Chicago Construction News staff writer
Chicago City Council members are pushing back against Bally’s decision to slow construction on parts of its permanent casino development, saying the company is required to build the full project promised under its agreement with the city.
Bally’s announced Sunday that it was “resetting the pace of construction” on some parts of the $1.7 billion casino project in River West, a move they say was prompted by the City Council’s authorization of video gambling terminals (VGTs) at bars and restaurants.
The general contractor for Bally’s permanent Chicago casino development is the Chicago Community Builders Collective (CCBC), a minority-led construction consortium including:
- Brown & Momen Inc.
- d’Escoto Inc.
- LiveWire Construction Inc.
- Milhouse Engineering & Construction
- Powers & Sons Construction
- UJAMAA Construction Inc.
- Riteway-Huggins Construction Services Inc.
- SQN Associates LLC
- Gilbane Building Company
Bally’s argues that widespread video gambling would violate the city’s commitment under its Host Community Agreement not to expand gaming in a way that could hurt the casino.
City Council members disagree.
In an Aug. 12 letter to Bally’s leadership, council members said the Host Community Agreement requires the company to continue construction of the entire development, not just the casino.
The project includes a hotel, restaurants and bars, retail space, event and exhibition facilities, a visitor centre, Riverwalk, greenspace and other public areas.
The agreement requires Bally’s and its contractors to “promptly and diligently” complete all parts of the project. It also requires a minimum capital investment of $1.34 billion.
“Continuing construction of the casino floor while slowing the hotel and other non-gaming portions does not eliminate those obligations,” the council members wrote.
Council said the Host Community Agreement already addresses the possibility of additional gaming in Chicago. It says VGTs have been authorized but are not yet operating throughout the city and have not caused the type of harm to Bally’s that would trigger the agreement’s provisions dealing with new gaming.
“What it does not expressly provide is a right to selectively withhold portions of the project Chicago was promised while continuing construction of the casino,” council members wrote.
The construction slowdown has also raised concerns about union jobs.
Bally’s said about 1,500 union tradespeople have been working on the project. ABC7 reported Monday that dozens of union workers left the construction site.
In their letter, council members said “tradespeople building the hotel, restaurants, entertainment venues and other portions of this project should not become bargaining leverage in a dispute with the City government.”
The council also asked if Bally’s still has enough financing to complete the entire development.
Under the Host Community Agreement, Bally’s must provide the financial information and the city can request additional information about the company’s ability to meet its obligations.
The letter also calls on Mayor Brandon Johnson’s administration to enforce the agreement and protect the jobs and economic benefits associated with the full development.
Bally’s has said the permanent casino remains scheduled to open in early 2027 and that it intends to honour its commitments under the Host Community Agreement.
The permanent casino is being built in River West and will replace Bally’s temporary casino at Medinah Temple.
