Elgin administrators are recommending that the City Council pay a major national firm $1.9 million to oversee construction of a $31.4 million recreation center.
The council is scheduled to vote Wednesday on a resolution to hire Gilbane Building Co. of Providence, R.I., to manage construction of what would be the most expensive public works project in the city’s history.
The recreation center, financed entirely through public gaming proceeds, is scheduled to open in about two years on what today is a vacant, grassy lot at Kimball Street and Douglas Avenue. The massive facility would be the cornerstone of what city officials call Elgin’s “civic campus”–a downtown district encompassing City Hall, police headquarters and the Gail Borden Public Library.
“It’s a terrific, cutting-edge project,” said Tom Rooney, vice president in charge of Gilbane’s Midwest office in Chicago. “I wouldn’t be surprised if it’s one of the largest recreation centers in the Chicago area.”
Provided the City Council concurs with city staff, Gilbane will have overcome concerns about allegations of corruption in Ohio and complaints from Elgin contractors who felt they were ignored in the bidding process.
The city and Gilbane have been negotiating for months, and the City Council was expected to approve a contract with the firm in April. But city officials were not aware Gilbane was facing a federal lawsuit in Ohio alleging it received payments for work it did not perform.
In addition, local contractors Lamp Inc. and IHC Group Inc. had complained that the city acted unfairly by not inviting Elgin-area firms to apply for the lucrative contract. In response, six firms that had applied originally, as well as Lamp and IHC, were reconsidered.
“It was determined that Gilbane was still the best-qualified firm,” City Manager Joyce Parker wrote in a May 24 memo to the City Council.
Meanwhile, Gilbane was victorious in court last week when a federal judge dismissed the Ohio attorney general’s lawsuit against the firm. Ohio officials were seeking to recover $2.3 million in taxpayer money that the state auditor contends was overpaid by a sanitary district.
Although Gilbane officials insisted the controversy in Ohio should not affect their bid for the rec-center contract, Rooney said Monday he thought the issue had delayed the selection process.
“They wanted to do due diligence before they made a decision,” he said.
Gilbane officials are familiar with the design plans approved by the City Council and are aware of the tentative $31.4 million price tag, Rooney said, but until they meet with architects, they won’t know if that figure is realistic.
“We’re pretty comfortable with the numbers,” Rooney said. “Because our whole global economy is racing 100 m.p.h., costs in the construction business are volatile.”
While negotiating to hire Gilbane, Elgin officials have been meeting with local contractors to address their concerns. IHC President Tom Rakow said city officials have promised to review Elgin’s process for awarding contracts and involve local firms as subcontractors in the rec-center project. City officials could not be reached for comment Monday.
“They’re trying to make amends,” Rakow said. “They truly didn’t know local people and what we’re capable of doing.”
