Obama Center has lofty DEI goals, now minority contractor is suing in $40M racially charged lawsuit

Construction of former President Barack Obama’s long-awaited library and museum in Chicago has been marred by huge cost overruns, delays, and a $40.75 million lawsuit filed by a minority contractor, highlighting issues of diversity, equity, and inclusion (DEI) in the construction industry.

The project, which initially had ambitious DEI goals, aimed to set a new precedent for diversity and inclusion in major construction projects in Chicago and beyond. Contracts were to be allocated to diverse suppliers, with 35% required to be minority-based enterprises (MBEs). The Obama Foundation emphasized the importance of DEI in a press release in 2017, stating that the project would bring transformative change to the construction industry and local community.

However, a lawsuit filed by Robert McGee, the Black co-owner of II in One Construction, alleges racial discrimination by Thornton Tomasetti, the New York-based company overseeing structural engineering and design services for the project. McGee claims that Thornton Tomasetti changed standards and imposed new rules that led to massive cost overruns, putting his firm on the verge of bankruptcy.

The lawsuit accuses Thornton Tomasetti of making baseless criticisms and discriminatory accusations against II in One, undermining the project’s DEI goals and commitments. It claims that the firm violated the Civil Rights Act of 1866 by discriminating against II in One on the basis of race.

McGee refutes Thornton Tomasetti’s claims of his firm’s lack of qualifications and experience, citing II in One’s 40-year track record in the industry and its completion of major projects in Chicagoland. He alleges that Thornton Tomasetti’s actions have caused extreme financial losses and potential bankruptcy for II in One and its subcontractors.

The Obama Foundation has denied any involvement in the lawsuit and stated that it will not cause delays in the project’s concrete work, which has largely been completed. The Foundation has not disclosed updated cost figures for the project, which has seen its budget balloon from an initial $350 million to $830 million in 2021.

The Obama Presidential Center, scheduled to open in 2026, has faced criticism from community activists who fear it will lead to rising home prices and displacement of residents. Environmental activists have also raised concerns about the project’s impact on trees and bird habitats.

As the lawsuit unfolds, the future of the Obama Presidential Center remains uncertain, with stakeholders closely watching how the issues of diversity, equity, and inclusion will be addressed in the construction industry.