Obama Center Subcontractor Shuts Down, Lays Off 25 Workers

A subcontractor who worked on the Obama Presidential Center in Chicago has suspended all operations and laid off 25 union workers amid a nearly $4 million payment dispute, marking the most severe escalation yet in a series of financial conflicts that have plagued the $850 million project since its opening last month.

Adamson Plumbing Contractors, owned by Mike Owen, shut down on June 25 — less than a week after the center’s star-studded Juneteenth opening — and has since filed a $1.72 million mechanic’s lien against the property, according to Fox News. The company claims nearly $4 million in losses tied to delays, rework, labor overruns, and changing project demands.

‘Final Death Blow’

Owen told Fox News Digital that the financial fallout forced Adamson to abandon roughly half a dozen other construction jobs and left the company on the verge of collapse. He described a last-minute agreement with Lakeside Alliance, the project’s construction manager, to provide plumbers for premium nighttime work in exchange for partial payment before the June 19 opening. The $100,000 payment did not arrive on time, Owen said.

“Not getting that large sum of money just kind of pulled the brakes on the train. It was just the final death blow to the company,” Owen said. “Rather than try to stretch it out and go bankrupt, I just decided the responsible thing was to shut it down.”

The promised $100,000 and roughly $35,000 in change-order payments have since arrived — more than two weeks after the layoffs — but Owen described the money as “too little, too late.”

Broader Pattern of Disputes

Adamson is one of several subcontractors to report serious financial trouble after working on the center, which was promoted as a transformative economic opportunity for small and minority-owned businesses. At least 10 subcontractors have contacted the African American Contractors Association seeking help with unpaid invoices, according to FactCheck.org.

Two subcontractors — Vision Painting and Glass Management Services — have filed for Chapter 11 bankruptcy. II in One Contractors, operating as The Concrete Collective, filed a $40.8 million lawsuit in January 2025 alleging racial discrimination by a structural engineering firm on the project. That case remains pending in federal court.

Omar Shareef, president of the African American Contractors Association, told the Chicago Crusader that Black subcontractors feel caught between pride in serving the nation’s first Black president and frustration over unpaid work. “It’s a slap in the face for these small businesses,” Shareef said. “They feel proud on one hand to serve President Obama, but on the other hand they feel treated like nothing.”

Who Is Responsible?

The payment disputes have sparked questions about financial accountability on the project. The Obama Foundation pays Lakeside Alliance — a joint venture of Turner Construction and four Black-owned Chicago firms — which in turn pays subcontractors. The foundation says it has no direct contractual agreements with subcontractors and no outstanding disputed charges with Lakeside.

“Our commitment began with a 15-day payment cycle, which is largely unheard of in major construction projects,” the foundation said in a statement, adding that it sometimes accelerated payment timelines or advanced payments months before work was completed.

Lakeside Alliance said in a statement that “contractual closeout continues long after the doors have opened” on projects of this complexity and that it remains “committed to working through all outstanding matters.”

Cost Overruns and Taxpayer Protections

The disputes unfold against a backdrop of significant cost escalation. Construction costs ballooned from an initial estimate of $300-350 million to $850 million total project cost. Meanwhile, only $1 million has been deposited into a promised $470 million reserve intended to protect Chicago taxpayers if the center encounters financial trouble. The Obama Foundation secured the 19.3-acre Jackson Park site through a 99-year lease requiring a one-time $10 payment.

Owen questioned why Illinois Gov. J.B. Pritzker, a Democrat who has championed labor causes, has not publicly addressed the layoffs of union workers. Pritzker’s office did not respond to a request for comment.

What’s Next

Owen has moved out of Adamson’s building and is working from home while turning the dispute over to his attorneys. He said he may pursue the full $3.9 million in claimed losses through legal action and hopes to restart operations in September, though the company’s future remains uncertain.

“I’m just going to have to fight this out legally from here on out,” Owen said. “It’s become perfectly obvious to me that the ownership group there — they truthfully just don’t care.”

The $40.8 million racial discrimination lawsuit by The Concrete Collective continues to move through the courts, and questions remain about whether the Obama Foundation will increase deposits into the taxpayer protection fund or whether additional subcontractors will face bankruptcy. For now, the project that was meant to be a beacon for minority-owned businesses has left a growing list of small contractors fighting for survival.