The City of Chicago has accepted a bid to lease Midway Airport for 99 years, Mayor Richard Daley said.

The $2.5 billion lease awarded to Midway Investment and Development Co., adds $1 billion in restricted proceeds to the city's treasury, the Chicago Tribune reported Wednesday.

State law mandates 90 percent of the proceeds must be spent on infrastructure. The remaining 10 percent is available to help with the general city budget. The 2009 budget, which the mayor will make public Oct. 15, includes a budget gap of $420 million, the Tribune said. The city announced plans to layoff 1,000 employees in addition to leaving 3,000 vacant positions unfilled.

The proposed airport lease, which needs approval from the Federal Aviation Administration and the City Council, would make Midway the largest privatized airport in the United States, the Tribune said. (c) UPI