Firm issues bid for American side of Detroit-Windsor tunnel

DETROIT — The City of Windsor is no longer the only serious candidate to take over the U.S. side of the Detroit-Windsor Tunnel, which is up for sale by Detroit City Council.

According to the Detroit Free Press, a private equity firm emerged this week as a surprise second bidder with an offer of $60 million (US) to operate the American side of the tunnel.

The offer by New York City-based Capital Partners could undermine a tentative agreement between the cities of Windsor and Detroit.
The international crossing is co-owned by Detroit and Windsor and is co-operated by Alinda on the U.S. side of the border and Macquarie Bank here until 2020.

Alinda’s offer to extend the contract through 2080 is reportedly $2 million higher than Windsor’s previous offer, according to the newspaper.
The president of Detroit’s City Council said the city would have to “give serious consideration” to the private offer.

The owner of the gateway’s other private crossing, the Ambassador Bridge, attempted to gain control of the U.S. side of the crossing in 2005.

Ambassador owner Moroun reportedly offered the Detroit $30 million to take over the lease of the tunnel for 100 years. The proposal would have also given the bridge company the right to set tolls.

The proposal, however, was rejected by a majority of Detroit councilors and Canadian officials.

— from the Detroit Free Press

UPDATE: According to a report today by the Detroit News, Detroit Mayor Kwame Kilpatrick announced in a impromptu press conference, that Alinda has boosted its offer to $70 million from $60 million.

Furthermore, he said he would veto the portion of the Detroit budget, approved by the City Council, that relies on the sale of $58 million in bonds to Windsor and that he was “excited” that a new offer is on the table.