City Seeks to End Park Grill Concession Agreement
By Chuck Sudo in News on Dec 1, 2011 10:45PM
The City released a statement to media a few minutes ago from Corporation Counsel Stephen Patton announcing they filed a complaint to invalidate the concession agreement between the Chicago Park District and the management group that operates Park Grill in Millennium Park. (We've included the statement below.)
In March, the Sun-Times reported that Park Grill's current management group, Millennium Park Joint Venture LLC, was looking to sell the restaurant. Millennium Park Joint Venture signed a 20-year-deal signed between the group with the Chicago Park District in 2003.
That contract was a point of contention for how heavily it favored Millennium Park Joint Venture. Partners in the venture include Matthew O'Malley and Fred Bruno Barbara, confidantes of former Mayor Richard M. Daley. The group only had to pay $275,000 in rent a year and 4 percent of their gross receipts, while freeing them from the responsibilities of gas, water, garbage, and property tax bills. $4.2 million in taxpayer money was spent building Park Grill, which went on to become a $12 million a year operation.
Former Cook County Assessor Jim Houlihan sued the group for back property taxes in a case that went all the way to the Illinois Supreme Court, which ruled in favor of Millennium Park Joint Venture. The City Legal Department filed the complaint to invalidate the concession agreement after receiving a letter from the group that indicated they're moving forward with selling their interest to a third party, and that attempts to renegotiate the agreement have been unsuccessful.
"We believe these facilities belong to the City, and we are enforcing the City’s right to utilize them in a way that provides the fullest benefits for taxpayers,” Patton said.
Calls to City of Chicago spokespeople for further comment and details of the concession agreement have not been returned as pf post time.
Patton Statement City Files to Invalidate Park Grill Concession Agreement