TAXPAYERS ON THE HOOK? Obama Center’s Promised $470 Million Safety Net Still Missing as Contractors Claim They’re Owed Millions Ahead of Grand Opening
Concern is mounting that Chicago taxpayers could be left holding the bag if the Obama Presidential Center runs into financial trouble, as the Obama Foundation has yet to establish the promised $470 million safety net designed to guard against a public bailout.
The scrutiny comes as a Fox News investigation reveals multiple contractors and subcontractors claiming losses ranging from hundreds of thousands of dollars to millions on the project. Some allege they remain locked in payment disputes and face financial ruin just days before the center’s grand opening.
Under its agreement with the city, the Obama Foundation pledged to create the fund, known as an endowment, as part of its 99-year deal to take control of the publicly owned 19.3-acre section of Jackson Park for a one-time payment of just $10.
The purpose of the fund was to ensure taxpayers would not be forced to bail out the project if financial problems emerged in the future.
But despite years of fundraising and an estimated $850 million project cost, reports indicate that only about $1 million has been deposited into the promised reserve fund.
Fox News reported:
Fox News Digital previously reported that the foundation had deposited just $1 million into the reserve fund in 2021 and that the balance remained largely unchanged in its most recent publicly available filings.
Concerns about the center’s financial state have raged for years, especially since construction delays and costs have ballooned from an original estimate of roughly $330 million to at least $850 million based on 2021 figures. An updated final projected cost has not been made public.