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United States Department of Transportation United States Department of Transportation

CTA Blue Line Project

CTA Blue Line Project Schematic
Alternate Project Name
Your New Blue
Project Type
Public Transit
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Chicago Transit Authority
Project Description

Your New Blue improvement program is a series of modernization projects along the Chicago Transit Authority's (CTA) Blue Line O'Hare Branch running between Grand Station just outside the Loop and O'Hare Station at O'Hare International Airport. This 19-mile stretch of the O'Hare Branch, portions of which date back to 1895, will benefit from various track, power, signals, and station improvements, including:

  • Extensive renovations at the Grand, Chicago, Division, Damen, California, Logan Square, and Jefferson Park stations
  • Concrete platform repairs and installation of a new elevator at the Addison station for Americans with Disability Act (ADA) accessibility
  • Repairs at the Irving Park, Montrose, Harlem, and Cumberland stations
  • Track improvements to eliminate and prevent slow zones along the Milwaukee elevated track (Division to Logan Square) and along the stretch of track running from Rosemont to O'Hare
  • Track signal improvements between Jefferson Park and O'Hare
  • Traction power upgrades to improve service and reliability
  • Installation of new water management systems and repairs to ensure dry and clean subway stations

The improvements listed above are necessary for the O’Hare Branch to keep pace with growing ridership, which has outpaced the CTA rail system as a whole over the past 10 years. The line serves 80,000 customers each weekday and had more than 26 million station entries in 2014. According to CTA, track improvements, power substation upgrades, and an updated signal system will help CTA reduce the risk of safety incidents, result in more reliable train service, and eliminate current slow zones, resulting in an average travel time savings of five minutes per trip. Safety will also be improved with brighter lighting, cleaner and drier stations, improved entrances, and additional ADA access. The project is expected to generate 1,100 jobs and approximately $292 million in total economic impact. TIFIA financing allows the realization of the stated benefits at a present value debt savings of approximately $44 million.

Project Details
TIFIA Assistance
$120.00M
Primary Revenue Pledge
Farebox Revenues
Project Cost
$408.70M
Fiscal Year Closed
FY2015
Duration/Status
The first phase of the project began with track and station work in 2014. Expected completion of the full program is 2019.
Funding Sources
TIFIA Loan: $120M
City of Chicago Tax Increment Financing (TIF) District Funds: $9M
RTA Bonds: $19.36M
CTA Bonds: $84.57M
State Funds: $159.8M
TIGER: $16M
Project Delivery/Contract Method
Various
Project Advisers/Consultants
PFM - Financial Advisor to Borrower

Charity & Associates - Counsel to the Borrower

To USDOT TIFIA JPO:

TIFIA Financial Advisor - IMG Rebel
TIFIA Legal Advisor - Hawkins, Delafield & Wood
Project Lender
Bondholders, USDOT TIFIA
Credit Assistance Detail
The TIFIA direct loan of $120 million will be repaid through farebox revenues.
Financial Status
The TIFIA credit agreement was executed in February 2015. Interest payments are set to start in 2021, and principal payments are expected to start in 2024. Final loan maturity is expected occur in 2041.
Innovations
The Blue Line improvements are part of more than $4 billion in planned transit improvements, including recently completed improvments to Red Line South and a new terminal at 95th Street Red Line that began construction in 2014.
Application Details
Applicant
Chicago Transit Authority
LOI Fiscal Year Received
FY2014
LOI Received Date
Application Received Fiscal Year
FY2014
Credit Agreement Executed
Initial Eligibility Review
Review complete
Creditworthiness Review
Review complete
Application Review
Review complete
Estimated Project Cost
$409.00M
TIFIA Request
$120.00M
Instrument Type
Direct Loan