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Published – Jan 31, 2025 at 12:08 PM EST, updated Mar 09, 2025 at 09:03 AM EDT – Newsweek

Crews begin construction on The Barack Obama Presidential Center in Chicago on August 16, 2021. Inset: Former President Obama at Donald Trump’s …

By Monica Sager – Live News Reporter Newsweek is a Trust Project member

A federal lawsuit reviewed by Newsweek alleges that a company involved in constructing the Obama Presidential Center subjected a Chicago-based Black American-owned subcontractor to “baseless criticism and defamatory and discriminatory accusations” and blamed the company for construction delays.

“In a shocking and disheartening turn of events, the African American owner of a local construction company finds himself and his company on the brink of forced closure because of racial discrimination by the structural engineer of record (Thornton Tomasetti) for the construction of The Obama Presidential Center,” the case reads.

“At this time, we don’t have any comment,” attorney John Sebastian at Watt, Tieder, Hoffar & Fitzgerald, who is representing the subcontractor, told Newsweek.

The Obama Foundation told Newsweek that it “is not a party to this lawsuit, nor will it cause any delays in the concrete work, which has already been largely completed.”

Newsweek reached out to Thornton Tomasetti and was told the press contact would “find out” if the company wants to comment.

Why It Matters

The Obama Presidential Center, which is under development in Chicago, is a cultural and historic landmark as a tribute to former President Barack Obama, the first Black president of the United States. His election in 2008 reflected a change in the country’s demographic and political landscape, both of which will be a theme of the center, focusing on democracy, leadership and public service.

What To Know

The lawsuit was filed on behalf of Robert McGee Jr. in the United States District Court for the Northern District of Illinois Eastern Diversion on January 17. McGee owns II in One, a company based in the south side of Chicago that has provided concrete and rebar services for the Obama Presidential Center since 2021.

McGee is seeking $40,753,475 in construction costs from the New York-based engineering consulting firm Thornton Tomasetti.

Thornton Tomasetti has been a part of numerous well-known projects, including the concrete high-rise office building at 10 Hudson Yards in Manhattan, the Arecibo Radio Telescope in Puerto Rico, New Orleans’ Caesars Superdome, Las Vegas’s T-Mobile Arena, Chicago’s Navy Pier, Minnesota’s Sherman Minton Bridge, Wimbledon No. 1 Court and the visitor facility at the Washington Monument.

The firm was hired by The Barack Obama Foundation to serve as a structural engineer in the presidential center’s construction, according to the lawsuit.

The lawsuit says that II in One and its joint venture partners were “subjected to baseless criticism and defamatory and discriminatory accusations” by Thornton Tomasetti.

“Moreover, Bob McGee was aware and supportive of the Obama Foundation’s diversity and inclusion goals for the Project and never imagined that the Obama Foundation’s structural engineer would single out a minority-owned subcontractor for unfair criticism and falsely accuse II in One of lacking sufficient qualifications and experience to perform its Work, while, in the same letter, stating that the non-minority-owned contractors were sufficiently qualified,” the lawsuit states.

II in One has been in operation since 1984 and is a part of the Black Contractors United and the Concrete Contractors Association. The company is one of three joint venture partners that create Concrete Collective. The other two, Trice Construction Company and W.E. O’Neil Construction Co., are also plaintiffs in the case.

II in One has worked on projects such as the Harold Washington Center, Millennium Park, the residential commons on the north campus of the University of Chicago and Kennedy King College.

The lawsuit alleges that Scott Schnieder, senior principal and structural engineering practice co-leader at Thornton Tomasetti, sent the Obama Foundation a memorandum suggesting “the construction issues were all unequivocally driven by the underperformance and inexperience of the concrete sub-contractor.”

The lawsuit alleges that Thornton Tomasetti made an “improper and unanticipated decision to impose rebar spacing and tolerance requirements that differed from the American Concrete Institute standards,” which, in addition to “Thornton Tomasetti’s excessively rigorous and unnecessary inspection and Request for Information process,” resulted in “millions of dollars in losses to II in One and Concrete Collective.”

In another “false statement about Concrete Collective,” the memorandum said, “a more experienced contractor would not have had this many problems.”

“The Obama Foundation relied on the Defendants’ false statements about II in One when it decided to reject Concrete Collective’s REA (Request for Equitable Adjustment),” according to the lawsuit.

The 2024 memo, attached to the court documents, shows Thornton Tomasetti stating its “construction documents and preconstruction efforts were entirely appropriate.” The memo also showed photos of “significant cracking” in the slab poured for the library and “partially exposed reinforcement” in the area.

Most of Concrete Collective’s “compensable costs” come from loss in labor productivity, which the lawsuit says comes from the “unexpected” project specifications, prevention of “logical flow of work” as well as the “lack of mechanical, electrical and plumbing design coordination.”

The memo showed photos of “significant cracking” in slab that was poured for the library | Exhibit A in Court Case/Exhibit A in Court Case

Delay In Work, Going Over Budget At The Barack Obama Presidential Center

The Obama Presidential Center has faced yearslong delays. The center, commemorating the 44th U.S. president, will be a museum, library and education project with community and conference spaces.

The Center has been the core of debates around the gentrification of the South Side neighborhood and Jackson Park. Nonprofits like the Friends of the Parks opposed the loss of parkland and had threatened to sue to block developments, but the plan to build the center was approved shortly after a lawsuit was filed. The Supreme Court denied the request to hear the case in 2021.

Preliminary plans for the center were unveiled in 2017. Construction was expected to begin in late 2018, but it started in 2021. The center is scheduled to open in the first half of 2026.

Illinois Gov. J.B. Pritzker (L) joins former President Barack Obama and Michelle Obama for the ceremonial groundbreaking of the Obama Presidential Cen...

| Photo by Scott Olson/Getty Images/Photo by Scott Olson/Getty Images

In 2022, construction of the library was halted for several days after a noose was found on site.

Concrete work ended in October 2024, according to the Obama Foundation. Obama visited the construction site last June for the “topping off” of the museum building.

The center was first announced with a budget of around $500 million. However, in 2022, the project cost increased to about $830 million. Some suggest it could be even higher.

What People Are Saying

Emily Bitter, a spokesperson for the Obama Center, told Newsweek: “If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action. We have no reason to believe that Thornton Tomasetti acted with racist intent.”

What Happens Next

Judge Jeffrey Cummings has been assigned to the civil case. Four attorneys have entered their appearance to represent McGee and II in One as of January 29.

Schneider was served a summons on January 24 in Westchester County, New York. He has until February 14 to respond.

Update 02/03/25 12:33 p.m. ET: This article has been updated with comment from The Obama Foundation.

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From Google AI:

Claims that the Obama Presidential Center is a “boondoggle” and “ugly mess” refer to long-standing controversies over its cost, design, use of public parkland, and potential for gentrification. Recent criticisms also point to a multi-million-dollar racial discrimination lawsuit, construction delays, and funding shortfalls for the promised endowment to protect taxpayers. 

“Boondoggle” and costs

The term “boondoggle” is often used in reference to significant cost overruns and construction delays. 

• Ballooning budget: The cost has ballooned from an initial estimate of $330 million to at least $850 million.
• Construction delays: Construction was initially expected to begin in 2018 but was delayed until 2021. The current target for completion is 2026.
• Unfunded endowment: In 2025, reports revealed that the Obama Foundation had deposited only $1 million into a $470 million endowment fund intended to protect taxpayers from future financial burdens. This lack of funding has led to fears that taxpayers could be left to cover any budget deficits. 

“Ugly mess” and design controversy

Accusations of the center being an “ugly mess” often stem from critiques of its aesthetic and its location within a historic park. 

• Aesthetic objections: Some critics, including former Chicago Sun-Times architecture critic Lee Bey, have called the 225-foot tall main tower and other elements “foolishness” and “ugly”.
• Disruption to landscape: Opponents argue the 19-acre center is an “eyesore” that ruins the natural aesthetics of Jackson Park.
• “Brutalist” architecture: A former adviser to Donald Trump and longtime Chicagoan Steve Cortes described the windowless design as “Brutalist cement,” questioning what is being hidden inside. 

Gentrification and community impact

The project has drawn sustained criticism from local residents and community activists who worry about its effect on the historically Black South Side. 

• Displacement: Community members fear the development will lead to gentrification, higher property taxes, and soaring rents that will displace longtime residents.
• “Washing away the neighborhood”: Some residents have expressed concern that the center will wash away the area’s culture and character. 

“Graft-ridden” and related legal issues

Though no evidence of criminal “graft” has been presented, multiple lawsuits and financial controversies have contributed to concerns over the project’s management. 

• Racial discrimination lawsuit: In 2025, a Black-owned concrete subcontractor filed a $40 million lawsuit against the project’s structural engineering firm, alleging racial discrimination and blaming them for project delays.
• Questionable expenditures: Recent reports have highlighted that the Obama Foundation has made substantial payments, including $2 million to the progressive “dark money group” Tides Foundation, while the presidential center’s promised endowment remains unfunded.
• High executive compensation: Tax filings show high salaries for top foundation staff, including over $750,000 for CEO Valerie Jarrett in 2023, while fundraising for the main project lags. 

Location and environmental concerns

The decision to build in a public park has been a core point of contention from the beginning. 

• Loss of parkland: Lawsuits have been filed by groups like Protect Our Parks, who argue that giving up public parkland was a dangerous precedent.
• Undermining the public trust doctrine: A professor emeritus at the University of Chicago, Richard Epstein, has long argued that the city’s land deal violated the public trust doctrine and short-changed taxpayers.
• Environmental impact: Concerns were raised about the destruction of trees and bird habitats. The city and Obama Foundation have pledged to plant new trees and create new habitats in the park