A minority-owned construction company involved in building the Obama Presidential Center in Chicago faces potential bankruptcy amid allegations of racial discrimination.
According to Fox News, II in One Construction, a Black-owned firm hired under the project's diversity initiatives, has filed a $40.75 million lawsuit against Thornton Tomasetti, claiming racial discrimination and unfair treatment that undermined the center's diversity and equity goals.
The dispute centers around a memorandum issued by Thornton Tomasetti that criticized II in One's work quality and qualifications. The lawsuit alleges these claims were racially motivated and caused severe financial damage to the construction firm.
The presidential center's construction began with ambitious diversity targets, requiring 35% of contracts to be awarded to minority-based enterprises. These goals aimed to establish new standards for inclusion in Chicago's major construction projects.
II in One Construction joined the project as part of Concrete Collective, a 51% minority-led joint venture that included Trice Construction Company and W.E. O'Neil. The collaboration aligned with the Obama Foundation's commitment to diverse supplier participation.
Project costs have escalated significantly since inception, rising from an initial $350 million to $830 million in 2021. Current cost projections remain unavailable to the public.
Robert McGee, II in One's Black co-owner, claims Thornton Tomasetti implemented discriminatory standards that differed from industry norms. The engineering firm's memo, as stated by McGee's legal team, contained what they describe as baseless criticisms targeting the minority contractor.
According to the lawsuit documentation, Thornton Tomasetti stated:
The construction issues were all unequivocally driven by the underperformance and inexperience of the concrete subcontractor.
McGee's legal team strongly disputes these allegations, highlighting II in One's 40-year industry experience and successful completion of major Chicago projects, including Millennium Park and O'Hare Airport's American Airlines terminal.
The Obama Presidential Center has encountered various obstacles beyond the current lawsuit. Initially planned for 2018, construction didn't begin until 2021, with completion now projected for 2026.
Local residents have expressed concerns about potential displacement due to rising property values and rents in the surrounding area. Environmental activists have also opposed the project, citing concerns about tree removal and wildlife habitat destruction.
The Obama Foundation maintains it isn't directly involved in the lawsuit and claims the concrete work is largely complete. Emily Bittner, the foundation's vice president of communications, emphasizes their commitment to addressing any potential discrimination: "If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action."
The $40.75 million racial discrimination lawsuit filed by II in One Construction against Thornton Tomasetti represents a significant challenge to the Obama Presidential Center's diversity and inclusion objectives. The engineering firm has received a court extension until March 5, 2025, to respond to the allegations. Meanwhile, the 19.3-acre project continues development in Chicago's Jackson Park, aiming to house a museum, library, conference facilities, and the Obama Foundation despite ongoing controversies surrounding its construction and impact on the local community.
