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Boondoggle or potential boon to a hard-hit region?

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Illinois

* Background is here if you need it. Joe Cahill on new state funding for the Peotone airport…

In the Chicago area, O’Hare is adding 915,000 feet of cargo capacity, and Rockford’s airport is establishing itself as freight nexus. The fastest-growing cargo airport anywhere, Chicago Rockford International recently expanded to 200,000 square feet of cargo space. Amazon has designated Rockford as a gateway for its Prime Air logistics network.

What’s left for Peotone? Not much. Yet Pritzker wants to spend $200 million on a persistent folly.

Illinois taxpayers deserve better fiscal stewardship, especially with Pritzker digging deep into their pockets. He doubled the state’s gasoline tax to fund his infrastructure construction campaign, and wants voters to approve a constitutional amendment authorizing income tax hikes.

If he’s going to squeeze taxpayers so hard, the least he can do is spend their money wisely. Only essential projects with clear demand deserve taxpayer funding. That doesn’t include an airport nobody needs.

* StreetsBlog Chicago…

The Environmental Law & Policy Center’s Howard Learner told [Greg Hinz], “Illinois has a huge backlog of vital transit, rail, highway and bridge projects that improve community mobility. . . .Unfortunately, IDOT is allocating even more public funds than the Legislature appropriated in order to support the Peotone airport project that is opposed by the leading commercial airlines and doesn’t have a viable financial plan. Illinois has higher priorities.”

Indeed, why is the state planning to burn almost a quarter of a billion dollars on this boondoggle, other than to score some political points? Think of how much good that money could do if applied to relatively affordable sustainable transportation, such as creating rapid bus corridors. Heck, that cash would have been more than enough than the $160 million needed to build the first 5.6 miles of the proposed Ashland Avenue bus rapid transit corridor, including the purchase of new buses.

* Daily Southtown columnist Ted Slowik has long been a staunch opponent of the “boondoggle” project until recently, when he looked at an old chart about regional job concentration that he said airport supporters have used for years…

In 1960, shortly after the opening of O’Hare, jobs were fairly evenly distributed among the northern, western and southern suburbs surrounding Chicago. By 1980, however, there was a surplus of tens of thousands of jobs around O’Hare.

Within 20 years of O’Hare’s opening, the south suburbs lost more than 100,000 jobs and the northern and western suburbs gained more than 100,000 jobs. […]

With the commercial tax base decimated [in the southern suburbs], residential property tax rates skyrocketed. The tax rate in Park Forest is 34%. A cascading series of events has made it nearly impossible for businesses or homeowners to relocate to or remain in the south suburbs. […]

Amazon has declined comment on whether it would use the proposed South Suburban Airport. Again, there are no guarantees with the airport, only risk.

Yet, the risk of spending public funds for airport infrastructure is likely to pay huge dividends in future private investment.

Thoughts?

posted by Rich Miller
Thursday, Oct 24, 19 @ 10:24 am

Comments

I know it isn’t part of any plans, but it sure would be cool to extend the Metra Electric tracks that end just north of Peotone at University Park into and through the planned airport terminal.

Comment by Dan Johnson Thursday, Oct 24, 19 @ 10:29 am
Dan, I can think of a lot of “cool” ways to waste taxpayer money too.

There is an underutilized airport in Gary, Indiana. Let’s use the airports we have before we build more we don’t need.

Comment by Just Me Thursday, Oct 24, 19 @ 10:34 am
===and wants voters to approve a constitutional amendment authorizing income tax hikes.===

That is not what the proposed constitutional amendment is at all. Holy carp.

Comment by Nick Name Thursday, Oct 24, 19 @ 10:34 am
This is a stunning waste of money when real transport needs exist. Speculation on economic development is better left until you have paid for the actual needs first, and when you have major companies who have committed to using the airport.

Comment by Jibba Thursday, Oct 24, 19 @ 10:37 am
The airlines (cargo and passenger) have spoken loud and clear “We aren’t interested, and won’t pay for it”. Without customers, Peotone is simply a continuing waste of taxpayer money.

Comment by revvedup Thursday, Oct 24, 19 @ 10:38 am
It would also be very cool to establish a user friendly transit connection between O’Hare and Midway We need to invest in/repair/improve our existing infrastructure before building a new airport.

Comment by Froganon Thursday, Oct 24, 19 @ 10:40 am
It would also be very cool to establish a user friendly transit connection between O’Hare and Midway We need to invest in/repair/improve our existing infrastructure before building a new airport.

Comment by Froganon Thursday, Oct 24, 19 @ 10:40 am
My opinion has been pretty similar to Ted Slowiks. But I’m not sure of the timing of this. Kind of cart before the horse. I understand if they go forward with construction of the airport it would be helpful to have the interchange in place first. But I would think they could hold off on this until the airport gets closer to reality.

Comment by Been There Thursday, Oct 24, 19 @ 10:42 am
Agree with most people above. Illinois has very limited resources to fund any infrastructure. The focus should be on fixing what exists, not building new things for an airport that no one wants and there is no demand for.

Comment by Dybalaton Thursday, Oct 24, 19 @ 10:45 am
Hey people why would we build or expand any airport when we are working to reduce air travel?

Comment by Green Nude Eel Thursday, Oct 24, 19 @ 10:46 am
Doesn’t Amazon have a huge facility near Joliet? Wouldn’t Peotone be a better location for them?

I don’t have a dog in the fight, since I live near Peoria and Bloomington.

Comment by JS Mill Thursday, Oct 24, 19 @ 10:47 am
Why do we need an airport in the south suburbs? Because O’Hare stole our jobs.

Comment by Ted Slowik Thursday, Oct 24, 19 @ 10:47 am
==Doesn’t Amazon have a huge facility near Joliet? ===

It would be a game changer if Amazon were pushing to use this. Maybe they are, behind the scenes, but “declined comment” is not enough for me to want to build it in hopes of them coming.

Comment by JIbba Thursday, Oct 24, 19 @ 10:51 am
It undermines his whole claim about objective criteria. If they were this boondoggle wouldn’t be there.

Comment by Not a Billionaire Thursday, Oct 24, 19 @ 10:53 am
Forget the Peotone dream, Rockford airport is growing rapidly in the freight department with Amazon’s investment, and now O’Hare is adding freight capacity as well, don’t forget poor little Midway. Another airport is a waste of money in these financially dangerous times.

Comment by Uncle Ernie Thursday, Oct 24, 19 @ 10:58 am
Placing all arguments on the merits aside, the advocates of Peotone have long claimed that if the state commits capital dollars to infrastructure around the proposed airport, then a private developer will jump right in and start paving the runway. Well, the state just did that, so we’ve reached the act-or-get-off-the-pot moment for Peotone.

I suspect JB might be calling their bluff. He’s done exactly what the South Suburban legislators asked him to do. If no developer materializes, the line-items in IDOT’s five year plan (and the capital bill for that matter,) can be rewritten for something else next year.

Comment by Roman Thursday, Oct 24, 19 @ 11:04 am
The reason it is a boondoggle is because $200M is a drop in the bucket compared to what it would actually cost to build an airport in Peotone. And 90% of the state is hard hit. Why not fully fund the inland port project in Cairo? They are struggling a lot more than the politicians that bought up land in Peotone.

Comment by Chicagonk Thursday, Oct 24, 19 @ 11:04 am
On the jobs true but a little late. Manufacturing jobs left city for suburbs mostly the 90 Corridor. And sunbelt and later China another story. …
Based on where workers work I think a third to a half of all manufacturing jobs are now in the Ohare 90 corridor. I doubt Peotone changes anything at this point

Comment by Not a Billionaire Thursday, Oct 24, 19 @ 11:04 am
“Within 20 years of O’Hare’s opening, the south suburbs lost more than 100,000 jobs and the northern and western suburbs gained more than 100,000 jobs.”

Is that attributable to proximity to the airport? I-88/I-355 corridors opened up the west suburbs. I-294 connected those south and west burbs to large employers on I-94 up north.

Comment by City Zen Thursday, Oct 24, 19 @ 11:06 am
And I’ll ask again: How does building an airport and its surrounding infrastructure from the ground-up reconcile with the governor’s green initiatives?

Comment by City Zen Thursday, Oct 24, 19 @ 11:09 am
Peotone is not in the South Suburbs. It is in the exurbs, a rural community surrounded by agricultural fields. It is closer to Indiana than the South Suburbs.

Comment by Thomas Paine Thursday, Oct 24, 19 @ 11:16 am
It was also a time when most manufacturing in Chicago was invading multistory buildings and all those things opened. It was a period of unprecedented economic growth . Very different now but don’t underestimate the good news that Rivian brings. It is one of the exciting new technologies. But we need to prepare it will be big but not on jobs. I think it will be a big hit to Mexico because of need for feasts parts.

Comment by Not a Billionaire Thursday, Oct 24, 19 @ 11:19 am
The suburban exurbs line is always interesting. Gains had an article that said Princeton was an exurb. Based on transportation and the fact it got Chicago editions of Trib. I would say the suburbs and at the continuously built up area. Proponents be a close exurbs and Rockford and Princeton distant.

Comment by Not a Billionaire Thursday, Oct 24, 19 @ 11:24 am
=If no developer materializes, the line-items in IDOT’s five year plan (and the capital bill for that matter,) can be rewritten for something else next year.=

This is a hugely important detail. There is only $7 million scheduled for 2020, to be used for some phase I engineering. That’s the real spend right now. Nothing about being in the MYP means the project will actually take hold in the next five years.

Comment by Stormfield Thursday, Oct 24, 19 @ 11:34 am
Did O’Hare cause the problems of steel?

I think the jobs shift is due far more to which companies declined and which prosper in that time period.

UPS is big at Rockford too. Peotone is the answer to a question that nobody is asking.

Comment by Fav human Thursday, Oct 24, 19 @ 11:35 am
Investing capital in expansion, while inherently risky, is more likely to yield a return on investment than only maintaining existing assets. See “Portfolio Diversification.”

One project will not solve everything in the Southland, but the fact that Gov. Pritzker is willing to bear risk there proves he’s committed to doing the heavy lifting the Southland needs.

Also, it’s worth noting that Amazon has invested a comparable 9 figure sum in Monee since 2016.

Comment by I know nothing Thursday, Oct 24, 19 @ 11:46 am
“If you build it; they will come.” Revitalization of Southland as a commercial hotspot can ONLY occur with the State’s involvement to expand the infrastructure. This proposed Peotone airport WILL NOT affect the Chicago owned O’Hare’s position in the commerce world. Peotone could serve Indiana better as well as the southern and western parts of the State better than O’Hare and bring back workers to the area. Property values are alarmingly low and the property tax rate and horrendous public schools aren’t positives. Tax base needs this boost and the Gov. promised to help all of Illinois prosper.

Comment by qualified someone nobody sent Thursday, Oct 24, 19 @ 11:59 am
I wonder how far 200 million would go towards fixing I57/I80 mess?

Comment by Fav human Thursday, Oct 24, 19 @ 12:06 pm
I throw this into the same bucket as the mythical Hunter Lake. Both are proposed projects without clear purpose or need. If there were a true need in either case, they would have been done years ago.

Comment by benniefly2 Thursday, Oct 24, 19 @ 12:31 pm
to Qualified Nobody: Nobody is, or will come to the Peotone airport. Wishful thinking won’t make it so. There is ZERO need for it, and ZERO air carriers interested in it, or willing to pay for it. JB is calling everyone’s bluff, and soon Peotone will be another pile of wasted taxpayer money that went nowhere.

Comment by revvedup Thursday, Oct 24, 19 @ 12:42 pm
=Yet, the risk of spending public funds for airport infrastructure is likely to pay huge dividends in future private investment=

Sure, if that unwanted airport infrastructure leads to one of the largest and most used airports in the world - then it will drive private investment nearby. Otherwise, it will be a lightly used empty airport.

Comment by Anon Thursday, Oct 24, 19 @ 1:04 pm
Back in the day newspapers used to do investigative reporting.

Wouldn’t it be great to compile the ownership records of the landowners in the proposed development area to see how many of them are ‘recent’ new owners. Might be fun to learn who amongst them are movers and shakers of either party who are itching for their payday.

Comment by Plutocrat03 Thursday, Oct 24, 19 @ 1:06 pm
Joe might want to check the intermodals around Elwood and Joliet before he writes off more action around Peotone. It will be interesting see how this plays out

Comment by Annonin Thursday, Oct 24, 19 @ 1:08 pm
who’s working to reduce air travel? cause it is increasing. population increasing, packages moving around, all through the air. first drone delivery happened last week. faster planes happening. but if you build it they will come does not work unless you have negotiated something big with at least one majorly viable entity. is that happening with Peotone?

Comment by Amalia Thursday, Oct 24, 19 @ 1:12 pm
Some airport fun facts:
#1 The last new major airport built in the US was Dallas-Ft.Worth, which broke ground in 1969, or 50 years ago. (Denver Int’l opened in 1996, but it replaced Denver Stapleton, which closed the same day.) China, meanwhile, is about halfway thru a program to build 100 airports in 10 years. That means China opens a new airport every 5 weeks; the US opens a new one every 5 decades.
#2 Chicago’s spent or committed $20 Billion (with a B) over 20 years to “expand” ORD and MDW. But guess what? The FAA reports neither airport has any more flights today than 20 years ago. That’s because capacity is determined NOT by concrete, but by airspace, and neither airport has more air.
#3 The city claims capacity is up, because it defines capacity by passengers. Passenger counts are up slightly, but only because airlines are squeezing more people into seats, leaving fewer empty.
#4 Chicago is the largest US metro area without 3 airports. Among the top 60 busiest US airports, 3 each are located in NY, LA, San Fran, DC/Baltimore and Miami/SE FL.
#5 South Suburban Airport (SSA) won’t hurt ORD or MDW. Nothing hurts those juggernauts. But SSA would bring added aviation capacity to serve Chicago, Southland, Joliet, Kankakee, Bloomington, Champaign, Danville, Downstate IL etc. Also, it could bring back jobs and passengers from NW IN.
#6 Airports are the greatest job generators in the world. That’s why most unions and chambers support SSA. It would create 10,000 construction jobs; 15,000 direct and indirect jobs on opening day, and 50,000 jobs in 10 years. Such economic stimulus will also bring down local property tax rates.
#7 E-commerce is booming globally and Will Co. is the Midwest hub for e-commerce. But because ORD and MDW are full, e-commerce giants across Will Co. now must drive to Rockford for air cargo.
#8 Red Herring alert. Airlines oppose SSA because airlines ALWAYS oppose ALL new airports. Why? Because new airports bring new competition.
#9 The State already owns 90% of SSA land and the FAA has already approved 90% of the SSA plan. No other airport proposal in US is that far along. IL is the historic transportation hub of US. We can’t miss this opportunity to retain that title.
#10 Amazon, which will soon own 7 logistics centers in Will Co., is also buying 100 airplanes (Prime Air) and is right now building new regional air cargo hubs across the US. The first ones are in Dallas and Kentucky. SSA is the perfect location for one.
#11 Chicago Mayor Daley II wanted a 3rd airport until he learned he couldn’t control the patronage, then he opposed it. As anyone in politics knows, ORD and MDW patronage is the grease for the Chicago Machine.
#12 This airport won’t become a patronage haven, however, because it will be privately financed. So, taxpayers won’t be on the hook, like at ORD and MDW, and jobs won’t be controlled by City Hall.
#13 Red Herring Alert 2. Gary Airport (which Chicagoans subsidizes with city tax dollars) in not an alternative to SSA because it can’t expand beyond its one (short) runway, due to environmental problems. Thus it’s too small to become a major air hub like SSA.

Comment by Rick Bryant Thursday, Oct 24, 19 @ 1:16 pm
@ “Reved up” This IS the future. Midway is only in operation because it belongs to the City. Traffic there is horrendous. No direct access to the interstate highway system, and yet, still there in use. Not really highest and best use of the real estate there. Replacing Midway is also necessary to the success of a new Peotone airport. 394 lined with storage and trucking facilities over the last 20 years. Monee investment by Amazon, open space available for all kinds of commercial development surrounding. Please elaborate on a better place to invigorate the economy in Southland area. I’m waiting….

Comment by qualified someone nobody sent Thursday, Oct 24, 19 @ 1:36 pm
@Rick Bryant, with this new capital commitment, what’s left for the state to do other than buy up the remaining 10 percent of the land?

Comment by Roman Thursday, Oct 24, 19 @ 1:39 pm
Rick Bryant: Thanks for some factual information here to back up my assertations. Amen brother.

Comment by qualified someone nobody sent Thursday, Oct 24, 19 @ 1:40 pm
Plutocrat03 -

Would also be nice to know who has “buy options” on the land and at what price.

Comment by Anyone Remember Thursday, Oct 24, 19 @ 2:33 pm
There are a few necessary final steps. The State (IDOT) needs to:
#1 Complete final detailed Airport Layout and Master Plan, which is nearly complete. That requires IDOT to refresh the Environmental Impact Study and Airspace Study. Both were previously approved by FAA but are dated and need reviewing by federal law.
#2 Complete land acquisition – which should be no problem as the General Assembly appropriated and set aside in a special account enough money to do that. Plus, the State has Quick Take authority on this land, so IDOT could buy those remaining tracts tomorrow.
#3 Complete off-site infrastructure, such as highway access road and bringing utilities to site. Gov. Pritzker is pushing this now, so that the site (now accessible by county and gravel roads) has modern access for developers and, someday, customers.
#4 Issue Request for Proposals (RFP) to solicit bids from potential developers/funders. Many, if not most, new airports built around the world in last 25 years use some version of public-private partnership (PPP) financing. So there are numerous successful models. Former Govs. Quinn and Rauner issued preliminary RFPs and received many serious responses from int’l construction and engineering firms (from Germany, Holland, Canada, Spain, China, US, and more) who were willing to finance the airport with their own money. Butthe State then dropped the ball due to political pressure from City Hall and the airlines.
Many of these last steps could be done simultaneously.

PS: I forgot this additional fun fact: United and American Airlines back in the late 1950s opposed the construction of O’Hare and said they’d never use it.

Comment by Rick Bryant Thursday, Oct 24, 19 @ 2:34 pm
IDOT is buying the land from local owners. It pays fair market value, by law.

Comment by Rick Bryant Thursday, Oct 24, 19 @ 2:36 pm
There are a few necessary final steps. The State (IDOT) needs to:
#1 Complete final detailed Airport Layout and Master Plan, which is nearly complete. That requires IDOT to refresh the Environmental Impact Study and Airspace Study. Both were previously approved by FAA but are dated and need reviewing by federal law.
#2 Complete land acquisition – which should be no problem as the General Assembly appropriated and set aside in a special account enough money to do that. Plus, the State has Quick Take authority on this land, so IDOT could buy those remaining tracts tomorrow.
#3 Complete off-site infrastructure, such as highway access road and bringing utilities to site. Gov. Pritzker is pushing this now, so that the site (now accessible by county and gravel roads) has modern access for developers and, someday, customers.
#4 Issue Request for Proposals (RFP) to solicit bids from potential developers/funders. Many, if not most, new airports built around the world in last 25 years use some version of public-private partnership (PPP) financing. There are numerous successful models. Former Govs. Quinn and Rauner issued preliminary RFPs and received many serious responses from int’l construction and engineering firms (from Germany, Holland, Canada, Spain, China, US, and more) who were willing to finance the airport with their own money, but the State then dropped the ball due to political pressure from City Hall and the airlines.
Many of these last steps could be done simultaneously.

PS: One last fun fact: Back in the late 1950s United and American airlines vehemently opposed construction of O’Hare and said they’d never use it.

Comment by Rick Bryant Thursday, Oct 24, 19 @ 2:39 pm
Air travel in China and the US is apples and oranges. China is building those airports becuase there is/was no private ownership of aircraft. That is starting to change. And major cities in China had terrible airports, Cold War looking facilities. But the new ones (been to 3 of them) are fantastic.

Expansion at ORD is about landing planes in bad weather, not adding that many more “new” passengers. Expansion there keeps ORD keeps air traffic around the globe moving.

Capacity can be up with more efficient take off and landings. Both are true.

If your going to consider SJC a local airport to SFO and OAK and all in the same metro then MJC in Milwaukee is a local airport to everyone north of Evanston. Mitchell flys more people than any LA airport other than LAX and John Wayne. Boom Chicago has 3 airports just like San Francisco, Oakland and San Jose. or Baltimore and Washington DC for that matter.

Downstate doesn’t need the air service. Bloomington has very good air service. Same for the C-U. The rest of it can be better served by number of flights out of a larger airport.

Nice jobs numbers. But those need to be proven and not estimated.

Rockford is a perfect cargo airport. UPS hub for decades. Interstate access to 88, 39, 80 and 90.

I’ll take your word for it on the land. But you don’t need to buy land to improve existing airports.

Amazon is already perfectly situated in Rockford.

and @qualified someone nobody sent -

Midway is in operation because Southwest is a good airline and gives the Chicago flyer a real option. 10 million passengers seem to agree.

Comment by Cool Papa Bell Thursday, Oct 24, 19 @ 2:50 pm
Montreal Mirabel.

But without the attempt to replace an existing airport.

Does about 10% of the flight volume of Trudeau, largely with general aviation flights. Even as a cargo-focused airport, does less cargo tonnage than Trudeau.

The government is spending millions more to build warehouse space, bc it cannot attract private investment even in the current environment.

Comment by Chris Thursday, Oct 24, 19 @ 3:45 pm
Curious how Rockford Airport feels about potential competition? Well….https://www.flyrfd.com/

Comment by NIU Grad Thursday, Oct 24, 19 @ 4:04 pm
@Rick Bryant- lots of good info. I would not expect the SSA to draw from Danville or Champaign since Champaign already has a regional airport that serves that area.

Obviously not a game changer though.

Comment by JS Mill Thursday, Oct 24, 19 @ 7:00 pm
Thanks for the info, Rick. I have supported the SSA and I asked the question because it seems to me most of the heavy lifting on the state side has been accomplished (the remaining items on the to-do list are largely administrative functions.) So based on what’s been promised by SSA advocates, I expect a private developer is ready to pounce. Please don’t come back a year or two from now and say “if the state could just pay to pave a runway or build a terminal, it will all fall into place…”

As I posted earlier, it’s act-or-get-off-the-pot time for Peotone.

Comment by Roman Thursday, Oct 24, 19 @ 9:10 pm
Rick Bryant, I love you since your days at the Southtown and with J3, but you should be more transparent in disclosing that you work as a flack on the staff of airport supporter Robin Kelly.

Comment by SouthSide Markie Thursday, Oct 24, 19 @ 11:12 pm
The last new major airport opened in 1997, in Mascoutah. At least it was major when it opened.

Comment by swIll Friday, Oct 25, 19 @ 2:06 am