Fixing infrastructure has bedeviled cash-strapped cities in recent years. Washington has failed to pass a comprehensive surface transportation bill, last summer's debt deal paved the way for spending reductions, Republican governors have cancelled big rail projects, and the public has been generally sour on big spending deals.
With the announcement of a $7 billion infrastructure plan, Chicago Mayor Rahm Emanuel is signalling that era may be ending.
"The Mayor's basic premise is he's not going to let the city twist in the wind at the whim of the federal or state governments," said Tom Alexander, an Emanuel spokesman.
With funding from water rate hikes, efficiencies, and --mostly -- private banks setting up an "infrastructure trust" to finance projects, Emanuel plans to fund a $1.4 billion improvement in O'Hare airport, 16 new miles of bus rapid transit, and repair 100 CTA stations.
Also on deck: $660 million for public schools, 180 new acres of parkland, the replacement of 900 miles of water pipe, and the completion of the Bloomingdale Trail -- the Chicago version of the High Line.
According to the press release: the program, called Building a New Chicago, "is one of the most comprehensive infrastructure plans in Chicago’s history, involving an unprecedented level of coordination between City Hall, multiple city departments and sister agencies, private sector utilities, and the public."
Other big city mayors, notably New York's Michael Bloomberg and Los Angeles Mayor Antonio Villaraigosa, have championed big infrastructure projects. Mayor Bloomberg is a co-founder of Building America's Future, a pro-infrastructure lobbying group. But neither mayor has the extensive control of Mayor Emanuel, who runs the transit system, schools, and water infrastructure. In New York, for example the MTA is run by the state.
"A lot of American cities are focused on what's happening in Chicago," said Robert Puentes, a senior fellow at the Brookings Institution Metropolitan Policy Program. "There's nothing really like this -- we don't know all of what this is -- but there is so much interest. I really expect other cities to replicate it if it's a success."
The Mayor's office hasn't fully explained all the financing, but in one part of the plan, major banks including JP Morgan Chase and Citibank are investing in more energy-efficient buildings. Those efficiencies will be used to produce savings, which in turn can be used to pay back the investors.
Marcia Hale, president of Building America's Future, praised Emanuel's plan, and called out the Senate for passing a transportation bill "that would erect barriers to states and cities seeking to collaborate with the private sector." (The Senate bill has not passed the House; on Thursday, both houses of Congress passed a 90-day extension of the existing bill, the ninth such extension.)
Chicago has not fully laid out the details of its financing plan, other than to say it won't rely on tax hikes.
The city did release a video explanation of the plan:
Here's the full release:
Mayor Emanuel today announced a $7 billion, three year infrastructure program, Building a New Chicago, which is one of the largest investments in infrastructure in the City’s history. The program will touch nearly every aspect of the city’s infrastructure network and create more than 30,000 jobs over the next three years.
“Whether it is renewing our parks or repairing our pipes, repaving our roads or rebuilding our rails, retrofitting our buildings or revitalizing our bridges, we must restore Chicago’s core,” said Mayor Emanuel. “Our plans are comprehensive because our needs are comprehensive -- because no city in America relies on its infrastructure more than Chicago. While our infrastructure challenges are not unique, our resolve and determination to see them through is. I look forward to rebuilding our city’s infrastructure so we may continue to lead in the 21st century.”
Mayor Emanuel made the announcement at Chicagoland Laborers’ Training and Apprentice Center, in the city’s Austin neighborhood.
The investments will not require increases in taxes. Many of the projects are paid for through reforms, efficiencies, cuts in central offices, direct user fees, and the recently announced Chicago Infrastructure Trust.
The improvements in Building a New Chicago will include:
- Renovation, repair, or rebuilding of more than 100 CTA stations
- The creation of the first 16 miles of Bus Rapid Transit Route on Jeffrey Boulevard, with future routes being developed for the Central Loop.
- A $1.4 billion investment in O’Hare airport over the next three years, creating 5,900 jobs, including opening two new runways by 2015.
- A five-year, $290 million capital plan for the City’s parks that will include the acquisition of 180 new acres of parklands, and the building of 20 new playgrounds and 12 new parks.
- The 2014 completion of the Bloomingdale trail.
- The completion of two new boathouses this year on the Chicago River, with two new boathouses next year.
- The replacement of 900 miles of century-old water pipe, the repair of 750 miles of sewer line, and the reconstruction of 160,000 catch-basins.
- The reform of the Aldermanic Menu, and tax increment financing, so that these tools better match the city’s infrastructure needs.
- A $660 million investment in Chicago Public Schools, and a $479 million investment in the City Colleges of Chicago, to create modern educational environments that will propel our students into the jobs of tomorrow.
- “Retrofit Chicago,” a $225 million dollar effort to retrofit City buildings, reducing their energy consumption by 25 percent and creating 900 jobs in the next three years, the first project funded by the Chicago Infrastructure Trust.
Building a New Chicago brings a new level of coordination to the City’s capital investment process, maximizing efficiency, stretching scarce resources and minimizing impacts on residents.
The full speech, as prepared for delivery, is attached here.