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Park Grill

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Park Grill
File:ParkGrillIceSkating.jpg
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 the only full-service restaurant included in the multi-billion dollar, controversial Millennium Park project in Chicago, Illinois.

The exclusive location, lucrative contract terms, investor list, and a close personal relationship between a managing partner of the restaurant and the Chicago Park District's project manager lead to a formal ethics investigation, court litigation, extensive press coverage, and ranked among the most prominent scandals of the administration of Chicago Mayor Richard M. Daley in 2005. The more than 80 investors include some of Daley's friends and neighbors.

One of the most financially successful restaurants in Chicago, the Park Grill remains exempt from property taxes after a multi-year litigation which reached the appellate courts in Illinois.

Location and views

The Park Grill is located on North Michigan Avenue in Chicago. The famous Chicago sculpture Cloud Gate is located on the AT&T Plaza which is on the roof of Park Grill.[2]

In summer, the restaurant's 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 ice 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]

History

In 2003 the Chicago Park District awarded a 20-year contract to run the Park Grill to a partnership including some of Mayor Richard M. Daley's friends and neighbors.[17][18]

Background of managing partners

Matthew A. O'Malley and James Horan are the managing partners.[19][17] O'Malley once worked for the powerful U.S. Representative 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.[17] 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.[20][21] James Horan is a restaurant owner and caterer who is president[19] 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.[17]

Background of investors

O'Malley lined up more than 80 investors[17][22] for the Park Grill including some of Mayor Richard M. Daley's friends and neighbors.[17][18] Investors put up $200,000 for one share of the restaurant.[17] Among the investors are Daley's friend Fred Barbara,[17][23][24] a nephew of the late Chicago Alderman Fred Roti.[17] Barbara has ties to the Hired Truck Program scandal and the blue bag recycling controversy.[17] Other investors include relatives of Daley's political adviser Timothy Degnan.[17][23] Other investors include two neighbors of the mayor, Ray Chinn,[17][24] 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.[17] Also among the investors is former congressman Morgan F. Murphy, who has had business dealings with convicted labor boss John Serpico.[17] Among the vendors for Park Grill was an architectural metal company owned by the son of then Chicago Alderman Burton Natarus (42nd).[17]

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.[17] The Park Grill group's proposal was twice as long as the other two but, technically, promised the Park District the lowest revenues.[25]

The Park Grill contract was signed February 11, 2003.[17][26][20] 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.[25] As part of its deal, the Park District pays for water, gas, and garbage collection at Park Grill.[27] The garbage pickup costs taxpayers about $245,000 annually.[17]

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.[17] During that time, Laura Foxgrover, a top official in the Park District department directly overseeing the deal, gave birth to O'Malley 's child.[17][20][24][25][26][28][29][30][27][31][32][33][34] [nb 1]Prior to working for the Park District, Foxgrover had been an employee of O'Malley as director of operations[24] at the Chicago Firehouse Restaurant.[20] Foxgrover held the title "senior project manager" at the Park District at an annual salary of $94,000.[17] 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.[17][26] The girl was born in September, 2002.[17]

Foxgrover remained involved in the Millennium Park restaurant after she recused herself from contract negotiations in May, 2002.[20][28][35] 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.[20][28][35][24][36] On the same day, Foxgrover worked to get O'Malley's Clock Tower Cafe a liquor license.[20] 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.[28] 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.[28] 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.[25][37][35]

Foxgrover was the subject of an ethics investigation.[20] 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.[38] By 2008 Foxgrover had left the Park District to work for O'Malley's restaurant management company.[34]

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.[27][39] On August 5, 2005 Horan and O’Malley filed a lawsuit against the assessor, asking that a judge prohibit the county from imposing property taxes.[27][40] The owners asserted that their contract to run Park Grill was a property tax exempt concessionaire agreement and not a taxable lease.[27][39][41][42] 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.”[27] 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.[41][31][39][43][44]

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."[45][23] 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.[29][46][18] Chicago Park District Superintendent Tim Mitchell said the Park District also wanted to renegotiate the contract.[26][25] 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.[47] 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.[33] The Chicago Sun-Times dubbed the Park Grill the "Clout Cafe"[28][43] and included the contract award process in a year-end review of Daley administration scandals.[30]

Profitability

Park Grill logo
Park Grill logo

The grand opening was set for November 29, 2003.[8] In its first year of operation, Park Grill paid $162,656.72 in rent.[23] The 2004/2005 Zagat survey named the restaurant among the five "Top Newcomers" to Chicago.[48] The Park Grill began making money for its investors in its third year of operation, 2006, when investors split $527,250 in profits.[49] 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 seventh largest independent restaurant in terms of sales in Chicago in 2007 according to Restaurants and Institutions magazine.[50] The Park Grill remains exempt from property taxes, and the contract has not been renegotiated.[31][51]

The menu is traditional American food with international influences.[52][11][12][53] Park Grill hamburgers achieved high citywide rankings in several publications, including best burgers in Time Out Chicago (2005) and Citysearch (2008).[54][55][56][57][58] Bernard Laskowski, formerly of Chicago restaurants Marche and mk, is the executive chef.[1] The Park Cafe, adjacent to the Park Grill, offers takeout food such as salads and sandwiches.[59]

Notes

  1. ^ see also

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. Retrieved 2010-04-09.
  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)
  6. ^ Kleaman, Kelly (2004-07-11). "Show Time for the Windy City's New Class Act". The Washington Post. pp. P02. Retrieved 03/13/2010. {{cite news}}: Check date values in: |accessdate= (help)CS1 maint: date and year (link)
  7. ^ Baty, Chris; Zimmerman, Karla; Zimmerman, Karla (2006). Chicago (4 ed.). Lonely Planet. p. 131. ISBN 1740597966. Retrieved 2010-04-09. {{cite book}}: External link in |publisher= (help)
  8. ^ a b Quigley, Kelly (November 21, 2003), "Millennium Park eatery to debut", Crain's Chicago Business, retrieved 03/13/2010 {{citation}}: Check date values in: |accessdate= (help)CS1 maint: date and year (link)
  9. ^ Hall (2004-06-20). "TRAVEL ADVISORY; Chicago Adds Bold Touches to Its Lakefront". New York Times. p. 53. Retrieved 2010-03-13. {{cite news}}: Text "first Christopher" ignored (help)
  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)
  11. ^ a b Hoekstra, David (2009). The Unofficial Guide to Chicago (8 ed.). Frommer's Group. p. 253. ISBN 0470379995. Retrieved 2010-03-15. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  12. ^ a b Butler, Stephanie (2009). Fodor's Chicago 2010. ISBN 1400008603. {{cite book}}: Unknown parameter |Page= ignored (|page= suggested) (help); Unknown parameter |Publisher= ignored (|publisher= suggested) (help) Review also online
  13. ^ travel.nationalgeographic.com's Chicago Walking Tour: Millennium and Grant Parks, retrieved 03/16/2010 {{citation}}: Check date values in: |accessdate= (help)
  14. ^ Wollenberg, Wendy (2007). Night+Day Chicago (14 ed.). ASDavis Media Group. p. 39. ISBN 0976601362. Retrieved 03/15/2010. {{cite book}}: Check date values in: |accessdate= (help)
  15. ^ "Zagat Buzz: Chicago Edition. "Do It Outdoors."", zagat.com, 4/24/2009, retrieved 3/16/2010 {{citation}}: Check date values in: |accessdate= and |date= (help)[dead link‍]
  16. ^ editorial staff, "Resto 100: Chicago's Essential Restaurants", New City Chicago, retrieved 3/16/2010 {{citation}}: Check date values in: |accessdate= (help); Text "date 03/01/2005" ignored (help)
  17. ^ a b c d e f g h i j k l m n o p q r s t u v w Novak, Tim; Warmbir, Steve; Herguth, Robert; Brown, Mark (February 11, 2005). "City puts heat on clout-heavy cafe; Changes ordered at Park Grill, with Daley cronies among backers". Chicago Sun Times. Retrieved March 17, 2010. {{cite news}}: External link in |work= (help)
  18. ^ a b c Spielman, Fran (2007-05-09). "Millennium Park oversight plan advances". Chicago Sun-Times. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  19. ^ a b Moffett, Nancy (2001-11-13). "Millennium Park restaurant plan unveiled". Chicago Sun-Times. Retrieved 2010-03-27. {{cite news}}: External link in |work= (help)
  20. ^ a b c d e f g h Warmbir, Steve; Novak, Tim (2005-03-24). "Park official's baby spurs ethics probe; Fathered by partner in restaurant in which she played a role". Chicago Sun-Times. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  21. ^ Houlihan, Mike (2004-04-25). "O'Malley brothers turn youthful partying into empire". Chicago Sun-Times. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  22. ^ Patchen, Kenneth L R. (2005-02-24). "Licata defends restaurant deal". Highland Park News. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  23. ^ a b c d Hinz, Greg (2005-02-28). "Park perks; Why did the city just get three local bids for a world class restraunt location?". Crain's Chicago Business. Retrieved 2010-03-18.
  24. ^ a b c d e Ford, Liam; Washburn, Gary (2005-02-12). "Park restaurant pact revisited - Millennium cafe has investor list loaded with clout". Chicago Tribune. Retrieved 2010-03-18. {{cite news}}: External link in |work= (help)
  25. ^ a b c d e Joravsky, Ben (2005-02-17). "A Percentage of Nothing; The Park Grill's deal with the city isn't just sweet--it's ridiculous". Chicago Reader. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  26. ^ a b c d Spielman, Fran (2005-02-12). "Park District reviews restaurant's lease; Daley, parks chief deny clout played part in deal". Chicago Sun-Times. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  27. ^ a b c d e f Joravsky, Ben (2005-09-02). "The Poor, Poor Park Grill; Even if they end up paying property taxes, they still have a ridiculously good deal" (PDF). Chicago Reader. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  28. ^ a b c d e f Spielman, Fran (2005-03-25). "Daley: City ethics panel given 'clout cafe' e-mails; Role of park official involved with restaurant partner being probed". Chicago Sun-Times. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  29. ^ a b Spielman, Fran (2005-02-16). "Park District wasn't allowed to give lease; Daley aide says it's city that actually owns Park Grill site". Chicago Sun-Times. Retrieved 2010-03-18. {{cite news}}: External link in |work= (help)
  30. ^ a b Spielman, Fran (2006-01-02). "Daley's rough year: Wave of Scandals weakens mayor's influence". Chicago Sun-Times. Retrieved 2010-03-16.
  31. ^ 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.
  32. ^ Spielman, Fran (2005-06-04). "City cleans house at Water Dept.; Water Management commissioner, 9 workers fired". Chicago Sun Times. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  33. ^ a b Herrmann, Andrew (2006-01-12). "Shed light on park costs, group says: Price of upkeep at Millennium not clear: watchdog group". [http://www.suntimes.com/ Chicago Sun-Times. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  34. ^ a b Novak, Tim (2008-05-29). "The $413,000 flip - Outsider turned a big, quick profit on Chicago Defender real estate deal". Chicago Sun-Times. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  35. ^ a b c Spielman, Fran; HERRMANN, ANDREW (2005-04-19). "Ethical clouds gather for park official; Role in selection of concert venue operator under investigation". Chicago Sun-Times. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  36. ^ Washburn, Gary (2003-10-29). "Millennium Park set to add wining, dining". Chicago Tribune. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  37. ^ Joravsky, Ben (2005-03-03). "Giving Away the Farm; Here's an Idea: How About an Airport?; Who Was on That Committee Anyway? The Park District's latest bad deal--building a concert venue on Northerly Island and then letting Clear Channel charge admission--won't even cover what it cost to rip up Meig field". Chicago Reader. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  38. ^ Spielman, Fran (2006-03-25). "Judge: Official didn't violate ethics in Millennium Park deal". Chicago Sun-Times. Retrieved 2010-03-16. {{cite news}}: External link in |work= (help)
  39. ^ a b c Millennium Park Joint Venture v. Houlihan, 2009-02-29 http://www.state.il.us/court/opinions/AppellateCourt/2009/1stDistrict/June/1073141.pdf, retrieved 2010-03-15 {{citation}}: Check date values in: |date= (help); Missing or empty |title= (help)
  40. ^ Ahmed-Ullah, Noreen S. (2005-08-06). "Millennium Park grill sues to avoid paying property taxes". Chicago Tribune. Retrieved 2010-03-28. {{cite news}}: External link in |work= (help)
  41. ^ a b Metcalf, Scott (2009-07-15), Front and Center Legal Updates and Analysis: Millennium Park Restaurant at Center of Appellate Court Opinion Clarifying When Property is Taxable, retrieved 3/17/2010 {{citation}}: Check date values in: |accessdate= (help)
  42. ^ Gallun, Alby (2005-11-05), "Park Grill sues to block taxes", Crain's Chicago Business, retrieved 03/15/2010 {{citation}}: Check date values in: |accessdate= (help)CS1 maint: date and year (link)
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  49. ^ Novak, Tim; Fusco, Chris; McKinney, Dave (2008-01-31). "Thanks to taxpayers...'Clout cafe' makes money - Park Dist. paying for its gas, garbage pickup". Chicago Sun-Times. Retrieved 2010-03-28. {{cite news}}: |first4= missing |last4= (help); External link in |work= (help); Text "last4Warmbyir" ignored (help)
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