A controversial concessions contract at O’Hare Airport is now becoming a question of “Will He?” or “Won’t He?” surrounding Mayor Rahm Emanuel’s administration. A Tribune report asks if the new mayor will move along with the proposal he inherited from outgoing Mayor Richard Daley, or if he will re-start the bidding process again. Either way, this issue could prove to be one of Emanuel’s first major uphill battles.
One of the problems with the proposed multimillion dollar, 25-year lease of Terminal 5 to Westfield Concession Management is that it involves a clout-heavy company. Cook County Sheriff Tom Dart’s brother, Tim, and the president of the Chicago Police Board, Demetrius Carney, both lobby for Westfield. The bid was approved by Aviation Commissioner Rosemarie Andolino. Progress Illinois has previously covered the deal. Again and again, we’ve noted the multiple times a vote on the lease was postponed by City Council due to the the lack of votes needed to pass it. Aldermen were worried as they remembered -- and continue to live through -- the backlash from the parking meter deal, which the concessions deal has been compared to on numerous occasions.
Some issues already in the news about the concessions proposal is the length of the lease and the fact that current workers have only been promised an interview for rehire. At the heart of the controversy, though, is the money. UNITE-HERE estimates the city could lose $132 million to $147 million in revenue should the council ratify the Westfield deal; the lower numbers are based on the firm's promised capital investment and rent that they would pay to the city. The union has contended the current company running Terminal 5 (the international terminal), Chicago Aviation Partners, would be the best deal.
Larger potential problems with the deal remain to be unseen. The exact terms of the proposal aren’t being released to the council, which has prompted eight aldermen to request the submitted proposals from all bidders. UNITE-HERE, the union representing some workers who could lose their jobs under the Westfield contract, has also demanded to see the proposals to no avail.
Facing such push-back, Westfield has attempted to sweeten the deal by adding clauses allowing the city to terminate the contract without cause in 10 years. The company also increased the city’s share of revenue to match the consumer price index and promised that some current workers would be able to keep their jobs for at least 60 days after the contract began. Still, UNITE issued an updated analysis (PDF) earlier this month, which pointed out that the incumbent concessions company will generate $394 million in revenue over 20 years of the lease versus an estimated $288 million from Westfield.
“Westfield's proposal still appears to be worse than the other two bids the City received and could cost Chicago taxpayers as much as $129 million relative to other proposals,” a spokesman said in an email.
Is there any information about how many 41st ward residents work at Ohare? What kind of jobs do they have?
ReplyDeletehe needs to do what's best for the taxpayers and not incestuous political relationships that have robbrd and ruined this city for decades. Time to do the right thing for the citizens and not for political career.
ReplyDeleteI bet there are very few 41st ward residents working at OHare Expansion Project. I've drive by Garvy School everyday and have noticed 100% suburban contractors and sub-contractors on the job site. Why aren't city contractors and workers from the city being used o school expansion jobs and the airport?
ReplyDeleteHas an independent CPA/auditor taken a look at all the bids and has he/she determined what is best for the city?
ReplyDeleteLets make sure all the reports and audits are posted for the public to see. The parking meter deal was pushed through without much being published for the voter to see. Also, our alderman at the time did absolutely nothing to educate us about the issue or ask our opinion. I remember Scott Waugauspack warning his constituents about the math. Before selling maajor city assets and contracts, lets publish reports and ask constituents what they think, first.
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