Obama Presidential Center subcontractor shuts down
lays off 25 workers over $4 million payment dispute
A Chicago plumbing contractor that helped build the Obama Presidential Center has closed its doors and laid off 25 union workers after racking up nearly $4 million in losses on the project, and the Obama Foundation says the construction manager, not the foundation, handles payments.Mike Owen spent months trying to resolve the money quietly. He negotiated with Lakeside Alliance, the joint venture managing construction at the center in Jackson Park on Chicago's South Side. When those talks went nowhere, he went public. When a promised $100,000 payment failed to arrive before the center's grand opening on June 19, he pulled the plug.
On June 25, Owen suspended operations at Adamson Plumbing Contractors, sent home 25 union workers, walked away from roughly half a dozen other construction jobs, and moved out of his office. He now works from his kitchen table.
A $350 million project ballooned past $1 billion, and a promised reserve fund sits nearly empty.
The Obama Presidential Center was originally projected to cost roughly $350 million. By 2021, that figure had climbed to $830 million. Construction costs have since reportedly surpassed $1 billion. Obama personally pushed architects to expand the center's scale, a decision that contributed to the price tag's relentless growth.
The Obama Foundation secured the 19.3-acre Jackson Park site through a 99-year lease requiring a one-time payment of $10. As part of the arrangement, the foundation promised a $470 million reserve fund to protect Chicago taxpayers from cost overruns. Fox News Digital's previous reporting found that only $1 million had actually been deposited into that fund.
Owen has turned the dispute over to his attorneys. He said the $1.72 million lien is just the beginning.
Read about it...
A $350 million project ballooned past $1 billion, and a promised reserve fund sits nearly empty.
The Obama Presidential Center was originally projected to cost roughly $350 million. By 2021, that figure had climbed to $830 million. Construction costs have since reportedly surpassed $1 billion. Obama personally pushed architects to expand the center's scale, a decision that contributed to the price tag's relentless growth.
The Obama Foundation secured the 19.3-acre Jackson Park site through a 99-year lease requiring a one-time payment of $10. As part of the arrangement, the foundation promised a $470 million reserve fund to protect Chicago taxpayers from cost overruns. Fox News Digital's previous reporting found that only $1 million had actually been deposited into that fund.
Owen has turned the dispute over to his attorneys. He said the $1.72 million lien is just the beginning.
Read about it...
"Even though Obama may no longer be President, at least his library is serving its function of reminding Americans of what it was like when he was President." Mike Huckabee
1 comment:
This rumor needs context. Some subcontractors who worked on the Obama Presidential Center have, indeed, alleged that they were not paid or not paid in full, and at least one of those subcontractors is a Black-owned business, per court filings. However, the Obama Foundation contracted with Lakeside Alliance — which is composed of multiple Black-owned firms — as the project's construction manager, meaning Lakeside was responsible for hiring, managing and paying subcontractors. Reports suggest the Obama Foundation has no direct disputed charges with Lakeside.
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