Latest settlement between state agency and Gardaworld cost $1.3 million
CHICAGO – An empty lot in Brighton Park once eyed to house thousands of migrants just got more expensive.
Back in April, NBC 5 Investigates was first to report that the City of Chicago has agreed to pay the owners of the vacant lot at 38th Street and California Avenue more than $816,000 to settle a lawsuit that alleged the city failed to make monthly lease payments for the use of the land.
A failed plan to house up to 2,000 migrants in winterized tents was scrapped back in December 2023 after the Illinois EPA stepped in amid the release of an 800-page environmental report that found levels of mercury and other toxic metals were present in the soil and air surrounding the lot.
The $816,506.67 the City of Chicago agreed to pay is on top of the $986,621.21 the city already spent to remediate the environmental concerns and prep the land for its intended use.
Now, NBC 5 Investigates has learned the lot will cost taxpayers even more – after a state agency has reached a legal settlement agreement with the security company Gardaworld, which erected winterized tents on the site before the plan was scrapped.
Taken together, these recent legal settlements on this empty lot will cost taxpayers more than $3.1 million.
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According to a copy of the settlement agreement in the Court of Claims obtained by NBC 5 Investigates through a Freedom of Information Act request, the Illinois Department of Human Services has agreed that “a payment of $1.3 million is owed to Gardaworld for services rendered at 38th and California” site. The settlement was first reported by the Chicago Tribune earlier Tuesday.
Migrants initially earmarked for the winterized “base camp” were later absorbed into the city’s shelter system – which at its peak in January of 2024 was operating 27 shelters across the city.
City data records show the City of Chicago – through grants and direct taxpayer funds – has spent more than $600 million on the migrant mission since August of 2022.
“This isn’t really about money being spent inefficiently. I think it’s more about the choices that are being made,” said Anthony Moser, an environmental watchdog who has monitored the Brighton Park lot situation closely.
Moser was among the first to obtain state records showing the lot’s history as an industrial lot that dates back more than a century. He has also been critical of the city and state’s approach to address both the housing needs for migrants and for Chicago long-time residents.
“A lot of money got spent and it didn’t help anybody. It doesn’t leave us in a position where we can help anyone. The only ones coming out ahead here are the owners of a truck lot and Gardaworld.”
In an emailed statement from Gov. JB Pritzker’s office, a spokesman wrote:
“GardaWorld sought payment based on its claim that it performed a substantial amount of work at the State’s request. The State negotiated and settled that claim in the Court of Claims.”
The governor’s office would not provide further details and directed additional questions to the Illinois Department of Human Services.
NBC 5 Investigates also left messages for Gardaworld. So far, they have not responded.
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