The controversial $475 million Millennium Park in downtown Chicago officially opened on Friday - six years after Mayor Richard Daley announced plans to build a new $150 million park located between the shore of Lake Michigan and the downtown Loop area.
The 24.5-acre park is located adjacent to Grant Park on landfill constructed over old railroad tracks. It includes a new Frank Gehry-designed outdoor band shell, an indoor theater, a garden, water fountain, and several commissioned art sculptures and displays.
The city contributed a total of $270 million toward the park while private corporate donations covered the remaining $205 million. Daley initially put the price tag at $150 million, pledged not to use city property taxes to pay for it, and said it would be open for the start of the new millennium.
But the price tag for the park began to skyrocket as the plans grew more ambitious and the contractors discovered flaws in the structural and engineering plans for the park, including the parking garages that are located beneath it.
The city issued $150 million of limited-tax bonds in 1998 to pay for the parking garage and portions of Chicago's cost of the park, using garage revenues to repay the debt. The city sold another $40 million in 1999. Design and construction problems delayed the full use of the garage and it failed to generate sufficient revenue to cover debt service after capitalized interest funds were exhausted in 2001.
Daley reneged on his pledge not to use property taxes to cover the cost when he diverted some funds from a downtown tax increment financing district to help cover debt service. The city in May 2002 entered into a swap that generated sufficient funds - in addition to parking revenues - to cover debt service. The city terminated the swap last year, and also used about $35 million from a $150 million downtown TIF district financing in 2000 to help cover the park's cost.
