Latest Post | Last 10 Posts | Archives
Previous Post: DeVore threatens Welch on enforcement of House mask rule: “You will be next on the list”
Next Post: Pritzker addresses JCAR defeat, mask mandate
Posted in:
* Greg Hinz…
In a report released [yesterday] by its staff, the Metropolitan Pier & Exposition Authority, generally known as McPier, said plans by bidders to use its Lakeside Center and truck marshaling yards to house a casino involve “critical strategic assets” in a highly competitive business.
Both potentially could be replaced, McPier CEO Larita Clark said in a follow-up interview. But the cost would be high: Building a new structure to replace Lakeside Center, the easternmost building in McCormick Place, would cost an estimated $900 million to $1.5 billion and take at least 72 months to complete, she said.
The report was less explicit about a third bid involving temporary use for a few years of McCormick Place’s north building. But agreeing to any of the proposals might require a change in state law because of legal limits on McPier’s authority, the report indicates. […]
Specifically at issue are a proposal from a team headed by Chicagoan Neil Bluhm’s Rush Street Gaming to convert Lakeside Center to a casino; a plan by Bally’s to use the truck yards just west of McCormick Place for its gambling complex, and the Hard Rock’s pitch to temporarily use the north building.
* Sun-Times…
Lakeside Center “does not sit empty,” [Larita Clark, CEO of the Metropolitan Pier and Exposition Authority] said. Clark said it has 253 events scheduled through 2035, worth $13.8 billion in economic impact, besides housing mechanical systems serving the whole campus. “The reality is if we lost the Lakeside Center, we’d need to replace 600,000 square feet and all the critical infrastructure,” she said.
Clark reported that McCormick Place North was booked nearly to its maximum level in the years before the pandemic knocked out most convention business. The marshaling yards, she said, reduces truck congestion and helps exhibitors and contractors set up and take down items quickly. “In 2019, 35,000 trucks used the marshaling yards and their proximity to our campus is a competitive advantage,” Clark said.
Her remarks are a challenge to all but two of the casino bids. The only proposals that would not touch McCormick Place are a Bally’s bid for the Chicago Tribune’s Freedom Center printing site, 777 W. Chicago Ave., or one from Chicago magnate Neil Bluhm’s Rivers Casino that relies on 62 vacant acres southwest of Roosevelt Road and Clark Street.
That Tribune site proposal is hideous.
* The report has this warning from staff…
To prevent loss of customers, the lost space of Lakeside Center will require that replacement space be fully operational before Lakeside is turned over to a developer. The estimated time would be approximately 72 months based on the West Building plan.
That’s six years.
* Another issue…
• Due to its location, the Lakeside Center must be used for the public good. The Public Trust Doctrine has been successfully used to block lakefront development in the past
Hard to see how a casino can be classified as a “public good.” But other hoops have been cleared in the past.
* Meanwhile…
Some Bronzeville leaders are pushing back against the prospect of having the city’s first casino as a neighbor.
The city unveiled five potential casino sites in November. Four are clustered in the Near South Side, including one at the McCormick Place Marshalling Yards at 31st Street and DuSable Lake Shore Drive, near the old Michael Reese Hospital.
Ald. Sophia King (4th) long has opposed a casino anywhere on the South Side, previously saying it would be like “putting a casino in Harlem.” But King and others are particularly alarmed by the site that’s been proposed near the $3.8 billion Bronzeville Lakefront megadevelopment on the Michael Reese site — a project King has insisted would not include a casino.
The Bronzeville Lakefront project sits just south of McCormick Place and stretches from 26th to 31st streets between Lake Park Avenue and Martin Luther King Drive. It also includes the Prairie Shores homes near 29th Street and King Drive. […]
Christopher Jewett, Bally’s vice president for corporate development, said in a statement its proposal allows for a casino to be “fully integrated into the Bronzeville community development with pedestrian bridges and connectors, or it can be built as a destination, accessed only via public transit or vehicles.”
…Adding… Very good point in comments…
The most significant red flag for McCormick Place sites in this report might be the need for enabling legislation. I would think the last thing the mayor would want would be to pick a site for her casino and then have to go back to the General Assembly for approval.
Yep. Unless she has labor and business all lined up first.
posted by Rich Miller
Wednesday, Feb 16, 22 @ 11:25 am
Sorry, comments are closed at this time.
Previous Post: DeVore threatens Welch on enforcement of House mask rule: “You will be next on the list”
Next Post: Pritzker addresses JCAR defeat, mask mandate
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
If they tear down the Lakeside Center they will build yet another building to maintain the status quo.
This will open the doors to billions more in MPEA bond debt and refinancing without the means of paying that debt.
Right now the MPEA has over $12 billion of growing debt and a MPEA Authority tax revenue stream that is over $6.257 billion short.
The State of Illinois is responsible for that shortage of remaining MPEA debt with state sales taxes.
The MPEA was self-sufficient until the 2009 reforms. It should be self-sufficient again and stop being a burden to Illinois taxpayers.
Ask any exhibitor and they will tell you that tradeshows at McCormick Place equals sales.
Orlando and Las Vegas has too many distractions and bring out attendees who show up only to do a walk-thru at the show to leave and see the Mouse or roll the dice.
Bringing gambling next to McCormick Place is competing with tradeshow exhibitors.
Comment by Chicago 20 Wednesday, Feb 16, 22 @ 11:33 am
Hmmm. Sounds to me like an institution and it’s people don’t want to accept change.
Comment by Just Me 2 Wednesday, Feb 16, 22 @ 11:45 am
==Hard to see how a casino can be classified as a “public good.” ==
Maybe if it promises to bring state and local tax revenue, then I can see the powers that be calling it a “public good.”
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 16, 22 @ 11:47 am
I’ve always wondered why no one is trying to build a casino/hotel/small conference center near the United Center. They can catch business travelers for McDonald’s and such, integrate sports betting, and make it part of a guys’ weekend with the food/bar scene and events at the UC. It would be easily accessible to workers from the West Side and gamblers from the west suburbs, the only suburban sector that doesn’t have its own casino.
A McCormick casino just seems kinda pointless.
Comment by 48th Ward Heel Wednesday, Feb 16, 22 @ 12:01 pm
I’d like to see the Casino near McCormick Place to catch more of those out-of-state visitor convention dollars.And you’re right Rich, the old Tribune site isn’t really workable. I think the marshaling yards location is the best of the proposals, not withstanding the alderman’s objections.
Comment by PublicServant Wednesday, Feb 16, 22 @ 12:23 pm
When the state finally moves out, could the JRTC be transformed into a casino rather than the indoor water park aka Mold City?
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 16, 22 @ 12:31 pm
yet again another opportunity for something on or near the lakefront for our civic leaders to squander. Convention center with lots of people very often who could gamble? check. decent access via public transportation to the center of the City from which others could travel to gamble? check. proximity to highways so people could travel whenever from wherever? check. time to blow it? of course they might.
Comment by Amalia Wednesday, Feb 16, 22 @ 12:46 pm
==A McCormick casino just seems kinda pointless.==
Disagree, because…
==Casino near McCormick Place to catch more of those out-of-state visitor convention dollars==
We want to capture as many external dollars as possible. A convention center location makes sense.
Comment by City Zen Wednesday, Feb 16, 22 @ 12:47 pm
===We want to capture as many external dollars as possible===
Then put it at O’Hare.
Comment by Rich Miller Wednesday, Feb 16, 22 @ 12:49 pm
Revenue alone can’t qualify it as a public good otherwise any business would qualify. Chicago’s relatively public lakefront stretching nearly the entire length of the city is one of its greatest assets and achievments. There’s other vacant plots near the loop. The public trust doctrine is crucial and must be maintained lest the lakefront just become a giant outdoor mall.
Comment by JJJJJJJJJJ Wednesday, Feb 16, 22 @ 12:51 pm
I for one like the Lakeside Center idea.
Comment by George Lucas Wednesday, Feb 16, 22 @ 12:53 pm
The most significant red flag for McCormick Place sites in this report might be the need for enabling legislation. I would think the last thing the mayor would want would be to pick a site for her casino and then have to go back to the General Assembly for approval.
Comment by Telly Wednesday, Feb 16, 22 @ 12:58 pm
==MPEA Authority tax revenue stream that is over $6.257 billion short.==
Make a portion of the casino city taxes go to MPEA if a casino is going to be built on land that the authority has control over.
Comment by sladay Wednesday, Feb 16, 22 @ 1:02 pm
Rich, O’Hare and Midway should get video gaming terminals if the casino developer goes that way. They have 4,000 gaming spots to use, put a couple hundred at each airport.
Comment by sladay Wednesday, Feb 16, 22 @ 1:03 pm
I don’t know that I have a specific preference personally, but just in terms of being a taxpaying Chicago resident, I’m not particularly thrilled with using public-owned property for the development. Personally I like the idea of the Tribune location in THEORY, to expand development westward down Chicago Ave, but the traffic there will be a nightmare without massive changes.
That being said, it seems like every location has issues. No matter which one is selected, opponents will claim it was biased, politically motivated, etc. In reality none of the options are perfect, as far as I can tell. The question is which pros outweigh which cons.
Comment by Homebody Wednesday, Feb 16, 22 @ 1:05 pm
“Clark said it has 253 events scheduled through 2035, worth $13.8 billion in economic impact, besides housing mechanical systems serving the whole campus.”
I don’t see how hosting a casino is necessarily incompatible with keeping the critical infrastructure for the rest of McCormick Place in the Lakeside Center. And how many of those events scheduled for the building could be hosted in other halls in the complex? When MPEA gives arguments like this, I question how much of their opposition is well founded and how much is just straight preference for the status quo.
But the “public purpose” issue is a tough one. If Friends of the Parks could scream bloody murder at the Lucas Museum proposal, how much will they howl at a private casino?
Comment by Benjamin Wednesday, Feb 16, 22 @ 1:28 pm
I think the best casino proposal is the site at The 78, particularly because it’s entirely private development not reliant on public land plus a new Red Line stop at 15th and Clark.
Comment by RJRICH17 Wednesday, Feb 16, 22 @ 1:32 pm
Could you see Mayor Lightfoot allow for video gaming terminals to be installed at Soldier Field? In an attempt to keep the Bears from moving to Arlington Heights. If that’s allowed. And then perhaps install gaming slots at Wrigley, Guaranteed Rate, or the United Center, if that’s permissible?
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 16, 22 @ 1:38 pm
The casino should go in the city’s SE side. The alderwoman has strong labor ties and there’s plenty of land to work with. Plus a lot of people who could use the jobs.
Too bad the alderwoman has gone missing minus the news of her texts of encouragement to the mayor
Comment by DisappointedVoter Wednesday, Feb 16, 22 @ 1:45 pm
NonAFSCMEStateEmployeeFromChatham, I don’t think the mayor would want to revoke the city’s ban on video gaming which is what I think that would take. They already adjusted the ordinance for sports betting. and allowing terminals at airports subtract from the casinos gaming positions.
Comment by sladay Wednesday, Feb 16, 22 @ 1:59 pm
=== Then put it at O’Hare. ===
There already is one at OHare, about a mile outside the airport’s entrance. Or did you mean actually in the airport terminals?
Comment by Just Me 2 Wednesday, Feb 16, 22 @ 2:11 pm
===actually in the airport terminals?===
Yes. And it’s already allowed in the law. Both airports.
Comment by Rich Miller Wednesday, Feb 16, 22 @ 2:12 pm
This is the same Bally’s as Bally Total Fitness?? Casinos and gyms seems like an odd portfolio.
Comment by Matty Wednesday, Feb 16, 22 @ 2:24 pm
==This is the same Bally’s as Bally Total Fitness??==
No, as in Bally’s the casino company that has a casino in Rock Island Illinois and other states. https://www.ballys.com/casinos-and-resorts.htm
Comment by sladay Wednesday, Feb 16, 22 @ 2:33 pm
Contractually obligated reminder that the City of Chicago has missed out on easily over $100,000,000 in video gambling taxes by putting a brick on any video gambling for a decade while lest it diminish the value of the City casino white whale.
If the City tires to give video poker to stadiums now after just giving them legal sportsbooks before they give terminals to mom and pop bars both bar owner and Neil Bluhm heads are going to explode.
Comment by ChicagoBars Wednesday, Feb 16, 22 @ 2:39 pm
“I think the best casino proposal is the site at The 78, particularly because it’s entirely private development not reliant on public land plus a new Red Line stop at 15th and Clark.”
Though the Reese site was my first thought, Block 78 is also mostly vacant and much closer to the Loop. It wouldn’t be to difficult to set a shuttle route to McCormick for conventions, one to the UC in the winter, Wrigley/Comiskey in the summer and the theater district year-round.
Comment by Proud Sucker Wednesday, Feb 16, 22 @ 2:39 pm
The different Bally’s aren’t connected now but they came from the same parent company back in the day.
Comment by The Velvet Frog Wednesday, Feb 16, 22 @ 2:54 pm
O’Hare and Midway should have been the first places for video gaming, even before statewide video slots went into place. All that revenue and so little of it from instate residents.
I’ll second the 78 site. Better land use, still within a cab ride of the McCormick Complex. If it needs to be right around McCormick - given the lift at the Lake Side Center I think you need to find the will to place it just south of the I-55/Lake Shore merge and west of the marshalling yard.
Comment by Cool Papa Bell Wednesday, Feb 16, 22 @ 2:56 pm
==No, as in Bally’s the casino company that has a casino in Rock Island Illinois and other states.==
Doesn’t the Bally’s casino company now own what used to be all regional Fox Sports cable networks? Such as Fox Sports Midwest (the Cardinals’ station), which is now Bally Sports Midwest.
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 16, 22 @ 2:56 pm
Yes, looks like the sports networks and casinos are the same ownership.
Comment by The Velvet Frog Wednesday, Feb 16, 22 @ 3:40 pm
==Doesn’t the Bally’s casino company now own what used to be all regional Fox Sports cable networks==
Yes Sinclair owns it and signed a 10-year naming rights deal with Bally’s.
https://nerdschalk.com/why-did-fox-sports-change-to-bally-sports/
Comment by sladay Wednesday, Feb 16, 22 @ 3:45 pm
==Yes Sinclair owns it ==
Ah, yes. Sinclair. The same company that brings you an entire channel devoted to the Loveable Losers (aka Marquee).
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 16, 22 @ 3:51 pm
=== The casino should go in the city’s SE side===
There’s a lot of land there. And water taxis from the loop could make it a fun experience.
Comment by Da big bad wolf Wednesday, Feb 16, 22 @ 5:01 pm
The thought occurs that a casino in McCormick Place Lakeside would be good cover for a somewhat anemic pipeline of major conventions 2023-2026.
But also can we put a temporary casino in Kruesi’s Folly” never finished CTA station under Block 37 in the Loop?
Comment by ChicagoBars Wednesday, Feb 16, 22 @ 5:02 pm
Just put it at Soldier Field since the Bears a moving out
Comment by Ed Wednesday, Feb 16, 22 @ 9:42 pm