Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

The construction of former President Barack Obama’s presidential library and museum in Chicago, a project initially hailed for its ambitious goals of promoting diversity, equity, and inclusion (DEI), has hit significant roadblocks. The endeavor, which began with a budget of $350 million in 2017, has seen costs balloon to $830 million by 2021, with no updated figures publicly available. The project, which spans 19.3 acres near Jackson Park, aimed to set a new standard for DEI in construction by requiring 35% of its contracts to go to minority-owned businesses. However, the initiative is now mired in controversy, including a $40.75-million lawsuit filed by a Black-owned subcontractor alleging racial discrimination and unfair treatment.

At the heart of the dispute is Robert McGee, the co-owner of II in One Construction, a minority-owned firm that provided concrete and rebar services for the project. McGee alleges that Thornton Tomasetti, a New York-based engineering firm overseeing structural design, discriminated against his company by imposing Maui standards and requirements that deviated from industry norms. According to the lawsuit, these changes caused II in One to incur over $40 million in additional costs, pushing the company to the brink of bankruptcy. McGee claims that Thornton Tomasetti’s actions were racially motivated and undermines the project’s DEI goals, which were central to the Obama Foundation’s mission.

The lawsuit stems from a memorandum written by Thornton Tomasetti to the project’s construction partners, which blamed II in One and its joint venture partner for numerous challenges during construction. The memo included images of cracked slabs and exposed rebar, claiming that the subcontractors were responsible for the issues. Thornton Tomasetti denied any wrongdoing, stating that the problems were caused by the subcontractors’ inexperience and underperformance. The firm argued that it had gone out of its way to assist II in One, even though a more qualified contractor would not have required such support. McGee, however, contends that the memorandum contained baseless and defamatory accusations, singling out his company while exonerating non-minority-owned contractors.

McGee’s lawsuit alleges violations of the Civil Rights Act of 1866, claiming that Thornton Tomasetti’s actions were discriminatory and caused significant financial harm. He also accuses the Obama Foundation of relying on the memorandum to withhold payments totaling $40.75 million for additional costs incurred by II in One. McGee, who has a 40-year track record in the industry and has worked on major projects like Millennium Park and O’Hare Airport, insists that his firm was well-qualified and experienced. The lawsuit paints a stark picture of betrayal, with McGee expressing shock that a project championing diversity and inclusion could be derailed by such allegations.

The Obama Foundation has distanced itself from the lawsuit, stating that it is not a party to the dispute and that the concrete work is largely complete. A spokesperson for the foundation emphasized its commitment to DEI and indicated that it would take action if it believed any vendor had acted with racial bias. However, the foundation has not provided updated cost estimates for the project, which has faced significant delays. Initially scheduled to break ground in 2018, construction began in 2021, with the center now expected to open in 2026.

The project has also faced criticism from community activists, who argue that the center’s construction is displacing long-time residents and driving up housing costs in predominantly Black neighborhoods. Environmental concerns have further complicated the project, with activists raising alarms about the loss of trees and bird habitats. Despite these challenges, the Obama Foundation remains committed to the project’s vision of creating a space that honors the former president’s legacy and serves as a hub for community engagement and transformation.