O'Hare Lands More Federal Funds for Expansion

Tuesday, April 6, 2010 By Monique Garcia

Chicago's effort to expand O'Hare International Airport got another helping hand from the federal government Tuesday in the form of $410 million for three runways.

Add the $337 million transportation officials promised in 2005, and the $747 million in federal cash set aside for O'Hare is the largest financial commitment ever made to a single airport project, transportation officials said.

"It's an enormous amount of money, but it really is the kind of investment that has to be made at O'Hare in order to continue it to be the premiere international airport that it is," said U.S. Transportation Secretary Ray LaHood, a former Republican congressman from Peoria.

Though the latest federal windfall will keep O'Hare expansion alive, Mayor Richard Daley's administration is still far from lining up all the money to pay for the ambitious project.

The city needs $3.2 billion to build two new runways and extend another in the plan's latest phase, but so far it only has the $410 million announced Tuesday. City aviation officials said they plan to use $1.1 billion in passenger facility charges and hope to borrow about $1.8 billion to make up the difference.

And that shortfall doesn't include billions more for a new terminal and amenities on the airport's western side. Additional terminal and aircraft gate space are necessary to decrease delays at the chronically-congested airport. New runways would allow more flights at O'Hare, but the planes would have to wait to board or unload passengers without new gates.

Daley wants the airlines to help pay for the $15 billion O'Hare expansion. The airlines have said they were close to reaching a deal to do just that, but those talks fell apart earlier this year after the city wanted to hike rent and landing fees at O'Hare even as the airline industry struggles.

Airlines also say the western terminal isn't necessary and they can't afford it. United and American Airlines sent a scorching letter to city Aviation Commissioner Rosemarie Andolino in February saying all talks are off until the city rethinks its strategy.

Tuesday's announcement of more federal money has done little to resolve the standoff. While Andolino said negotiations continue, American spokeswoman Mary Frances Fagan said the airline and the city "are not in talks."

Fagan noted the $410 million is a "fiscally responsible" move by the city, but said "nothing has happened since we sent the letter."

Critics against O'Hare expansion said the announcement was targeted at generating good publicity but means little in the long run.

"I look at this and say it was part of the public relations cycle," said Joe Karaganis, an attorney for St. Johannes Cemetery, which is in the path of a O'Hare runway that's already under way. "Was it anticipated? Yes. Is it anywhere close to providing the funding needed to finish the project? No."

The latest round of federal money will go toward a new east-west runway in the center of the airport and a new southern runway that requires demolition of part of suburban Bensenville.

Andolino said the federal investment highlights the importance of O'Hare as an economic driver for Chicago and the region, though having President Barack Obama in the White House probably didn't hurt the city's chances at a big airport grant.

U.S. Sen. Dick Durbin, D-Ill., called Obama the airport's "best ally" and said the president "understands that we need to keep our commitment to O'Hare, to Illinois and to the nation to put America back to work."

LaHood credited Daley.

"Other airports have benefited mightily from this administration's commitment to the airline industry and to making sure that places like this around the country are well taken care of," LaHood said. "But I go back to what I said before, this is an extraordinary amount of money because of the extraordinary leadership and vision that was created by the mayor and also by the team the mayor has put in place here."