By Erik Potter, Post-Tribune staff writer
The fate of Chicago's privatization plans for Chicago Midway Airport will rest in the hands of the Gary Common Council on Tuesday.
Gary is being asked to approve an amendment to its 1995 compact with Chicago establishing a coordinated operation of the region's air service.
Under the compact, both cities must give their approval before any major changes can be made to the Chicago or Gary airports.
Privatizing Midway would be an example of one of those major changes.
When the measure comes before the council at its 6 p.m. Tuesday meeting, the city will seek to protect the financial assistance it receives from the two Chicago airports.
The Gary/Chicago International Airport receives 1.5 percent of the passenger facility charges collected at O'Hare International Airport and Chicago Midway Airport, an amount that has equalled about $30 million over the life of the compact.
Chicago wants to exempt Midway from that passenger charge, as well as from the requirement that it offer Gary the first chance to purchase equipment that it wants to sell.
However, Chicago has agreed to pay Midway's 1.5 percent share out of city funds, Curry said, and the loss of equipment from Midway is minor, since the Gary airport has bought almost all of its equipment from O'Hare.
The agreement contains no provisions for Gary to share in the billions of dollars Chicago is set to receive from a privatization agreement.
Whether the City Council will sign onto such an agreement isn't clear, but Gary Mayor Rudy Clay calls the deal a good one.
"Without a positive vote, long- term, Gary would lose billions," Clay said, referring to the increased fees he expects to receive from a busier, private Midway, and assistance from Chicago that Clay is seeking in privatizing Gary and bringing in cargo traffic.
"We've got to look at freight, cargo, passenger and private-public partnerships, and the mayor of Chicago is going to help us with that. He helps us out; we help him out."
Earlier this year, Clay and Gov. Mitch Daniels discussed the possibility of privatizing the Gary airport, but no deal has been worked out yet.
The Gary airport is operated by an authority with four of its seven members appointed by the mayor. Porter County and Lake County each has one appointee and the governor has one.