Revenue Shift To Be Used For Airport Expansion Projects

The Federal Aviation Administration approved the collection of almost $1.3 billion in future air passenger ticket taxes Tuesday by the city of Chicago to expand O'Hare International Airport.

The Chicago Tribune reported the approval to use ORD's $4.50 passenger facility charge for the $15 billion airport expansion project will allow the city to use the taxes to help pay for land acquisition, something the airlines are against, saying the funds should be used strictly for improving airport facilities.

Rosemarie Andolino, executive director of the O'Hare Modernization Program, says the airlines are "on board" with the expansion plans although none have signed up to help pay for the part of the plan that would have the biggest improvement on flight delays.

She called the FAA decision a victory over critics of the airport.

"To opponents of O'Hare expansion we say the program is being built and it is being funded," said Andolino.

"It's really not up for discussion any longer because the FAA has come back and said this is a much-needed project to increase flight capacity and decrease delays."

Overall, the city requested the use of $1.27 billion in ticket taxes for two new runways and the extension of a current runway as well as the absorption of some $270 million to buy suburban properties in the airport's vicinity.

The city has, so far, acquired 512 of the 611 properties it says it needs for the expansion.

There is a bump in the land-acquisition road, though. Bensenville, Elk Grove Village and some religious groups are trying to block the sale of land that holds the St. Johannes Cemetery, which lies in the direct path of the expansion, saying it violates religious freedom laws.

The case is making its way through local and federal courts. A preliminary injunction hearing is scheduled for Wednesday.

Airport opponents are gearing up for a legal battle, too. Attorney Joseph Karaganis said the FAA's approval will be challenged in federal court with the argument the project is ineligible for federal funding because it failed a federally mandated cost-benefits test.

The funds shift is scheduled to start in 2016 and will continue until May 1, 2024.

FMI: www.flychicago.com