Skip to main content

How the Center for Innovative Finance Support Office Does Business...

Project Profiles

Chicago O'Hare International Airport Consolidated Rental Car Facility and Airport Transit System Extension

Location

Chicago, Illinois

Project Borrower / Sponsor

City of Chicago/Chicago Department of Aviation

Program Areas

Project DeliveryTIFIANon-Road Pricing Revenue

Fiscal Year Approved Fiscal Year 2013

Mode

Intermodal

Description

The project is a component of the O'Hare Modernization Program, and includes the relocation and consolidation of rental care operations and public parking into a multi-use facility at O'Hare International Airport. As part of the overall project, the existing Airport Transit System (ATS), a 24-hour rail system that serves terminals and parking structures, is being extended to serve the new facility and a new ATS station connected to the consolidated rental car facility (CONRAC) is being constructed. In addition, a new bus plaza accommodating bus services, off-airport hotel, and other commercial shuttles will directly connect with the CONRAC. Excess land surrounding the facility will be used for new commercial development.

The new facility is located on the site of a current surface parking lot located at Mannheim and Zemke Streets in the northeastern quadrant of the airport. The CONRAC will provide approximately 4,200 rental car parking spaces on levels one through three of the structure. A customer lobby will be located on level four, adjacent to the ATS station. The project will also replace approximately 3,000 uncovered parking spaces with 2,000 covered spaces dispersed over two levels of the facility with design options to allow for further expansion of the public parking. These new parking spaces will have direct access to the ATS and existing Metra Rail stop. The connection to Metra Rail will allow those riders to access terminals via the ATS as well as the Blue Line to downtown Chicago.

The CONRAC is expected to improve congestion in the area by limiting the need for rental car company shuttle buses, consolidating surface parking spaces, and providing direct access to the ATS. The project will also increase commercial development opportunities through the development of excess parking surrounding the facility.

Cost

Total eligible project costs - $876 million

Funding Sources

General Airport Revenue Bonds - $95.6 million

Customer Facility Charge (CFC) Senior Lien Revenue Bonds - $250.5 million

Airport Development Funds - $62.4 million

CFC Revenues - $141.7 million

Passenger Facility Charge Revenues - $37.7 million

TIFIA Loan - $288.1 million

Project Delivery / Contract Method

Construction Manager (CM) at Risk

Private Partner

Austin Power Partners (joint venture) - CM at Risk (CONRAC)

  • Austin Commercial
  • Power Construction
  • Ujamaa Construction

Parsons (ATS Extension)

Project Advisors / Consultants

Architect - Ross Barney Architects

To the Borrower

  • Senior Managers (Bond issuance):
    • Bank of America Merrill Lynch
    • Estrada Hinojosa & Company
    • Raymond James
  • Advisors - Frasca & Associates and DNG Consulting LLC
  • Airport Consultant - Ricondo & Associates

To USDOT TIFIA JPO

  • TIFIA Legal Advisor - Skadden, Arps, Slate, Meagher & Flom LLP
  • TIFIA Financial Advisor - FirstSouthwest

Lenders

Bondholders, USDOT TIFIA

Duration / Status

CONRAC CM at Risk Contract awarded June 2013. Construction began May 2015. Anticipated project completion in late 2018.

TIFIA Credit Assistance

Direct Loan - $288.1 million

The CFC Senior Lien Bonds and the TIFIA Loan are secured by a gross pledge of revenues from the: 1) CFC fees collected from rental car customers (currently set at $8.00 per transaction day) and 2) the Facility Rents to be paid by the rental car companies for use of the facility. The TIFIA Loan is a subordinate bond under the CFC Trust Indenture.

Interest payments begin in 2017 and the final maturity of the TIFIA loan is 2035.

Financial Status / Financial Performance

The TIFIA Credit Agreement was executed on August 21, 2013.

Innovations

  • Innovative combination of a $288.1 million TIFIA loan with previously issued and authorized general airport bonds, leveraging an $8 rental car fee implemented in 2010.

Related Links / Articles

Chicago Department of Aviation Press Release

Austin Power Partners Website

Contacts

Michael Boland
First Deputy Commissioner
Department of Aviation
Chicago O'Hare International Airport
Tel: (773) 686-7091
michael.boland@cityofchicago.org

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
To view PDF files download the Adobe Acrobat Reader®