Chicago Casino Moving Hotel Plan After Discovering Construction Could Affect Water Pipes

Author: Sean Chaffin | Fact checker: Tommi Valtonen · Updated: · Ad Disclosure
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Chicago’s efforts at bringing a permanent, full-scale casino resort to the city continue to make headlines, and that now includes plans to move the casino’s hotel tower.

Bally’s is set to build a $1.7 billion casino resort at Freedom Center in the River West area, but some of those plans may now be derailed after city officials discovered last week that the planned 35-story hotel “would damage underground municipal water pipes if it were to be built on the north end of the casino site as planned,” according to the Chicago Sun-Times.

That revelation has led to the company announcing the project would instead include a 100-room hotel inside a building already planned for the site. The adjustment has necessitated a redesign and will see a 400-room tower built over that location within five years, according to Bally’s officials.

“We need to come up with a different way to build a tower because we can’t now put it on Chicago Avenue,” Bally’s Chairman Soo Kim said.

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Chicago city officials have worked to bring a casino to the city over the last few years. The shift in design now becomes only the latest stumbling block in attempts to make that happen. The bidding process for the project is now reportedly under investigation by city and federal officials.

The company’s temporary casino also greatly underperformed since opening in September, bringing in only $3.1 million in tax revenue – falling well short of the $12.8 million projection of former Mayor Lori Lightfoot’s (D) administration.

The hotel changes are now the latest obstacle to seeing Lightfoot’s vision become a reality. The problem with city water lines came to light as part of the exploration of the foundation needed for the 500-room hotel tower, which would be located adjacent to the Chicago River.

The company found that driving caissons (large watertight chambers in which construction work may be carried out under water) into the ground could damage water management infrastructure pipes. The city is now reviewing the revision of the resort’s site plan.

Kim said the company will still meet the 500-room threshold that was part of Bally’s casino bid. He also said the revision wouldn’t push back the casino’s opening, which is projected for 2026.

“There’s no delay as long as we’re building the 100 rooms somewhere,” Kim said. “And the easiest place to build 100 rooms is on top of the existing structure versus trying to lay out new structures. The whole point of this minor change is so there’s no delay.”

Not everyone agreed that the changes are “minor” and some believe the entire project should be sent back to city planners.

“Here’s the thing: Moving the hotel isn’t a mere tweak of the original plan, but a pretty major redo of a scheme that had already been approved by the Chicago Plan Commission and City Council,” a Sun-Times editorial recently noted. “Given that — and the whole rushed and snake-bit process that came up with the Freedom Center location and Bally’s as the winning casino operator — Mayor Brandon Johnson would do well to send the whole thing back to the Plan Commission and City Council for re-approval.”

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Sean Chaffin is a longtime freelance writer, editor, and former high school journalism teacher. He's written on numerous poker and igaming publications and has more than 8,000 followers on Twitter under the handle @PokerTraditions.

Author of Raising the Stakes: True Tales of Gambling, Wagering and Poker Faces, Sean is a respected figure in the writing industry. As a testament to this, he's also received Aynesworth Award for investigative magazine journalism in 2017.