Redevelopment commission extends rail agreement to Aug. 2028 as JBC Rail begins repayments and KIP access issues remain

The LaPorte County Redevelopment Commission on Dec. 10 amended its Build-Operate-Transfer (BOT) agreement connected to the Kingsbury Industrial Park rail extension to align the BOT operating period with a separate rail-switching agreement, a change meant to facilitate full repayment of the county's capital investment.

Attorney Guy DiMartino told the commission the amendment revises the operating-period definition so both agreements expire together; the county invested $525,000 in the rail extension tied to the CSX switch. DiMartino said this alignment was necessary because "it would not be feasible to have the BOT without JBC Rail or the switcher function, and vice versa." Commissioners approved the amendment unanimously, extending the agreement to Aug. 2028.

Kim McDonald, owner of JBC Rail, updated the commission on repayment activity, saying a payment of approximately $51,000 was made recently and that the operation is approaching Class 3 railroad status, which could permit additional switching revenue. McDonald confirmed reporting to the county "will occur at least quarterly." The amendment also includes a reporting requirement so the county can monitor repayments and costs.

Separately, MCR Partners reported active work on Kingsbury Industrial Park access and easement issues. Matt Reardon said an ingress-egress easement for lift-station access is under review by the City of Michigan City and that "there is no cost to the county for the easement." Reardon and staff discussed that many roads in KIP have been used as thoroughfares for more than 20 years; filing an existing easement document is seen as a practical step to formalize public ways, while condemning individual parcels was described as cost-prohibitive. County staff noted the highway department estimates roughly $83,000 per year to maintain the roads if they are formally adopted as public ways.

Reardon also reported some market interest in KIP (including inquiries related to data centers) but said landowners are negotiating independently and the county advises them to consult power companies and legal counsel regarding costs and rights. The commission did not take further binding action on road ownership or condemnation but approved the BOT amendment that enables continued repayment tracking.

The commission's action locks in the revised BOT timeline; staff and legal counsel will monitor JBC Rail's quarterly reports and continue work on easement filings and coordination with the county highway department.