$100 million loan for riverfront
Former Mayor Richard M. Daley’s dream of turning a six-block stretch of the downtown Chicago riverfront into an enticing riverwalk that rivals San Antonio’s will finally become a reality, thanks to a $100 million federal loan awarded Thursday.
In one of his final acts as U.S. Transportation secretary, former Illinois congressman Ray LaHood came back home to announce the $100 million loan that Mayor Rahm Emanuel hopes will transform the riverwalk into Chicago’s next great public space that will rival Millennium Park.
LaHood described the project as a “done deal” and said he was absolutely confident in the city’s plan to retire the $100 million loan.
“The financial stability of this project is solid. It’s a matter now of finishing up the paperwork,” LaHood said.
Emanuel said it’s time to “re-introduce” Chicagoans to the Chicago River and realize the riverfront’s true potential to become the city’s next recreational frontier.
“It’s no longer just a dream or a drawing on the board. It’s now becoming a reality,” the mayor said.
Emanuel and his Transportation Commissioner Gabe Klein were somewhat sketchy on where the revenues will come from to repay a 35-year loan with no payment schedule until construction that is scheduled to start in 2014 is completed two years later.
“A little over 70 percent of the revenues will come from … the existing tour boat fees, which were re-bid last year. Right there, we’ve got the bulk of it covered,” Klein said. “We’ve got retail leasing. We’ve got various other advertising and sponsorship opportunities, which we’re not even heavily counting on. And we’ve been extremely conservative in our estimates.”
Emanuel predicted that 400 people would be put to work building the riverwalk from State Street west to Lake and that 400 permanent jobs would be created to operate the restaurants, bars and entertainment space that will be created.