Frustrated
with the sluggish pace of progress by his showpiece Chicago Infrastructure
Trust in pushing forward funding and completion of public private partnership
investment projects in the city, Mayor Rahm Emanuel has shaken up the board and
staff of the entity he touted on its creation as “the breakout strategy for the
city” during the present era of declining federal funding and disappearing
state resources. Executive Director Stephen Beitler, venture capitalist, is
being replaced by Chicago Law Department attorney Leslie Darling. Former Boeing
executive James Bell and former Sara Lee executive Diana
Ferguson
have resigned from the Trust’s board, and former 10th Ward Alderman
John Pope lost his seat after being defeated in April’s election. Their
departures are joined by former Chicago Inspector General David Hoffman, whose
term expired at the end of 2014.
Thus
far, the Trust has initiated work on only two projects – improving city owned
building energy efficiency, and adding cell phone service in CTA subway
tunnels. The energy efficiency upgrade project was slated to involve 104 city
buildings at an investment of $115 million, but lack of investor participation
cut back the scope to $13 million worth of work on only 62 buildings. The
subway cell phone initiative for 4G wireless installation is expected to
produce investment of $32 million.
Mayor
Emanuel has expanded the Trust’s Board from five to seven members. New
appointees include City Treasurer Kurt Summers, Ventas CEO Debra Cafaro,
Northern Trust hedge fund officer Carl Lingenfeller, Ernst & Young Global
investment head Kym Hubbard, Marquette & Associate Managing Partner Miguel
Zarate, and 19th Ward Alderman Matt O’Shea. The sole holdover from
the earlier board is Chicago Federation of Labor President Jorge Ramirez.
The
new, expanded board will be looking at potential private investments in
proposed projects such as express L service from the loop to O’Hare Field,
upgrading 400,000 Chicago street lamps to energy efficient LED lighting, and
improving energy efficiency of 114 swimming pools in Chicago’s parks and
schools, a proposal approved by the outgoing board, but which tanked as the CPS
bond rating has plummeted.
