WTF??? - Mayor Daley has leased the Chicago Skyway?

[tcfrogs]

http://www.chicagotribune.com/news/local/chi-041015skyway,1,3300859.story?coll=chi-news-hed

Overseas investors to lease Skyway from city

By Gary Washburn
Tribune staff reporter
Published October 15, 2004, 12:14 PM CDT

In a shot in the arm to boost Chicago's long-term financial health, the city has received a winning bid of $1.8 billion from an overseas investment consortium to lease the Chicago Skyway for the next 99 years, Mayor Richard Daley announced today.

"This is a great result for the taxpayers of the City of Chicago," Daley said this morning as he announced the deal at O'Hare International Airport, where he was about to board a plane for a trade mission to China and Japan.

As for motorists, though, the deal would let the Skyway's new operator double tolls for passenger vehicles over the next 10 years. Today's announcement gave no indication the city will be able to review future toll increases.

Tolls for cars -- currently $2 -- will be capped at $2.50 until 2008, $3 until 2011, $3.50 until 2013, $4 until 2015, $4.50 until 2017, and $5 starting in 2017. Later adjustments will be 2 percent per year or the rate of inflation, whichever is greater.

The Chicago Police Department will continue to patrol the road.

City officials call the deal the first privatization of an existing toll road or toll bridge in the U.S. Proceeds will pay off Skyway bonds and other city debt, create a long-term reserve fund and strengthen the city's financial condition, Daley said.

The deal is subject to City Council approval. The offer is binding until Dec. 16, officials said, and the council is expected to vote on the contract before then.