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Wed, Jan 29, 2014

Agreements Approved For Gary/Chicago International Airport

Airport To Receive $100 Million In Investments Over 40 Years

The Gary/Chicago International Airport Authority has unanimously approved development and management agreements to dramatically improve the economic landscape of the airport, the City of Gary and Northwest Indiana.

The agreements constitute a $100 million total investment in the airport and the City of Gary over 40 years by world class companies, and include an investment of $25 million in the first three years and a $300,000 investment in workforce development as well as performance incentives for revenue growth and profit sharing with the airport and the City of Gary. 

"The decision to move forward with the Public Private Partnership shows great insight and forward thinking on the part of the airport board," said Mayor Karen Freeman-Wilson. "I have always maintained that the completion of the runway expansion without a viable plan for moving forward would be an exercise in futility. The P3 is a monumental opportunity for the airport and its surrounding footprint to be developed, creating sustainable opportunities for the city of Gary, its businesses and citizens as well as surrounding communities."

The management and development group is led by Aviation Facilities Company Inc./AvPORTS (AFCO). "AvPorts and AFCO are proud to have been selected by the City of Gary and Gary/Chicago International Airport Authority to develop and manage Gary/Chicago International Airport," said Steve Forrer, AFCO Executive Vice President. "This has been a long process and Gary has been an excellent partner every step of the way. With the transaction approved, we look forward to working with all of our partners so the people of Gary can realize the benefits of an enhanced airport and surrounding grounds."

Key to the agreement is that the Gary/Chicago International Airport Authority retains its public control over the airport while bringing in best-in-class private managers, investors and developers.

The agreements were negotiated by an Ad Hoc committee established by the Airport Authority in February 2013 to explore a public-private partnership to spur job creation and investment in the airport and the surrounding area. For nearly one-year, the committee followed an extensive public process including soliciting ideas from the marketplace and a conducting a comprehensive review of Request for Proposals.  On October 25, 2013 the Ad Hoc committee announced exclusive negotiations with the AFCO team.

FMI: www.GaryChicagoAirport.com

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The Gary/Chicago International Airport Authority has unanimously approved development and management agreements to dramatically improve the economic landscape of the airport, the City of Gary and Northwest Indiana.

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