Airport P3 Proposals Narrowed to Two
September 6, 2013 — The Gary/Chicago International Airport Authority says today it will start negotiations with teams representing two public-private partnership, or P3, proposals for the airport’s development.
The Authority says its ad hoc committee for P3 review will report details about the teams – Aviation Facilities Company LLC/AvPorts Management LLC and The GCIA Group, LLC – to the Gary/Chicago International Airport Authority board at its meeting next week.
Ad Hoc Committee chair Carrie J. Hightman says, “Of the 10 proposals the committee evaluated, these two teams stand out in numerous categories. We are initiating negotiations with the two teams that offer the most comprehensive opportunity to unlock value for good jobs and sustainable development.”
Hightman, who is executive vice president and chief legal officer of NiSource Inc., also said the committee expects negotiations will result in a final proposal to be presented the Airport Authority board in October.
Airport administration says the Aviation Facilities Company LLC/AvPorts Management LLC team includes Guggenheim Partners and Loop Capital, while The GCIA Group, LLC includes NAI Hiffman, Clark Street Development, LCM, Inc. and The Williams Capital Group.
The Airport administration says ten proposals evaluated by the committee include firms and organizations with a wide range of expertise in many sectors such as aviation, finance and real estate management as well as urban and environmental planning and public art.
Hightman says, “Each of the 10 proposals has something to offer and we’ll be taking that into our negotiations with the leading teams. Every P3 airport model in the U.S. is unique so we have a tremendous opportunity to shape a successful P3 that encompasses many facets for the long-term benefit of Gary and the region.”
The committee evaluated each proposal using criteria in six categories: general qualifications, development of regional assets, airport management, investment of capital, business/financial strength, and creativity and innovation.
In addition to Hightman, Ad Hoc committee members include:
- Marion Johnson – PastorMt.MoriahBaptistChurch
- Bo Kemp – Managing Director, J Gari and Associates, Advisor to Mayor Karen Freeman-Wilson
- Harley Snyder – Chief Executive Officer, HSC, Inc. Board Member of the Regional Development Authority
Airport administration says the Chief Financial Officer of the Chicago Department of Aviation Michael Zonsius advised the committee in the evaluation of proposals toward the Ad Hoc committee’s pursuit of a P3 model that retains public ownership of the airport with benefits from private sector innovation and access to capital. In addition to the P3 exploration, major construction at the airport of a $166-million runway extension continues.