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Park Grill

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Park Grill
Map
Restaurant information
EstablishedNovember 24, 2003
Head chefBernard Laskowski[1]
Food typeContemporary American Cuisine
Dress codeCasual
Street address11 North Michigan Avenue
CityChicago
StateIL
Postal/ZIP Code60602
CountryUSA
Seating capacity300
ReservationsYes
Websitewww.parkgrillchicago.com

The Park Grill is a contemporary American cuisine restaurant located at Millennium Park in Chicago, Illinois. The Chicago Park District's awarding of the contract to the partners of the Park Grill is among the most prominent scandals of the administration of Chicago Mayor Richard M. Daley in 2005.

Location and views

Bordering Millennium Park along Chicago's Michigan Avenue, the famous Chicago sculpture Cloud Gate on the AT&T Plaza is located on the roof of Park Grill.[2]

In summer, the restaurant's outdoor seating outdoor seating area is the largest al fresco dining area in Chicago.[2][3][4] In winter, this outdoor seating becomes McCormick Tribune Plaza & Ice Rink,[5][6][7][8] and diners in the 300-seat[9] Park Grill overlook the skating rink through floor-to-ceiling windows.[10]

The Unofficial Guide to Chicago points out the "spectacular view of the Chicago skyline, fronted by the ice rink at Millennium Park."[11] Fodor's Chicago 2010 says "Location trumps service at Park Grill, where a seat on the patio in summer, in full view of Millennium Park, is among the best in the city. Sadly, the waitstaff lapses..."[12] The National Geographic's website's Chicago Walking Tour: Millennium and Grant Parks recommends the Park Grill as it "allows you to admire the surrounding architecture passively."[13] The restaurant was noted as one of the "99 Best of Chicago," named as one of three under the category of "Best Restaurants with a View" in Night+Day Chicago.[14] Zagat lists Park Grill as one of the "choice outdoor spots in town."[15] New City Chicago magazine named it one of the top 100 essential restaurants in the city, urging, "Ignore the scandal over sweetheart deals with the city for a moment and consider this: Park Grill sits in the hottest spot in the city today, if not in America."[16]

Film location

The Lake House (film), starring Sandra Bullock and Keanu Reeves, filmed scenes from the Park Grill (called Il Mare in the movie) in which Bullock's character (Kate) watches skaters from the windows of the restaurant.[17][18]

History

In 2003 the Chicago Park District awarded a 20-year contract to run the Park Grill.[19]

Background of managing partners

Matthew A. O'Malley and James Horan are the managing partners.[20][19]

O'Malley once worked for the powerful U.S. Rep. Dan Rostenkowski (D-Ill.). O'Malley runs the Chicago Firehouse Restaurant, around the corner from the home of Mayor Richard M. Daley, who has been a steady customer. The restaurant is in an old, re-purposed firehouse bought from the city. O'Malley also has been a business partner with the son of power broker and former Alderman Edward Vrdolyak.[19] O'Malley and his brother Paul were picked to run the Clock Tower Cafe at the Sydney Marovitz Golf Course in Lincoln Park on the Chicago lakefront.[21][22]

James Horan is a restaurant owner and caterer who is president[20] of Blue Plate Catering. Blue Plate runs a cafe at Gallery 37, an after-school program created and fostered by Mayor Daley's wife, Maggie Daley.[19]

Background of investors

O'Malley lined up more than 80 investors[19][23] for the Park Grill including some of Mayor Richard M. Daley's friends and neighbors.[19][24] Investors put up $200,000 for one share of the restaurant.[19] Among the investors are Daley's friend Fred Barbara,[19][25][26] a nephew of the late Chicago Alderman Fred Roti.[19] Barbara has ties to the Hired Truck Program scandal and the blue bag recycling controversy.[19] Other investors include relatives of Daley's political adviser Timothy Degnan.[19][25] Other investors include two neighbors of the mayor, Ray Chinn,[19][26] a clout-heavy O'Hare Airport contractor, and Rick Simon, a controversial figure who runs a janitorial business and sits on the board of the Chicago Convention and Tourism Bureau.[19] Also among the investors is former congressman Morgan F. Murphy, who has had business dealings with convicted labor boss John Serpico.[19]

Among the vendors for Park Grill was an architectural metal company owned by the son of then Chicago Alderman Burton Natarus (42nd).[19]

Contract award process

O'Malley's and two other groups submitted proposals to run the restaurant in September 2001. By the end of the year, O'Malley's team had been selected to run the restaurant, souvenir and concession stands, and a cafe in the new Millennium Park.[19] The Park Grill group's proposal was twice as long as the other two but, technically, promised the Park District the lowest revenues.[27]

The Park Grill contract was signed Feb. 11, 2003.[19][28][21] The contract requires that Park Grill pay a percent of net sales and an additional fee of $275,000 per year, but the latter was not due until the Park Grill recouped half its build-out costs.[27] As part of its deal, the Park District pays for water, gas, and garbage collection at Park Grill.[29] The garbage pickup costs taxpayers about $245,000 annually.[19]

Park District project manager's relationship with contractor

The Park District team, including an outside consultant, spent 18 months negotiating a contract with O'Malley's group.[19] During that time, Laura Foxgrover, a top official in the Park District department directly overseeing the deal, gave birth to O'Malley 's child.[19][21][26][27][28][30][31][32][29][33][34][35][36] Prior to working for the Park District, Foxgrover had been an employee of O'Malley as director of operations[26] at the Chicago Firehouse Restaurant.[21] Foxgrover held the title "senior project manager" at the Park District at an annual salary of $94,000.[19] In May 2002 Foxgrover wrote a memo recusing herself from negotiations, without saying why, and never told her superiors she was carrying O'Malley's child.[19][28] The girl was born in September, 2002.[19]

Foxgrover remained involved in the Millennium Park restaurant after she recused herself from contract negotiations in May, 2002.[21][30][37] In October 2003 Foxgrover spoke in favor of the restaurant getting a liquor license before a Chicago City Council committee while O'Malley owed Foxgrover at least $5,000.[21][30][37][26][38] On the same day, Foxgrover worked to get O'Malley's Clock Tower Cafe a liquor license.[21] In one July 2003 e-mail, Foxgrover, then the acting director of park services, said that if O'Malley's contractor had any questions for the Park District, she will be the point person.[30] In August 2003, Horan sent out an e-mail mentioning a discussion Horan had with Foxgrover, in which Horan asked Foxgrover if the Park District would waive a form of insurance on the restaurant's construction.[30] A provision in the Park Grill contract allows the restaurant to arrange a series of summer concerts on the Millennium Park ice-skating rink, drawing crowds that bolster food and drink sales. In summer 2004, O'Malley and his partners asked Clear Channel-owned WNUA Radio to conduct the concerts. In February 2005, Foxgrover led a five-member Park District committee that chose Clear Channel over JAM Productions to operate the new concert venue at Northerly Island on the former site of Meigs Field.[27][39][37]

Foxgrover was the subject of an ethics investigation.[21] An ethics officer for the Chicago Board of Ethics concluded that Foxgrover did not violate the district's ethics ordinance and should be allowed to keep her $90,000-a-year job as the Park District's director of development.[40] By 2008 Foxgrover had left the Park District to work for O'Malley's restaurant management company.[36]

Exemption from property tax

On March 16, 2005 Cook County Assessor James Houlihan's office sent Horan and O’Malley a letter notifying Park Grill that it was being assessed at $502,550 and that it would be sent a bill in the fall for 2004 property taxes.[29][41] On August 5 Horan and O’Malley filed a lawsuit against the assessor, asking that a judge prohibit the county from imposing property taxes.[29][42] The owners asserted that their contract to run Park Grill was a property tax exempt concessionaire agreement and not a taxable lease.[29][41][43][44] The state’s attorney’s office, which defended the assessor in the case, said "our position is that the Park Grill is a leaseholder and as a leaseholder they are subject to taxes.”[29] In 2009 an appellate court affirmed the circuit court's finding that the agreement to run Park Grill was not a lease but a license.[43][33][41][45][46]

Daley administration response

Mayor Richard M. Daley criticized the Park Grill deal, saying that lawyers for the city and the Chicago Park District erred and that the city wanted to renegotiate the pact. "Lawyers do make mistakes," Daley said. "That's what it was. ... It's embarrassing to them. Yes it is--the corporation counsel and the Park District counsel."[47][25] In a February 9 2005 letter to O'Malley and Horan, Chicago's Corporation Counsel Mara Georges warned that the concession agreement "does not authorize your occupation of the Park Grill facilities" because the city owns the land, and City Hall should have been party to the original agreement when it was not.[31][48][24] Chicago Park District Superintendent Tim Mitchell said the Park District also wanted to renegotiate the contract.[28][27] On February 11, 2005, Daley asked state lawmakers to impose tougher penalties for defrauding tax payers, and was questioned by reporters about why the Park Grill had not paid any property taxes and gets free gas, water and garbage pick-up.[49] Erma Tranter, president of the Friends of the Parks watchdog group, speaking at a Park District Board of Commissioners meeting, questioned why the controversial Park Grill contract had yet to be renegotiated 11 months after Mayor Daley vowed to do so.[35]

The Chicago Sun-Times dubbed the Park Grill the "Clout Cafe"[30][45] and included the contract award process in a year-end review of Daley administration scandals.[32]

Profitability

The grand opening was set for November 29, 2003.[8] In its first year of operation, Park Grill paid $162,656.72 in rent.[25] The 2004/2005 Zagat survey named the restaurant among the 5 "Top Newcomers" to Chicago.[50] The Park Grill began making money for its investors in its third year of operation, 2006, when investors split $527,250 in profits.[51] In 2008 the Park Grill was named one of the top 100 highest-grossing independent restaurants in the US, serving approximately 300,000 meals and grossing approximately $(US)12,000,000 in sales, making it the 7th largest independent restaurant in terms of sales in Chicago in 2007 according to Restaurants and Institutions magazine.[52]

The Park Grill remains exempt from property taxes, and the contract has not been renegotiated.[33][53]

Bernard Laskowski, formerly of Chicago restaurants Marche and mk, is the executive chef.[1] The menu is traditional American food with international influences.[54][11][12][55] Park Grill hamburgers achieved high citywide rankings in several publications, including best burgers in Time Out Chicago (2005) and Citysearch (2008).[56][57][58][59][60]

The Park Cafe, adjacent to the Park Grill, offers takeout food such as salads and sandwiches.[61]

References

  1. ^ a b Glenn, Brandon (August 01), "Restaurant veteran is new GM at Park Grill", Crain's Chicago Business, retrieved 03/13/2010 {{citation}}: Check date values in: |accessdate=, |date=, and |year= / |date= mismatch (help)
  2. ^ a b Gilfoyle, Timothy (2006). Millennium Park: Creating a Chicago Landmark. University of Chicago Press. p. 328, 442.
  3. ^ Chicago Magazine Dining Guide: Park Grill, retrieved 2010-03-15
  4. ^ Pratt, M. Kathleen. "City of Big". The Rotarian. 183 (8): 32. doi:2005-02. {{cite journal}}: Check |doi= value (help)
  5. ^ Sherman, Laura (2007-08-29). "Perfect places to dine solo". USAToday.com. Retrieved 2010-03-13.{{cite news}}: CS1 maint: date and year (link)
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  7. ^ Baty, Chris; Zimmerman, Karla; Zimmerman, Karla (2006). Chicago (4 ed.). Lonely Planet. p. 131. ISBN 1740597966. {{cite book}}: External link in |publisher= (help)
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  10. ^ Mink, Randy (2005-12-12). "Chicago's cozy season: Winter is celebrated in the Windy City". Tribune. Retrieved 03/13/2010. {{cite news}}: Check date values in: |accessdate= and |year= / |date= mismatch (help); External link in |newspaper= (help)
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  33. ^ a b c Joravsky, Ben (July 16, 2009). "Still No Property Tax Bill for the Park Grill: The restaurant under the Bean wins another round in its fight to avoid paying up like everybody else". Chicago Reader. Retrieved Mar 15, 2010.
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