CTA Names Construction Manager for Block 37 Tunnel

September 14, 2005

CTA Names Construction Manager for Block 37 Tunnel Connections and Station

The Chicago Transit Authority has obtained professional construction management services to oversee construction related to the new rapid transit station under Block 37. The Chicago Transit Board approved the $2.8 million contract at its monthly meeting today, naming Parsons Brinckerhoff Construction Services, Inc., headquartered in Herndon, Virginia as the construction manager. The group will oversee building of the new station and the connecting tunnels and track to link both the Blue Line and Red Line subways.

Block 37, also known as 108 North State Street, is currently being developed by The Mills Corporation for the City of Chicago. The Mills development includes a new subway station, and space for a common downtown airport check-in facility for train service to both O'Hare and Midway airports. CTA contractors will build short underground structures and tracks to connect the new station with the adjacent Red and Blue Line tunnels.

Parsons Brinkerhoff will monitor work progress on a daily basis and provide CTA with information regarding any performance or schedule issues which may arise.

After reviewing responses to Letters of Interest and Qualifications (LIQs), it was determined that Parsons Brinkerhoff Construction Services, Inc. was ranked the most qualified firm to provide construction management services for this project.

In addition, the company is committed to meet the 30 percent Disadvantaged Business Enterprise (DBE) goal and has subcontracted 15 percent of the contract to DuSable Inc., 0.3 percent to Dynasty Group, Inc., and 15.2 percent to EJM Engineering, Inc. all of Chicago.

Because it is the only vacant parcel between CTA's Dearborn and State subways, the Block 37 site makes possible a unique opportunity to create a track connection and station that would otherwise be prohibitively expensive.

The City of Chicago is the owner of the land and has chosen Mills Limited Partnership and its affiliate, Block 37 LLC, as the developer of the tract.

Funding for the construction manager contract will come from CTA capital funds generated from the issuance of capital grant receipt revenue bonds to fund capital improvement projects throughout the CTA.

The overall cost of the transit center is estimated at $213.3 million, of which The Mills will pay $40.9 million. The remaining $172.4 million will be funded by the CTA and the City of Chicago. The CTA has allocated $130 million in capital funds generated from the issuance of revenue bonds to fund capital improvement projects throughout the CTA. The City of Chicago will provide $42.4 million in Tax Increment Financing (TIF) revenue for the remaining expenses under an intergovernmental agreement specifically covering infrastructure expenses related to the track and tunnel connections.

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