Source: Donald Cohen, Crain’s, October 1, 2013
Explaining his recent decision to pull the plug on plans to privatize Chicago’s Midway Airport, Mayor Rahm Emanuel wrote that his “most important goal was to protect the interests of the city and its taxpayers in a way that had not been done on previous public-private partnerships.” The mayor was spot-on in applying these principles to Midway. But these same principles should apply to every service or asset that Chicago has privatized or will consider privatizing in the future. …. The proposed Privatization Transparency and Accountability Ordinance, pending before the City Council, is one solid proposal that would institutionalize the same kinds of protections included in the guidelines given to the citizens task force set up by the mayor to oversee the process.
City outlines terms of Midway privatization
Source: Kathy Bergen, Chicago Tribune, January 18, 2013
Companies interested in vying for a contract to privatize Midway Airport will have to agree to an array of stipulations, including a lease of not more than 40 years, according to documents posted online Friday that invite potential bidders to submit their qualifications….
Chicago Midway International Airport Request for Qualifications
Source: City of Chicago, January 2013
Advancing Privatizing Midway
Source: Dermot Connolly, Southwest City News-Herald, January 04, 2013
Mayor Rahm Emanuel Floats Ideas That Is Gaining Some Support…Mayor Rahm Emanuel’s administration is advancing the idea of privatizing Midway Airport but suggests having a lease agreement much shorter than the $2.5 billion 99-year proposal backed by former Mayor Richard M. Daley that fell through in 2009. …In addition to a lease less than 40 years, the press release issued by the Emanuel’s office stated that the draft RFQ guidelines include: long-term cash flow stream for long-term capital needs; and revenue share, meaning initial proceeds will be used to pay off debt issued by the city dating back to 1996 to rebuild the new Midway Airport. The city would also retain ownership of Midway Airport and receive a percentage fee that will grow over time. A private operator signing the lease would manage revenue-producing activities like food, beverage and car rental concessions and parking lots. The FAA would continue to provide air traffic control, while the Transportation Security Administration would continue to provide security operations…Responses to the RFQ are expected to be due in the first quarter of 2013. Review of the potential bidders will be conducted in the spring. Once released, the RFQ will be made available on the city’s Web site.
Emanuel moves ahead on Midway privatization, aldermen not so sure
Source: Fran Spielman, Chicago Sun Times, December 21, 2012
Mayor Rahm Emanuel moved ahead Thursday on testing the privatization market for Midway Airport — with a 40-year lease, profit-sharing for Chicago taxpayers and safeguards against consumer price-gouging — but there’s political turbulence ahead. Aldermen are still gun-shy about the steep schedule of rate increases tied to controversial deals that privatized 36,000 city parking meters and the Chicago Skyway. They’re not happy about the prospect of selling off an asset as valuable as Midway — and reviving a deal that collapsed in 2009 for lack of financing — even if it’s done in a way dramatically different than one former Mayor Richard M. Daley envisioned.
Emanuel close to reviving Midway privatization — with key changes
Source: Fran Spielman, Chicago Sun Times, December 1, 2012
Facing a Dec. 31 federal deadline, Mayor Rahm Emanuel has all but decided to test the privatization market for Midway Airport, but do it in a way dramatically different from the 99-year, $2.5 billion deal that collapsed for lack of financing, according to City Hall sources….
Is Midway Airport privatization deal back in the works?
Source: Fran Spielman, Chicago Sun Times, May 7, 2012
City not yet grounding Midway privatization possibility
Source: Fran Spielman, Chicago Sun Times, March 30, 2012
Chicago Leaves Door Open For Midway Airport Lease
Source: Yvette Shields, Bond Buyer, April 3, 2012
FAA OKs Chicago Bid for Midway Airport Privatization
Source: Yvette Shields, Bond Buyer, April 9, 2012
Plans to privatize Midway may fly again / As eligibility deadline approaches, some say deal is viable; Mayor Rahm Emanuel remains mum
Source: Kathy Bergen, Chicago Tribune, March 15, 2012
Chicago attorney John Schmidt, a key adviser to the city on the ultimately unsuccessful push several years ago to privatize Midway Airport, says such a deal would be viable now, given that the financial markets have stabilized….A proposal to privatize the Luiz Munoz Marin International Airport in San Juan, Puerto Rico, is moving ahead with strong interest from investors and support from the major airlines operating there, said Schmidt, who is counsel on that project and a partner with Mayer Brown LLP.