Chicago’s City Council moves forward on casino

WBEZ Chicago
 
Chicago’s City Council moves forward on casino
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Chicago’s City Council is doing parliamentary backflips to vote on a casino this week — a timeline requested by Mayor Lori Lightfoot.

Aldermen on a special committee Monday voted 27 to 3 to advance Lightfoot’s pick for Chicago’s first casino, setting it up for a final vote on Wednesday. Aldermen had to meet for a full council meeting in the morning, pause that meeting to hold a special casino committee meeting in the afternoon, and then reconvene the full meeting afterward — all in order to set up a vote by the full City Council on Wednesday.

The jam-packed start to the week is in part because aldermen on the casino committee were not prepared to pass the proposal when they met last Friday.

Council members are considering a proposal from Bally’s Corporation, which would construct a gaming and entertainment facility along the North Branch of the Chicago River, near Chicago Avenue and Halsted Street.

Lightfoot and her administration want to move quickly so that revenue from the casino can start flowing into city coffers in 2023, and her staff have told aldermen casino revenue is necessary to avoid additional property tax increases.

“The city is in the process right now of making decisions and planning for the upcoming budget process,” said Chief Financial Officer Jennie Huang Bennett. “That kicks off with the budget gap number in August, but we are in the midst of financial planning now … also, very importantly, we don’t know how long the Illinois Gaming Board process is going to take.”

The casino license needs a green light from the Illinois Gaming Board, and according to the process laid out by the city, the Plan Commission and the City Council will have to sign off on some details related to the $1.74 billion construction project.

Monday’s marathon of meetings brought out supporters and opponents alike to try to sway aldermen, who are also divided on the proposal.

For nearly three hours, aldermen questioned city officials and Bally’s representatives on everything from the number of Latino contractors involved in construction, to whether revenue projections are accurate, to how Bally’s will treat homeless residents who want to gamble.

Several unionized hotel workers showed up to testify in support of the casino, which has been harshly criticized by residents near the proposed site.

Felicia Smith, a barista at Starbucks at O’Hare Airport who said she lives on the South Side with her mom and three children, urged aldermen to approve the casino proposal.

“My neighborhood would be more stable, stronger and safer with more good union hospitality jobs,” Smith said.

The casino is slated to create roughly 3,000 temporary construction jobs annually and 3,000 permanent casino jobs, according to the city. Bally’s has also signed a “labor peace agreement” with several Chicago unions that will ensure those workers can unionize.

The $1.74 billion project includes a 3,400-slot casino with a 500-room hotel, six restaurants, three bars and 3,000-seat theater. Bally’s predicts it could open a temporary site at the Medinah Temple in Chicago’s River North neighborhood by the second quarter of 2023 and a permanent one in 2026.

Representatives from Bally’s on Monday told aldermen they’re committed to bringing in local businesses to fill the restaurant and bar venues at the permanent site.

“We’re trying to source your local restaurateurs that have experience and have a diverse ownership demographic,” said Chris Jewett, a vice president at Bally’s. “We’ve committed, in the host community agreement, to work with the independent venues within the city … to bring in local acts, regional acts and national acts.”

Ald. David Moore, 17th Ward, questioned whether Bally’s would discriminate against homeless residents who “may not smell up to par.” Representatives from Bally’s responded that they will have the “same policies and procedures in place” as any private corporation to ensure patrons have a “safe and sound environment to play.”

“But outside of that, there would not be any specific discrimination against any single individual to enter or leave the casino,” said Amit Patel on behalf of Bally’s.

A document outlining the final pick indicates $200 million in revenue would start gradually flowing into city coffers once a temporary site is open, though the city won’t start making its full, estimated annual revenues until at least 2027, according to the city.

The revenue will go toward the city’s underfunded police and fire pensions. Bally’s also promised the city an upfront payment of $25 million, but raised that to $40 million before the city chose it over two other proposals.

That upfront payment will immediately go toward employee pension funds, city budget officials said.

Ald. Brendan Reilly, the casino’s staunchest opponent in the council, signaled he believes those projections are “woefully” overblown, saying Chicago’s casino would have to be on “steroids” to rake in $200 million annually.

Reilly’s 42nd ward is adjacent to the casino, and will be home to the temporary site at Medinah Temple, which he also opposes.

Lightfoot chose Bally’s Corporation over four other casino proposals and two other finalists.

Alds. Brendan Reilly, Brian Hopkins, 2nd Ward, and Michele Smith, 43rd Ward, voted against the proposal.

Becky Vevea and Mariah Woelfel cover Chicago city government at WBEZ. You can follow them at@BeckyVeveaand@MariahWoelfel.