A side-by-side comparison of what we know so far—a companion to our latest Newswire newsletter
By India Daniels
Chicago is steps closer to having its first casino, which will bring slot machines and table games, restaurants, retail and entertainment to a near-downtown location. Supporters have said it will be a “world-class” tourism attraction that will rake in tax revenue.
But what do individual Chicagoans stand to gain? The city once hoped it would be an economic engine in parts of Chicago that have been historically overlooked for development dollars, however all three final sites are located near downtown. City Bureau took a look at what the proposals do—and don’t—promise in the way of jobs, investment and business opportunities for Black, Latinx and other racial-minority residents.
These promises are set against the backdrop of city and state requirements. At the minimum, the selected casino developer must make a “good-faith effort” to achieve the following:
Minority ownership: At least 25% of the casino’s shares are held by minority investors. (More on the state’s designation of “minority investor” here.)
Minority contractor participation: At least 26% of spending on the development goes to minority-owned business enterprises (MBE) and at least 6% goes to women-owned businesses (WBE). (More on the city’s M/WBE designations here.)
Local hiring: At least 50% of hires are Chicago residents.
To create this chart, we reviewed the city’s evaluation report, executive summaries of proposals, Documenters’ coverage of “town halls” and casino websites. We also submitted clarifying questions to the Mayor’s Office and three casino finalists to dig into the specifics, but none answered our list of questions before this issue was published. From the available information, we pieced together a side-by-side comparison of developers’ claims as they relate to minority ownership, minority contractor participation and local hiring.
| Hard Rock at One Central | Bally’s Tribune | Rivers 78 | |
|---|---|---|---|
| LOCATION | One Central, a proposed megadevelopment west of Soldier Field | The site of the Chicago Tribune publishing plant in River West | The 78, a planned mixed-use development north of Chinatown |
| TEMPORARY CONSTRUCTION JOBS | 16,607* * This is the only proposal that includes “indirect” and “induced” jobs that would not be directly created by the project. |
Phase 1: 9,750 Phase 2: 2,500** ** Contingent on earnings from Phase 1 |
3,410 to 4,375 |
| PERMANENT JOBS | 3,140 (equivalent to 2,713 40-hour-a-week jobs) | 2,002 (equivalent to 1,856 40-hour-a-week jobs) | 3,425 (no equivalent provided) |
| MINORITY OWNERSHIP City/state guidance: 25% of the project should be owned by minority investors |
50% owned by Hard Rock, which is majority-owned by the Seminole Tribe of Florida 25.5% owned by Loop Capital, a Black-owned Chicago investment bank |
90+ minority investors have expressed nonbinding interest 40% of board seats filled by minority investor representatives Proposal includes crowdfunding platform that will allow people from “targeted ZIP codes in surrounding neighborhoods” to become investors |
200+ minority investors have committed $100 million worth of funding 20% of board seats filled by minority investor representatives |
| MINORITY CONSTRUCTION PARTICIPATION City guidance: - 26% to MBEs - 6% to WBEs |
No details provided | 36% MBE and 10% WBE participation Bally’s is working with the newly formed Chicago Community Builder’s Collective, which consists of eight local minority-owned construction companies |
30% MBE and 10% WBE participation Bowa Construction, a Black-owned firm, has been tapped as the lead contractor |
| LOCAL HIRING City guidance: 50% of hires should be Chicago residents |
No local hiring goals provided Will provide job training and placement through SouthSideWORKS |
ZIP code-based approach to recruit minority job applicants from surrounding neighborhoods, with a goal of 60% minority hiring Any Chicago resident who applies is guaranteed an interview Will create a local jobs program for training and placement |
No local hiring goals provided Will work with Hire360 to provide job training and placement |
| MINORITY VENDORS | - 26% to MBEs - 6% to WBEs Of annual spending on vendors |
- 15% to MBEs - 10% to WBEs Of annual spending on vendors |
At least $10 million in annual spending to M/W/D/VBE vendors, with a preference for businesses based in the city |
Want more background and specifics on what’s going to happen next with Chicago’s first casino? Subscribe to the Newswire, a newsletter by Chicago Documenters, and read the full report behind this blog post below.
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