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County to consider modifying KIP rail‑switcher deal as JBC agreement nears expiration
Summary
County attorney and staff recommended adjusting the Kingsbury Industrial Park rail‑switcher agreement with JBC Rail so its termination aligns with JBC's CSX contract (through 2028) rather than a five‑year renewal; they also discussed the costs and regulatory complexity of forming a Port or Transit Authority.
During the Nov. 12 Redevelopment Commission meeting, staff reviewed the county's existing relationship with JBC Rail and options as the county’s investment term approaches its scheduled end.
Matt Reardon reminded commissioners that the county invested $525,000 in a rail extension at Kingsbury Industrial Park and that JBC Rail—selected about four and a half years ago as the park’s rail switcher—has an agreement with the county that expires Dec. 31, 2025. Reardon said JBC provides switcher service and has separate agreements with Class I carriers CN and CSX.
Commission counsel Guy DiMartino recommended modifying the county agreement so the county’s termination date would match the term of JBC’s CSX agreement (which runs to 2028) rather than extend by an additional full five years. DiMartino also proposed that any cost escalation be tied to a mutually agreed price index and said JBC will provide railcar revenue data ahead of the December meeting.
DiMartino briefly outlined what forming a Port or Transit Authority would entail: federal regulatory navigation, significant initial organization, hiring operational staff and high insurance requirements (in some cases up to $50 million). Koronka noted that an authority could return more revenue to the county long term but would require substantial upfront investment and capacity.
No formal modification was approved at the Nov. 12 meeting; staff said JBC will supply revenue data and the commission will consider contract language and options at a future meeting.
Next step: JBC to provide switcher revenue data prior to Dec. 10 meeting; county counsel to draft potential contract modifications and options analyses for commissioner review.
