Quick Hit Tuesday June 21st, 2011, 2:22pm

What Will Rahm Do About O'Hare?

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.

 

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