Chicago pursues innovative public-private partnership

A $7 billion public-private-partnership in Chicago aims to improve everything from O’Hare airport to streets, water systems, schools, parks, rail and colleges.

A $7 billion public-private-partnership in Chicago aims to improve everything from O’Hare airport to streets, water systems, schools, parks, rail and colleges.

According to a recent New York Times article, the effort could create 30,000 jobs in just the next three years. Part of the funding will come through a nonprofit, Chicago Infrastructure Trust, that pools outside investments for projects.

Chicago’s Mayor, Rahm Emanuel, has stated the plan will not include leasing of assets, but could include savings from retrofits and cost-cutting, as well as interest on loans and profit sharing. The Chicago Federation of Labor will be a major investor through its union pension fund, arguing that it should be investing within the city, creating jobs and getting a good return on its investment.

$1 billion is targeted for the Chicago Transit Authority to renovate stations and eliminate slow zones. O’Hare will expand capacity with $1.4 billion over the next three years. 900 miles of pipe and 750 miles of sewer lines will be replaced or fixed.

An important part of the project will be coordination: When the pipes are dug up, other projects requiring underground access (cable, etc.) will be scheduled at the same time.

Communities should benefit as well with $300 million to be spent on the purchase of 180 acres of parkland for playgrounds, athletic facilities and bike paths.

Click here to read the original coverage from The New York Times. Details on the Chicago Infrastructure Trust are also available, as is the launch release.

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