Ryan: Taxpayers won't pay for cleanup costs
Chicago taxpayers will not be left holding the bag for shifting the $1.1 billion Olympic Village to the campus of Michael Reese Hospital -- even though the cost of demolition and environmental cleanup is 60 percent higher than anticipated, Chicago 2016 Chairman Pat Ryan insisted Friday.
Mayor Daley wants to borrow $85 million to finance the hospital purchase. His original plan called for Medline Industries, which owns the 37-acre property, to make a "charitable contribution" of $20 million that was supposed to be enough to cover demolition, environmental cleanup and five years of interest payments on the loan at a rate of five percent.
The higher-than-anticipated cost of demolition and cleanup has altered the equation. Ryan is trying to salvage the deal by renegotiating the purchase price.
"I don't forsee an unresolvable issue there. I think that we will resolve the issue of the environmental cleanup to the satisfaction of all parties," Ryan said.
Pressed on whether Medline would be asked to pay more, he said, "I'm not gonna get into the details, but we're having discussions. . . . Taxpayers will not be" on the hook.