DePaul arena construction contract: What's the delay?

[Tugg Speedman]

Not yet enough bribes, graft and corruption for this project to move forward.

DePaul arena construction contract: What's the delay?

http://www.chicagobusiness.com/article/20141103/BLOGS04/141109997/depaul-arena-construction-contract-whats-the-delay

early two months after the Metropolitan Pier and Exposition Authority (McPier) intended to award a construction contract for a 10,000-seat, $173 million arena on the Near South Side, a winner is yet to be named.

While McPier, the city-state agency that oversees McCormick Place and Navy Pier, still wants to put shovels in the ground early next year, a dozen construction bidders are patiently awaiting a vote from the agency's board to get the ball rolling on what is expected to be a 22-month project.

In May, McPier CEO Jim Reilly said the group was on track to award the contract at its September board meeting, but the meeting was canceled due to a scheduling conflict, according to a McPier spokeswoman.

The board didn't take action on the contract at its Oct. 30 meeting, further postponing the start of a project the city has touted as a catalyst for revitalizing the Motor Row district.

Mr. Reilly declined to comment on the delay, saying he can't legally discuss an open RFP. But McPier is working to finalize the agreement, he said.

"It's a big deal and we need to make sure we get it right," he said after last week's monthly McPier board meeting, adding that he aims to come to the Nov. 25 board meeting with a contract recommendation. "It's enough money (involved) that we thought we could go faster, but it's taken a little while longer."

COST CONCERNS?

City officials have praised the funding plan for the arena, currently called the McCormick Place Event Center, as a model public-private partnership, with McPier and DePaul contributing $70 million each for construction. McPier also paid $40 million to acquire property for the project from Oak Brook-based CenterPoint Properties Trust.

But a source familiar with the project said the "dug-in" building design by New Haven, Connecticut-based Pelli Clarke Pelli Architects, which places the arena floor below ground level, may be more expensive than originally thought and could be causing the contract delay.

The $7.2 million design contract went to Pelli Clarke Pelli last fall thanks in part to its plan to sink its basketball court below ground, appeasing concerns from 3rd Ward residents that the building not be too obtrusive. The design also will feature glass exterior walls, an undulating roof and space for retail tenants such as restaurants and coffeehouses.

Asked whether the project will move forward at its projected cost and with the below-ground court design it selected in September 2013, Mr. Reilly said its final price "is what we have to negotiate" and that he "would not anticipate any dramatic changes."

Multiple construction bidders did not respond to requests for comment on the status of the contract, though one said bidders were told to expect an answer by September or October.

A spokesman for Ald. Pat Dowell (3rd) declined to comment on the design and timetable.

DEPAUL: STILL ON TRACK

At a preseason luncheon for its men's and women's basketball programs in last month, DePaul Athletic Director Jean Lenti Ponsetto said the arena remains on track to open for the school's 2016-17 season, but that the school may have to be flexible if that is pushed back.

DePaul wants to sell naming rights to the building and pay McPier rent of $25,000 per game.

Ms. Ponsetto noted that much of the preparation work of the site is well under way.

McPier last month moved the two-story coach building of the historic Harriet F. Rees house that sits on the arena lot to a site one block away, and plans to move the three-story house itself next week.

TRYING TO BOOK 'EM

In the meantime, the McPier board has turned its attention to how it will market the arena to small trade shows, concert promoters and sporting event organizers to meet the ambitious attendance goals it laid out for the building to break even on its operating costs.

The board approved a $40,000 one-time fee for city tourism arm Choose Chicago to develop a logo and branding strategy for the entire expansion of the McCormick Place campus, which includes both the arena and a new 1,200-room Marriott hotel across the street.

McPier has projected that DePaul men's basketball games in the new venue will roughly triple in attendance compared to the crowds they've seen at Allstate Arena in suburban Rosemont in recent years.

The agency also estimates it can lure 20 to 25 convention-related events to the arena, citing interest it has received from shows for hardware merchants, dentists and the solar-power industry.

"The marketing and sales here is going to be more complicated," Mr. Reilly told board members last week. "On one hand there will still be a need to market the overall (McCormick Place) campus as part of the national shows market, but also with the event center and (Marriott) hotel added to the Hyatt — we'll now be in a market we've never been able to be in before," he said, citing shows that may want to use the arena and have all attendees stay at the roughly 2,500 rooms that will comprise the Hyatt and Marriott hotels combined.

[Groin_pull]

Still blows my mind this project has moved along as much as it has. A new arena...for DePaul????

A bizarre use of public funds...especially with the UC sitting right there.

But hey, when you can spend about $150 million taxpayer dollars on a new arena for a doormat college team, ya just gotta do it.

[Tugg Speedman]

Still blows my mind this project has moved along as much as it has. A new arena...for DePaul????

A bizarre use of public funds...especially with the UC sitting right there.

But hey, when you can spend about $150 million taxpayer dollars on a new arena for a doormat college team, ya just gotta do it.

Construction/contractors are among the biggest donors to city politicians.  Some cement contractor probably dropped a boatload of money on Rahm or another politician and wants a "job."  

It has nothing to do with Depaul's win/loss record.  Frankly they don't care.  The cement trucks are gassed up and they want to start pouring concrete ASAP so they can over-charge the city.  What they are bogged down with is who gets to steal taxpayer money and how much.  The bribes are pouring into the McPier people that will award this contract and the McPier people want to keep the process going a little while longer so they are milk a few more dollars out out of the bidders.

Welcome to Chicago.

(PS Why do you think Wrigley renovation has been such a struggle.  Ricketts wanted to do the project himself and refused to bribe politicians and allow "preferred contractors" that were "suggested" by politicians the ability to rob him blind.  He also refused to allow Tom Tunney to bribe him just because Tunney was bought and paid for by the rooftop owners.

Ricketts bet his project has a high enough profile that he could circumvent to normal process of doing things in Chicago.  He was right, eventually Rahm caved and pushed enough people to allow the project to happen.  It just took two to three more years than he planned.

Welcome to Chicago - Part 2)

[Benny B]

Not yet enough bribes, graft and corruption for this project to move forward.

Hey now... let's be fair.  The recession was tough on everyone.  Give the grafters and bribers a chance to get back on their feet... you think it's easy to spend boatloads of money on a beach in the Caribbean while millions of people were losing their jobs stateside?  That's a lot harder and more exhausting than you think.

[PuertoRicanNightmare]

The arena isn't about DePaul. It is all about the casino they plan to build. The need an arena to attract entertainment options alongside the gambling.

[RJax55]

The arena isn't about DePaul. It is all about the casino they plan to build. The need an arena to attract entertainment options alongside the gambling.

Bingo. It's all about the casino.

DePaul just took advantage of the opportunity.

[Tugg Speedman]

It's not about a casino, there is no casino in the works, just endless talk about it.

It's going to be part of the McCormick center complex to attract large conventions. 

Shall we count the number of contractors and political donors that have gone to prison that were involved in the building of McCormick Center (and it additions)?

[GooooMarquette]

The $7.2 million design contract went to Pelli Clarke Pelli last fall thanks in part to its plan to sink its basketball court below ground, appeasing concerns from 3rd Ward residents that the building not be too obtrusive.

...

McPier has projected that DePaul men's basketball games in the new venue will roughly triple in attendance compared to the crowds they've seen at Allstate Arena in suburban Rosemont in recent years.

I love the irony of not wanting an arena that's too intrusive...in the "birthplace of the skyscraper."

And the pipe dream of tripling attendance is a joke.  People will come to see you play...if you win.  Ask Seton Hall, which plays in an NHL (and former NBA) arena...and which has to close off the upper deck for its games.

[tower912]

It's Chicago, it's Chicago.

[PuertoRicanNightmare]

It's not about a casino, there is no casino in the works, just endless talk about it.

It's going to be part of the McCormick center complex to attract large conventions. 

Shall we count the number of contractors and political donors that have gone to prison that were involved in the building of McCormick Center (and it additions)?

You're wrong. It's about the casino.

[Tugg Speedman]

You're wrong. It's about the casino.

Ok, what Casino?  Where is it going to be located?  

DePaul wants to open in the new Arena in 2016.  For this to happen, McPier needs to award the new Arena constriction contract NOW!  So unless this casino gets announced Friday, Depaul is going to have to wait years beyond 2016 if the hold-up is a Casino deal.

[RJax55]

Ok, what Casino?  Where is it going to be located?  

DePaul wants to open in the new Arena in 2016.  For this to happen, McPier needs to award the new Arena constriction contract NOW!  So unless this casino gets announced Friday, Depaul is going to have to wait years beyond 2016 if the hold-up is a Casino deal.

Well, tonight's a big night. Pat Quinn is the biggest reason why a casino in Chicago has yet to happen. He is against it and he controls appointments to the IL gaming board. If Quinn loses to Rauner tonight, all this could change. Remember, Rauner is tight with Rahm, they go back a long way. And, Rahm wants a Chicago casino.

As PRN states, the event center is needed as part of the casino complex. Rahm moved ahead with that piece, knowing that in the future, casino clearance will at some point come. And when it does, it be will be part of new McCormick center complex.

BTW, the jockeying for the potential casino has been going on for a long time. Before Rahm, Daley was hot on this as well. You may recall the deal he tried to cut with the Chicago Children's Museum to build a new facility in Grant Park. That was done to try to clear out space at Navy Pier for a potential casino.

[Tugg Speedman]

I'm not saying a casino will not happen.  But even if Rauner wins in the next three hours, he does not take office until January and then has to appoint and get approved his gaming commissioners.  Only then can they begin the process of changing the rules.  That will take months, if not a year.

So, yes the Casino can happen (side note, it will disappoint as we are oversaturated with Casinos).  But the story said this ...

In May, McPier CEO Jim Reilly said the group was on track to award the contract at its September board meeting, but the meeting was canceled due to a scheduling conflict, according to a McPier spokeswoman.

The board didn't take action on the contract at its Oct. 30 meeting, further postponing the start of a project the city has touted as a catalyst for revitalizing the Motor Row district.

Mr. Reilly declined to comment on the delay, saying he can't legally discuss an open RFP. But McPier is working to finalize the agreement, he said.

...

At a preseason luncheon for its men's and women's basketball programs in last month, DePaul Athletic Director Jean Lenti Ponsetto said the arena remains on track to open for the school's 2016-17 season, but that the school may have to be flexible if that is pushed back.


They have to get approval now so they can prep to break ground once the spring thaw hits.  So I don't see the Casino holding it up.  Build the stadium now and hold a parcel of land next to it for the Casino.

[warriorchick]

So they are already predicting that the cost will go 75% over the original budget:

http://www.chicagobusiness.com/article/20141118/BLOGS04/141119802/cost-soaring-for-proposed-depaul-arena?X-IgnoreUserAgent=1

I am SHOCKED!  SHOCKED, I TELL YOU! 

How could something like this happen in Chicago?

[Groin_pull]

Meanwhile, the UC is sitting there and ready to accept a rent-free tenant.

[GooooMarquette]

So they are already predicting that the cost will go 75% over the original budget:

http://www.chicagobusiness.com/article/20141118/BLOGS04/141119802/cost-soaring-for-proposed-depaul-arena?X-IgnoreUserAgent=1

I am SHOCKED!  SHOCKED, I TELL YOU! 

How could something like this happen in Chicago?

Who'd have guessed?  But I'm sure Chicago will find a fair, honorable way to sort this out....

[ChicosBailBonds]

So they are already predicting that the cost will go 75% over the original budget:

http://www.chicagobusiness.com/article/20141118/BLOGS04/141119802/cost-soaring-for-proposed-depaul-arena?X-IgnoreUserAgent=1

I am SHOCKED!  SHOCKED, I TELL YOU! 

How could something like this happen in Chicago?

Chicago.....definitely not limited to Chicago.  I wish I could be wrong by the breadth that gubmit accountant and finance people are.  I get about 0.5% in my forecasting swag before my head is torn off.

[warriorchick]

Chicago.....definitely not limited to Chicago.  I wish I could be wrong by the breadth that gubmit accountant and finance people are.  I get about 0.5% in my forecasting swag before my head is torn off.

But Chicago has turned it into an art form.  Right now I work across the street from Millennium Park.  Original estimate to build:  $150 million.  Final cost:  $475 million.  Oh, and it opened 4 years behind schedule.

It's nice and all, but I doubt anyone outside the former Daley administration looks at it and says, "Oh, yeah; totally worth a half-billion dollars."

[ChitownSpaceForRent]

Corruption and all I still love my city. It's not a Chicago project without some poor financial planning. Couldn't imagine living anywhere else.

[Chicago_inferiority_complexes]

But Chicago has turned it into an art form.  Right now I work across the street from Millennium Park.  Original estimate to build:  $150 million.  Final cost:  $475 million.  Oh, and it opened 4 years behind schedule.

It's nice and all, but I doubt anyone outside the former Daley administration looks at it and says, "Oh, yeah; totally worth a half-billion dollars."

For a park? Grass and stuff?

[warriorchick]

For a park? Grass and stuff?

Well, it includes The Bean, and those fountains that look like people spitting, but still...

[ChicosBailBonds]

But Chicago has turned it into an art form.  Right now I work across the street from Millennium Park.  Original estimate to build:  $150 million.  Final cost:  $475 million.  Oh, and it opened 4 years behind schedule.

It's nice and all, but I doubt anyone outside the former Daley administration looks at it and says, "Oh, yeah; totally worth a half-billion dollars."

No argument from me, though it seems many areas have perfected the nonsense.  Our choo choo train out here was only off by about by $61 billion and 13 years in estimated completion.  It's pretty hard to be off by a factor of double, but our state did it.

Choo choo....chuga chuga chuga....choo choo.....progress...moving forward....chooo choooooo

[GooooMarquette]

Well, it includes The Bean, and those fountains that look like people spitting, but still...

$100 million for he grass, bean and fountains...and $375 million for the mayor's "friends."  Seems reasonable to me.

[Benny B]

$100 million for he grass, bean and fountains...and $375 million for the mayor's "friends."  Seems reasonable to me.

Not sure why you put that in teal.

[PuertoRicanNightmare]

$100 million for he grass, bean and fountains...and $375 million for the mayor's "friends."  Seems reasonable to me.

I don't know the particulars, but it also involved cleaning out an old train location and reinforcing underground parking. It was a massive undertaking and, despite the costs, I'm guess it's one of...if not THE...most visited places in Chicago. Obviously, it was too expensive. It's also borderline stunning.

I did always find it funny that "Millenium Park" didn't open until like 2004.