O’Hare Expansion Advances

Chicago is advancing measures to help finance the next phase of its $8 billion runway expansion at O’Hare International Airport.

Mayor Richard Daley last week submitted to the City Council a measure that would impose a $6 to $8 fee on car rentals to finance a new, centralized $400 million auto-rental facility as part the O’Hare Modernization Program. Car renters currently pay a $2.75 fee and an 8% tax.

The city has also indicated it would seek federal approval to use about $1.4 billion in passenger facility charges collected between 2028 and 2038 to help finance the program. Chicago had previously won approval to use about $200 million in PFCs for second-phase design work. The city is also lobbying Congress to support an increase in the fee, which is now capped at $4.50 per flight.

United Airlines and American Airlines have resisted city pressure to fund the second phase of the program. They support runway expansion but are opposed to plans for a new terminal while they are still struggling financially as well as a city plan to refinance some debt.

The U.S. Department of Transportation last month announced a $410 million federal letter-of-intent grant for the next phase. Chicago last month issued its final tranche of bonds to wrap up financing for the $3.3 billion first phase.

For reprint and licensing requests for this article, click here.
Transportation industry
MORE FROM BOND BUYER