$2.5 billion Midway Airport lease deal officially dead

Chicago officials say talks calling on a $2.5 billion deal to lease Midway Airport to private investors have collapsed because of the economy.

The deal could have made Midway the first major airport to go private under a federal pilot program.

Chicago chief financial officer Gene Saffold said Monday that the city and private investors terminated a 99-year lease agreement because the global financial crunch has made it impossible for the investors to secure funding.

Saffold says the city of Chicago still will keep $126 million in earnest money already paid by investors as part of the agreement.

Last month, city officials said they were willing to give investors more time. A two-week extension on an April 6 closing date was granted to give investors from New York, Boston and Canada six more months.