The Gary/Chicago International Airport closed a public-private partnership deal that will pump $100 million into redeveloping and expanding the airport over the next 40 years. Faegre Baker Daniels served as lead deal counsel for the airport authority on this transaction which is expected to boost economic activity in northwest Indiana and transform the airport, located 30 minutes from Chicago, into a viable third air transit option for the nation's third-largest city.
FaegreBD led negotiation of the unique P3 deal with primary investor AFCO Avports Airport Management LLC and other investors including Guggenheim Securities and Loop Capital. The deal is very beneficial for the airport and includes aggressive investment thresholds requiring AFCO to invest $25 million in capital during the first three years for upgrades or other projects, to speed the redevelopment process. The team also worked out a master development agreement with AFCO's partner organization, Aviation Facilities Co. Inc., which requires Aviation Facilities to provide $300,000 over three years to promote jobs in northwest Indiana by attracting potential tenants in aviation, research and development, and other areas.