Outgoing Chicago Mayor Lori Lightfoot and the Chicago Department of Aviation (CDA) have proposed an ordinance that would permit the CDA to continue to provide relief to concessions operators at Chicago O’Hare International (ORD) and Midway International (MDW) airports. The ordinance amends existing agreements with concessionaires to allow for the revision of development timelines that were set prior to the COVID-19 pandemic, the alteration of ownership limitations agreed to prior to the pandemic, and the extensions of existing agreements not to exceed five years.
The Chicago City Council approved similar authority as part of a comprehensive relief package in 2020.
“Thanks to our hard-working team at CDA and our engaged partners on City Council, Chicago is honored and privileged to have some of the highest Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation rates in America, reaching 38 percent at O’Hare, and the highest reported rate in the nation at Midway, at 55 percent,” said CDA Commissioner Jamie Rhee. “Through no fault of their own, many of these businesses were unable to acquire the financing, materials, and staffing necessary to open in a timely manner under business terms negotiated prior to the COVID-19 pandemic.”
City officials also pointed out that many concessionaires put off necessary capital improvements during the pandemic, and because their businesses weren’t yet operational, they were ineligible for federal COVID relief programs.
“This ordinance provides the CDA the flexibility to re-establish those terms, and to ensure operational needs continue to be met,” added Rhee.
All concessions relief authorized through this ordinance still requires the approval of the City’s Corporation Counsel and chief financial officer.
