"Cost to construct Peotone airport put at $433 million"

Wednesday, May 12, 2004

Cost to construct Peotone airport put at $433 million
Will County gets consultants' report
By Stanley Ziemba
The Chicago (IL) Tribune


Will County likely would need about $433 million to build a proposed airport
near Peotone, consultants told a County Board committee Tuesday.

Terri Smalinsky and Mike LaPier stressed that no tax dollars would be used
to pay for the first phase of the proposed airfield as funds would come from
the sale of airport revenue bonds, federal and state grants, and interest
earned during construction on proceeds from bond sales.
 
"The airport would be financially feasible without any taxpayer
contributions," Smalinsky told the board's legislative committee.

Smalinsky, a consultant on airport financing, and LaPier, executive director
of the Central Illinois Regional Airport in Bloomington, provided committee
members with detailed estimates on building a 4,200-acre inaugural airport
in eastern Will.

Without mentioning a rival plan advocated by Rep. Jesse Jackson Jr. (D-Ill.)
and supported primarily by south suburban Cook County municipalities, the
consultants stressed the importance of Will having control over the
development.

Noting that both the initial 4,200-acre parcel and the eventual 23,000-acre
airport site lie within the county, Smalinsky said only Will could ensure
that its residents' interests would be protected.

"It's vitally important that Will County be the sponsor of this airport,"
Smalinsky said. "No other entity can better address the infrastructure needs
for the airport or work with communities adjacent to the airport site to
ensure compatible [development] uses around the airfield."

The county plans to seek state legislation next year calling for creation of
a county department of aviation to oversee the airport's development.

Smalinsky projected the actual cost of building the airport at $338 million.
That figure, she noted, would include $75 million for land the state is
acquiring for the airfield; $197 million for a 9,000-foot runway and other
airport infrastructure; and $66 million for a two-story, six-gate,
150,000-square-foot terminal with parking and entrance roads. The
consultants estimated an additional $95 million would be needed during the
3- to 5-year construction period to cover financing costs and reserves.

Will could expect to raise $321 million from the sale of airport revenue
bonds, more than $101 million in federal and state grants and nearly $11
million from interest earned from the bond sale proceeds during
construction, she said.

Smalinsky added that the financial model has flexibility to allow it to
consider all development alternatives, including having the airport
developed by private developers, by the proposed county department of
aviation or by a public-private partnership.

Jackson's South Suburban Airport Commission contends it can build an
inaugural airport with private developers for $200 million, not including
the cost of reimbursing the state for the land.


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