Chicago’s trade show organizers are divided on whether proposed casinos would enhance or harm McCormick Place, which calls itself the largest center of its kind in the country.
About 38 percent of McCormick clients were “very supportive” of a casino near the campus as opposed to on it, another 38 percent were “somewhat supportive” and 25 percent were “somewhat opposed,” research by the center’s owner found.
The Metropolitan Pier and Exposition Authority controls real estate needed by three of five casino proposals, Bally’s McCormick Place, Rivers McCormick, and Hard Rock One Central. It would vote on whether to make its property available to the city should Chicago pick one of the three next month. The other two are Bally’s proposal for the Tribune Publishing Center on the near north side and Rivers 78 between the South Loop and Chinatown.
The split among those who book events in McCormick, who have been largely absent amid the pandemic, underscores the divisiveness of future business prospects for the Near South Side area. Big money is in play: The Rivers proposal includes a $15 million annual payment to the city, while Bally’s has said it would pay $50 million to the city up front.
Rivers’ $1.3 billion plan would turn McCormick’s Lakeside Center convention space into a casino. Bally’s has proposed spending $1.6 billion to build on the convention campus truck marshaling yards used by tens of thousands of trucks to move conventions in and out.
“Locating a casino on the McCormick Place campus, or adjacent to the campus with a direct connection to [the] convention center, presents opportunities and challenges,” Larita Clark, CEO of the MPEA, said on Tuesday.
Some 38 percent of McCormick customers support a casino on the campus as long as their events wouldn’t be hurt, and 13 percent were somewhat supportive, while 13 percent were neutral and 38 percent were somewhat opposed.
Hundreds of events are booked in McCormick’s Lakeside Center, which Rivers has pitched converting into a casino, through 2035. Their organizers would have to be on board with a new casino development or the city risks losing shows that may never return, Clark said. Lakeside events represent an estimated $13.8 billion for the Chicago economy, she said.
The MPEA would also require any casinos on campus to include a replacement plan for public facilities, meaning the Rivers McCormick proposal is contingent upon finding something comparable to the Lakeside space. The Bally’s bid for the marshaling yards must come with a way to replace the key transportation facility.
The truck yard hurdle would also need to be cleared by a housing development team known as GRIT that won a bidding process with the MPEA and the city in 2017 and insists the McCormick owner refrain from discussing any other use of the marshaling yards, including Bally’s idea. GRIT has the site’s exclusive development rights through at least May 2023 and wants to build apartments.
“We respectfully request MPEA reject any discussion with Bally’s regarding that bid as it directly conflicts with the agreement we have with the MPEA and the rights to discuss the marshaling yards,” Scott Goodman, principal of Farpoint Development, a member of GRIT, said to the MPEA.
Legal counsel for the MPEA said Bally’s proposal would trigger a fight of “significant” costs.
“There was more openness to the marshaling yard if there are enhancements on campus, and a workable replacement for the yards,” Clark said. Convention organizers so far want a casino “not contiguous” to meeting spaces so attendees aren’t distracted by new amenities, she said.
The fight over the location also highlights the disagreement between the people who might benefit the most from the development and those who say it would detract from the business environment.
“Only Rivers Chicago McCormick advances the public interest by offering additional taxpayer benefit on top of the gaming revenue any casino will bring to the city and state. No other applicant does that,” Rivers spokesman Eric Herman said in an email to the Sun-Times. “We look forward to partnering with the MPEA to custom-build a solution that meets all of its needs.”
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