* Sun-Times lost 140 workers in latest layoffs
* Experts: Homebuilding market has changed
* Daley’s $2.5 billion plan to privatize Midway Airport grounded
Mayor Daley’s $2.5 billion plan to privatize Midway Airport collapsed today for lack of financing, leaving taxpayers with a $126 million down payment, but no apparent way to shore up city pensions and rebuild Chicago’s aging infrastructure.
But, over the weekend, MidCo informed the city that it would be unable to raise the money. Instead, the consortium comprised of New York’s Citi Infrastructure Investors, YVR Airport Services Limited of Vancouver and Boston-based John Hancock Life Insurance walked away from the $126 million in earnest money it pledged.
* Midway meltdown bad news for Daley
But the bigger truth is, the city is out more than $2 billion, money that would have gone to retire debt, replenish way-underfunded employee pension funds, pay for capital projects for the 2016 Olympics, and other needs.
It’s gone. Adios. Au revoir. The $1 billion or so the city would have netted after retiring existing debt on Midway ain’t here no more.
* Deal to privatize Midway collapses
* Midway Airport Privatization Deal Collapses
* Daley won’t use rainy day fund to avoid layoffs
At a City Hall news conference today, the Service Employees International Union maintained that Chicago has a $2.1 billion surplus — from tax-increment financing and by leasing the Skyway, parking meters and other assets — and should use that one-time windfall to avert layoffs and service cuts.
To bolster its case, the union revealed results of a new poll that shows voter discontent with city services and demand for “more transparency and accountability” in city finances. The union was joined by community leaders and a handful of progressive aldermen.
Denise Dixon, executive director of Action NOW, noted that the city created “rainy day funds” when Chicago parking meters were sold for $1.2 billion and the Chicago Skyway was leased for $1.83 billion.
“It’s a rainy day, but there’s a flood coming. And when the flood comes, that’s what we’re concerned about,” the mayor told reporters.
* Time for TIF sunshine
Talk about a no-brainer. Two Chicago aldermen think the public ought to know what’s going on with hundreds of millions of dollars in off-the-books property tax spending. Ald. Manny Flores (1st) and Scott Waguespack (32nd) have been trying for months to get their colleagues on the City Council to pass an ordinance requiring the city to post the details of its tax increment financing deals online.
Flores and Waguespack aren’t trying to shut down the TIF districts, which generated $550 million for the city in 2007. What they’re worried about is accountability. Because there’s so little oversight of TIF spending, those millions are basically a glorified slush fund for Mayor Richard Daley’s pet projects.
* Chicago Park District board urged to repeal Art Institute admission hike
* Art Institute of Chicago: As fee hike looms, alderman pressures Art Institute to repeal increase and give Chicago residents a discount
* Original Reese building to be saved, city says
* City: Gropius buildings to come down as part of Olympic Village plans
* Patrick Fitzgerald testifies in witness protection leak
* FBI chief: Deputy talked to friend with mob ties
* Reform-minded pol to take Emanuel’s US House seat
* Biographical information for US Rep.-elect Mike Quigley
* Under pressure: Parties aim to push their opponents into early retirement
This cycle, top Democratic targets for retirement include Reps. Henry Brown Jr. (R-S.C.), Judy Biggert (R-Ill.), Ginny Brown-Waite (R-Fla.), John McHugh (R-N.Y.), Mary Bono Mack (R-Calif.), John Mica (R-Fla.), Elton Gallegly (R-Calif.) and Don Manzullo (R-Ill.).
* Jesse White: Cleaning up organ donation misconceptions
* With your help, life can go on; sign up as donor
* Temps could rise 40 degrees by Friday
* Islands coming to the Illinois River
* Chicago Play Wins Pulitzer