A temporary casino at Medinah Temple in River North will serve as a Bally's location during the process of the $1.7bn project in River West. Mayor Lori Lightfoot will look to secure a $40m upfront payment from Bally's as well.
This payment will keep police and fire pensions solvent and stave off a pre-election property tax increase. Organized labor played a large part in the approval of the ordinance authorizing Bally’s to build a $1.7bn permanent casino.
The host agreement, which covers the temporary casino at Medinah Temple, will also cover the labor deal and other financial, contracting, and hiring commitments. The committee approved the ordinance with a 27-3 vote.
The final stage of approval is set for Wednesday, May 25.
Downtown Ald. Brendan Reilly (42nd) said the rushed nature of the process is similar to when the city struck a criticized deal to privatize its parking meters. Reily stated: "I’m not saying this is the parking meter deal. I’m not even saying it’s the same kind of transaction. I’m saying... this sprint to the finish and the gymnastics that we’re doing today."
He continued: "In speaking with [Ald. Edward] Burke, who’s been here for 50 years – he’s never seen anything like this. So in a way, this is actually worse than the process for the parking meter deal."
Ald. Brian Hopkins (2nd), Reilly and Ald. Michele Smith (43rd), was unable to convince the rest of the committee. They were also the only three committee members to vote "no".
Reilly went on to criticize Bally's projections, stating: "This casino needs to generate about $550,000 a day in taxes. For that to happen, the casino would have to win $1.4 million-a-day, all 365 days-per-year, with no accounting for snow, protests, crime, January and February in Chicago every year, etc., etc."
City officials stated that Bally's has no competition in the Chicago area. Both Rush Street Gaming and Hard Rock Casino operate in Des Plaines and Gary, Indiana respectively.
The proposal from Bally's includes 3,400 slots, a 3,000-seat entertainment center, a hotel with up to 500 rooms, a 1,000-seat outdoor music venue, and exhibition space including a Chicago sports museum.
