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Skyway Transaction Basic Considerations. Why Privatize The Skyway?

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Presentation on theme: "Skyway Transaction Basic Considerations. Why Privatize The Skyway?"— Presentation transcript:

1 Skyway Transaction Basic Considerations

2 Why Privatize The Skyway?

3 1. Not a core city competency – somebody else could do it better

4 2.Eliminate the risks of Skyway ownership – past history of problems and default

5 3. Ability to shift city capital – no longer needed in Skyway, better used elsewhere

6 Could Privatization Be Done Legally?

7 1. Basic Authority A.City as “home rule” unit had power to sell or lease Skyway B.City Council still had to approve – timing: get authority upfront or wait until the end?

8 2. State Law Issues A.No significant liability impact of shift to private operator B.Real estate taxes triggered by sale or lease – required amendment of Illinois statute

9 3. Federal Law Issues A.No federal funding for Skyway B.1961 FHWA Agreement resulting from “connector” funding – required revised agreement with FHWA

10 4. Contractual Issues A.Construction and other Skyway contracts all assignable B.All Skyway bonds had to be redeemed or defeased – tax requirement even if ok under indentures


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