BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com
GARY | The Gary/Chicago International Airport Authority on Tuesday hired more than a quarter of a million dollars worth of bankers, lawyers and consultants as it prepares to borrow up to $35 million for its runway expansion project.
That project will add 2,000 feet to the main runway, relocate a freight railroad line and move high-voltage power lines. Those projects, along with a few smaller ones, will cost an estimated $90 million.
The airport authority hopes to pay that entire cost with various grants and other revenue sources. That includes $9.5 million from passenger facility charges at O'Hare and Midway airports, which will come to the Gary airport under its compact with the city of Chicago.
The Gary airport authority needs to borrow money to pay construction and other costs in the next two years, when much of the project will be completed.
"It's significant. It's one step closer," new airport director Chris Curry said after Tuesday's meeting. "What will get people excited is when dirt is turned."
Two of Indiana's most prominent legal firms, Barnes & Thornburg LLP and Ice Miller LLP, were among five advisers that had contracts approved Tuesday by the board. The others were JPMorgan Chase, Scott Balice Strategies and Axis Consulting.
It is the first time, at least in recent decades, that the Gary airport authority has bonded for money, according to Bill Staehle, board vice president.
The lengthening of the runway is considered crucial if the airport is to land and keep passenger service. Ground could be broken on the rail relocation this winter. The new 9,000-foot runway could be in use by mid-2009.
The authority board also held a public hearing on a proposed $2.5 million budget for 2007. That compares to a budget of $2.6 million this year.
No one commented on the proposed budget at the public hearing.
The projected budget is slightly smaller next year as less revenue will be available from tax collections. It is projected Gary taxpayers will contribute approximately $1.24 million to airport operations in 2007, as compared to $1.35 million in 2006.