Obama Presidential Center Construction Mired in Controversy, Cost Overruns, and Discrimination Lawsuit

Created: JANUARY 25, 2025

Drone footage reveals the ongoing construction of the Obama Presidential Center in Chicago, a project initially envisioned as a symbol of diversity, equity, and inclusion (DEI). However, it's now facing significant challenges, including substantial cost overruns, delays, and a racially charged $40.75 million lawsuit filed by a minority contractor.

The project's cost has escalated dramatically from the original $350 million estimate to $830 million in 2021, with no recent updates on projected expenses. The Obama Foundation had emphasized DEI as a cornerstone of the project, aiming to allocate contracts to diverse suppliers, with 35% designated for minority-based enterprises (MBEs). A 2017 press release highlighted these "aggressive goals" as an attempt to establish a new standard for diversity and inclusion in major construction projects.

Barack Obama and presidential center

The lawsuit, filed by Robert McGee, co-owner of the minority-owned subcontractor II in One Construction, alleges racial discrimination by Thornton Tomasetti, the project's structural engineering and design firm. McGee claims Thornton Tomasetti implemented altered rebar standards, deviating from industry norms and leading to over $40 million in cost overruns, pushing his company towards bankruptcy.

Thornton Tomasetti, in a memo circulated a year prior, attributed project delays and issues to the concrete subcontractor's alleged underperformance and inexperience, citing cracked slabs and exposed rebar as evidence. The memo questioned the subcontractor's qualifications, suggesting they received undue assistance due to their minority status. This memo became the basis of McGee's lawsuit, which alleges defamatory and discriminatory accusations, undermining the project's DEI objectives.

The Obama Presidential Center

McGee's lawsuit contends that Thornton Tomasetti's actions violated the Civil Rights Act of 1866, resulting in significant financial hardship for II in One. The suit also claims the Obama Foundation withheld approximately $40.75 million in payments based on Thornton Tomasetti's memo. McGee highlights his company's extensive experience on prominent Chicago projects, refuting claims of inadequate qualifications.

Cracks in concrete

The Obama Foundation maintains it is not involved in the lawsuit and insists it won't impact the project's timeline. While stating they would take action against any vendor exhibiting racist intent, the Foundation hasn't addressed inquiries regarding updated project costs.

Obama Presidential Center expected to open in 2026 Pritzker and the Obamas

The project has faced numerous delays and community concerns regarding potential displacement and environmental impact. Legal challenges were raised but ultimately dismissed by the Supreme Court. Thornton Tomasetti has requested an extension to respond to the lawsuit, with a deadline set for March 5, 2025.

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