Patty Andrews of Andrews sisters dead at 94


LOS ANGELES (AP) — Patty Andrews, the last surviving member of the singing Andrews Sisters trio whose hits such as the rollicking "Boogie Woogie Bugle Boy of Company B" and the poignant "I Can Dream, Can't I?" captured the home-front spirit of World War II, died Wednesday. She was 94.


Andrews died of natural causes at her home in the Los Angeles suburb of Northridge, said family spokesman Alan Eichler in a statement.


Patty was the Andrews in the middle, the lead singer and chief clown, whose raucous jitterbugging delighted American servicemen abroad and audiences at home.


She could also deliver sentimental ballads like "I'll Be with You in Apple Blossom Time" with a sincerity that caused hardened GIs far from home to weep.


From the late 1930s through the 1940s, the Andrews Sisters produced one hit record after another, beginning with "Bei Mir Bist Du Schoen" in 1937 and continuing with "Beat Me Daddy, Eight to the Bar," ''Rum and Coca-Cola" and more. They recorded more than 400 songs and sold over 80 million records, several of them gold (over a million copies).


Other sisters, notably the Boswells, had become famous as singing acts, but mostly they huddled before a microphone in close harmony. The Andrews SistersLaVerne, Maxene and Patty — added a new dimension. During breaks in their singing, they cavorted about the stage in rhythm to the music.


Their voices combined with perfect synergy. As Patty remarked in 1971: "There were just three girls in the family. LaVerne had a very low voice. Maxene's was kind of high, and I was between. It was like God had given us voices to fit our parts."


The Andrews's rise coincided with the advent of swing music, and their style fit perfectly into the new craze. They aimed at reproducing the sound of three harmonizing trumpets.


"I was listening to Benny Goodman and to all the bands," Patty once remarked. "I was into the feel, so that would go into my own musical ability. I was into swing. I loved the brass section."


Unlike other singing acts, the sisters recorded with popular bands of the '40s, fitting neatly into the styles of Benny Goodman, Glenn Miller, Jimmy Dorsey, Bob Crosby, Woody Herman, Guy Lombardo, Desi Arnaz and Russ Morgan. They sang dozens of songs on records with Bing Crosby, including the million-seller "Don't Fence Me In." They also recorded with Dick Haymes, Carmen Miranda, Danny Kaye, Al Jolson, Jimmy Durante and Red Foley.


The Andrews' popularity led to a contract with Universal Pictures, where they made a dozen low-budget musical comedies between 1940 and 1944. In 1947, they appeared in "The Road to Rio" with Bing Crosby, Bob Hope and Dorothy Lamour.


The trio continued until LaVerne's death in 1967. By that time the close harmony had turned to discord, and the sisters had been openly feuding.


Bette Midler's 1973 cover of "Boogie Woogie Bugle Boy" revived interest in the trio. The two survivors joined in 1974 for a Broadway show, "Over Here!" It ran for more than a year, but disputes with the producers led to the cancellation of the national tour of the show, and the sisters did not perform together again.


Patty continued as a single, finding success in Las Vegas and on TV variety shows. Her sister also toured as a single until her death in 1995.


Her father, Peter Andrews, was a Greek immigrant who anglicized his name of Andreus when he arrived in America; his wife, Olga, was a Norwegian with a love of music. LaVerne was born in 1911, Maxine (later Maxene) in 1916, Patricia (later Patty, sometimes Patti) in 1918, though some sources say 1920.


Listening to the Boswell Sisters on radio, LaVerne played the piano and taught her sisters to sing in harmony; neither Maxene nor Patty ever learned to read music. All three studied singers at the vaudeville house near their father's restaurant. As their skills developed, they moved from amateur shows to vaudeville and singing with bands.


After Peter Andrews moved the family to New York in 1937, his wife, Olga, sought singing dates for the girls. They were often turned down with comments such as: "They sing too loud and they move too much." Olga persisted, and the sisters sang on radio with a hotel band at $15 a week. The broadcasts landed them a contract with Decca Records.


They recorded a few songs, and then came "Bei Mir Bist Du Schoen," an old Yiddish song for which Sammy Cahn and Saul Kaplan wrote English lyrics. (The title means, "To Me You Are Beautiful.") It was a smash hit, and the Andrews Sisters were launched into the bigtime.


Their only disappointment was the movies. Universal was a penny-pinching studio that ground out product to fit the lower half of a double bill. The sisters were seldom involved in the plots, being used for musical interludes in film with titles such as "Private Buckaroo," ''Swingtime Johnny" and "Moonlight and Cactus."


Their only hit was "Buck Privates," which made stars of Abbott and Costello and included the trio's blockbuster "Boogie Woogie Bugle Boy from Company B."


In 1947, Patty married Martin Melcher, an agent who represented the sisters as well as Doris Day, then at the beginning of her film career. Patty divorced Melcher in 1949 and soon he became Day's husband, manager and producer.


Patty married Walter Weschler, pianist for the sisters, in 1952. He became their manager and demanded more pay for himself and for Patty. The two other sisters rebelled, and their differences with Patty became public. Lawsuits were filed between the two camps.


"We had been together nearly all our lives," Patty explained in 1971. "Then in one year our dream world ended. Our mother died and then our father. All three of us were upset, and we were at each other's throats all the time."


LaVerne died in 1967 of cancer and Maxene died in 1995 of a heart attack.


Patty Andrews is survived by her foster daughter, Pam DuBois, a niece and several cousins. Her husband, Walter Weschler, died in 2010.


A memorial service was planned in Los Angeles, with the date to be determined.


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BlackBerry 10 launches after long wait









Research In Motion Ltd unveiled the long-delayed line of smartphones it hopes will put it on the comeback trail on Wednesday but it disappointed investors by saying U.S. sales of its all-new BlackBerry 10 will start only in March.

Chief Executive Thorsten Heins also announced that RIM was abandoning the name it has used since its inception in 1985 to take the name of its signature product, signaling his hopes for a fresh start for the company that pioneered on-your-hip email.






"From this point forward, RIM becomes BlackBerry," Heins said at the New York launch. "It is one brand; it is one promise."

RIM, which is already starting to call itself BlackBerry, had initially planned to launch the new BlackBerry 10 smartphones in 2011. But it pushed the date back twice as it struggled to work with a new operating system.

Ahead of Wednesday's announcements, analysts had said that any launch after February would be a black mark for the Canadian company.

"The biggest disappointment was the delay in the U.S., that it will take so long before the devices get going there," said Eric Jackson, founder and managing Partner at Ironfire Capital LLC in New York.

Heins said the delays reflected the need for U.S. carrier testing, although carrier AT&T offered few clues on what that meant.

"We are very enthusiastic about the devices. We will announce pricing, availability, and other information at a later date. Beyond that, nothing to add," said spokesman Mark Siegel.

RIM launched its first BlackBerry back in 1999 as a way for busy executives to stay in touch with their clients and their offices, and the Canadian company quickly cornered the market for secure corporate and government email.

But its star faded as competition rose. The BlackBerry is now a far-behind also-ran in the race for market share, with a 3.4 percent global showing in the fourth quarter, down from 20 percent three years before. Its North American market share is even worse: a mere 2 percent in the fourth quarter.

RIM shares tumbled along with the company's market share, and the stock is down 90 percent from its 2008 peak.

The shares fell as much as 8 percent on Wednesday, although they are still more than twice the level of their September 2012 low, reflecting ever-louder buzz about the new devices.

TOUCH COMPETITION

The new BlackBerry 10 phones will compete with Apple's iPhone and devices using Google's Android technology, both of which have soared above the BlackBerry in a competitive market.

The BlackBerry 10 devices boast fast browsers, new features, smart cameras and, unlike previous BlackBerry models, enter the market primed with a large application library, including services such as Skype and the popular game Angry Birds.

The BlackBerry Z10 touchscreen device, in black or white, will be the first to hit the market, with a country-by-country roll-out that starts in Britain on Thursday.

A Q10 model, equipped with small "qwerty" keyboard that RIM made into its trademark, will launch globally in April.

The Z10 device won a lukewarm review from Wall Street Journal tech blogger Walt Mossberg, who complained of missing or lagging features and a shortage of apps.

But David Pogue, who writes for The New York Times, apologized for describing BlackBerry as doomed in the past. The Z10 touchscreen device was "lovely, fast and efficient, bristling with fresh, useful ideas," he said.

Announcements about pricing so far have been in line with expectations. U.S. carrier Verizon Wireless said the phone would cost $199 for a two-year contract, while Canada's Rogers Communications is quoting C$149 ($150) for certain three-year plans.

GLITZY LAUNCH

RIM picked a range of venues for its global launch parties, including Dubai's $650-a-night Armani Hotel, which occupies six floors of the Burj Khalifa, the world's tallest tower.

The New York event took place in a sprawling basketball facility on the Lower East Side of Manhattan, just north of the Manhattan Bridge. The BlackBerry has been "Re-designed. Re-engineered. Re-invented," RIM said.

RIM, which is splurging on a Superbowl ad to promote its new phones, also introduced Grammy-winning singer-songwriter Alicia Keys as its global creative director.

"I was in a long-term relationship with BlackBerry, and then I started to notice some new, kind of hotter, attractive, sexier phones at the gym, and I kind of broke up with you for something that had a little more bling," Keys said at the New York launch.

"But I always missed the way you organized my life, and the way you were there for me at my job, and so I started to have two phones - I was kind of playing the field. But then … you added a lot more features … and now, we're exclusively dating again, and I'm very happy."

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Teen girl killed, boy wounded in shooting near high school









A 15-year-old girl was fatally shot and 16-year-old boy wounded about three blocks from King College Prep on the South Side this afternoon, authorities said.


The shooting occurred around 2:20 p.m. in the 4500 block of South Oakenwald Avenue, police said. A 16 year-old boy was shot in the leg and a 15-year-old girl was wounded in the back, police said, citing preliminary information.


The Cook County medical examiner's office has been notified that the girl died.





One of the teens was taken in serious to critical condition to Comer Children's Hospital, according to Chicago Fire Department spokesman Will Knight.


The other victim also was taken to Comer and police at first believed both victims' conditions had stabilized by a little after 3 p.m., said Chicago Police News Affairs Officer Veejay Zala.


Neighbors reported hearing shots about 2:20 p.m. Neighbors said students from King hang out at Harsh Park, 4458-70 S. Oakenwald Ave., and that students were there this afternoon before the shooting took place.


Desiree Sanders said she heard six gunshots and called 911 after a neighbor told her that some teens had been shot.


Chicago Police crime data show no serious crimes happened in the 4400 or 4500 blocks of South Oakenwald Avenue Dec. 19 to Jan. 20.


“It’s a great neighborhood. Nothing like this has happened since I’ve been here,” on the block, said Roxanne Hubbard, who has lived in the neighborhood for 19 years.


Tribune reporter Liam Ford contributed


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Amazon shares set record after strong quarterly profit


SAN FRANCISCO (Reuters) - Amazon.com Inc shares hit a new record on Tuesday after it reported better-than-expected quarterly profit, fueled by the growth of higher-margin businesses during the fiercely competitive holiday quarter.


The world's largest Internet retailer said that its cloud computing services, video content sales and its aggressive expansion in e-books helped increase profitability.


In addition, a growing network of warehouses or fulfillment centers closer to customers held down shipping costs as it vied with Wal-Mart Stores Inc and other major retailers for consumer dollars over the holidays.


Chief Executive Jeff Bezos highlighted the Kindle's e-book business, calling it a multi-billion dollar category that grew about 70 percent in 2012. Its traditional physical book business rose about five percent in the same period, he noted.


"We're now seeing the transition we`ve been expecting," Bezos said in the company's results statement.


Profits have shrunk in recent years as the company invested for longer-term growth, building massive fulfillment centers, developing a Kindle Fire tablet hardware business in competition with Apple Inc, and expanding into Internet-based cloud services.


The fourth-quarter profit results suggested that Amazon may be able to generate attractive returns from such spending, analysts said.


"The fourth-quarter operating income was up more than expected," said R.J. Hottovy, an equity analyst at Morningstar. "This supports the bull case that Amazon can monetize its growth over the longer term."


The Seattle-based company said operating income jumped 56 percent to $405 million in the fourth quarter, compared with $260 million in the fourth quarter of 2011.


Amazon's stock climbed 11 percent to $288 in after-hours trading. It hit a record of $284.72 on January 25.


The company also said fourth-quarter revenue rose 22 percent to $21.27 billion as it grabbed a big share of online spending during the holidays. But it was the profit that initially caught Wall Street's eye.


"It was a much better-than-expected gross margin, a strong forward indicator to drive margin expansion. What is really important is gross profit dollars and that line is stronger," said Ken Sena at Evercore Partners.


The gross profit margins were 24 percent in the fourth quarter, compared with Wall Street expectations of about 22 percent.


"Incredibly strong margins," said Jordan Rohan, an analyst at Stifel Nicolaus. Amazon generated the highest quarterly gross margin in its North America business in more than three years, he noted.


Amazon mainly operates as a retailer, buying products at wholesale prices, storing them and then selling at a slight mark-up to consumers online.


But the company has expanded into other businesses that are potentially more profitable, including cloud computing, digital content and acting as an online marketplace for other merchants.


These newer businesses are growing faster than the company's original retail operations, boosting profitability.


(Reporting By Alistair Barr; Editing by Bernard Orr)



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Is flag football ahead for NFL?


NEW ORLEANS (AP) — Players on both Super Bowl teams say they are confused about when a hit is legal by NFL standards.


Rules designed to make the game safer are also making players uncertain about which hits are considered clean and which ones could lead to a fine.


San Francisco tight end Vernon Davis wondered if two-hand touch is in the future for the NFL.


"I think the rules will change a lot," he said Tuesday. "There's already no helmet to helmet. Might be flag football, maybe."


Baltimore Ravens safety Bernard Pollard, one of the league's hardest hitters, warned against trying to take collisions out of the game, as long as they are clean.


His 49ers counterpart, All-Pro Dashon Goldson, says defenders keep this in mind when they take the field:


"Do your best and then hope you don't get a letter (with a fine) in your locker on Wednesday," he said.


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Justin Bieber strips down voice, heartache on ‘Believe Acoustic’






LOS ANGELES (Reuters) – Justin Bieber is stripping down. Musically, that is.


The Canadian pop phenomenon showcases his vocal and song-writing talents with a new acoustic album, out on Tuesday, that also features three new tracks including a heartbreak ballad thought to be about his former girlfriend Selena Gomez.






“Believe Acoustic” sees Bieber, 18, change up the arrangements of songs from his fourth chart-topping album “Believe,” released last June, singing with only a guitar or piano-driven melody.


The album went straight to the top of the iTunes U.S. album charts on Tuesday, and won generally warm reviews.


Up-tempo songs such as “Boyfriend,” and “Beauty and the Beat,” which roped in electronic sounds with fast-paced dance beats, are slowed down as the singer uses his vocals to manipulate the vibe of the song.


“Believe Acoustic” sees Bieber return to his acoustic roots five years after he was discovered on YouTube, singing on the streets of Canada accompanied only by a guitar.


It was released following Bieber‘s failure to pick up a single Grammy nomination this year, despite having a chart-topping album and a sold-out world tour.


Bieber often performs acoustic versions of his hits, most recently at the American Music Awards in November, where he delivered a stripped-down version of dance song “As Long As You Love Me.”


But most ears now are turned to new track “Nothing Like Us,” which follows Bieber‘s widely reported split from former Disney Channel star Gomez.


It features Bieber singing a raw and emotion-filled ballad over a piano melody, with lyrics such as “Girl, why would you push me away?/Lost in confusion, like an illusion … But that is the past now, we didn’t last now.”


SIMPLE LOVE SONGS


Bill Werde, editorial director of Billboard music magazine, who interviewed Bieber last week, said the song was “directly about Selena” and that fans were anticipating the singer sharing “his feelings about something this personal.”


Werde said he hoped people would take notice of Bieber‘s song-writing and vocal production skills on the new album.


“Some of the best songwriters that are working out of our pop space are the ones that can take these very, very specific feelings that you would expect a teenager or a young adult to have and then sing and write about them in a way that makes them universal,” Werde told Reuters.


“That’s a skill that needs to be respected. It’s not easy to write great, simple love songs.”


Rolling Stone magazine gave the album three out of five stars, calling it “proof that the Bieb is, verily, a musician, whose songs work even with the high-gloss production stripped away.”


Newspaper USA Today said Bieber was a “master at maximizing his material.” But it added, “For people who’ve forgotten — or who never understood — the appeal of young performers like Bieber, ‘Believe Acoustic’ is a good place to hear it.”


The other new songs are “I Would,” a sweet love song, and “Yellow Raincoat,” a mellow survival song with the singer crooning softly “cause the fame and the money and the girl will drive you crazy … I’m thinking maybe just put on my raincoat.”


If “Believe Acoustic” reaches No. 1 in the Billboard 200 album chart next week, Bieber will become the youngest artist to have five No. 1 albums under his belt. He would also be one of the few artists, including The Beatles and Jay-Z, to have a No. 1 album each year for four consecutive years.


Bieber, who surpassed Lady Gaga earlier this month to become Twitter’s most-followed person, will make his television hosting debut on “Saturday Night Live” on February 9, the night before the Grammy awards.


Bieber told Billboard he would not be attending the Grammy awards ceremony in Los Angeles.


Click on www.billboard.com for the full interview.


(Reporting by Piya Sinha-Roy, editing by Jill Serjeant and Jackie Frank)


Music News Headlines – Yahoo! News





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Soldier with new arms determined to be independent


BALTIMORE (AP) — After weeks of round-the-clock medical care, Brendan Marrocco insisted on rolling his own wheelchair into a news conference using his new transplanted arms. Then he brushed his hair to one side.


Such simple tasks would go unnoticed in most patients. But for Marrocco, who lost all four limbs while serving in Iraq, these little actions demonstrate how far he's come only six weeks after getting a double-arm transplant.


Wounded by a roadside bomb in 2009, the former soldier said he could get by without legs, but he hated living without arms.


"Not having arms takes so much away from you. Even your personality, you know. You talk with your hands. You do everything with your hands, and when you don't have that, you're kind of lost for a while," the 26-year-old New Yorker told reporters Tuesday at a news conference at Johns Hopkins Hospital.


Doctors don't want him using his new arms too much yet, but his gritty determination to regain independence was one of the chief reasons he was chosen to receive the surgery, which has been performed in the U.S. only seven times.


That's the message Marrocco said he has for other wounded soldiers.


"Just not to give up hope. You know, life always gets better, and you're still alive," he said. "And to be stubborn. There's a lot of people who will say you can't do something. Just be stubborn and do it anyway. Work your ass off and do it."


Dr. W.P. Andrew Lee, head of the team that conducted the surgery, said the new arms could eventually provide much of the same function as his original arms and hands. Another double-arm transplant patient can now use chopsticks and tie his shoes.


Lee said Marrocco's recovery has been remarkable, and the transplant is helping to "restore physical and psychological well-being."


Tuesday's news conference was held to mark a milestone in his recovery — the day he was to be discharged from the hospital.


Next comes several years of rehabilitation, including physical therapy that is going to become more difficult as feeling returns to the arms.


Before the surgery, he had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."


The home was heavily damaged by Superstorm Sandy last fall.


"We'll get it back together. We've been through a lot worse than that," his father, Alex Marrocco, said.


For the next few months, Marrocco plans to live with his brother in an apartment near the hospital.


The former infantryman said he can already move the elbow on his left arm and rotate it a little bit, but there hasn't been much movement yet for his right arm, which was transplanted higher up.


Marrocco's mother, Michelle Marrocco, said he can't hug her yet, so he brushes his left arm against her face.


The first time he moved his left arm was a complete surprise, an involuntary motion while friends were visiting him in the hospital, he said.


"I had no idea what was going through my mind. I was with my friends, and it happened by accident," he recalled. "One of my friends said 'Did you do that on purpose?' And I didn't know I did it."


Marrocco's operation also involved a technical feat not tried in previous cases, Lee said in an interview after the news conference.


A small part of Marrocco's left forearm remained just below his elbow, and doctors transplanted a whole new forearm around and on top of it, then rewired nerves to serve the old and new muscles in that arm.


"We wanted to save his joint. In the unlucky event we would lose the transplant, we still wanted him to have the elbow joint," Lee said.


He also explained why leg transplants are not done for people missing those limbs — "it's not very practical." That's because nerves regrow at best about an inch a month, so it would be many years before a transplanted leg was useful.


Even if movement returned, a patient might lack sensation on the soles of the feet, which would be unsafe if the person stepped on sharp objects and couldn't feel the pain.


And unlike prosthetic arms and hands, which many patients find frustrating, the ones for legs are good. That makes the risks of a transplant not worth taking.


"It's premature" until there are better ways to help nerves regrow, Lee said.


Now Marrocco, who was the first soldier to survive losing all four limbs in the Iraq War, is looking forward to getting behind the wheel of his black 2006 Dodge Charger and hand-cycling a marathon.


Asked if he could one day throw a football, Dr. Jaimie Shores said sure, but maybe not like Baltimore Ravens quarterback Joe Flacco.


"Thanks for having faith in me," Marrocco interjected, drawing laughter from the crowd.


His mother said Marrocco has always been "a tough cookie."


"He's not changed that, and he's just taken it and made it an art form," Michelle Marrocco said. "He's never going to stop. He's going to be that boy I knew was going to be a pain in my butt forever. And he's going to show people how to live their lives."


___


Associated Press Chief Medical Writer Marilynn Marchione in Milwaukee and AP writer David Dishneau in Hagerstown, Md., contributed to this report.


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Man detained by Taye Diggs charged with burglary


LOS ANGELES (AP) — Prosecutors say a man who was detained by Taye Diggs after the actor found him at his home has been charged with felony burglary.


Hassan Omar Juma faces up to six years in prison if he is convicted and is scheduled to be arraigned in a Los Angeles courtroom Wednesday afternoon.


Diggs detained the 20-year-old after he and his wife found him in their garage on Sunday night. The "Private Practice" star was returning from the Screen Actors Guild Awards, where he was a presenter.


Juma was charged Wednesday with first-degree felony residential burglary. He's jailed in lieu of $50,000 bail.


Police say Diggs caught Juma after chasing him and neither man was hurt in the incident.


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Chicago home price recovery lags









The Chicago area's housing recovery continued to lag that of other cities and the nation, as prices in November fell 1.3 percent from a month earlier, according to a widely watched barometer of the housing market.

On an annual basis, home prices in the Chicago area rose only 0.8 percent in November, the smallest positive gain recorded among the 20 cities included in the S&P/Case-Shiller home price index, released Tuesday.

Nationally, home prices rose 5.5 percent annually for the 20-city composite. Much of that  can be traced to market improvements in once hard-hit places such as Phoenix, where home prices have risen 22.8 percent in 12 months. Other cities recording strong yearly increases included Detroit, up 11.9 percent; Las Vegas, up 10 percent; San Francisco, up 12.7 percent; and Minneapolis, up 11.1 percent.

"Housing is clearly recovering," said David Blitzer, chairman of S&P Dow Jones Indices' index committee. "Prices are rising as are both new and existing home sales."

Most cities saw prices decline in November from their October levels, which Blitzer tied to the market's typical winter weakness.

Nevertheless, Chicago turned in the worst monthly performance among the 20 cities. It was the third consecutive monthly decline for local home prices, which showed signs of strength earlier in 2012. Local prices are on par with their June 2001 levels.

Condominium values in the Chicago market also fell for the second consecutive month. In November, they were down 0.9 percent from October but rose 2.7 percent from November 2011.

Strong foreclosure activity, and the resulting sales of those properties at steep discounts, has held down local home prices and the market's recovery. In 2012, Illinois had the fifth highest state foreclosure rate in the nation, topped only by Florida, Nevada, Arizona and Georgia, RealtyTrac reported last week.

Also hindering the local market's recovery is the foreclosure process in Illinois, a judicial state where all foreclosures are processed by the court system. RealtyTrac said it took an average of 697 days to complete a foreclosure in Illinois last year, meaning those properties may not be listed for resale for two years. During that time, their condition can deteriorate, bringing down the value of that home as well as others in the neighborhood.

Another report issued Tuesday showed some improvement in foreclosure activity in the Chicago area, although mortgage delinquencies and foreclosures here continue to outpace those at the national level.

Housing data provider CoreLogic said that 5.57 percent of mortgages in the Chicago area were in some stage of foreclosure in November, compared with 5.7 percent in October and 6.37 percent in November 2011.

Also, 10.10 percent of mortgages in the Chicago area were considered seriously delinquent, meaning they were at least 90 days past due in November. That compares with 10.19 percent in October and 10.72 percent in November 2011.

The national foreclosure and mortgage delinquency rates were 2.97 percent and 6.45 percent, respectively, in November.

mepodmolik@tribune.com | Twitter @mepodmolik

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CTA: Companies 'enthusiastic' about Red Line mega-projects









The CTA is receiving strong and enthusiastic feedback from the private sector about investing in two mega-projects along the Red and Purple Lines that the transit agency could not afford to undertake on its own for many years, CTA president Forrest Claypool said Monday.

CTA officials and financial advisor Goldman Sachs are studying potential public-private partnerships to construct the proposed Red Line extension to 130th Street; and to demolish and rebuild track, aging stations and crumbling viaduct structure on the North Side, from north of the Belmont station through Evanston, Claypool told a gathering of transportation experts at Northwestern University.

“We believe that partnerships with the private sector are one piece of the key to keeping mass transit healthy,’’ especially in a period of declining federal and state funding, Claypool said.

The response to the CTA outreach to the industry on the two Red Line projects has been “overwhelmingly enthusiastic,’’ Claypool said. The CTA’s goal is not to sell off assets, but rather to lower costs by 10 to 20 percent on major projects, he said.

Both proposed Red Line projects are in planning stages, but they are currently unfunded for the construction phase, officials said.

The approximately 5-mile south extension of the Red Line, from the current terminus at 95th Street to 130th, is estimated to cost at least $1.5 billion. Mayor Rahm Emanuel said when he was campaigning for office that the Red Line extension was his top transit priority and he expected construction would begin within a few years. 

Cost estimates on the Red Purple Modernization project range from about $2 billion to more than $4 billion, depending on the scope of the work that would be undertaken to replace infrastructure that is more than 90 years old, officials said. The north branch of the Red Line serves the largest ridership in the CTA rail system and the transit agency is spending $86 million on temporary repairs to shore up dangerously dilapidated infrastructure.

Claypool said the CTA was not interested in privatizing operation of the Red Line, or selling it off to the private sector. Instead, any deals that might result would involve a public-private partnership to design, build, finance and maintain the rail line, but CTA employees would still run the trains, he said. In return, the venture partners would assume part of the financial risk of building two complicated projects and receive “a small potential share’’ of profit.

Claypool pointed to a $454 million contract that the CTA signed last year with Cubic Transportation Systems to design a new fare payment system as a solid model for future CTA public-private partnerships.

 Under the Cubic deal, the CTA is getting out of the fare-collection business and Cubic is developing an open fare system in which CTA and Pace customers will use a new transit card, called Ventra, or their personal credit or debit cards to pay fares. The new system is scheduled to debut this summer, officials said.

CTA Chicago Cards and Chicago Card Plus cards will be phased out in 2014, officials said. The CTA expects to save about $50 million over the life of the Cubic contract compared to the cost of the CTA continuing to administer fare cards, officials said.

“This deal will be a poster child for the way to structure P3s (public-private partnerships), provided that the new fare equipment works as expected,’’ Thomas Lanctot, a partner at William Blair & Company, told attendees at the William O. Lipinski Symposium on Transportation Policy & Strategy on Northwestern’s Evanston campus.

But experts cautioned that public-private partnerships are not a substitute for shrinking public funding.

“P3s are an excellent tool to stretch the money we have, but they are not free money,’’ said Samara Barend, a vice president and strategic development director at AECOM, a technical and management support services firm. And public-private partnerships will only be attractive to business if the risk is not too high and the partners can make a respectable return on investment, she said.
 
jhilkevitch@tribune.com

Twitter @jhilkevitch



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