An Iraqi-British billionaire has stood behind the scenes of the Chicago White Sox’s stadium plans anchoring Related Midwest’s South Loop megadevelopment, The 78.
For over two decades, a 62-acre plot along the Chicago River has been a focal point of legal and political contention for Nadhmi Shakir Auchi. Auchi’s attempts at development have been consistently thwarted, entangled in a web of partnerships and his own controversial past, which includes criminal convictions in France and Iraq, the Chicago Sun-Times reported.
Situated south of Roosevelt Road and west of Clark Street, the prime real estate has seen proposed developments ranging from housing to a potential Amazon headquarters, all ultimately fizzling out.
Now, White Sox owner Jerry Reinsdorf has set his sights on the land.
While Reinsdorf’s plans have garnered widespread attention, Auchi, 86, remains elusive on the matter. Inquiries to his London-based attorneys yielded minimal insight, with Related handling public statements regarding the property.
Related has been involved in the venture since 2016, when it acquired a minority stake in the land. Despite Auchi’s majority ownership, he remains largely in the background, with Related taking the forefront in negotiations and proposals.
Auchi’s past, marred by convictions and associations, adds layers of complexity to the saga. Denied entry to the United States twice due to unspecified “crimes of moral turpitude,” his history includes a conviction in a French oil scandal and imprisonment for an assassination attempt on Iraq’s prime minister in 1959.
With Reinsdorf’s vision for a stadium gaining momentum, questions loom over the future of Auchi’s property and his potential involvement.
Meanwhile, the White Sox are engaged in negotiations with city and state officials regarding public subsidies for the stadium. Simultaneously, the Chicago Bears are involved in similar discussions with public officials to obtain funds for a domed stadium along the city’s lakefront, near its longtime home Soldier Field.
The Bears and White Sox recently met with Mayor Brandon Johnson to discuss the possibility of incorporating revenue from Chicago’s amusement tax on ticket sales at stadiums into the financing mix, Crain’s reported.
This move is perceived as necessary to address the existing debt burden from the teams’ current venues and to facilitate the construction of new ones.
With the General Assembly spring session extending until May, the teams are urgently trying to land an agreement with city officials. The teams have been in talks for months, spurred by state leaders’ preference of consolidated financial agreements for both teams rather than separate deals.
However, uncertainties loom, particularly concerning Reinsdorf’s reluctance to invest the team’s own capital into the stadium project. Gov. J.B. Pritzker has reiterated that taxpayer subsidies for the teams are not a primary focus.
The Illinois Sports Facilities Authority, which owns Guaranteed Rate Field and the debt from the 2003 Soldier Field renovations, is being looked upon by both teams for financial assistance in constructing their new stadiums. Alternative avenues are also being explored after an initial proposal involving the amusement tax revenue was rejected.
The White Sox proposed a plan that involved keeping the 2 percent hotel tax in place while introducing a sales tax overlay district around the proposed ballpark, dedicated to supporting the stadium. This plan raised concerns about the exclusion of the Bears in utilizing Illinois Sports Facilities Authority bonds, though.
—Quinn Donoghue
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