NEW: Obama Library’s Grand Opening Ruined By Bombshell Report; Contractors Owed Millions

The billion-dollar Obama Presidential Center was supposed to stand as a lasting monument to former President Barack Obama and serve as a showcase for minority-owned businesses on Chicago’s South Side.

But as the campus prepares for its grand opening Friday, several subcontractors say the project has left them drowning in debt and fighting to recover millions they claim remain unpaid.

Construction costs were pegged at $830 million in 2021 and are believed to have climbed past the $1 billion mark.

A Fox News Digital investigation identified multiple firms alleging losses ranging from hundreds of thousands of dollars to tens of millions, claims that cut against one of the project’s central promises of helping minority-owned businesses and local contractors thrive.

Among those sounding the alarm is Adamson Plumbing owner Mike Owen, who said his company is nearly $4 million in the red after years of work tied to the Obama Library project.

“That is a hole that no subcontractor, small business can survive,” Owen said.

Owners interviewed by Fox News Digital described a troubled construction process marked by repeated design changes, rework, scheduling delays, extensive oversight and compensation disputes that remain unresolved.

Some contractors declined to speak publicly, while others requested anonymity, citing non-disclosure agreements and fears of professional retaliation.

The allegations surfaced days after Fox News Digital reported that the Obama Foundation’s reserve fund, originally promoted as a $470 million safeguard intended to protect taxpayers if the project encountered financial trouble, stood at roughly $1 million.

Standing outside the center on a gloomy Friday afternoon, Owen flipped through spreadsheets and financial records that he said documented millions of dollars in losses tied to the project.

He said the lengthy timeline forced his company to absorb mounting labor and overhead costs as work demands changed and expanded.

According to Owen, the financial strain has depleted company reserves, created uncertainty for employees and could ultimately force layoffs. He also said the years-long effort to recover what he believes is owed has taken a severe toll on his mental health.

“I haven’t had eight hours or six hours sleep in over a year,” Owen said. “I’m cooked emotionally. I feel like an aluminum can that’s been thrown in front of a steamroller. We’re crushed. And I have to fight for my company and for my people.”

As the center geared up for a star-studded pre-opening celebration Thursday featuring Bruce Springsteen, Stevie Wonder and John Legend, Owen said it was difficult watching the festivities unfold while contractors continued struggling.

“It was kind of hard seeing some local and national celebrities high-fiving and back-slapping here about the work that’s been done,” Owen said. “The backdrop of a coming celebration is kind of hard to swallow for me and for some of my peers at the moment.”

Owen, whose company is not minority-owned, said he decided to speak publicly only after months of unsuccessful efforts to recover losses he attributes to the project.

“As for me and my company, I’m at the end of my rope and I see no other choice than to have to tell my story,” Owen said. “This is not to embarrass anybody, but this is just to make sure that the truth gets told out here of what has happened to the companies that poured their heart and soul into getting this job complete and operational.”

He blamed repeated delays, extensive rework and more than 100 change-order requests for saddling his business with millions in additional costs.

The Obama Foundation, the nonprofit overseeing construction, told Fox News Digital it paid Lakeside Alliance as construction manager and said the joint venture was responsible for hiring, managing and paying subcontractors.

The foundation said it has no outstanding disputed charges with Lakeside Alliance and noted it has no contractual relationship with the alliance’s subcontractors.

Lakeside Alliance said projects of this size are inherently complex and that outstanding issues often continue long after construction ends. The group said roughly 475 contractors worked on the project, generating significant opportunities for local tradespeople and businesses, and insisted it remains committed to resolving remaining matters.

Neither Lakeside Alliance nor the Obama Foundation directly disputed allegations from some subcontractors that they suffered losses while working on the project.

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Advocates for Black-owned firms say many contractors have remained silent because of non-disclosure agreements and concerns that criticizing such a high-profile project in Obama’s adopted hometown could jeopardize future payments.

“They are scared to death about talking about it,” Omar Shareef, president of the African American Contractors Association, told Fox News Digital outside the center.

“I’ve never seen this happen since I’ve been in business,” Shareef said. “The building does look nice, but the fact doesn’t matter that they’re not paying our damn contractors.”

Fox News Digital independently interviewed several contractors who voiced similar concerns.

Shareef said Black subcontractors began approaching him privately about six months ago with complaints of significant losses tied to the project.

“The promise was that this project was going to uplift minority contractors and uplift the community,” Shareef said. “What sense is celebrating Juneteenth if our Black contractors are not getting their money?”

“Some of the people have put their mortgages up, they’re going to lose their bonding… they are going to lose their relationship with their supplier as well as their banker.”

He warned that the debt burden could make it harder for contractors to secure future work. Shareef said his group planned a protest outside the center Thursday morning.

“That’s a bad signal to put out the fact that seven to eight to maybe 10 of our contractors in our community are going to be eliminated from doing business because of the debt that they incurred on this particular project,” he said. “If they would have known it was a Trojan horse or a Pandora’s box, I don’t know if they would have raced as much as they did to be a part of it.”

Fox News Digital said it could not verify claims that contractors would ultimately be driven out of business because of their work on the Obama Presidential Center.

One minority-owned subcontractor owner told Fox his company was roughly $2.5 million in the red but declined to speak publicly because of non-disclosure agreements and ongoing efforts to resolve disputes. He said a contract expected to last 24 months stretched to nearly five years.

The largest publicly known dispute involving the project centered on the Concrete Collective, a joint venture that included Black-owned II in One Concrete along with Trice Construction and W.E. O’Neil Construction.

The Concrete Collective later filed claims exceeding $40 million, alleging it incurred substantial additional costs while working on the center. The dispute became intertwined with a widely publicized racial discrimination lawsuit involving allegations that minority contractors were treated unfairly during construction.

The lawsuit alleged the project’s structural engineer unfairly blamed II in One Concrete for delays and cost overruns, contributing to the rejection of compensation claims.

Defendants denied wrongdoing and argued portions of the concrete work had to be repaired or replaced because of cracking and other deficiencies. The owner of II in One Concrete declined to comment. Court records show the case remains pending.

Records reviewed by Fox News Digital also show that at least two minority-owned subcontractors later sought Chapter 11 bankruptcy protection. The filings do not establish that the Obama Presidential Center caused those financial troubles.

Glass Management Services, which supplied glass for the project, filed for Chapter 11 protection in 2024 and later told the bankruptcy court it was preparing litigation related to the Obama Presidential Center that it said could yield millions of dollars in damages. Fox News Digital said it was unaware of any such litigation being filed. The company’s owner declined to speak.

Vision Painting & Decorating Services, another subcontractor that worked on the project, also filed for Chapter 11 protection in 2024 while listing the Obama Presidential Center contract in bankruptcy filings. Court records do not indicate whether the project contributed to the company’s financial difficulties. Fox News Digital was unable to reach the owner.

Another subcontractor owner described the job as a “nightmare” and one of the most difficult projects he had encountered.

After filing a mechanic’s lien for roughly $145,000, which records show was eventually paid, the owner said his company still lost about $200,000 on the project.

“Literally, I’ve been doing this for 35 years, and it was the worst-run job I’ve ever been on,” the subcontractor owner said.

He pointed to repeated delays, excessive oversight, and construction requirements he viewed as unnecessary.

“The stuff that they made everybody do was so over-the-top ridiculous,” the owner said.

Owen echoed those frustrations, saying Adamson Plumbing was forced to redo portions of the center’s stormwater system at a cost approaching $900,000, work he argued was unnecessary.

Correspondence reviewed by Fox News Digital showed Chicago’s chief plumbing inspector later concluded Adamson’s original approach complied with city code requirements.

Records provided by Owen also show his company submitted more than 100 change-order requests during construction, which he said reflected a project plagued by constant revisions and delays.

Owen said Adamson has not filed suit but continues trying to recover money it believes is owed. Correspondence reviewed by Fox News Digital showed his attorney contacted project representatives regarding the dispute.

Two additional companies filed mechanics’ liens totaling roughly $400,000 and $75,000. Fox News Digital was unable to contact company officials, and it remains unclear whether those claims have since been paid.

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