Mayor Emanuel and Secretary LaHood Announce Next Steps Towards Financing For the Construction of an Intermodal Facility at O'Hare International Airport
Mayor Rahm Emanuel and U.S. Department of Transportation (USDOT) Secretary Ray LaHood today announced that the City of Chicago has been formally invited by USDOT to apply for a federal loan that would authorize $292 million in funds enabling the construction of an intermodal facility at O’Hare International Airport.
“O'Hare is one of our City's key economic engines and by utilizing innovative Federal financing, we are ensuring that we build the infrastructure Chicago needs to succeed economically in the 21st Century,” said Mayor Rahm Emanuel. “The new intermodal facility will provide a more operationally efficient and sustainable facility, spurring economic growth and building upon continued efforts to make O’Hare the most convenient international hub in the world.”
A Transportation Infrastructure Finance Innovation Act (TIFIA) loan of $292 million, in combination with previously issued and authorized general airport bond revenues would make available the funds to finance an $884 million multi-modal development project that would consolidate rental car functions as well as public parking into a multi-level structure and provide for an extension of the Airport Transit System (ATS) at O’Hare. The new facility would lead to the creation of approximately 3,000 design and construction jobs during construction and upon completion 100 concession and rental car positions would be created by leasing and concession agreements made by the Department of Aviation and participating rental car companies.
“President Obama has called on us to rebuild and upgrade our infrastructure so travelers and businesses can get where they need to go safely and efficiently,” said Secretary of Transportation Ray LaHood. “O’Hare plays a critical role in the transportation system for the region, and we are pleased to invite the City of Chicago to apply for a TIFIA loan to improve mobility and sustainability around the airport.”
“TIFIA loans are a smart way to boost both our country’s economy and infrastructure, and Chicago has taken the lead in putting them to work for the city,” said Senator Durbin. “This rental car consolidation facility and people mover extension will benefit both Chicago residents and the millions of travelers who pass through O’Hare every day, making the airport easier to navigate while creating local jobs and providing further opportunities for economic development in the area. That high return on investment is why I have long supported important transportation projects like the O’Hare Modernization Project and why I will continue to do so.”
In moving rental car companies out of dispersed locations and investing in the ATS, the CRCF central location will lead to greater transportation relief, efficiency and sustainability. The extension and creation of a new ATS station will for the first time provide a major access point for travelers to and from O’Hare by enhancing transportation connectivity between rental cars, public parking, public roadways, CTA and Metra. These measures as well as expanding the ATS vehicle fleet will reduce vehicle traffic at terminal curbs, eliminate an estimated 1.3 million vehicle trips on terminal roadways each year, resulting in enough energy savings to power over 600 homes every year and in turn lessen O’Hare’s environmental impact for all travelers and Chicagoans.
“This project will be one of the largest capital improvements ever constructed at O’Hare and will be among the largest airport developments underway in the U.S.,” said Chicago Department of Aviation Commissioner Rosemarie S. Andolino. “It will provide multiple benefits to O’Hare travelers, the airport and the region. The center meets the CDA’s mission to provide the very best services and amenities, enhance economic activity and job creation, make O’Hare more competitive, and a model for environmental sustainability.”
The proposed CRCF will provide nearly 4,100 rental car company parking spaces, utilizing the floors one through three, a customer lobby on a portion of the fourth with remaining space and floors designed for approximately 2,000 public parking spaces. Each of the rental car companies operating within the CRCF will have exclusive-use customer service counters, self-service kiosks, and back office areas within the facility
TIFIA provides credit assistance for qualified infrastructure projects across the country, and is designed to fill market gaps and leverage other investment by providing capital. It is intended for infrastructure projects of regional or national significance and due to the flexibility of the program, many qualified, large-scale projects that might otherwise be delayed or tabled can move forward quickly, providing an immediate boost to jobs while laying the foundation for continued economic growth.
Last fall, the Chicago Department of Aviation (CDA) initiated the process for submitting an application to receive the TIFIA loan assistance. The Chicago City Council authorized the loan agreement on June 5, 2013. The agreement agreed upon by the Chicago City Council will enable the Commissioner of Aviation to execute lease and license/concession agreement with each participating rental car company. It will also allow the Commissioner to negotiate and execute lease agreements with On-Airport Rental Car Companies for the purposes of developing maintenance facilities, providing rental car storage and related uses on property at O’Hare.