Robert Buford and Mike Reschke Jr., the son of Chicago real estate veteran Mike Reschke, are doing their part, along with other major players, to get former Chicago Public Schools CEO Paul Vallas over the hump.

Buford, CEO of Planned Realty Group, gave $30,000 to Vallas’ campaign on Monday, while Reschke, son of the Prime Group’s CEO, gave $2,500 the same day. The Chicago Apartment Association also followed up its Vallas endorsement with a $10,000 contribution.

By and large, big-name players in Chicago’s real estate scene are putting their money on Vallas as he gears up to face Cook County Commissioner Brandon Johnson in the April 4 runoff. Many fear Johnson, the self-styled progressive, due to his plans to increase hospitality and real estate transfer taxes. While Johnson has pulled in several smaller individual contributions from brokers, agents and developers, Vallas has outraised him.

Big money has been rolling in steadily for Vallas. Colin Kihnke, founder and president of multifamily developer CMK Companies, also contributed $30,000 to his campaign this week, and Bruce Cohen, CEO of real estate capital firm Temerity Strategic Partners, gave $2,500.

Chicaogland Apartment Association executive Michael Mini previously told The Real Deal that Vallas’ policies on affordable and market-rate housing development are more in line with the landlord group’s stances.

“We think the city council should view development of housing and trying to make it easier to develop and build housing as opposed to making it more difficult by enacting tax increases and other regulations that are going to impede development of building more housing,” he said.

Two Reschke-led ventures were selected by the city this week to receive tax increment financing to redevelop LaSalle Street-area properties as part of a program initiated by outgoing Mayor Lori Lightfoot’s administration. This might become more difficult for the developers to navigate under a Vallas or Johnson administration.

While Vallas is skeptical of using TIFs for private-sector developments, he hasn’t closed the door on the LaSalle Street initiative, whereas Johnson has said he supports using such funding for affordable housing, but believes the city can’t give tax dollars to projects that don’t need them.

This story was updated to correct that Mike Reschke Jr., and not his father Mike Reschke, made a donation to Paul Vallas’ campaign.