Secret Pact's Details Partially Uncovered

Crain's Chicago Business writer Greg Hinz has pulled back the covers from a previously-secret deal worked out by Mayor Daley's Chicago and the airlines that will use an expanded O'Hare International Airport.

He writes, "The city of Chicago and airlines that operate at O’Hare International Airport have reached agreement on a multibillion-dollar scheme to finance the first major phase of the city’s ambitious runway expansion plan. Under an unannounced pact that was signed in May, $2.9 billion has been committed to pay for engineering, design, land acquisition and construction of one new runway, relocation of another and extensive work on a third, industry sources say. The funds will come from existing passenger fees and higher landing charges levied on airlines, and from $300 million in anticipated federal grants."

In other words, about 10% of the initial expense will be borne by taxpayers across the USA; the rest will be tax monies collected by the airlines, on behalf of the governments involved. What this deal means, Hinz says, is that, "The only remaining question, then, is if and when the Federal Aviation Administration (FAA) will give needed approval to the plan."

It's not that simple; it's never that simple. There's another nearly-four-billion dollars' needed for the full plan, which needs to come from somewhere; and there are the suburbs, existing property-owners, various enviros of varying credibility -- all lining up to either delay the project, or get paid to get out of the way. If everything goes perfectly, and a few unorthodox legal procedures are invoked by the Mayor's buddies in state government, construction itself could start in a year or two.

The so-called "majority in interest approval," many months in the making, will not be made public, though parts of it have been leaked third-hand...

FMI: www.ohare.com