“The fact that they have created this probably unsustainable edifice to an ego and then, eventually, if it goes under, who’s going to be caught with the bill time and time again? It’s the taxpayers of the city, citizens of Chicago and the state of Illinois.
Contractors and subcontractors involved in the construction of the Obama Presidential Center are claiming they have not been fully paid amid ongoing payment disputes, just days before the center is scheduled to open.
According to a report by Fox News, several contractors say they have suffered losses ranging from hundreds of thousands of dollars to millions as disputes continue. The allegations come as questions remain about the Obama Foundation’s long-promised endowment fund. Under a 99-year agreement with the city of Chicago, the foundation gained control of a publicly owned section of Jackson Park for $10 and pledged to establish a significant endowment intended to ensure taxpayers would not be responsible for future costs associated with the center.
Construction delays and increased costs have made the center rise from an estimate of $330 million to over $850 million, with the final cost not made public. The foundation has estimated that annual operating costs would reach roughly $40 million.
"One of their core promises was they were supposed to create an endowment as basically an insurance policy so the taxpayers wouldn’t get stuck with the bill," explained Illinois GOP Chair Robert Grogan to the outlet. "They promised hundreds of millions of dollars for it. It’s still sitting at the $1 million mark [where it stood] when they opened it up. So I don’t believe that they’ve kept that promise."
"The fact that they have created this probably unsustainable edifice to an ego and then, eventually, if it goes under, who’s going to be caught with the bill time and time again? It’s the taxpayers of the city, citizens of Chicago and the state of Illinois,” he added.
Fox News reported that multiple construction firms have claimed substantial losses connected to the project. Mike Owen, president of Adamson Plumbing, said his company is owed approximately $4 million. Omar Shareef, the president of the African American Contractors Association, said that multiple black-owned contractors are facing financial difficulties as well.
In response, the Obama Foundation said that the center is"fully funded" and that it plans to make "significant investments" to the endowment in future years.
"On the eve of our Grand Opening celebrations, we are pleased to reiterate that the Obama Presidential Center is fully funded with generous private contributions," the foundation said.
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