100 likes | 288 Views
Skyway Transaction. Basic Considerations. Why Privatize The Skyway?. 1. Not a core city competency – somebody else could do it better. 2. Eliminate the risks of Skyway ownership – past history of problems and default.
E N D
Skyway Transaction Basic Considerations
1. Not a core city competency – somebody else could do it better
2. Eliminate the risks of Skyway ownership – past history of problems and default
3. Ability to shift city capital – no longer needed in Skyway, better used elsewhere
1. Basic Authority • City as “home rule” unit had power to sell or lease Skyway • City Council still had to approve – timing: get authority upfront or wait until the end?
2. State Law Issues • No significant liability impact of shift to private operator • Real estate taxes triggered by sale or lease – required amendment of Illinois statute
3. Federal Law Issues • No federal funding for Skyway • 1961 FHWA Agreement resulting from “connector” funding – required revised agreement with FHWA
4. Contractual Issues • Construction and other Skyway contracts all assignable • All Skyway bonds had to be redeemed or defeased – tax requirement even if ok under indentures