Blue Island council approves 40-year ground lease with Omnitrex for 119th/Division brownfield

The Blue Island City Council voted to approve a ground lease on Sept. 24 with Omnitrex for roughly 90 acres of brownfield at 119th Street and Division, aiming to convert long-unused property into outdoor storage to support rail-industry operations.

The lease, described by city staff during the meeting, is a 40-year agreement that includes an approximately 18-month period for the company to develop and set up operations. The city will receive a baseline payment of $1,000 per year with the potential for higher payments tied to revenues, staff said.

A staff presenter said the property "is approximately 90 acres of Brownfield" and that Omnitrex would use the land for outdoor storage connected to rail customers. City staff said the lease contains provisions giving the city permitting control and rights of refusal for certain uses, and that language was added to address "unpleasant odors" and "unpleasant noises" (see lease section 13.4 in the draft shown to council).

City staff also said the lease contains jurisdictional language specifying that disputes would be handled in the Cook County court system because of intersections with federal rail regulations. Staff said Omnitrex and the city negotiated provisions to secure the property, limit allowable stored materials and provide protections for nearby residents.

During the meeting the council moved and voted; a roll call recorded aye votes from Alderman Johnson, Alderman Montoya, Alderman Rutherford, Alderman McGee, Alderman Kerr and Alderman Roe. The mayor or presiding officer announced, "Motion carries." The motion approved the final ground-lease agreement as presented.

Ending: City staff and the company were present at the meeting and may return with implementing steps; the lease authorizes future permitting and enforcement actions by the city under the lease terms.