Chicago’s City Council has granted the much-anticipated final zoning approval for Bally’s Corporation’s ambitious casino and resort project, slated for the Tribune Publishing site in River West. The council’s resounding 39-5 vote in favor of the zoning change marks a significant step forward for Bally’s $1.74 billion casino and hotel venture. While this zoning approval is a pivotal achievement, Bally’s now awaits the crucial endorsement of the Illinois Gaming Board to proceed with its plans.
The Comprehensive Casino Plan:
Having gained the overall approval for its casino vision back in May, Bally’s Corporation has steadily progressed towards realizing its ambitious endeavor. The company intends to establish a temporary casino in the summer of 2023, with plans for the permanent establishment to open its doors in late 2025 or early 2026.
The Magnitude of the Project:
The proposed permanent casino, situated within the sprawling 30-acre Tribune Publishing Center at the convergence of Chicago Avenue and Halstead Street, aims to be a game-changing addition to Chicago’s entertainment landscape. With an impressive array of amenities, the facility is projected to house 3,400 slots, 170 table games, 500 hotel rooms, six restaurants, three bars, a 3,000-seat theater, and an outdoor park.
Economic and Employment Impacts:
Beyond its entertainment value, the project is set to contribute significantly to the local economy. The development is expected to generate approximately 3,000 construction jobs during its realization phase, along with an estimated 3,000 permanent positions once the establishment is fully operational. Bally’s Corporation has committed to an upfront payment of $40 million to the city of Chicago, coupled with annual payments of $4 million.
Strategic Real Estate Transaction:
A pivotal moment in the project’s timeline was Bally’s announcement in November regarding its transaction with an undisclosed real estate private equity firm. The transaction involved the sale of the Tribune Publishing Center for $200 million. As part of this arrangement, Bally’s secured a ground lease for the property, providing the foundation for the forthcoming casino and resort.
A Forward-Thinking Lease Structure:
The ground lease agreement outlines a lengthy initial 99-year term, coupled with provisions for ten 20-year renewals. In a creative approach to funding the development, Bally’s has aligned with the investor to potentially infuse an additional $300 million into the project. This funding will be dispensed through the structure of the ground lease, contingent on the achievement of specific construction milestones.
Bally’s Corporation’s casino project in Chicago has garnered substantial momentum with the recent approval of final zoning changes by the City Council. As the company navigates the regulatory process and prepares to gain the endorsement of the Illinois Gaming Board, the vision for a cutting-edge casino and resort continues to take shape. The project’s comprehensive approach to entertainment, economic contribution, and forward-thinking funding mechanisms positions it as a significant development poised to reshape the city’s leisure and tourism landscape.