Emanuel Loses Bid To Void Daley Administration's Park Grill Deal
CHICAGO (CBS) -- A Cook County judge has dealt the Emanuel administration a solid defeat in its efforts to void a contract awarded to the operators of the only restaurant at Millennium Park under former Mayor Richard M. Daley.
The city sued the owners of the Park Grill in December 2011, arguing their 30-year concession agreement was invalid, because the city owns most of the land, and the Chicago Park District did not get City Council authorization for the contract.
The Emanuel administration also has argued the Park Grill deal cheated taxpayers out of millions of dollars in revenue, because owners have paid far less than they should, and get free natural gas and garbage collection, while deducting their construction and furnishing costs from the money due to the Park District. The restaurant also pays no property taxes, because it operates under a concession agreement, not a lease.
Cook County Judge Moshe Jacobius said it was clear the city and Park District worked closely together on the 2003 contract, and it was obvious the city knew what was going on. He said the city couldn't disavow the deal so long after the fact, when it was fully aware of and supported the deal as it was being made.
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Speaking out on the case Thursday, Mayor Rahm Emanuel said the city took Park Grill to court to make sure the politically-connected owners pay full freight. One of the investors, Matthew O'Malley, was romantically involved with a top Park District official at the time of bidding for the deal. Laura FOxgrover was pregnant with O'Malley's child, and gave birth before the deal was completed. They have since been married.
"I think, in the Park Grill situation, city taxpayers were taken advantage of. They did not get a fair pricing for that property. So it's in front of a judge, and we properly are going to make sure that the city taxpayers are not in any way fleeced or taken advantage of in any context," he said.
The mayor's office said the city is reviewing the judge's ruling to determine what further action it might take. If it wins an appeal, the city could rebid the contract for the restaurant.
