Welcome!

News Feed Item

Game Changing Agreements Approved For Development And Management Of Gary/Chicago International Airport, City of Gary, Northwest Indiana

GARY, Ind., Jan. 27, 2014 /PRNewswire/ --

    • $100 Million Investment Over 40 Years from World Class Firms
    • $25 Million Investment in First Three Years
    • City and Airport to Share in Future Profits
    • Performance Incentives to Drive Future Growth
    • 30% Participation Goal for Local Businesses
    • 20% Participation Goal for Disadvantaged/Minority Businesses
    • $300,000 Workforce Development Investment in Three Years
    • Airport Authority retains public control; brings in private sector managers and investors.

The Gary/Chicago International Airport Authority today unanimously approved development and management agreements to dramatically improve the economic landscape of the airport, the City of Gary and Northwest Indiana.

The agreements constitute a $100 million total investment in the airport and the City of Gary over 40 years by world class companies, and include an investment of $25 million in the first three years and a $300,000 investment in workforce development as well as performance incentives for revenue growth and profit sharing with the airport and the City of Gary. 

"The decision to move forward with the Public Private Partnership shows great insight and forward thinking on the part of the airport board," said Mayor Karen Freeman-Wilson. "I have always maintained that the completion of the runway expansion without a viable plan for moving forward would be an exercise in futility. The P3 is a monumental opportunity for the airport and its surrounding footprint to be developed, creating sustainable opportunities for the city of Gary, its businesses and citizens as well as surrounding communities."

The management and development group is led by Aviation Facilities Company Inc./AvPORTS (AFCO).

"AvPorts and AFCO are proud to have been selected by the City of Gary and Gary/Chicago International Airport Authority to develop and manage Gary/Chicago International Airport," said Steve Forrer, AFCO Executive Vice President. "This has been a long process and Gary has been an excellent partner every step of the way.

With the transaction approved, we look forward to working with all of our partners so the people of Gary can realize the benefits of an enhanced airport and surrounding grounds."

Key to the agreement is that the Gary/Chicago International Airport Authority retains its public control over the airport while bringing in best-in-class private managers, investors and developers.

The agreements were negotiated by an Ad Hoc committee established by the Airport Authority in February 2013 to explore a public-private partnership to spur job creation and investment in the airport and the surrounding area. For nearly one-year, the committee followed an extensive public process including soliciting ideas from the marketplace and a conducting a comprehensive review of Request for Proposals.  On October 25, 2013 the Ad Hoc committee announced exclusive negotiations with the AFCO team.

AFCO, based in Northern Virginia, is an industry leading airport management firm with over 80 years of experience successfully managing similarly situated airports and other airport related infrastructure throughout the country. Loop Capital, based in Chicago, is a leading investment banking firm well known for providing creative capital solutions for governments, corporations, and institutions globally.  Also serving the investment team as a senior development strategist is Michael Mullen, former CEO of CenterPoint Properties Trust. Mullen has developed or redeveloped more than 70 million square feet of industrial properties and has been involved in more than $8 billion in real estate transactions in his career including large-scale intermodal rail and transport yards. Mullen is also the Illinois Chair of the Alliance for Regional Development.

KEY PROVISIONS INCLUDE
The management and development agreements each carry a term of up to 40-years and include a 30% goal for local participation, 20% for disadvantaged and minority owned businesses (DBE, MBE) as well as 5% for women and veteran owned businesses (WBE, VBE). 

Development Agreement

  • Master development plan to be presented within in the first 12 months of the effective date
  • Master plan to include a 10-year proposed investment and action plan intended to achieve a $100 million investment over 40 years
  • $25 million invested in first 36 months ($10 million in first 18 months, $15 million within the next 18 months)
  • $2.5 million new development/investment that can be executed during the 6 months after the effective date
  • $15,000 expenditure goal within first three months for workforce/community development
  • $300,000 in workforce development over three years ($50,000 in first year, $100,000 in second year, $150,000 in third year)
  • o generally targeted to work and college readiness programs, small business development programs, employer and job seeker database
  • City of Gary to share in 20% of net profits of city property contributed, sold or leased for development.
  • If master developer fails to satisfy the $25 million investment before 5th anniversary, the airport authority will be entitled to terminate development agreement

Management Agreement

  • Manager will provide daily operation and management services at the airport
  • The initial term of the management agreement will be 10 years, with up to six 5-year extensions
  • Estimated airport cost of $120,000 annual fee plus operating costs of airport
  • Manager will assist with the airport's current runway expansion project as additional services
  • Manager will share in 15% of positive airport profits
  • Manager will share in an additional 5% of positive airport profits if it satisfies the DBE/MBE/WBE/VBE and local participation requirements

Mayor Freeman-Wilson thanked the members of the Airport Authority for their comprehensive review of the agreements and for their long-term vision to create a sustainable financial path for the airport and investment in the City of Gary. The mayor also praised the hard work and dedication of the Ad Hoc committee.

Gary/Chicago Ad Hoc committee members are:

  • Carrie J. Hightman – Chair of the Ad Hoc Committee and Executive Vice President and Chief Legal Officer of NiSource Inc.
  • Marion Johnson – Pastor Mt. Moriah Baptist Church
  • Bo Kemp – Managing Director, J Gari and Associates, Advisor to Mayor Karen Freeman-Wilson
  • Harley Snyder – Chief Executive Officer, HSC, Inc., Board Member of the Regional Development Authority
  • James Cooper – Board Member, Gary/Chicago International Airport Authority
  • Shontrai Irving – Board Member, Gary/Chicago International Airport Authority

The Gary/Chicago International Airport is less than 30 minutes from the heart of the tri-state region – Chicago. The airport is directly connected to Chicago's transportation network through freight, interstate and mass-transit and has close proximity to multiple Lake Michigan ports.

Contact:

James Ward
O: (219) 949-4910
E: [email protected]

SOURCE Gary/Chicago International Airport

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are repetitive and dull. Utilizing automation can improve your work life, automating away the drudgery and embracing the passion for technology that got you started in the first place. In this presentation, I'll talk about what automation is, and how to approach implementing it in the context of IT Operations. Ned will discuss keys to success in the long term and include practical real-world examples. Ge...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Jo Peterson is VP of Cloud Services for Clarify360, a boutique sourcing and benchmarking consultancy focused on transforming technology into business advantage. Clarify360 provides custom, end-to-end solutions from a portfolio of more than 170 suppliers globally. As an engineer, Jo sources net new technology footprints, and is an expert at optimizing and benchmarking existing environments focusing on Cloud Enablement and Optimization. She and her team work with clients on Cloud Discovery, Cloud ...
This is going to be a live demo on a production ready CICD pipeline which automate the deployment of application onto AWS ECS and Fargate. The same pipeline will automate deployment into various environment such as Test, UAT, and Prod. The pipeline will go through various stages such as source, build, test, approval, UAT stage, Prod stage. The demo will utilize only AWS services including AWS CodeCommit, Codebuild, code pipeline, Elastic container service (ECS), ECR, and Fargate.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Behera Rasananda is a technologist, a leader, a key note speaker has more than 20 years experience in across Government, Financial, Heath Care and Insurance Verticals. Mr. Behera has vast experience in Enterprise Cloud and Big Data solutions and Enterprise Architecture. Currently he works closely for Government Solutions on Enterprise Cloud for Federal Government Agency. Scientist Behera managed and partner with clients to make complete end to end solution and Migration to cloud both private sec...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...