AFCO Master Development Agreement Approved
January 27, 2013 – Aviation Facilities Company, Inc. (AFCO) is pleased to announce that the Gary/Chicago International Airport Authority today unanimously approved development and management agreements to dramatically improve the economic landscape of the airport, the City of Gary and Northwest Indiana.
AFCO will Lead the Development
Under the terms of the agreements, AFCO will lead the development effort while its affiliate, AFCO/AvPORTS Management LLC (AvPorts) will lead the airport management effort. The transactions represent the culmination of a year-long public procurement selection and negotiation process that has been timed to coincide with the final stages of completion for extension of the main runway to 8,900 feet.
The development agreement is expected to result in over $100 million in new development in and around the airport over the next 40 years with $25 million to be deployed by 2017. The transaction is structured as a Public Private Partnership (“P3”) with elements that include revenue sharing to the City of Gary and specific job creation and related educational support and training initiatives.
Public Private Partnership
“The decision to move forward with the Public Private Partnership shows great insight and forward thinking on the part of the airport board,” said Mayor Karen Freeman-Wilson. “I have always maintained that the completion of the runway expansion without a viable plan for moving forward would be an exercise in futility. The P3 is a monumental opportunity for the airport and its surrounding footprint to be developed, creating sustainable opportunities for the citizens and businesses of the city of Gary and Northwest Indiana.”
“AFCO and AvPorts are proud to have been selected and entrusted by the City of Gary and the Gary/Chicago International Airport Authority to develop and manage Gary/Chicago International Airport,” said Chuck Stipancic, AFCO’s President & CEO.
Enhanced Airport and Surrounding Grounds
“This has been a long process and Gary has been an excellent partner every step of the way. With the transaction approved, we look forward to working with all of our partners so the residents of Gary and the region can realize the benefits of an enhanced airport and surrounding grounds,” commented Steve Forrer, the AFCO executive spearheading the effort.
The AFCO proposal and development team includes DLA Piper, Guggenheim Securities, Loop Capital and preeminent industrial developer Michael Mullen.
Contact: Chuck Stipancic
President & CEO
– or –
Executive Vice President
AFCO is a recognized leader in the development, management and operation of airports and airport infrastructure. With broad capabilities and deep experience, AFCO provides an unparalleled level of service and value to its clients including airports, municipalities, commercial and cargo airlines, freight forwarders and a wide variety of other airport users.