Chicago Mayor Richard Daley got one step closer to leasing out Midway Airport last week when the City Council unanimously endorsed the proposed agreement.
The council vote came a week after Daley announced a $ 2.5 billion deal to lease Midway for 99 years to the Midway Investment and Development Company (MIDCo) consortium. MIDCo includes New York´s Citi Infrastructure Investors, Vancouver-based YVR Airport Services Ltd. and Boston-based John Hancock Life Insurance Co.
The city now will file its final application with FAA, which requires a minimum of 60 days for approval, a city spokeswoman said. "We hope to receive that approval before the end
of the year and close the transaction in early 2009," she added.Under the lease, MIDCo will pay $ 2.5 billion up front in rent to the city at the transaction´s closing, giving it the right to operate the airport subject to all of the terms in its lease. The lease includes operating standards covering airport operations, from safety and security to runway maintenance and upkeep of the terminal.
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