How it Works
The Chicago Infrastructure Trust was created in April 2012 by executive order of Mayor Emanuel and City Council resolution. The Trust’s purpose is to assist the people of the City of Chicago, the City government and its sister agencies in providing alternative financing and project delivery options for transformative infrastructure projects. To accomplish this, the Trust structures innovative financing strategies to attract capital from a diverse group of investors. The Trust also achieves real risk transfer to third-party investors, creating efficient capital structures via cross-agency financing.
Key Events in the Formation of the Trust
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To better understand the Trust, we need to be on the same page regarding what’s infrastructure. For our purposes, infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise. These can be further divided into “hard” and “soft” infrastructure.
The Trust will address hard infrastructure and soft infrastructure opportunities, both of which could be brownfield (renovation of current assets) or greenfield (creation of new assets) projects.
The Role of the Chicago Infrastructure Trust
The Trust provides focus and leadership to maintain a pipeline of executable projects that will meet Chicago’s infrastructure needs and attract private investment. By tapping into funding from private investors for infrastructure projects, the City of Chicago achieves the following:
- Improve service to the people of Chicago and provide better access to facilities
- Harness the potential of private funding to expand / accelerate infrastructure development / improvement beyond the capacity of public funds and City resources
- Create jobs directly through project execution and / or by facilitating economic expansion
- Generate incremental revenue for the City from underutilized assets
- Reduce operating overhead of the City