The Winter Haven City Commission on Wednesday approved a three-part package to build a rail spur to serve the Intermodal Logistics Park and a proposed cold-storage facility.

City staff said the state Department of Commerce awarded the city a Florida Job Growth Infrastructure grant of up to $1,500,000 to reimburse costs for design and construction on a reimbursement basis. "The agreement provides for grant payments of up to $1,500,000 to the city of Winter Haven to be used towards the design and construction of the rail spur on a reimbursement basis," staff said during the presentation.

Under the cooperation agreement approved by the commission, the city will design, permit and construct the public rail spur but will not be responsible for ongoing maintenance after conveyance. City officials said the project’s total construction cost is estimated at about $3,300,000 and that the city’s maximum direct contribution will be $100,000; other costs are to be covered by the developer and a Chick‑fil‑A affiliate through an escrow arrangement.

City Attorney John Murphy described mechanics for interim financing and payment: construction will be financed initially by the developer and Chick‑fil‑A’s entities, with those parties depositing funds into an escrow account maintained by First American Title Insurance Company. The city will submit payment requests and the escrow agent will disburse funds so the city can pay its contractor and comply with the Local Government Prompt Payment Act.

The commission awarded the construction contract to RW Summers Railroad Contractors Inc., the lowest responsive bidder, for $3,330,202. City staff said no notice to proceed will be issued until the Department of Commerce and all parties provide required documents; the grant agreement calls for construction to begin on or before March 15, 2026, and staff said they may seek an extension if necessary.

The cooperation agreement also contemplates conveying the completed rail spur and associated easements to the Central Florida Intermodal Logistics Park Property Owners Association, which will assume maintenance and operational responsibility.

The motion to approve the grant, the cooperation agreement and the construction award carried on voice votes. Commissioners did not record roll-call tallies in the transcript minutes provided.

The city manager was authorized to execute the grant agreement and related documents and to take further actions necessary to implement the project.