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* Greg Hinz…
As Gov. Bruce Rauner considers whether to finally kill off the proposed Illiana expressway, this is a question he might want to get answered:
Why did ex-Gov. Pat Quinn’s administration, amid an all-out rush to stampede the controversial roadway through to final approval last year, commission a secret, $112,000 study of whether Illiana finances would be solid enough to quality for a big federal construction loan?
And why was that study, which apparently came back negative, never released—even now, with everybody in Springfield who knows passing the buck to someone else? […]
n fall 2013, the staff of the Chicago Metropolitan Agency for Planning, this region’s official gatekeeper for federal transportation cash, concluded that the road, which is supposed to be a public-private partnership, never would pay for itself. That would leave Illinois taxpayers on the hook in a major way.
But Quinn’s Department of Transportation strongly disputed that, saying in part that the project would qualify for a big, low-cost federal loan under the U.S. Transportation Infrastructure Finance and Innovation Act.
* It turns out, though, that Quinn’s administration asked Fitch Ratings to look into whether the project would qualify for the federal infrastructure loan. IDOT finally admitted yesterday that Fitch said the project probably wouldn’t qualify…
“Fitch Ratings did inform IDOT advisers verbally that the financing plan being pursued by the previous administration likely would not receive a favorable rating. As part of its ongoing review of the project with the governor’s office, IDOT continues to explore the potential financial arrangements and risks. The agreement with Fitch Ratings remains open and potentially part of the ongoing review process.”
Sheesh.
posted by Rich Miller
Thursday, Mar 26, 15 @ 9:42 am
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With Illinois’ bond rating, this is probably not an issue specific to this project only.
Comment by Six Degrees of Separation Thursday, Mar 26, 15 @ 9:45 am
Hard to figure why this one just won’t die a deserved death.
Comment by A guy Thursday, Mar 26, 15 @ 9:52 am
I could smell this one stinking all the way down here in southern Illinois. So now tell me who was behind it. Surely Quinn can’t be the master mind?
Comment by Makandadawg Thursday, Mar 26, 15 @ 9:57 am
Indiana’s been all for it as an investment for their part. Not a complete sham, if we look forward far enough. Just unaffordable for Illinois right now.
Comment by walker Thursday, Mar 26, 15 @ 9:58 am
Although needed as most folks who drive Rt. 80 towards Rt. 65 can attest, it seems that the project is just too costly at this time. That being said if the decision to build the Illiana is made in the future land costs may make the project cost prohibitive unless a centerline is decided upon and development is prohibited within the future construction zone.
Comment by Stones Thursday, Mar 26, 15 @ 10:02 am
Asking one of Rauner’s wall street buddies for an opinion lacks credibility. They basically ask “what conclusion do you want?” and then try to make their study reach that conclusion. If Illinois wants to know if it meets the federal requirements, they should talk to the federal people who would give out the money. If it looks like it won’t get approved, then go to the politicians in Washington to have them insert authorization buried deep in some major “must pass” legislation. I didn’t agree much with Rostenkowski, but he knew how to get federal money for projects in Illinois.
Comment by DuPage Thursday, Mar 26, 15 @ 10:10 am
Any connection between this misbegotten Illiana and the misbegotten Peotone airport?
Comment by D.P.Gumby Thursday, Mar 26, 15 @ 10:17 am
“Honest Pat Quinn the Populist” strikes again!
Comment by Under Further Review Thursday, Mar 26, 15 @ 10:18 am
The new IDOT Sec’y was head of CMAP. Great guy, btw.
Truth does sometimes manage to come out.
If it’s truly needed we should find a way to build it. That’s a whole separate discussion from the ins and out of Federal loan programs, their standards, and competition for limited resources.
Comment by Harry Thursday, Mar 26, 15 @ 10:19 am
Yawn. So Fitch thinks it might not have been approved and that means we shouldn’t apply?
Also, if private investors couldn’t be found, the project wouldn’t have moved forward.
People act like nothing should ever involve risk, complete nonsense when talking about major infrastructure investment.
Comment by Anonymous Thursday, Mar 26, 15 @ 10:22 am
OK, then, how ’bout a Chunnel instead.
Comment by Anonymous Thursday, Mar 26, 15 @ 10:23 am
You have a 3 lane interstate going from Lincoln and Spfld that is over 35 years old with little traffic as compared to I-80 which is still just 2 lanes thru Joliet and is a mess with traffic. Figure that one out.
Comment by ISP REtired Thursday, Mar 26, 15 @ 10:42 am
A lot of the same things about I-355, “will never be used enough”, “not worth building”, “too expensive”. They scaled back and much of it was built as 2 lanes because the critics said it would have very light traffic. They had to start adding lanes shortly after it opened, and have been adding ever since. It would have been easier, safer, and less expensive to have built it with the extra lanes right from the start.
Comment by DuPage Thursday, Mar 26, 15 @ 10:46 am
DuP Dude, you really comparing 355 to the Illiana?
Comment by A guy Thursday, Mar 26, 15 @ 11:32 am
IDOT is known for being a swampy and muddy place, with too many secrets and too many turns of the blind eye — and poor Randy Blankenhorn knows this as much as the next guy. Imagine how he now feels. Former Director of CMAP (who led the charge against the Illiana) and now Secretary of IDOT, and even he (apparently) can’t get his own highways division, legal division, and plannign division to turn over Illiana information, including the info from Fitch. This development more than raises questions as to what Gary Hannig and others at IDOT were doing to hide the facts (and make promises to Will County) about the Illiana. That crowd did the same thing over IDOT’s so-called ‘high-speed rail’ initiative, which was really nothing but a multi-million dollar grant of money to Union Pacific Railroad, so that UP could improve its own private property.
Comment by ChiTownSeven Thursday, Mar 26, 15 @ 11:36 am
Quinn the Populist, the alternative to the other career politicians, the guy who will have the peoples best interest at heart is just another political hack who was in it for himself and was looking out for his friends and contributors. Just another sleaze politician.
Comment by Ginhouse Tommy Thursday, Mar 26, 15 @ 12:48 pm
==just another political hack==
It increasingly looks that way.
btw, has he finished the end of term report yet? https://capitolfax.com/2015/01/23/quinn-shirked-final-constitutional-duty/
Comment by Formerly Known As... Thursday, Mar 26, 15 @ 1:05 pm
If I were Rauner, I’d tell Fitch to eat that contract.
Or, they can pursue it in Court of Claims. But, if they do, they’ll never be asked to rate any state debt again. Their ethics here are questionable, to say the least.
A rating agency accepting money to “consult” on the structure of a possible future bond issue is not kosher. It defeats the purpose of the alleged independent analysis prior to issuance.
On the state side, it could be viewed by some as shopping for a rating. Not a good look on anybody.
Rauner’s folks are going to have a good time chasing down this hinky contract and exposing it to the light of day. I’d hope the auditor general gets involved, too.
Comment by Wordslinger Thursday, Mar 26, 15 @ 2:49 pm
All our questions — present and future — about Illiana, are answered in this photo:
https://twitter.com/GovRauner/status/575357652559085568
“With the turnaround agenda, I plan to invest heavily in infrastructure and work with the IL Asphalt Paving Assn.”
Comment by Cheswick Thursday, Mar 26, 15 @ 3:09 pm
Fitch rated securities based on subprime mortgages. Fitch rates securities based on subprime auto loans. But Fitch didn’t want to touch the Illiana.
Comment by roads scholar Thursday, Mar 26, 15 @ 3:15 pm
ISP, google former presidential cabinet secretaries from Lincoln, Illinois. To the post, Pat Quinn releasing this report would have rocked the boat of a key caucus.
Comment by 100 miles west Thursday, Mar 26, 15 @ 5:17 pm
@A guy 11:32 =comparing 355 to the Illiana=
I was comparing what 355 opponents were saying when 355 was proposed, to what opponents of the Illiana are saying now. Very similar. They were totally wrong about 355, so I am not confident of their predictions about the Illiana.
Comment by DuPage Thursday, Mar 26, 15 @ 9:08 pm
just one more sign of the south suburbs being ignored and shoved aside in favor of richer whiter suburbs..we are still waiting for our casino, how many years after poor disadvantaged Rosemont got one..the Illiana and the airport are badly needed in an area that contains some of the poorest communities not just in the state, but in the country, nice job
Comment by erik Friday, Mar 27, 15 @ 8:01 am