Bally’s Chicago, the company that won the bid to build the city’s first casino and entertainment complex, has encountered an unexpected obstacle that requires it to relocate its planned hotel tower from the original site. The reason is that the foundation of the tower could damage the city’s water pipes near the Chicago River.
Bally’s Chicago’s original plan
Bally’s Chicago, a subsidiary of Rhode Island-based Bally’s Corporation, was selected by Mayor Lori Lightfoot in 2022 as the preferred operator of the Chicago casino, beating two other competitors. The company received final planning and zoning approval from the city in December 2022 for its proposal to build a casino and entertainment complex at the 30-acre Freedom Center site, which houses the Chicago Tribune printing plant.
The complex, which is expected to open in 2026, would include an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. The hotel would be built in two phases: a 100-room hotel base near the Chicago River at Chicago Avenue, and a 400-room tower on top of it within five years of opening the permanent casino.
The water pipe issue
However, the company recently discovered that its initial plan for the hotel tower could pose a risk to the city’s water management infrastructure pipes, which are located near the river. According to Bally’s Chairman Soo Kim, the company began a detailed exploration of the foundation it would need to erect the tower and found out that driving caissons into the ground might damage the pipes. The company informed the city of the issue and agreed that building the tower at the north end of the site was too risky.
The revised plan
Bally’s Chicago submitted a revised site plan to the city in December 2023, which focused on relocating the first-phase 100-room hotel from the north end of the casino complex to the south, next to or atop the events center. The second-phase 400-room hotel tower would also be relocated to the south or west side of the casino building, pending city approval.
Kim said that the change in design would not affect the size or quality of the hotel, and that the company would still fulfill the same host community agreement. He also said that the tower might be shorter if not located on top of the base, as originally planned, but that the company would still build the full 500-room hotel as promised.
Kim also said that the change in plans would not delay the planned opening of the permanent casino in 2026. He said the company expected to finalize the revised plans for the first-phase hotel building “within weeks”, while a location for the tower might take several months to work out. He said the company looked forward to getting shovels in the ground in 2024.
The impact of the casino
Bally’s Chicago is expected to generate significant economic benefits for the city and the state, as well as create thousands of jobs. The company has pledged to invest $1 billion in the project and pay $120 million in upfront fees to the city. The casino is also projected to generate $260 million in annual tax revenue for the city and the state, as well as $950 million in annual gross gaming revenue.
Bally’s Chicago has been operating a temporary casino since last summer at the historic Medinah Temple at 600 N. Wabash Ave., where it has been offering 300 gaming positions and four restaurants. The temporary casino has been performing below expectations, generating about $3.1 million for the city in three-plus months of operation, well short of former Mayor Lori Lightfoot’s budget projections.
Bally’s Chicago hopes to attract more customers and revenue with its permanent casino and entertainment complex, which will be located in the River West neighborhood, close to downtown and other attractions. The company also plans to offer a variety of non-gaming amenities, such as live entertainment, dining, retail and meeting space, to appeal to a wider audience.
