HJ0002 97TH GENERAL ASSEMBLY

HJ0002 LRB097 02779 AJO 42801 r

HOUSE JOINT RESOLUTION

WHEREAS, Our economic challenges and budget struggles must lead to new thinking and alternative ways of gaining revenue in order to support the programs that the citizens of Illinois need and have come to expect; and

WHEREAS, One way to fund government services without raising taxes or fees is to provide the authority to lease naming rights for government-owned facilities in return for much-needed money; and

WHEREAS, The Federal Highway Administration (FHA) of the U.S. Department of Transportation identified 4 non-road pricing revenue sources that do not involve a charge, fee, or tax; the FHA specified that one of those sources was naming rights, that is revenue derived from selling to the private sector the right to name a transportation resource such as a toll road or transit station; and

WHEREAS, The American Association of State Highway and Transportation Officials (AASHTO) established its Center for Excellence in Project Finance to address innovative financing for highway and transportation projects; the Center noted that recently government officials and business representatives concerned about funding shortfalls for transportation have begun to focus on the potential application of naming rights to highway corridors, toll plazas, and concession areas; and

WHEREAS, The Center noted that naming rights, as a type of contractually obligated income, are attractive to transportation service and infrastructure providers for their stability and predictability and that these attributes also make naming rights a revenue source that is well-suited for debt service; and

WHEREAS, Examples of successful projects in the field of public transportation include a lease for the naming rights to a well-known highly-utilized subway station in Brooklyn, New York, a sponsorship package for the Seattle Street Car, and a lease for the naming rights for new vessels in the fleet of the Oklahoma River Ferries; and

WHEREAS, Each Illinois Toll Highway Oasis is a high visibility structure which would have significant potential as an entity for which commercial entities might be willing to lease naming rights; and

WHEREAS, The Illinois Department of Transportation is suited to assess the potential for leasing the naming rights of those oases, the procedures appropriate for this activity, and any appropriate legislation necessary to further this undertaking; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that the Illinois Department of Transportation study the issue of leasing the naming rights for oases of the Illinois State Toll Highway Authority and make a report of its findings to the 97th General Assembly no later than one year after the adoption of this resolution; and be it further

RESOLVED, That a copy of this resolution be sent to the Illinois Secretary of Transportation.