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LaPorte County redevelopment commission holds South Shore freight agreement after JBC president objects to perceived inequity
Summary
The commission delayed approval of a draft agreement to let lawyers and commissioners review terms, including a proposed $200-per-car fee. JBC Rail's president criticized what she called unequal treatment of rail operators; Chicago South Shore said it moves more than 900 carloads annually and proposed a two-tier fee structure.
LaPorte County's Redevelopment Commission on May 27 postponed action on a proposed freight-agreement that would charge rail operators to use county-owned property at Kingsbury Industrial Park, after commissioners said the draft had not been provided in the meeting packet and requested more time for review.
The item drew sharp remarks from Kimberly Carroll, introduced at the meeting as JBC Rail president, who said JBC has invested heavily in infrastructure at Kingsbury and objected to what she described as inconsistent expectations for different rail companies. "Everything we've been asked to do, we do," Carroll said. "I'm tired of this ... I can't keep pouring money into this." She urged the commission to require parity and warned she could scale back JBC's engagement if inequities continued.
Attorney Guy Martino, representing the commission on the matter, outlined the rationale for a formal access and compensation agreement. He said the county carries about $6 million in historical debt tied to Kingsbury Industrial Park and that private operators including JBC have invested roughly $3.5 million in rail infrastructure there. Martino said the draft agreement in discussion would allow the county to collect revenue to help repay debt and fund operations and that the principal economic term under discussion was a $200 per-car charge plus insurance requirements.
"The terms are $200 a car and there's just some insurance," Martino said, noting the agreement had gone through multiple legal revisions and that some counterpart edits had been accepted while others had not. He also confirmed the draft agreement was not included in that day's packet and that it might require further negotiation with CSX or South Shore Freight.
Kimberly Carroll's remarks prompted a response from Tony Kanczuzewski of the Chicago South Shore & South Bend Railroad, who said South Shore moves more than 900 carloads a year through the park and estimated at $200 per car the county could receive roughly $180,000 annually. He said South Shore had proposed a two-tier approach — a lower base rate for routine activity and a higher rate for new-track usage — and emphasized the railroad's interest in KIP's success.
Commissioners and staff also discussed parallel agenda items tied to Kingsbury and the larger redevelopment portfolio. Staff reported an RFP for a roughly 14.46-acre parcel at Kingsbury (about four buildings, approximately 48,000 square feet total) received no responses; after a 30-day cooling-off period the commission may negotiate directly with interested parties. The meeting also included routine reports: the treasurer listed TIF balances (US 421 TIF #1 — $389,933; KIDC TIF — $171,143; 39 North TIF — $3,811; I-94 35 TIF — $10,000) and the commission approved claims and the treasurer's report by voice votes.
Because the draft freight agreement was not in the packet and further edits may be required after review by CSX or South Shore, commissioners agreed to hold the item for consideration at next month's meeting. The commission did not vote to approve the agreement at the May session.
