O'Hare to get $410 million to build runways; 13,000 new jobs
O'Hare International Airport's modernization program will receive a $410 million boost from the U.S. Department of Transportation, officials announced Tuesday.
The money - which city aviation officials expected to receive - will be used to construct two new runways and extend a third, creating 13,000 new jobs in the process.
Coupled with the $337 million the Federal Aviation Administration committed to the project in 2005, the total amount of federal support for the O'Hare Modernization Program now stands at $747 million - the largest federal investment in an airport reconstruction project in history.
"It's an enormous amount of money, but it's the kind of investment that has to be made at O'Hare to keep it the premium airport it is," said U.S. Transportation Secretary Ray LaHood, who attended Tuesday's announcement at O'Hare. "This is a very, very good use of the taxpayers' money because of the way people all over the world use O'Hare airport."
Work on the new runways is expected to begin immediately on this second and final phase of the project, said Rosie Andolino, the modernization program's executive director.
One of the runways included in the project is the one that bisects St. Johannes Cemetery, according to modernization program spokeswoman Eve Rodriguez. However, the cemetery owners are still in a legal battle with Chicago to keep the cemetery intact.
If the O'Hare Modernization Program goes as planned, O'Hare will have eight runways. That will help reduce delays, create jobs and "transform the airport for the 21st century," said Chicago Alderman Patrick Levar, who chairs the city's aviation committee.
The federal funds account for only a small portion of the $8.6 billion modernization plan, which began in 2005 and aims to finish by 2014. Other funding sources include general airport revenue bonds, federal airport improvement program funds, and passenger facility charges. No federal stimulus money is involved, Rodriguez said.
Officials present for Tuesday's announcement - including Gov. Pat Quinn, Chicago Mayor Richard Daley and U.S. Sen. Dick Durbin - dodged questions about whether United and American airlines would pony up money for the project, despite their objection to the proposed $2 billion western terminal and the higher rental and landing fees.
"We're continuing dialogue with our airline partners," was all Andolino would say Tuesday.
The city is proposing to increase passenger facility charges from $4.50 to $7 to help raise an additional $1.1 billion for the project, Rodriguez said. Legislators are now debating that proposal.
"We still need $1.1 billion in (passenger facility charges) and we need $1.8 billion in (bonds)" to fully fund the project, Rodriguez said.
Gratitude was shown to President Barack Obama, who Andolino called "O'Hare's biggest ally," for his help in securing federal funds. No other airport in the U.S. has ever received this much money, LaHood said, and it's because there's a "good plan" in place.
Daley called the money "a thank you" from Obama, and said it will help achieve the president's goal of creating jobs for Americans.
"These (funds) are providing good union jobs for people who have been out of work a long time," Daley said.
The O'Hare Modernization Program is expected to create up to 195,000 new jobs, and add $18 billion to the region's economy without using local or state taxpayer dollars, city officials said.
To date, more than 12,000 construction jobs and about 550 design jobs have been created and three major airport infrastructure projects have been completed.
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