"Private money could build Peotone"

Tuesday, September 16, 2003

Private money could build Peotone
BY JANET RAUSA FULLER
The Chicago (IL) Sun-Times


Proponents of a third airport in Peotone--including two fierce foes of
O'Hare expansion--announced plans Monday to form an authority to develop the
airport through private means and have it up and running by 2008.

With U.S. Rep. Jesse Jackson Jr. (D-Chicago) at their side, four suburban
mayors--two from northwest suburbs that oppose adding runways at
O'Hare--said they are joining in an intergovernmental agreement through
which they will form a local airport authority that will begin seeking
proposals from private developers in the next month for the far south
suburban site.

They expect more than a dozen other suburbs to join in the agreement with
University Park, Park Forest, Bensenville and Elk Grove Village.

"We are helping to bring an economic engine we have so enjoyed up in the
northwest suburban area down to the south and southwest suburbs," Elk Grove
Village Mayor Craig Johnson said at a downtown news conference with Jackson
and about 15 local officials. "This is not an issue of O'Hare expansion or
non-expansion. It's an issue of solving regional air capacity."

Proponents say that according to a yearlong feasibility study, an
"inaugural" airport could be built at a cost "several hundred million
dollars" below the state's estimate of $500 to $600 million. It would be
financed through private investors and funds and airport revenue bonds.

Proponents say the airport would not compete with O'Hare or Midway but is
needed to serve the roughly 2.5 million residents of the far south and
southwest suburbs.

"Developers know if they build it, the people, the shippers and the airlines
will come," Jackson said.

LCOR, which developed a $1.4 billion terminal at New York's JFK Airport, and
SNC Lavalin, a Canadian firm that worked on Vancouver International Airport,
conducted the study and drew up plans for different phases of the airport.

The inaugural site, located on roughly 4,500 acres, would have a single
10,000-foot runway, five gates, a 1,300-space parking lot and a small
terminal, and would be open by 2008. By 2023, a second runway would be in
place.

Officials envision low-cost carriers such as Jet Blue and Air Tran Airway
and even major airlines would have a presence at the airport, a possibility
dismissed by at least one big carrier.

"American Airlines has no interest in serving Peotone. We have our base of
operation here at O'Hare, we have some flights at Midway and we're happy
with that service," American spokeswoman Mary Frances Fagan said.

Gareth Edmondson-Jones, spokesman for New York-based Jet Blue, said though
the airline has "no immediate plans" to add service in and out of Chicago,
it is open to any pitch that would make sense financially. The airline has
looked at both O'Hare and Midway in the past, he said.

"Some carriers will only use secondary airports, some only primary airports.
We don't have a hard and fast policy," Edmondson-Jones said, adding that,
"[Chicago] is on our list, for sure."

Air Tran's Tad Hutcheson said the airline, which is currently at Midway, is
"in communication with the Peotone folks" and, like Jet Blue, will consider
serving the proposed airport if it makes economic sense.

The state owns the land on which the starter airport would be built and is
in the process of buying more. The hope of the South Suburban Airport
Authority would be to negotiate with the state to either buy or lease the
land.

Gov. Blagojevich, who would have to approve the new airport, spoke recently
with Jackson and is "open" to the concept, an aide to the governor said. The
governor has set aside $5 million in this year's budget to buy property in
the proposed airport's footprint.

"We're very interested in alternative funding options for the airport,"
Blagojevich spokeswoman Abby Ottenhoff said. "The governor's first priority
is still getting O'Hare up to speed and in the condition to meet the demand.
But he's always said he's committed to moving forward on a Peotone airport
as well."

Likewise, Mayor Daley said his top concerns rest with O'Hare and Midway but,
"If you have the money to build Peotone, go ahead and build it. He's not
standing in the way of it," assistant mayoral press secretary Roderick Drew
said. Daley spent years vehemently opposing Peotone but has since modified
his position.

Illinois Transportation Secretary Tim Martin said the state is waiting on
feedback from the Federal Aviation Administration on his department's
analysis of the proposed airport, but said the south suburban proposal has
promise. 

The local airport authority would likely have to get approval from the state
before starting the bidding process with developers, he said.

"Somewhere along the line they have to come back to the state. I'll let the
lawyers figure that one out. But the concept that was put out there is, we
feel, pretty feasible," Martin said.


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