PROVIDENCE – Bally's Corp. says it has secured $940 million in funding for its massive flagship Chicago casino project at the same time changing plans for the casino so that a 34-story hotel tower will be built in a different location and in one phase instead of two.
To fund the project, Bally’s said Friday that it has entered into a financing deal with Gaming and Leisure Properties Inc. for $940 million along with other financing transactions, that together Gaming and Leisure Properties expects to fund $2.07 billion to Bally’s.
Financing for the project had been a concern.
Earlier this year, Bally’s Chief Financial Officer Marcus Glover told the Nevada Gaming Control Board the company had a $800 million funding gap to build its Chicago casino, according to the Chicago Sun-Times.
On July 5, Bally’s took possession of the former Tribune Publishing site, located at 777 W. Chicago Ave. And this week, the project’s demolition contractor began preparing the site.
“With keys to the property in hand, the new financing secured, a site plan that exceeds the original, and demolition set to start this summer, let there be no doubt that Bally’s Chicago Casino and Hotel will soon rise up along the Chicago River,” said George Papanier, president of Bally’s.
In new renderings released Friday, the future Bally’s Chicago Casino will feature its hotel tower on the southern end of the casino development along the Chicago River. The planned hotel tower was moved due to unforeseen underground infrastructure, Bally's said.
“The improved site plan for Bally’s Chicago delivers all 500 hotel rooms upfront as part of a single-phase development plan, protects all essential infrastructure, and elevates the grandeur of our much-anticipated permanent casino development,” said Christopher Jewett, senior vice president of corporate development for Bally’s. “We look forward to working with city officials to secure approval of our revised site plan.”
The hotel tower will include a large pool spa, fitness center, sun deck, and a rooftop restaurant bar to enjoy the Chicago skyline, according to the release.
“We’ve been working hard in the background to restore the full hotel tower for Bally’s Chicago Casino and absolutely intend to meet the September 2026 opening date as planned,” Papanier said.
Bally’s Chicago Casino is planned for the riverfront and designs calls for a 3,000-seat theater, six restaurants, cafes and a food hall and a 2-acre public park, as well as the 500-room hotel tower.
The casino will offer space for approximately 3,300 slots, 173 table games and VIP gaming areas. The lower riverbank will be connected to the property with an approximately 2,000-foot-long extension of the riverwalk extending south from W. Chicago Avenue.
The development is expected to generate approximately 3,000 construction jobs and 3,000 casino jobs
According to Friday’s announced deal, Bally’s rent will be amended to $20 million per annum, subject to annual escalators, reflecting the purchase price paid by Gaming and Leisure Properties for the land. The Chicago master lease agreement can provide up to an additional $940 million of construction financing funding for the Project’s “hard costs” through monthly draws, subject to certain conditions and requisite approvals.
The master lease agreement will have an initial term of 15 years, with a specified number of successive options for renewal. Amounts funded by Gaming and Leisure Properties under the construction funding facility will result in additional rent based upon an 8.5% cap rate for the incremental amounts funded.
