O'Hare Area Communities, Developers Unite to Build South Suburban Airport

The newly-announced South Suburban Airport Coalition just released details about the creation of a public-private partnership of leading developers, planners and communities to turn the concept of a South Suburban Airport into reality.

The Coalition includes two of the world's largest and most prominent airport developers, which have expressed their eagerness and belief that a South Suburban Airport will serve as a national model for how major airport projects may be developed through public-private partnerships.

Construction of the airport could begin in 18~24 months. The initial phase of construction will be in the range of $300 to $500 million, depending upon the size of the facility necessary. The airport will then be expanded as demand grows.

The two developers -- LCOR Holdings, a national real estate firm specializing in public-private development, and HOCHTIEF AirPort, a subsidiary of one of Europe's leading construction companies -- have reached an agreement to undertake development of the airport. The participating communities and developers will jointly fund the development phase. This Coalition will secure project financing at the successful completion of the development phase. The project is supported by a number of suburban communities including Bensenville, Elk Grove Village and Park Ridge and additional suburbs will be joining this effort. The suburban governments, located near O'Hare, are getting involved with their public funding, largely because they see Peotone as a great alternative to O'Hare expansion.

HOCHTIEF AirPort, the world's leading private airport developer and manager, has recently developed the new $2 billion Athens International Airport in Greece, which opened successfully about one year ago as the world's largest greenfield airport developed under a public-private-partnership structure. HOCHTIEF AirPort is also a strategic investor and developer for the airports of Sydney, Australia and Dusseldorf and Hamburg in Germany.

LCOR is the leading U.S. airport developer with projects including the new $1.4 billion JFK International Air Terminal, the largest public-private airport project in U.S. history. Helping to put together the coalition is Infrastructure Management Group (IMG), a company that assembles public-private partnerships worldwide, and was closely involved in the South Suburban Airport planning with the state of Illinois when it was contemplating such a partnership.

"The Coalition has assembled a team of professionals unlike anything this region has ever seen to build this airport and is excited about successfully initiating such an important development," said John Geils, Bensenville village president. "This project will increase the region's aviation capacity faster, more efficiently and at a lower cost than any other plan."

"This is the beginning of one of the nation's most innovative public- private partnerships to increase regional aviation capacity," said Rep. Jesse Jackson Jr. (D-IL). "While many steps lie ahead, today's partnership announcement sets the course for progress, resolution, and most important, construction."

The Peotone/O'Hare issues have brought such strange bedfellows as Rep. Jackson and Rep. Henry Hyde (R-IL) together, although each supports Peotone for different reasons.

The project builds on numerous planning efforts conducted by the state of Illinois over the past decade, including extensive demand forecasts, cost estimates and environmental analysis. This first step involves refining the project structure and development program and beginning conceptual design and facilities planning.

LCOR and HOCHTIEF AirPort intend to invest private funds in the development of the airport as they have in their prior projects. Community involvement will continue through coordination with the developers and government agencies.

"We commend the communities for their leadership in this exciting public- private partnership," said David A. Sigman, LCOR senior vice president. "We believe that an airport in the south suburbs can meet the aviation needs of the region and nation, as well as stimulating the local economy. We are eager to move forward."

"This is an unparalleled opportunity to increase regional air capacity for the long-term," said Lars Petzold, HOCHTIEF AirPort senior development officer. "We are ready to bring the best of the world's airports to the region."

"We believe this Coalition provides an opportunity for a solution that the south suburbs have needed to make this happen," said Linzey Jones, Olympia Fields village president and president of the South Suburban Mayors and Managers Association. "Finally this airport is off the drawing boards."

The South Suburban Airport Coalition is a partnership of developers, planners and communities committed to building an airport to meet the aviation capacity needs of the Chicago region.

FMI: http://www.lcor.com/profile.html, http://www.hochtief.com/index_explorer.htm (SSAC does not yet have a website)