>> Rallies permanent casino in Chicago's River West neighborhood is slated to open early next year, but Valley says it's slowing construction on the surrounding entertainment complex, including its hotel concert venue and restaurant.

The move comes after the company says the city breached its development agreement by approving video gambling terminals, citywide a block of all people approve the plan over Mayor Brandon Johnson's objections.

They argue it would generate needed revenue to balance the city budget so far that money hasn't materialized.

Joining us now, our Jason Ervin, alderman of the 28th Ward on the city's West side.

That includes neighborhoods like Garfield Park Austin and North Lawndale.

Bill Conway, alderman of the 34th Ward representing downtown communities like the West and South Loop.

Gentlemen, welcome back.

Thanks for joining us.

happens.

So first, I want to start with the statement that we received.

W T Tw News received from Bally's.

It reads, quote, The potential for an uncontrolled proliferation of video gambling terminals Vgts is in breach of the city's commitment not to expand gaming in the host community agreement and creates uncertainty that could be harmful for Bally's Chicago prospects.

Alderman Urban first you what is your reaction to that justification from Bally's?

>> I'm a little disappointed in the fact that that brought a out about the way that it was my understanding.

They have some financial pressure based on video gaming.

I do not support video game.

is time based on the revenue split that city receives from it.

But again, understand their rationale, but they have some other challenges.

also facing.

But again, we look at the financial stability of the city, the pension funds.

This is something that we need to make.

>> Alderman Conway, you are part of a group of alderman who voted to approve video gambling terminals.

What's your reaction to the statement from Belize?

Well, I mean, big picture, we got to make sure we're doing everything we can to maximize jobs and tax revenue for and within the city.

Chicago.

>> And you read that host community agreement.

They have agreed to complete all the work and all the components, their end and they have to show that there is an adverse impact to them by this and that there is a mode of lawful gaming that is being being approved.

And if they are able to show those things, the remedy is a good faith renegotiation of the 4 million dollars for 4 million dollar payment on there.

It is not that they can stop construction.

So, you know, it is up to the city's law department to send them a default notice.

I would say it's a continue along this path.

It will be into fall to the agreement and under the host community agreement, the remedies at the city's disposal are draconian specific performance.

Liquidated damages.

Hopefully it doesn't come to that because as my colleague said, we need that tax revenue.

You know, we are pensions or need, but plus community green.

It's pretty clear.

do you think Bally's been should be either you know, renegotiate that agreement that you mentioned the 4 million dollar payment or do they need to show proof that the video gambling terminals would actually do damage?

They do have to show this adverse impact from that, which, you know, was probably some chance they can show that.

But the >> the remedy there is a good faith renegotiation of the 4 million dollars.

It's not it's not stopping construction because that's not what the agreement allows the the The construction is being stop is in the ground game in and again, our were.

>> issue was around game and making sure that those profits from the casino go to offset our public safety, pension funds and other things.

So I'm open to a conversation around the issue.

we need to be more careful in the moves we make because for every action, there's also reaction.

don't think anyone thought the valleys would have done what they did, but they did not.

We are in this pickle again over revenue did just won't Doesn't ease is where we're going to be ready to look a good cop, bad cop already already practicing it clearly.

>> Conway, a group of your fellow alderman you all day.

They sent a letter to Bally's accusing the company of the using the video game league approval as an excuse to slow construction as they look for other ways to finance the project because it is open secret that they've got some financial woes that they're considering.

Do you think they're just trying to buy more time here?

And you know, why would they want to invest in in Chicago if they believe that the city council members of the city council don't believe them, don't trust water lying.

Well, I think that's a conversation need to be have.

But >> as you said, it's no secret that they are having some significant financial difficulty in the sense that they're having problems with their development, Las Vegas.

Their credit was recently downgraded.

They've just issued a niche notice that they may not be able to come complete as a going concern anymore.

They're temporary casinos, underperforming.

So as a result of you don't.

It's a conversation we can have, but them slowing construction could be could certainly be a financing mechanism that they're that they're in point here other than urban.

Do you think that's the case here?

>> You know what?

I don't know.

We haven't had an opportunity to speak with the people from Bally's.

I'm sure they'll be before council hopefully in the next 30 to 45 days week.

A national specific questions.

But I do understand the plight of the revenue concerns that exist because if you look at other casinos across the state, they have taken some level of dies when the video game came about and their respective areas.

So there is concern And also, let's think about this.

We lose money.

>> As the city video game in comparison to the casino.

We get $0.22 on the dollar to casino.

Only $0.05 on the dollar to video gaming terminal.

That is the issue that I have.

Another members of council have released a video gaming.

I 1000% sure that with Alderman okay.

So the city is relying on 6 point or was rely on 6, 20.8 million dollars in revenue from these video gambling terminals, 8 months into this year.

None of that money has shown up over Minerva new warned that this would happen.

Did you not?

>> Well, I was more concerned about the debt sale that was going on as well as video gaming terminals.

At the time.

We knew that there was a long line >> of people trying to get a license in and how the city of Chicago is going to shoot to the top of line and trying to get license.

And we knew that this was all going to be a fallacy.

And we here we here we are live in now.

We've got a 90 million dollar deficit that we have to figure out next problem.

45 days otherwise been in the year and the red to the tune of about a billion dollars over Conway.

Should the city council approved a budget that relied on uncertain funding?

>> Well, I think there was a lot of moving parts and that what made the budget negotiations so difficult was >> Mayer's Slavic devotion to the head tax, which clearly the city council's not 4 and the city's people, the city, Chicago on for.

So that was the fight that was going on at that moment in time.

Fortunately, we were able to avert that.

But now we find ourselves in on the other side of that, we're going to have to work through it.

>> So should the city then Obama coming back to you?

Should the city's 2027 budget reimpose a ban on on video gambling outside the casino given that the city has made up for that 7 million dollars counting on.

>> Well, we have to make sure that we are doing what we can to maximize jobs and maximize tax revenue within the city, Chicago.

So we have to be looking this at a broader level than simply this 6.8 million dollars heroes a yes or no question that you know, I haven't been in this business is law no question you get over I do not believe that the money should be included in the 2027 budget.

>> Given the nature of probably litigation with the host community agreement.

It just doesn't make sense to include in the game is peanuts.

It is not real mind.

We're talking.

You're tripping over $100 bills to pick up Nichols.

That is what is happening.

Makes no sense for the city to The city's budget is what?

16 point that soak 6.8 million dollars.

>> Not that much in the grand scheme of things.

is nothing to sneeze a little fun.

it's 76, you give me 6 Mia ad dollars.

But nonetheless, though, I think that we have to make sure we have a balanced budget.

>> We need to have revenues that we're going to rely on.

I don't believe that lovely revenue.

>> From video game and in the police and a gallon in the city of Chicago's where residents want.

Okay.

Some of some of your colleagues aldermen, Irvine.

They have.

They say the Mayor Johnson's administration dragging its feet on improving license is necessary for bars and restaurants operate these machines.

The state has only approved 6 of these.

Then what somebody need to pick up the pace?

What needs to happen?

Well, it still grew into revenue changes not in the city's interest to move forward.

>> On video gaming again, we get $0.05 on the dollar.

That is lunacy with city of Chicago.

We should be able to leverage not only for the city of Chicago before other municipalities across the state.

Now, the real winner in all of this would be the state of Illinois because they will reap a huge benefit from gambling in the city of Chicago, not residents of the city of Chicago.

Seeing it's a benefit.

>> Yeah, that's exactly.

I mean, that's exactly right.

I agree with my my colleague on that in the sunset out out of a dollar of profit, the city gets 5 sets.

The state gets $0.30 and then the operator and the and the location they each get.

35 so we really got the short end of the stick when it comes to video game revenue.

Okay.

So before we let you both go, we've got about 45 seconds left.

Budget forecast is expected next week.

What do you have your eyes on older and you first, the bottom line need to understand what our deficit we anticipated, what it looks like and how we're going to saw forward a pray that calmer heads prevailed in this process.

>> That we get a budget that's real.

We get a budget that the city of Chicago can live with.

And that's something that's going to deliver services to residents of the Well, I would say that we need to show the people the city, Chicago that were being reasonable stewards with their money before we ask them for more.

Okay.

So not excite about asking for more.

What what I'm here?

like I'm not sure who is.

it's right.