Unpaid Subcontractors Say They Face Financial Ruin After Helping To Build Obama Center

As the Obama Presidential Center stages its grand opening Friday, some of the subcontractors who built the 19.3-acre campus on Chicago’s South Side say they are staring down financial ruin. Meanwhile a promised fund to protect taxpayers remains almost entirely unfunded.Multiple construction firms are claiming losses ranging from hundreds of thousands of dollars to tens of millions in building the library, expected to cost $830 million in 2021 but likely now to have cost more than $1 billion, Fox News reported.Among those affected is Adamson Plumbing, whose owner, Michael Owen, says the company is nearly $4 million in the red after spending years on the project. “That is a hole that no subcontractor, small business can survive,” Mr. Owen told Fox.Mr. Owen described a chaotic worksite marked by repeated design changes, rework, scheduling disruptions, and more than 100 change-order requests. He said the job stretched on years longer than expected, draining his company’s reserves and threatening layoffs.“I haven’t had eight hours or six hours sleep in over a year,” Mr. Owen said. “I’m cooked emotionally. I feel like an aluminum can that’s been thrown in front of a steamroller. We’re crushed. And I have to fight for my company and for my people.”Many subcontractors won’t speak publicly, citing non-disclosure agreements or fears of retaliation, Fox reported. Advocates say black-owned firms in particular have been muzzled.“They are scared to death about talking about it,” the president of the African American Contractors Association, Omar Shareef, told Fox. “The building does look nice, but the fact doesn’t matter that they’re not paying our damn contractors.”The Obama Foundation said it paid Lakeside Alliance as construction manager and that Lakeside was responsible for hiring and paying subcontractors. It said it has no outstanding disputed charges with Lakeside and no contractual relationship with subcontractors. Lakeside told Fox that large projects are inherently complex and that it remains committed to resolving outstanding matters.The disputes have intensified scrutiny of a promised financial safety net. Under its 99-year lease on public parkland — secured from the city of Chicago for a one-time payment of $10 — the foundation pledged to create a $470 million endowment to protect taxpayers from having to pick up any costs if the project ran into trouble. Fox News previously reported the fund holds roughly $1 million.The foundation says the center is “fully funded” through private contributions and plans “significant investments” in the endowment in coming years. It said its agreement required an endowment but specified no dollar amount.The Obama Presidential Center officially opens on Friday, Juneteenth, but a star-studded opening ceremony was being held Thursday morning.The gathering brings together four U.S. presidents — George W. Bush, Bill Clinton, Joseph R. Biden Jr., and Barack Obama. Joining them is a lineup of award-winning musicians including Stevie Wonder, Bruce Springsteen, U2’s Bono and The Edge, The Roots, Christina Aguilera, Jennifer Hudson, John Legend, Eddie Vedder, Marc Anthony, Common, and actress Marsai Martin. Unlike traditional presidential libraries, the Obamas have designed the center to serve as a sprawling community hub. While Mr. Obama’s official records will be held by the National Archives, the Jackson Park campus features a garden, a basketball court, and various performance spaces intended for public use.The center’s location along Lake Michigan, bordering the Woodlawn and South Shore neighborhoods, also places it at the center of local community struggles. The area experiences frequent gun violence; in April, a 16-year-old boy was tragically shot and killed while waiting for a bus just two blocks from the new campus.Despite the challenges, organizers say they are focused on the center’s potential to uplift and unite the community.“The Grand Opening Ceremony will reflect a spirit of inspiration and joy, with a big boost from the performers who are sharing their talent with us. We hope to inspire people everywhere to believe in their power to bring change home,” the Obama Foundation CEO, Valerie Jarrett, said in a statement.Mr. Owen, though, said he’s not too happy with all the festivities and celebrities while he remains unpaid. “It was kind of hard seeing some local and national celebrities high-fiving and back-slapping here about the work that’s been done,” Mr. Owen said.

Unpaid Subcontractors Say They Face Financial Ruin After Helping To Build Obama Center

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