Originally posted on May 11, 2017 - 11:04am
Assessment Outlines Potential for OPC to Serve as Catalyst for Additional Development on South Side
Chicago – Today, the Obama Foundation released an Economic Impact Assessment that estimates the potential economic impact that the Obama Presidential Center (OPC) will have on the South Side of Chicago, Cook County and the State of Illinois. The economic impact includes both potential jobs created as well as the estimated increase in tax revenue attributed to construction and ongoing operations of the OPC.
In Cook County, the assessment predicts that the construction of the OPC will support 4,945 direct, indirect and induced jobs created during the construction phase and 2,536 direct, indirect and induced jobs after the Center is open. Additionally, the analysis estimates the total number of annual visitors on a long-term basis is expected to range from 625,000 to 760,000.
Other key findings for Cook County include: an economic impact of $3.1 billion during the construction period and first ten years of operations for Chicago, with $675 million resulting from the construction phase and an annual impact of $246 million after the Center is open. In addition, the construction phase is anticipated to result in $16.5 million in indirect and induced state and local tax revenue. Post-construction, the analysis estimates the OPC will generate $5.9 million in annual indirect and induced state and local tax revenue.
“President and Mrs. Obama chose to develop the Obama Presidential Center in the heart of Chicago’s South Side because it is the neighborhood they call home and the place they believed they could have the most impact. By bringing thousands of visitors to the South Side every year, the OPC will create new jobs and opportunities in the community, strengthen the economic climate, and revitalize historic Jackson Park. This analysis helps quantify the impact we can expect the OPC to bring to the community, the City, and the State,” said David Simas, Chief Executive Officer of the Obama Foundation.
For the South Side of Chicago, the assessment estimates that the OPC would result in an economic impact of $2.1 billion during the construction period and first ten years of operations, with $339 million in economic impact and 1,407 direct, indirect and induced jobs created during construction. After its opening, the OPC would generate an annual economic impact of $177 million and 2,175 direct, indirect and induced jobs on the South Side.
For the State of Illinois, the assessment estimates the construction of the OPC would generate an economic impact of $883 million and create 6,493 direct, indirect and induced jobs. After its opening, the OPC would generate an annual economic impact of $266 million and 2,774 direct, indirect and induced jobs.
"We know from experience that public and institutional investments attract private capital to neighborhoods, and this report highlights the Obama Presidential Center's significant projected economic impact that will complement and accelerate the investments we're making on the South Side," said Mayor Rahm Emanuel. "By creating thousands of construction and full time jobs for Chicago residents and attracting hundreds of thousands of visitors to the area annually, the Presidential Center will further catalyze economic development in neighborhoods like Woodlawn, Washington Park and South Shore while also offering tremendous educational, cultural and economic benefits to the entire City of Chicago."
“As a longtime resident of the South Side, I believe the Obama Presidential Center will give a solid economic boost to not just the immediate area in and around the facility, but adjacent, under-developed neighborhoods,” said Cook County Board President Toni Preckwinkle. “We look forward to the new opportunities that will be created by this exciting project.”
"The Obama Presidential Center will serve as a catalyst for economic development and cultural vitality for the South Side and the entire Chicago region. It will create job opportunities for the local community and bring additional visitors to the South Side, stimulating sustained economic benefits in an area poised to make the most of this exciting project,” said Robert J. Zimmer, President of the University of Chicago.
Deloitte conducted the economic impact assessment using an input-output methodology, which uses select inputs, such as direct spending, industry, and location, to generate economic impact outputs, such as total economic output, income, and the total estimated jobs supported. The software package IMPLAN provided by the IMPLAN Group LLC was used to conduct the analysis. The assumptions used in the model were refined by interviews with primary stakeholders, comparable institutions, and careful analysis of possible scenarios. Conservative figures were used for visitors, employment and budget. Other factors, including pre-existing community development projects and the Foundation’s Inclusion Council, were also considered in assessing economic impact.
To ensure that the work of the Foundation is informed by a diverse set of viewpoints and is in line with its values of diversity and inclusion, the Obama Foundation announced the formation of an Inclusion Council in October 2016. In April, the Obama Foundation announced that a tri-venture, Center Consortium, comprised of Jones Lang LaSalle, McKissack & McKissack and Ardmore Associates would lead the project management. Earlier this year, the Obama Foundation announced that Ralph Appelbaum Associates will lead, in partnership with Civic Projects and Normal, along with artists and educators Amanda Williams, Andres Hernandez, and Norman Teague, the exhibition design team for the OPC. The Foundation also recently announced a landscape design team comprised of Michael Van Valkenburgh Architects and Associates, Site Design Group, and Living Habitats in January. In July 2016, the Obama Foundation announced Jackson Park as the site of the future Obama Presidential Center. The Foundation considers the South Side community a full partner in the development and construction of the OPC, including in the integration of the OPC into Jackson Park. In June 2016, the Obama Foundation announced that Tod Williams Billie Tsien Architects | Partners and Interactive Design Architects will lead the design phase of the Obama Presidential Center.
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Contact: Kate Berner, [email protected] Opens in a new tab