De Paul Cost Overruns
- The Metropolitan Pier and Exposition Authority is negotiating with a general contractor for the proposed DePaul arena near McCormick Place, but the two sides are struggling with a price tag that has soared to as much as $250 million, about 75 percent more than the original estimate, according to people close to the bidding process.
McPier next week is expected to award a design-build contract for the arena and an adjacent 1,200-room Marriott hotel to a venture led by Bethesda, Md.-based Clark Construction Group, those sources tell Crain's. The cost of the 51-story hotel is expected to be in line with previous estimates, or a total of roughly $400 million.
But a sticking point is the "dug-in" design of the 10,000-seat arena, which places its playing floor well below ground level. That feature has pushed construction costs above the $140 million that McPier and city officials optimistically projected when they announced the project in May 2013, sources said.
Although a final price has not been set, the cost of that design, by New Haven, Conn.-based Pelli Clark Pelli, could be as much as $250 million, sources said.
Back in the real world, when you bid a construction job, you usually figure in somewhere in the neighborhood of 10% for cost overruns and extraneous items. Material costs fluctuate, gas prices, equipment failures, weather delays, maybe some overtime. But a lot of that can be alleviated by long term contracts with suppliers locking in prices, volume discounts, etc.
Anything approaching 20-25% means something went terribly wrong - maybe even criminally wrong. This stadium, for a PRIVATE UNIVERSITY, is projected to be 75% over budget. It might as well be a completely different contract in terms of money. And the City Council that voted for it in the first place doesn't seem to be able to revisit the contract and reevaluate the taxpayers' commitment to a cost overrun worth more than one-quarter of the City's pension obligation due next year.
FOP, you guys going to point this out? It's a gift.
Anything approaching 20-25% means something went terribly wrong - maybe even criminally wrong. This stadium, for a PRIVATE UNIVERSITY, is projected to be 75% over budget. It might as well be a completely different contract in terms of money. And the City Council that voted for it in the first place doesn't seem to be able to revisit the contract and reevaluate the taxpayers' commitment to a cost overrun worth more than one-quarter of the City's pension obligation due next year.
FOP, you guys going to point this out? It's a gift.
Labels: money questions, scandals
posted by SCC at 12:05 AM
77 Comments:
Relax. These large cost overruns are common for construction projects involving government and government money. If they had factual estimates, nothing would ever get built.
Somebody better sharpen their pencil
"It's a gift." -- SCC
De Paul is doing great here. Is that 1,200-room hotel going to be another gift from us to the Pritzkers?
...and some quail about "non-profits" getting free city garbage pickup and free water...
I am sure that they can get the final cost to be over $300 million with a little "work." Lots of room for pay-offs, feather-bedding, kick-backs and general corruption. Just wait until the minority worker set-asides get underway. And the selection of public "art" for the project.
When the politicians got married to the mob it was all over.
Wink, nod & chuckle.
Politicians and mafia are a small percentage of the population, we could take it back if we tried.
A cost estimate that is overrun by costs by 75% is the norm for Chicago projects.
The pols low-ball the initial estimate to set the hook. Then when the job is underway and there is no turning back, the real figures come out.
Remember the O'Hare expansion project?? Initial cost estimate was like $11B. With a a month of signing the contracts, BOOM, $17B overnight.
Wait until that Ill-iana road is approved. That cost will quickly triple.
If DePaul has $80M to spend of a basketball arena for a third rate team that hasn't contended for a national championship in over 20 years, then if you are sending your kids there or going and paying your own way you are paying WWAAYY too much tuition.
Watch the whole thing come to a screeching halt when they discover indigenous remains while excavating the arena.
And how much of those cost overruns will be paid for by money already earmarked for pension funds? Hello? Anyone home, Rahm, for the retirees, come on, the pensions...
The fop will lay off of this one. They have no say in the city council decisions to improve lakefront infrastructure involving George lucas and DePaul basketball.
Any wonder we are broke.
Don't think I'll be sending my kids to DePaul. Just think of the tuition hikes and the irony is that those students making most use of this arena, probably won't be paying any tuition at all. We're so screwed.
OT: The taxpayers are being screwed by another case of "double dipping." Commander O'Neill (formerly the commander of Management and Labor Affairs) was quietly allowed to retire from the sworn ranks to collect his pension, and now he is the civilian director of Human Resources. So now he collects a great pension in addition to a director's salary for doing the same job he has been doing all along. Nothing has changed but his take home pay. He won the lotto at our expense. You can thank his buddy Deputy Chief MS from Bureau of Admin. for putting this scam together.
This sounds like Millenium Park part deuce.
no $$ for pensions,boy i better watch what i say here!
Nothing is ever under budget in Crook County.
They need to use my polish guy. He does good work at very reasonable price.
uh, wha?
We can only hope that a good U.S. Attorney will come to Chicago after Obama's term. Then, we hopefully will see multiple indictments.
The looters in Ferguson should take note that this is the proper way to loot.
Don't you think this would be a good story for "60 Minutes" or PBS Frontline? Or is Rahm able to squash it via Ari and their connections with the lapdog national media that refuses to exposes such scandals as well as those involving the other Chicago export.
This is just a precursor of the Obama Shrine/Library. In fact, isn't the Obama library gonna include a basketball court?
The silence from the FOP since disability dean arrived is deafening.....
"Relax. These large cost overruns are common for construction projects involving government and government money. If they had factual estimates, nothing would ever get built."
11/19/2014 12:14:00 AM
You're absolutely right. You -- not someone else over there, but you personally -- deserve to be lied to, defrauded, and taxed to death to enrich what is called "the 1%."
So, as you say, "relax" while it slides in...
I'm laughing my head off thinking of you turning purple and confronting your auto mechanic about the difference between the "factual estimate" and the bill you were just handed.
"Take a disturbance with a customer at Al's Garage..."
"Watch the whole thing come to a screeching halt when they discover indigenous remains while excavating the arena."
11/19/2014 12:47:00 AM
I'm gonna sneak a rare bird nest in there tonight.
Two Words, Millennium Park.
If DePaul has $80M to spend of a basketball arena for a third rate team that hasn't contended for a national championship in over 20 years.
It's was 1979 when they contested for a NCAA championship, that would make it 35 years.
OT
A very long but well documents account of the lying by Mike Brown's friends and neighbors.
http://theconservativetreehouse.com/2014/11/18/decision-imminent-understanding-the-origin-of-the-mike-brown-media-narrative/
"The fop will lay off of this one. They have no say in the city council decisions to improve lakefront infrastructure involving George lucas and DePaul basketball.
11/19/2014 02:17:00 AM"
Dean Jr & Mike Shields will be in a bidding war over who gets the new stadium security contract.
Start sucking up to them now spineless ones.
Both Daley's went to DePaul
Burke went to DePaul
I also like the "Below Grade" construction. Wasn't there a college stadium in California, built in a similar fashion, that flooded during a rainstorm?
As Gomer used to say---Well surprise surprise!
De Paul ?? Catholic school??? What happened to our constitution??? Separation of church and state!!! Someone please help the tax payers and take a stand against the mayor!
Anonymous said...
Watch the whole thing come to a screeching halt when they discover indigenous remains while excavating the arena.
11/19/2014 12:47:00 AM
Those ain't no indigenous remains. Those are Jimmy Hoffa's bones! They will perhaps finally find the guy!
Anonymous Anonymous said...
I am sure that they can get the final cost to be over $300 million with a little "work." Lots of room for pay-offs, feather-bedding, kick-backs and general corruption. Just wait until the minority worker set-asides get underway. And the selection of public "art" for the project.
11/19/2014 12:37:00 AM
Hey, how about the first repaving job that will be due five years after completion?
Anonymous said...
"It's a gift." -- SCC
De Paul is doing great here. Is that 1,200-room hotel going to be another gift from us to the Pritzkers?
...and some quail about "non-profits" getting free city garbage pickup and free water...
11/19/2014 12:36:00 AM
Hey, don't forget that Penny Pritzker is Obama's Secretary of Commerce. She seems to be doing a good job too, just moving that commerce into the pockets of the connected back home in Chicago.
They didn't account for McCormick Place prices.
Just curious as I haven't been paying as close of attention, but if this is built where is it in correlation to the Lucas Mountain??
Speaking of overruns, Emanuel wants to know why there are so many people assigned to the academy and why their workload consists of teaching for 50 minutes a week. Emanuel is thinking about privatizing the academy or bringing in professors from the City Colleges.
It looks like someone was able to get Emanuel's attention in order to complain about the situation.
There are many Supervisors (above sergeant) who have been voicing there concerns about the quality of the training.
Some of these supervisors noticed the problems when they were only sergeants but now they are many levels higher and they are pursuing change.
Anonymous said...
Relax. These large cost overruns are common for construction projects involving government and government money. If they had factual estimates, nothing would ever get built.
11/19/2014 12:14:00 AM
Amen, The honest bids get tossed out. The low ball bid gets the job and makes up for it on the cost overruns. That takes care of the profits, the no-show jobs and the kickbacks.
That's not taking into account the money already spent. The city paid nearly $10 million to MOVE the old house that was in the way of the proposed construction. $10 MILLION! On top of that the demolition, which has already begun, of the old warehouse that is on the property is also in the MILLIONS! Acquisition of the actual property and adjacent properties, MILLIONS! And they don't even have a contract yet for the actual building!? Unfucking believable!
Follow the money. Lots of politicians and others made a good buck off of this scam. Won't happen of course.
Hey did anyone check out the labor board notice posted on the FOP website? Can anyone explain what this means if anything at all?
THEFT. Not a cost overrun. Blatant, in your face, THEFT.
Move along nothing to see here. The annointed ones bid low (getting the contract) knowing the bid is just the starting point not to be taken seriously.
Earlier articles I read said DePaul is kicking in $70 for part of the arena. Still gov cash for private owner but they are paying some of the bill. And they won't be exclusive users, other events can be held there too.
Relax, these cost overruns will be paid for with tax $$, it's not like they are paying for it with real money.
11/19/2014 12:44:00 AM
National championship???? Seriously? How about just .500.
Anonymous Anonymous said...
They didn't account for McCormick Place prices.
Just curious as I haven't been paying as close of attention, but if this is built where is it in correlation to the Lucas Mountain??
11/19/2014 10:45:00 AM
Oh, you mean Saint Jabba the Hut? I laughed at that description til I saw the drawing. Looks like a molten Jabba with a halo on it.
"Just curious as I haven't been paying as close of attention, but if this is built where is it in correlation to the Lucas Mountain??"
11/19/2014 10:45:00 AM
I think of it as the Lucas Anthill. Looks like those weird sun-dried mud mounds constructed by giant insects in Africa -- with some futuristic glass-and-steel thing on top, gives the critters a place to look out, a fine lakefront view...
Abomination. Build it in Hollywood, where most of the (aging, longhaired) fans would go anyway.
This "Star Wars" s__t is old..
Glad that the "Chicago Spire" is still just an expensive hole. World's largest #10 wood screw...
Typical. From the New York Times
As Sharpton Rose, So Did His Unpaid Taxes
http://www.nytimes.com/2014/11/19/nyregion/questions-about-al-sharptons-finances-accompany-his-rise-in-influence.html?ref=us&_r=0
Anonymous said...
Speaking of overruns, Emanuel wants to know why there are so many people assigned to the academy and why their workload consists of teaching for 50 minutes a week. Emanuel is thinking about privatizing the academy or bringing in professors from the City Colleges.
It looks like someone was able to get Emanuel's attention in order to complain about the situation.
There are many Supervisors (above sergeant) who have been voicing there concerns about the quality of the training.
Some of these supervisors noticed the problems when they were only sergeants but now they are many levels higher and they are pursuing change.
11/19/2014 10:57:00 AM
+++++++++++++++++++++++++++++++
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Might very well be the worst training academy in the country. The only thing learned there is how screwed up this department is as a whole. That place is a total hideout for the incompetent assholes with limited clout or some other bullshit. That spot shouldn't be more than a 3 year detail tops to keep fresh experienced officers in there teaching actual police work. Those house mice have never been the police and stay there for over 10 years with zero street experience while they pass on other peoples stories as their own.
Anonymous said...
Earlier articles I read said DePaul is kicking in $70 for part of the arena. Still gov cash for private owner but they are paying some of the bill. And they won't be exclusive users, other events can be held there too.
11/19/2014 01:17:00 PM
Who's ass are you kissing? A little misuse of public funds is OK? Other events can be held there too? Oh I feel so warm and fuzzy inside, thank you. Douche bag.
Hey did anyone check out the labor board notice posted on the FOP website? Can anyone explain what this means if anything at all?
11/19/2014 12:54:00 PM
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What it means is you can leave the union and the city must stop taking the fair share amount of money out of your paycheck to give to the union regardless if you're in the union or not. You see the union doesn't want you know about this that's why it was not placed on the front page of their website. In a nutshell it's less money to them if people start bailing on them and they are not happy about it.
Also it was not discussed at the last general meeting and i'm sure they're not gonna go out of their way in the next general meeting to talk about it either. Shady.
Anonymous said...
Both Daley's went to DePaul
Burke went to DePaul
11/19/2014 09:17:00 AM
The alumni office must love them. My school expects me to write a check. DePaul gets gifts of other people's money from the Daley's and Burkes'. Don't they teach ethics at De Paul Law School?
Anonymous said...
OT: The taxpayers are being screwed by another case of "double dipping." Commander O'Neill (formerly the commander of Management and Labor Affairs) was quietly allowed to retire from the sworn ranks to collect his pension, and now he is the civilian director of Human Resources. So now he collects a great pension in addition to a director's salary for doing the same job he has been doing all along. Nothing has changed but his take home pay. He won the lotto at our expense. You can thank his buddy Deputy Chief MS from Bureau of Admin. for putting this scam together.
11/19/2014 06:50:00 AM
It is supposed to be against City Ordinance to collect a City paycheck and a City pension. Supposed to. In theory. For you and I.
OT: The taxpayers are being screwed by another case of "double dipping." Commander O'Neill (formerly the commander of Management and Labor Affairs) was quietly allowed to retire from the sworn ranks to collect his pension, and now he is the civilian director of Human Resources. So now he collects a great pension in addition to a director's salary for doing the same job he has been doing all along. Nothing has changed but his take home pay. He won the lotto at our expense. You can thank his buddy Deputy Chief MS from Bureau of Admin. for putting this scam together.
11/19/2014 06:50:00 AM
I am glad to see someone else caught this theft.
No one was supposed to be able to double dip anymore, but there was a problem with the way the City wrote the rules that allowed Marv Shear and O'Neil to retire and come back as civilians, effectively doubling their salaries.
Add this to the Commanders that were "promoted" to Deputy for big pay raise for the same job. The Lieutenants that were "promoted" to Captain and sent back to do the same job they were doing for more money.....your money.
All this under Superintendent McCarthy with the blessing of Mayor Emmanuel. What the hell, they can just keep raising property taxes and throw a few more speed and red light cameras to pay for it.
"There are many Supervisors (above sergeant) who have been voicing there concerns about the quality of the training.
Some of these supervisors noticed the problems when they were only sergeants but now they are many levels higher and they are pursuing change."
You're right their 1st order of business is to ensure they are adjunct professors at Calumet College so when Calumet College gets the contract to teach at the Academy they'll get paid as special on call instructors. Mind you this will be on company time.
That's the Chicagah Way Boyos"
Yea, it over runs right into the politico's pockets!
Off topic. Please watch this video if you haven't seen it already. Every department in America could use a leader like this. http://www.break.com/video/milwaukee-police-chief-flynn-answers-questions-2788889
What's the deal with that Labor Board Notice on the FOP website?
It's like Monopoly money to Rahm and his ilk.
Except when it comes to making the city's required pension contributions then Rahm acts likes its his own money and he develops alligator arms.
Scam scam scam. O'neill could have been in charge of HR while sworn.
Cost overruns are picked up by the city and that means taxpayers. Rahm has amassed $1.5 billion that is sitting in the TIF accounts for him to play with. Don't worry, that TIF money will cover any cost overruns or other construction costs. He says TIF money is not for pension funds.
No more ACT required to attend Depaul. Gauranteed government tuition$$ for the school for those "underpriveledged" to attend, which are many attending these days!
FOP step up? Really? We haven't heard shit from Dean!! Him and his crew are too busy bouncing out the elected Board members and putting in their pals. Dean, what happened to all of your promises you made to save the world during your ca-ca-campaign?
Off topic. Please watch this video if you haven't seen it already. Every department in America could use a leader like this. http://www.break.com/video/milwaukee-police-chief-flynn-answers-questions-2788889
The police chief sounds real good, but he fired the officer in question, Christopher Manney.
The Daley Crime Family involved?
---
Glad that the "Chicago Spire" is still just an expensive hole. World's largest #10 wood screw...
11/19/2014 04:29:00 PM
If they ever made public deep core soil samples there would never be anything built on that site. There had to be some hocup pocus monkey business when they tested the soil, if they tested the soil.
I was in a unit working nearby and we were told by workers from a company doing core sample drilling about 11 years ago that the entire area was contaminated. River bottom, soil, the whole thing. Next thing I hear is a skyscraper is being built there.
Hello EPA, are you still in the environment business?
Dean Jr & Mike Shields will be in a bidding war over who gets the new stadium security contract.
Start sucking up to them now spineless ones.
11/19/2014 09:08:00 AM
Your kidding right, Monterrey will get the contract. They have the most clout heavy owners and the HDO
Alderman get piece of the pie. Sad how the owner is making a mint meanwhile the recruit he got fired because of the jacket incident is still fired from the job.
Anonymous said...
What's the deal with that Labor Board Notice on the FOP website?
11/19/2014 08:25:00 PM
Probably part of a settlement after PO Wayne Harej filed his suit or complaint with the labor board. I forget exactly what the original issue was but he had a big fight with the union.
Anonymous said...
Hey did anyone check out the labor board notice posted on the FOP website? Can anyone explain what this means if anything at all?
11/19/2014 12:54:00 PM
------------------------------------------------------------------------
What it means is you can leave the union and the city must stop taking the fair share amount of money out of your paycheck to give to the union regardless if you're in the union or not. You see the union doesn't want you know about this that's why it was not placed on the front page of their website. In a nutshell it's less money to them if people start bailing on them and they are not happy about it.
Also it was not discussed at the last general meeting and i'm sure they're not gonna go out of their way in the next general meeting to talk about it either. Shady.
11/19/2014 06:32:00 PM
*****
This goes back to the Donahue tenure. If you come to the next meeting just ask at the micro phone.
The looters in Ferguson should take note that this is the proper way to loot.
11/19/2014 08:31:00 AM
Exactly
So is our jagoff Director Murphy he is double dipping. I have so many stories.
If you dont believe me look at pension payouts.
OT: The taxpayers are being screwed by another case of "double dipping." Commander O'Neill (formerly the commander of Management and Labor Affairs) was quietly allowed to retire from the sworn ranks to collect his pension, and now he is the civilian director of Human Resources. So now he collects a great pension in addition to a director's salary for doing the same job he has been doing all along. Nothing has changed but his take home pay. He won the lotto at our expense. You can thank his buddy Deputy Chief MS from Bureau of Admin. for putting this scam together.
11/19/2014 06:50:00 AM
I am glad to see someone else caught this theft.
No one was supposed to be able to double dip anymore, but there was a problem with the way the City wrote the rules that allowed Marv Shear and O'Neil to retire and come back as civilians, effectively doubling their salaries.
Add this to the Commanders that were "promoted" to Deputy for big pay raise for the same job. The Lieutenants that were "promoted" to Captain and sent back to do the same job they were doing for more money.....your money.
All this under Superintendent McCarthy with the blessing of Mayor Emmanuel. What the hell, they can just keep raising property taxes and throw a few more speed and red light cameras to pay for it.
11/19/2014 06:42:00 PM
How about the present Chief of Staff? Mandatory retirement as a Commander and now a civilan position as Chief of Staff. But still has been seen wearing the uniform...How I can not come back and work after retirement and double dip?
Anonymous Anonymous said...
What's the deal with that Labor Board Notice on the FOP website?
11/19/2014 08:25:00 PM
Read it. Do you know how to send an email or make a phone call?
To 8:08 on 19Nov-
That's a good story but I'm not sure you would call Chief Ed Flynn of Milwaukee a Chief everyone would want when you discover that he fired a Milwaukee cop for defending himself after he was being beaten with a baton by a homeless man. That homeless man had snatched the baton from the copper . Chief Flynn fired the cop not for shooting the man but for violating the "values" of the Milwaukee PD. Chief Flynn has received a vote of no confidence by the Officers in every department he has ever worked in. He is not a policemans friend and not someone we would want here.
But ain't this the Chicago way? Quote a workable figure in the beginning and then bust out with some crazy number after everything is in motion?
What's the deal with that Labor Board Notice on the FOP website?
11/19/2014 08:25:00 PM
Probably part of a settlement after PO Wayne Harej filed his suit or complaint with the labor board. I forget exactly what the original issue was but he had a big fight with the union.
11/20/2014 12:21:00 AM
Anonymous Anonymous said...
Anonymous said...
Hey did anyone check out the labor board notice posted on the FOP website? Can anyone explain what this means if anything at all?
11/19/2014 12:54:00 PM
------------------------------------------------------------------------
What it means is you can leave the union and the city must stop taking the fair share amount of money out of your paycheck to give to the union regardless if you're in the union or not. You see the union doesn't want you know about this that's why it was not placed on the front page of their website. In a nutshell it's less money to them if people start bailing on them and they are not happy about it.
Also it was not discussed at the last general meeting and i'm sure they're not gonna go out of their way in the next general meeting to talk about it either. Shady.
11/19/2014 06:32:00 PM
*****
This goes back to the Donahue tenure. If you come to the next meeting just ask at the micro phone.
11/20/2014 12:27:00 AM
Seriously, guys, stop making it up as you go along. Here's the real reason for it:
http://www.nytimes.com/2014/07/01/business/supreme-court-ruling-on-public-workers-and-union-fees.html?_r=0
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