CHICAGO — The federal government has formally invited Chicago to apply for a $292 million TIFIA loan to help finance an $884 million intermodal facility that includes a new consolidated car rental center and parking facility at O'Hare International Airport.
The city's overall financing package relies on the $292 million Transportation Infrastructure Finance Innovation Act loan along with proceeds of previously issued general airport revenue bonds and the upcoming sale of O'Hare Customer Facility Charge Revenue Bonds along with other airport funds.
The new facility would consolidate car rental functions and additional public parking in a multi-level structure, extend the airport transit system known as the people-mover, and pay for the acquisition of additional people-mover cars.
"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," Mayor Rahm Emanuel said in a statement Thursday with U.S. Department of Transportation Secretary 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," LaHood said. The city launched its effort to secure a TIFIA loan for the project last fall and the City Council authorized the loan agreement earlier this month.
The TIFIA program provides loans and loan guarantees for rail lines, marine ports, pipelines, airports, highways, bridges, public transportation systems and other transportation-related projects.
Emanuel also announced on Thursday that the city had closed on a $99 million TIFIA loan as part of its Chicago Riverwalk project in downtown Chicago. The city has pledged motor fuel taxes to repay the loan along with revenues generated by various activities along the river including tour boat license fees, advertising, and naming rights.
The City Council in March authorized $1.65 billion in O'Hare-related borrowing in two deals slated for this year. The city will sell up to $750 million of customer facility charge revenue bonds for the project. It's the first use of such a credit by the city. The bonds would be repaid with special charges paid by users.
Bank of America Merrill Lynch is the senior manager with Estrada Hinojosa & Co. Inc. and Raymond James serving as co-senior managers. Frasca & Associates L.L.C and DNG Consulting LLC are advisers. Ricondo & Associates is airport consultant.
The other transaction could total up to $900 million of senior lien general airport revenue bonds. It offers a mix of new-money and refunding bonds with new money funding projects included in the ongoing $8 billion O'Hare Modernization Program and the airport's separate capital improvement program.
JPMorgan is the senior manager. Ramirez & Co. and Siebert Brandford Shank & Co. LLC are co-senior managers. Frasca, DNG, and Ricondo are also working on the deal.