Did the mayor just pull a string?
Wednesday, Jan 13, 2016 - Posted by Rich Miller
* Greg Hinz reports that the City of Chicago is now asking $190 million from the tollway for 190 acres at O’Hare’s western edge to finish construction of the Elgin-O’Hare Tollway…
In what Chicago officials say is just good bargaining but suburban leaders suspect is designed to send a bigger political message, a dispute has broken out over plans to finally bring western road access to O’Hare International Airport. […]
That asking price has tollway and other officials steaming—and suggesting that Mayor Rahm Emanuel is trying to send a message to Gov. Bruce Rauner, who controls the tollway and has balked at giving Emanuel help for Chicago Public Schools and other needs in Springfield as part of a wider budget war.
No one much wants to say anything in public. Sources close to both the mayor and the governor say the jostling is occurring at the staff level so far. But the battle is raging as both sides sit down today for a formal bargaining session.
Suburban leaders, especially in DuPage County, have long pushed for western access, which they believe would spark development of new hotels, convention centers and other projects like those that have risen in Rosemont, adjoining the only road entrance to O’Hare, from the east. […]
Talks regarding the land transfer had been amicable until recently, when the city dropped the $190 million “poison pill,” says a top official who asked not to be named. That “disturbing” action “raises questions” about whether O’Hare politics suddenly has been pulled into Springfield fighting over the state budget, that source added.
The city says it relied on an appraisal, but won’t release the appraisal.
- qualified someone nobody sent - Wednesday, Jan 13, 16 @ 12:37 pm:
City owned property shouldn’t be given away at a time when the City has no money. If it’s worth 190 MIL, then the State should pay for it.
- Hostage Negotiator - Wednesday, Jan 13, 16 @ 12:37 pm:
And the State of Illinois pasttime of political hostage taking keeps on going…
- Precinct Captain - Wednesday, Jan 13, 16 @ 12:38 pm:
The philosophy of the governor that government needs to act more like business. Why would a business just give away prime development land?
- Formerly Known As... - Wednesday, Jan 13, 16 @ 12:38 pm:
If that is market value, it is market value. Pay it, or delay the project until you are willing to pay it. The state has survived without western road access to O’Hare since it opened.
If that is not market value, then Rahm is not helping himself or anyone else.
- Chicago Cynic - Wednesday, Jan 13, 16 @ 12:42 pm:
Geez, this seems wrong, but given the hostage taking Rauner is doing, this seems like a fair response.
- Not Rich - Wednesday, Jan 13, 16 @ 12:44 pm:
that amount is what the Gov earns in a year in interest..he can buy the property..
- Lincoln Lad - Wednesday, Jan 13, 16 @ 12:45 pm:
Rahm playing hardball won’t save his political career, someone should tell him he’s better served humbling himself, and trying to act like a true public servant. He’s lost the support of the inner city, and he’ll lose support of progressives if he doesn’t demonstrate humility and remorse for all that’s happened under his watch.
- northernwatersports - Wednesday, Jan 13, 16 @ 12:45 pm:
Seems that an appraisal is only as good as the person doing the appraising. The real value of ANYTHING is what someone is actually willing to PAY for that thing…hence, the ‘market’ value is based on location, size, allowed usage, potential for future valued development, blah, blah, blah…
If hiz honer says its worth $190 mil, then that’s what he thinks its worth. If his calculation of dollar value takes into consideration the economic, symbolic and political value, seems like he may have found the sweet spot on price.
Oh…wait…
- Annon3 - Wednesday, Jan 13, 16 @ 12:45 pm:
If the Tollway does not have statutory authority to condem the parcels I am sure the Speaker and President will help the Gov,
- plutocra03 - Wednesday, Jan 13, 16 @ 12:46 pm:
Just moving a taxpayer asset from one public pocket to another. How hard should it be?
- Not Rich - Wednesday, Jan 13, 16 @ 12:48 pm:
The Tollway is building the access road with union labor, the Gov will probably be happy to see the project die..
- wordslinger - Wednesday, Jan 13, 16 @ 12:53 pm:
The tollway has eminent domain powers. Like anyone else, the city could fight in court on price.
That, of course, would delay the project, which seems to have been in the planning stages since the crust cooled, anyway.
- walker - Wednesday, Jan 13, 16 @ 12:59 pm:
$1M per acre for access road? Off we go, into the wild blue yonder.
- Just Me - Wednesday, Jan 13, 16 @ 1:03 pm:
IDOT has the power to use it’s quick-take powers over a unit of local government, and then the courts can later determine the actual value. (Whether or not IDOT can use its quick-take power on behalf of the Tollway is unknown, but I would assume so.)
- Austin Blvd - Wednesday, Jan 13, 16 @ 1:04 pm:
Maybe Rahm pulled Rauner’s finger.
- Six Degrees of Separation - Wednesday, Jan 13, 16 @ 1:11 pm:
If I recall correctly, Illinois eminent domain authority only applies to private property. It really gets sticky when it’s one government authority vs another. The tollway could always go west and knock down a bunch of buildings instead…but probably would be cheaper and quicker to go on the airport property, even at that price.
- Anon221 - Wednesday, Jan 13, 16 @ 1:11 pm:
Any federal dollars associated with this???
- Just Me - Wednesday, Jan 13, 16 @ 1:17 pm:
Anon221 — the Tollway is 100% self-sufficient, funded entirely through tolls. You can argue that the State provides some administrative support, but even that would be less than $1 million annually.
- DuPage - Wednesday, Jan 13, 16 @ 1:21 pm:
@wordslinger 12:53 ==The tollway has eminent domain powers.==
There are some exceptions, I don’t know all the
details, but it’s hard to use eminent domain
against property owned by another public agency.
I remember DuPage County had some highway
extension project that was going to clip the edge
of some school property. The entire project was
torpedoed and sunk when the school board said no.
- phocion - Wednesday, Jan 13, 16 @ 1:26 pm:
$1 million per acre? Not in Rahm’s wildest dreams. But the big question is why did the Tollway wait until now to acquire this property? The Tollway’s Move Illinois Program began under Quinn over four years ago.
- Cynical - Wednesday, Jan 13, 16 @ 1:31 pm:
Let them eat cake.
- Formerly Known As... - Wednesday, Jan 13, 16 @ 2:20 pm:
Meanwhile, Austin and Burke just pulled their own strings to block a vote on empowering the IG to investigate aldermen.
Maybe Rahm can comment on that as well as the airport issue if he speaks on this.
- Six Degrees of Separation - Wednesday, Jan 13, 16 @ 2:25 pm:
Anon221 @ 1:11pm-
The Elgin O’Hare project got somewhere around $140 million in federal earmarks, about 10 years ago. That doesn’t necessarily mean the federal money would be used for buying the airport property. The tollway is notorious for avoiding using federal money of any kind because of the strings attached. Remember, this was an IDOT project until the tollway got involved a few years ago.
- Lincoln Lad - Wednesday, Jan 13, 16 @ 2:33 pm:
I would expect the Gov to say Rahm can keep the land, and save the money for another project another day. Shut down the jobs it would involve, shut down the tax revenue it would generate, put it on the back burner. Thanks Rahm.
- Norseman - Wednesday, Jan 13, 16 @ 2:54 pm:
Never let a need be missed for inclusion among the hostages.
- A Jack - Wednesday, Jan 13, 16 @ 2:58 pm:
Interesting move. If the Tollway no longer wants the land at that price, perhaps Chicago could sell it to a hotel chain. Or maybe it would be a good place for a casino.
- NeverPoliticallyCorrect - Wednesday, Jan 13, 16 @ 3:23 pm:
Funny how when Quinn was gov the Chicago Democrats didn’t make a peep about this. Just more proof of the slimy nature of Illinois politics.
- Yellow Dog Democrat - Wednesday, Jan 13, 16 @ 3:29 pm:
Good luck trying to use eminent domain to sieze property from another public body.
- Judgment Day - Wednesday, Jan 13, 16 @ 4:21 pm:
$1 mil per acre? That works out to be right at $22.95 per square foot ($1,000,000/43,560) for raw land.
190 acres of Commercial land is a pretty large piece of property. At a $1 mil bucks an acre?
I’d like to see that appraisal.
I’d want to check those prices against raw commercial land sales in some of the bigger municipalities around the country.
Maybe Rahm could use the land as collateral for bonds/loans for the City budget.
- NoGifts - Wednesday, Jan 13, 16 @ 5:48 pm:
The airport is a cash cow for the city. Would they really sink western access for 190 million? Maybe they need to spend 190 million at the south suburban airport instead. /s