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Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'
Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'

Yahoo

time07-03-2025

  • Business
  • Yahoo

Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'

FIRST ON FOX: An engineering firm working on the Obama Presidential Center says that claims it racially discriminated against a Black-owned subcontractor on the project are baseless and amount to smears – and that simply criticizing the subcontractors' work does not amount to racism. Thornton Tomasetti, a New York-City-based structural engineering firm, was responding to an explosive $40.75 million lawsuit accusing it of acting with racist intent when it criticized the alleged underperformance of a Black-owned concrete subcontracting firm at the sprawling 19.3-acre site at Chicago's Jackson Park. The lawsuit has drawn national attention to the diversity, equity and inclusion (DEI) goals underpinning the project, which has been plagued by delays and costs ballooning from an initial $350 million to $830 million. The center aims to honor the political career of former President Barack Obama and will consist of a 235-foot tower museum, a branch of the Chicago Public Library and conference facilities, among other amenities. Obama Library, Begun With Lofty Dei Goals, Now Plagued By $40M Racially Charged Suit, Ballooning Costs Thornton Tomasetti previously told the Obama Foundation, the non-profit which oversees the project, that a multitude of issues, including cracked concrete and exposed rebar by the subcontractor, led to corrective work and that the subcontracting firm was inexperienced and "questionably qualified." The subcontracting firm, II In One Concrete, said the criticism amounted to racial bias and filed the $40.75 million lawsuit to recoup the cost of the extra work it had to carry out following requests by Thornton Tomasetti. Read On The Fox News App WATCH: Drone captures Obama Presidential Center under construction in Chicago In a motion to dismiss filed on Tuesday, Thornton Tomasetti said the lawsuit smeared it as racist "without a shred of factual support" and said that II In One Concrete leaned on its minority status to make the claims. The center set out DEI goals for its construction contracts, with 35% of subcontractors required to be minority-owned. II In One was one of three firms that together made up a 51% minority-led joint-venture team. "Plaintiffs… are not immune from having their work scrutinized simply because they are minority-owned, or because the project prioritizes using the services of minority-owned businesses," attorneys for Thornton Tomasetti wrote. "Instead, they are entitled to be treated like any other subcontractor, with all the run-of-the-mill disagreements and disputes that accompany enormous projects like this one." "Professional criticism, without more, is not racism." Musk's Doge Terminates Lease At Obama Presidential Library Site II In One Concrete's lawsuit stems from a memorandum Thornton Tomasetti wrote to the Obama Foundation about a year ago claiming that II in One — and the contracting firms it teamed up with on the project — were responsible for numerous construction challenges during the project. In the memo, Thornton Tomasetti pinned the blame on the subcontractors and wrote that the purpose of the memo was to defend their own services. It oversees structural engineering and design services at the site. II In One Concrete's lawsuit claims the Obama Foundation relied on the memo for not paying the subcontracting firms around $40.75 million for "additional costs incurred," which emanated from the corrective work and put II In One Concrete on the verge of bankruptcy. II In One Concrete's owner, Robert McGee, who is Black, argues II In One was discriminated against "on the basis of race" and that plaintiffs were "subjected to unjustified and discriminatory conduct… which directly undermined the Obama Foundation's DEI goals and commitments." McGee claims Thornton Tomasetti falsely accused II in One of lacking sufficient qualifications and experience to perform its work, while stating that non-minority-owned contractors were sufficiently qualified. McGee's lawsuit points to II in One's 40-year track record in the industry and its completion of major Chicagoland projects. McGee claims that Thornton Tomasetti changed standards and imposed new rules around rebar spacing and tolerance requirements that differed from industry standards. Obama Center Subcontractor Files $40M Discrimination Lawsuit Against Engineering Firm For Overruns In Tuesday's motion to dismiss, Thornton Tomasetti argued that the rebar spacing requirements were part of the bid documents and contract specifications. Additionally, Thornton Tomasetti said that there were a wide range of other issues it had identified in the memo which the lawsuit did not address. "And while plaintiffs' allegations fixate on the rebar splice specifications, they ignore the broader picture – TT (Thornton Tomasetti) flagged numerous other critical work deficiencies in the memo, none of which plaintiffs acknowledge, let alone refute," Tuesday's filing reads. "Plaintiffs cannot simply pluck one of TT's many criticisms of their work and hoist it up as self-evident discrimination, while staying silent on the panoply of other problems TT set forth in the memo." Thornton Tomasetti wrote that the complaint — accusing it of racial bias, libel and tortious interference with contract — is "fatally flawed" and must be dismissed. "Plaintiffs fail to allege facts that plausibly paint a picture of racism (there are no alleged racist comments, no observed racial bias, and no facts showing discriminatory treatment), but also because they concede that Thornton Tomasetti's actions were motivated –– not by any harbored discrimination – but by a desire to professionally defend their services in the face of critiques levied against them in the first place," the motion to dismiss reads. "The complaint should be dismissed and the door shut on plaintiffs' outrageous proposition that minority-owned businesses are exempt from scrutiny, critique, or the need to comply with project specifications, however 'burdensome.'" Fox News Digital reached out to the Obama Foundation and a representative for McGee for comment but did not receive a response. The Obama Foundation previously told Fox News Digital that it is not a party to the lawsuit and insisted that it would not cause any delays in the concrete work, which it says has already been largely completed. "If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action," Emily Bittner, the vice president of communications at the Obama Foundation, told Fox News Digital in a statement recently. The foundation has not responded to requests for information on the updated cost of the project. The Obama Presidential Library is expected to open some time next year and will also house digitized documents from former President Obama's time in office, a gymnasium and a regulation-sized NBA court. It will also house the Obama Foundation. The center is privately funded and will not be considered an official presidential library like other presidential libraries run by the National Archives and Records Administration system. The move gives the foundation greater flexibility around its size, designs and public spaces. The Obama Presidential Library is currently located in Hoffman Estates in northwest Chicago. The Elon Musk-led Department of Government Efficiency has terminated the lease at the site, although it is already expected to close later this year and move to College Park in article source: Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'

Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'
Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'

Fox News

time07-03-2025

  • Business
  • Fox News

Obama Presidential Center: DEI-linked firm's racial lawsuit blasted as baseless 'smears'

An engineering firm working on the Obama Presidential Center says that claims it racially discriminated against a Black-owned subcontractor on the project are baseless and amount to smears – and that simply criticizing the subcontractors' work does not amount to racism. Thornton Tomasetti, a New York-City-based structural engineering firm, was responding to an explosive $40.75 million lawsuit accusing it of acting with racist intent when it criticized the alleged underperformance of a Black-owned concrete subcontracting firm at the sprawling 19.3-acre site at Chicago's Jackson Park. The lawsuit has drawn national attention to the diversity, equity and inclusion (DEI) goals underpinning the project, which has been plagued by delays and costs ballooning from an initial $350 million to $830 million. The center aims to honor the political career of former President Barack Obama and will consist of a 235-foot tower museum, a branch of the Chicago Public Library and conference facilities, among other amenities. Thornton Tomasetti previously told the Obama Foundation, the non-profit which oversees the project, that a multitude of issues, including cracked concrete and exposed rebar by the subcontractor, led to corrective work and that the subcontracting firm was inexperienced and "questionably qualified." The subcontracting firm, II In One Concrete, said the criticism amounted to racial bias and filed the $40.75 million lawsuit to recoup the cost of the extra work it had to carry out following requests by Thornton Tomasetti. WATCH: Drone captures Obama Presidential Center under construction in Chicago In a motion to dismiss filed on Tuesday, Thornton Tomasetti said the lawsuit smeared it as racist "without a shred of factual support" and said that II In One Concrete leaned on its minority status to make the claims. The center set out DEI goals for its construction contracts, with 35% of subcontractors required to be minority-owned. II In One was one of three firms that together made up a 51% minority-led joint-venture team. "Plaintiffs… are not immune from having their work scrutinized simply because they are minority-owned, or because the project prioritizes using the services of minority-owned businesses," attorneys for Thornton Tomasetti wrote. "Instead, they are entitled to be treated like any other subcontractor, with all the run-of-the-mill disagreements and disputes that accompany enormous projects like this one." "Professional criticism, without more, is not racism." MUSK'S DOGE TERMINATES LEASE AT OBAMA PRESIDENTIAL LIBRARY SITE II In One Concrete's lawsuit stems from a memorandum Thornton Tomasetti wrote to the Obama Foundation about a year ago claiming that II in One — and the contracting firms it teamed up with on the project — were responsible for numerous construction challenges during the project. In the memo, Thornton Tomasetti pinned the blame on the subcontractors and wrote that the purpose of the memo was to defend their own services. It oversees structural engineering and design services at the site. II In One Concrete's lawsuit claims the Obama Foundation relied on the memo for not paying the subcontracting firms around $40.75 million for "additional costs incurred," which emanated from the corrective work and put II In One Concrete on the verge of bankruptcy. II In One Concrete's owner, Robert McGee, who is Black, argues II In One was discriminated against "on the basis of race" and that plaintiffs were "subjected to unjustified and discriminatory conduct… which directly undermined the Obama Foundation's DEI goals and commitments." McGee claims Thornton Tomasetti falsely accused II in One of lacking sufficient qualifications and experience to perform its work, while stating that non-minority-owned contractors were sufficiently qualified. McGee's lawsuit points to II in One's 40-year track record in the industry and its completion of major Chicagoland projects. McGee claims that Thornton Tomasetti changed standards and imposed new rules around rebar spacing and tolerance requirements that differed from industry standards. In Tuesday's motion to dismiss, Thornton Tomasetti argued that the rebar spacing requirements were part of the bid documents and contract specifications. Additionally, Thornton Tomasetti said that there were a wide range of other issues it had identified in the memo which the lawsuit did not address. "And while plaintiffs' allegations fixate on the rebar splice specifications, they ignore the broader picture – TT (Thornton Tomasetti) flagged numerous other critical work deficiencies in the memo, none of which plaintiffs acknowledge, let alone refute," Tuesday's filing reads. "Plaintiffs cannot simply pluck one of TT's many criticisms of their work and hoist it up as self-evident discrimination, while staying silent on the panoply of other problems TT set forth in the memo." Thornton Tomasetti wrote that the complaint — accusing it of racial bias, libel and tortious interference with contract — is "fatally flawed" and must be dismissed. "Plaintiffs fail to allege facts that plausibly paint a picture of racism (there are no alleged racist comments, no observed racial bias, and no facts showing discriminatory treatment), but also because they concede that Thornton Tomasetti's actions were motivated –– not by any harbored discrimination – but by a desire to professionally defend their services in the face of critiques levied against them in the first place," the motion to dismiss reads. "The complaint should be dismissed and the door shut on plaintiffs' outrageous proposition that minority-owned businesses are exempt from scrutiny, critique, or the need to comply with project specifications, however 'burdensome.'" Fox News Digital reached out to the Obama Foundation and a representative for McGee for comment but did not receive a response. The Obama Foundation previously told Fox News Digital that it is not a party to the lawsuit and insisted that it would not cause any delays in the concrete work, which it says has already been largely completed. "If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action," Emily Bittner, the vice president of communications at the Obama Foundation, told Fox News Digital in a statement recently. The foundation has not responded to requests for information on the updated cost of the project. The Obama Presidential Library is expected to open some time next year and will also house digitized documents from former President Obama's time in office, a gymnasium and a regulation-sized NBA court. It will also house the Obama Foundation. The center is privately funded and will not be considered an official presidential library like other presidential libraries run by the National Archives and Records Administration system. The move gives the foundation greater flexibility around its size, designs and public spaces. The Obama Presidential Library is currently located in Hoffman Estates in northwest Chicago. The Elon Musk-led Department of Government Efficiency has terminated the lease at the site, although it is already expected to close later this year and move to College Park in Maryland.

Fort Lauderdale questions experts on design flaw in new police station
Fort Lauderdale questions experts on design flaw in new police station

Yahoo

time19-02-2025

  • Yahoo

Fort Lauderdale questions experts on design flaw in new police station

Fort Lauderdale's new $145 million police headquarters is nearly complete and on track to open this fall despite a design flaw discovered last year, experts told commissioners this week. In March, nearly a year ago, hairline cracks began forming along the entire length of a support beam on the top floor. A roof slab on the three-story building's northwest corner was bending, causing cracks in the concrete. Fort Lauderdale hired outside experts to help oversee the fix. On Tuesday, commissioners questioned whether the building would be safe over the long term. The engineering experts assured them it would. Mayor Dean Trantalis asked how such a flaw could happen in today's day and age. 'Let me tell you something,' he said. 'We've all traveled around this country and around the world. And this design is not rocket science. This has been used over and over again. The Romans used it. They don't have deflection issues. How do we have a deflection issue in the year 2025?' The short answer: Human error. These are the details that came to light in mid-2024, after the commission was informed that cracks had formed in the concrete. The original design of the headquarters building called for steel. That was later changed to poured concrete with panels. According to Thornton Tomasetti, the project's engineering firm of record, the weight of the precast panels was not factored into the structural analysis model. AECOM, the project's design firm, quickly accepted blame for the design flaw. The firm has agreed to keep monitoring the building over the next five years and to cover the cost of any current and future fixes. 'This is a mistake that we are fully committed to rectifying,' said David Didier, chief operating officer for AECOM's East Region. 'We are going to take full responsibility for paying the cost of the fix. If something else comes up, we're not going anywhere. We're going to continue to monitor the building for five years. We're not going anywhere. We're going to stand by that building.' Commissioner John Herbst said he'd like to see AECOM agree to monitor the building beyond five years. 'We've got a 30-year bond on this building,' Herbst said. The city's taxpayers will be footing the bill for the building over the next 30 years, Herbst noted. 'I expect our partners who designed it and constructed it to stand behind the quality of their work,' he said. 'The risk of the quality of the work should fall on (them), not on the city and not on the taxpayer.' The project didn't break ground until June 2023, four years after voters approved a $100 million bond. By then, the price had ballooned from $100 million to $145 million due to rising labor and construction costs. The total price is now approaching $150 million, partly because of the bending roof slab. On Tuesday, Herbst also wanted to know whether the new police station would be free of leaks. 'One of the biggest problems we had with the old building is that it leaked like a sieve,' he said. 'We had folks with substantial allergic reactions, health issues, workers comp claims — all due to the mold in the building. We're trying to replace a sick building and I don't want to replace a sick building with another very expensive, brand-new sick building.' In addition, Herbst said he was worried the building might suffer a catastrophic failure down the line. Didier, of AECOM, assured him it would not. 'Strength-wise, the building is strong enough, so we're not going to see a catastrophic failure,' he said. 'With the repairs that have been proposed, we are going to make sure it doesn't deflect beyond the anticipated amount. And we're going to continue to monitor it. And we're going to make sure the windows are installed properly. And they're not going to leak.' Susannah Bryan can be reached at sbryan@ Follow me on X @Susannah_Bryan

Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs
Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

Yahoo

time16-02-2025

  • Business
  • Yahoo

Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

Construction of former President Barack Obama's long-awaited library and museum in Chicago began with ambitious plans for diversity, equity and inclusion (DEI) but is now plagued by huge cost overruns, delays and a $40.75-million, racially charged lawsuit filed by a minority contractor. From the outset, the endeavor touted DEI as a key part of enshrining Obama's legacy at the 19.3-acre site, where costs have ballooned from an initial $350 million to $830 million in 2021 based on its previous annual reports, with no publicly available figures available for updated projected costs. The project set out "ambitious goals" for certain construction diversity quotas, with its contracts to be allocated to "diverse suppliers," 35% of which were required to be minority-based enterprises (MBEs). "With these aggressive goals, the foundation is hoping to set a new precedent for diversity and inclusion in major construction projects in Chicago and beyond," the Obama Foundation wrote in a 2017 press release. The importance of DEI was cited on several occasions in an explosive lawsuit filed last month by Robert McGee, the Black co-owner of II in One Construction. The firm is a minority-owned business subcontractor that provided concrete and rebar services for the center. It is not clear what role DEI quotas played in the hiring of II In One as a subcontractor. II In One was one of three firms that made up a joint venture called Concrete Collective. The other firms included another minority firm called Trice Construction Company along with W.E. O'Neil. Together they formed a 51% minority-led joint-venture team. McGee alleged that he and his firm were racially discriminated against by Thornton Tomasetti, a New York-based company that oversees structural engineering and design services. Read On The Fox News App In the lawsuit, McGee claims that Thornton Tomasetti changed standards and imposed new rules around rebar spacing and tolerance requirements that differed from the American Concrete Institute standards. The suit claims these changes resulted in his firm running up massive overruns in excess of $40 million, which put it on the verge of bankruptcy. McGee's lawsuit stems from a memorandum Thornton Tomasetti wrote to the project's leading construction partners about a year ago claiming that II in One — and the contracting firm it teamed up with on the project — were responsible for numerous challenges during the project. The memorandum contained images of cracked slabs and exposed rebar to support its claims. Thornton Tomasetti said it spent hundreds of hours reviewing, analyzing, re-designing, and responding to corrective work and that subcontractors caused "a multitude of problems in the field." "The construction issues were all unequivocally driven by the underperformance and inexperience of the concrete subcontractor," the memorandum states. Thornton Tomasetti said the challenges with the concrete were due solely to the subcontractors and wrote that it "cannot stand by while contractors attempt to blame their own shortcomings on the design team." The memo goes on to state that Thornton Tomasetti and an architectural firm, "bent over backwards to assist what everyone knows was a questionably qualified subcontractor team in areas where a more qualified subcontractor would not have required it." That memorandum served as the basis of McGee's lawsuit last month, as he alleges it contained "baseless criticisms and defamatory and discriminatory accusations." The lawsuit claims that Thornton Tomasetti undermined the project's diversity and inclusion goals, which were outlined in the project's general contract. The lawsuit also cites a DEI report by the project's construction manager in 2022, which outlines the project as "achieving significant diverse business participation." A report breaking down the demographics of those involved in the project was also released in April. The suit claims the plaintiffs were "subjected to unjustified and discriminatory conduct… which directly undermined the Obama Foundation's DEI goals and commitments, and mission to bring transformative change to the construction industry and local community by providing solutions to barriers that have historically prevented disadvantaged businesses from participating on projects of this magnitude." The lawsuit claims that Thornton Tomasetti violated the Civil Rights Act of 1866 and that its alleged "defamatory and discriminatory statements and actions," caused II in One, Bob McGee and the other subcontractors to suffer extreme financial losses and potential bankruptcy. The suit alleges that Thornton Tomasetti discriminated against II In One "on the basis of race." McGee claims Thornton Tomasetti falsely accused II in One of lacking sufficient qualifications and experience to perform its work, while stating in the memo that non-minority-owned contractors were sufficiently qualified. The lawsuit also claims the Obama Foundation relied on Thornton Tomasetti's memo for not paying the subcontracting firms around $40.75 million for "additional costs incurred" at the site near Jackson Park in Chicago. McGee's lawsuit refutes the allegations in Thornton Tomasetti's memo that his firm was inexperienced or questionably qualified, pointing to II in One's 40-year track record in the industry and its completion of major Chicagoland projects, including Millennium Park, Harold Washington Cultural Center, and the American Airlines terminal at O'Hare Airport. "Moreover, Bob McGee was aware and supportive of the Obama Foundation's diversity and inclusion goals for the project and never imagined that the Obama Foundation's structural engineer would single out a minority-owned subcontractor for unfair criticism and falsely accuse II in One of lacking sufficient qualifications and experience to perform its work, while, in the same letter, stating that the non-minority-owned contractors were sufficiently qualified," the memo reads. "In a shocking and disheartening turn of events, the African American owner of a local construction company finds himself and his company on the brink of forced closure because of racial discrimination by the structural engineer," the lawsuit reads. "II in One and its joint venture partners … was subjected to baseless criticisms and defamatory and discriminatory accusations by the Obama Foundation's structural engineer, Thornton Tomasetti." The Obama Foundation said it is not a party to this lawsuit, and insisted that it will not cause any delays in the concrete work, which it says has already been largely completed. "If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action," Emily Bittner, the vice president of communications at the Obama Foundation, told Fox News Digital in a statement recently. The foundation has not responded to requests for information on the updated cost of the project. The Obama Presidential Center aims to honor the political career of former President Barack Obama. It will consist of a museum, a library, conference facilities, a gymnasium and a regulation-sized NBA court. It will also house the nonprofit Obama Foundation, which is overseeing the center's Center Subcontractor Files $40M Discrimination Lawsuit Against Engineering Firm For Overruns WATCH: Obama Presidential Center expected to open in 2026 Chicago South Side Residents Say They're Being Displaced By Obama Center: Causing 'Harm To Black Families' The project has faced problems in the past. Construction was initially anticipated to begin in 2018, but it was delayed until 2021. It is scheduled to open sometime in 2026. Some community activists claim the new center will cause prices for homes and rent to increase and may price out many of those who live in the area. Environmental activists have also been critical of the project, arguing that it would remove too many trees and destroy some bird habitats. Activists threatened to sue to block developments, but the plan to build the center was approved shortly after a lawsuit was filed, according to Newsweek. The Supreme Court denied the request to hear the case in 2021. Representatives for II in One declined to comment. Fox News Digital also contacted representatives for Thornton Tomasetti for comment. Court documents show that on Jan. 31, Thornton Tomasetti, Inc. and Scott A. Schneider, a senior principal and structural engineer at the firm, filed for an extension of time to answer the complaint. The court extended the deadline for their answer to March 5, 2025. Fox News' Michael Lew contributed to this report. Original article source: Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs
Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

Fox News

time16-02-2025

  • Business
  • Fox News

Obama library, begun with lofty DEI goals, now plagued by $40M racially charged suit, ballooning costs

Construction of former President Barack Obama's long-awaited library and museum in Chicago began with ambitious plans for diversity, equity and inclusion (DEI) but is now plagued by huge cost overruns, delays and a $40.75-million, racially charged lawsuit filed by a minority contractor. From the outset, the endeavor touted DEI as a key part of enshrining Obama's legacy at the 19.3-acre site, where costs have ballooned from an initial $350 million to $830 million in 2021 based on its previous annual reports, with no publicly available figures available for updated projected costs. The project set out "ambitious goals" for certain construction diversity quotas, with its contracts to be allocated to "diverse suppliers," 35% of which were required to be minority-based enterprises (MBEs). "With these aggressive goals, the foundation is hoping to set a new precedent for diversity and inclusion in major construction projects in Chicago and beyond," the Obama Foundation wrote in a 2017 press release. The importance of DEI was cited on several occasions in an explosive lawsuit filed last month by Robert McGee, the Black co-owner of II in One Construction. The firm is a minority-owned business subcontractor that provided concrete and rebar services for the center. McGee alleged that he and his firm were racially discriminated against by Thornton Tomasetti, a New York-based company that oversees structural engineering and design services. In the lawsuit, McGee claims that Thornton Tomasetti changed standards and imposed new rules around rebar spacing and tolerance requirements that differed from the American Concrete Institute standards. The suit claims these changes resulted in his firm running up massive overruns in excess of $40 million, which put it on the verge of bankruptcy. McGee's lawsuit stems from a memorandum Thornton Tomasetti wrote to the project's leading construction partners about a year ago claiming that II in One — and the contracting firm it teamed up with on the project — were responsible for numerous challenges during the project. The memorandum contained images of cracked slabs and exposed rebar to support its claims. Thornton Tomasetti said it spent hundreds of hours reviewing, analyzing, re-designing, and responding to corrective work and that subcontractors caused "a multitude of problems in the field." "The construction issues were all unequivocally driven by the underperformance and inexperience of the concrete subcontractor," the memorandum states. Thornton Tomasetti said the challenges with the concrete were due solely to the subcontractors and wrote that it "cannot stand by while contractors attempt to blame their own shortcomings on the design team." The memo goes on to state that Thornton Tomasetti and an architectural firm, "bent over backwards to assist what everyone knows was a questionably qualified subcontractor team in areas where a more qualified subcontractor would not have required it." That memorandum served as the basis of McGee's lawsuit last month, as he alleges it contained "baseless criticisms and defamatory and discriminatory accusations." The lawsuit claims that Thornton Tomasetti undermined the project's diversity and inclusion goals, which were outlined in the project's general contract. The lawsuit also cites a DEI report by the project's construction manager in 2022, which outlines the project as "achieving significant diverse business participation." A report breaking down the demographics of those involved in the project was also released in April. The suit claims the plaintiffs were "subjected to unjustified and discriminatory conduct… which directly undermined the Obama Foundation's DEI goals and commitments, and mission to bring transformative change to the construction industry and local community by providing solutions to barriers that have historically prevented disadvantaged businesses from participating on projects of this magnitude." The lawsuit claims that Thornton Tomasetti violated the Civil Rights Act of 1866 and that its alleged "defamatory and discriminatory statements and actions," caused II in One, Bob McGee and the other subcontractors to suffer extreme financial losses and potential bankruptcy. The suit alleges that Thornton Tomasetti discriminated against II In One "on the basis of race." McGee claims Thornton Tomasetti falsely accused II in One of lacking sufficient qualifications and experience to perform its work, while stating in the memo that non-minority-owned contractors were sufficiently qualified. The lawsuit also claims the Obama Foundation relied on Thornton Tomasetti's memo for not paying the subcontracting firms around $40.75 million for "additional costs incurred" at the site near Jackson Park in Chicago. McGee's lawsuit refutes the allegations in Thornton Tomasetti's memo that his firm was inexperienced or questionably qualified, pointing to II in One's 40-year track record in the industry and its completion of major Chicagoland projects, including Millennium Park, Harold Washington Cultural Center, and the American Airlines terminal at O'Hare Airport. "Moreover, Bob McGee was aware and supportive of the Obama Foundation's diversity and inclusion goals for the project and never imagined that the Obama Foundation's structural engineer would single out a minority-owned subcontractor for unfair criticism and falsely accuse II in One of lacking sufficient qualifications and experience to perform its work, while, in the same letter, stating that the non-minority-owned contractors were sufficiently qualified," the memo reads. "In a shocking and disheartening turn of events, the African American owner of a local construction company finds himself and his company on the brink of forced closure because of racial discrimination by the structural engineer," the lawsuit reads. "II in One and its joint venture partners … was subjected to baseless criticisms and defamatory and discriminatory accusations by the Obama Foundation's structural engineer, Thornton Tomasetti." The Obama Foundation said it is not a party to this lawsuit, and insisted that it will not cause any delays in the concrete work, which it says has already been largely completed. "If the Foundation believed that any vendor was acting with a racist intent, we would immediately take appropriate action," Emily Bittner, the vice president of communications at the Obama Foundation, told Fox News Digital in a statement recently. The foundation has not responded to requests for information on the updated cost of the project. The Obama Presidential Center aims to honor the political career of former President Barack Obama. It will consist of a museum, a library, conference facilities, a gymnasium and a regulation-sized NBA court. It will also house the nonprofit Obama Foundation, which is overseeing the center's CENTER SUBCONTRACTOR FILES $40M DISCRIMINATION LAWSUIT AGAINST ENGINEERING FIRM FOR OVERRUNS WATCH: Obama Presidential Center expected to open in 2026 The project has faced problems in the past. Construction was initially anticipated to begin in 2018, but it was delayed until 2021. It is scheduled to open sometime in 2026. Some community activists claim the new center will cause prices for homes and rent to increase and may price out many of those who live in the area. Environmental activists have also been critical of the project, arguing that it would remove too many trees and destroy some bird habitats. Activists threatened to sue to block developments, but the plan to build the center was approved shortly after a lawsuit was filed, according to Newsweek. The Supreme Court denied the request to hear the case in 2021. Representatives for II in One declined to comment. Fox News Digital also contacted representatives for Thornton Tomasetti for comment. Court documents show that on Jan. 31, Thornton Tomasetti, Inc. and Scott A. Schneider, a senior principal and structural engineer at the firm, filed for an extension of time to answer the complaint. The court extended the deadline for their answer to March 5, 2025.

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