Gary airport board hopes railroads see actions as good faith move

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Updated: February 25, 2012 8:17AM

GARY — The north side of the Airport Development Zone became a little smaller Monday in what the airport hopes the Canadian National Railroad will see as a good-faith effort in getting the railroad relocation contracts finished even though progress has been made on that front.

The Gary/Chicago Airport Authority approved at its Monday afternoon meeting a resolution that will modify its development-zone boundaries and give the land over to the city. The city’s Redevelopment Commission will then absorb the land and put it in the tax increment financing district devoted to the $163 million Kirk Yard expansion by Canadian National Railroad.

That new development zone will be used to collect TIF funds and put back into improving Clark Road and other infrastructure projects.

The land that the part of Kirk Yard that lies within the Airport’s development zone is of no benefit to the airport because railroads aren’t taxed on their real property, but on personal property instead, said Airport Attorney Pat Lyp. The Kirk Yard project has been estimated to generate $21 million in TIF funds during the next 20 years, which would be used to pay debt service on Economic Development Revenue Bonds issued by the city.

“The Gary Airport hoped to accomplish (by relinquishing the land) without a final signed agreement with CN a show of good faith in the negotiating process,” Lyp said.

Meanwhile, Expansion Project Manager Scott Wheeler said two more relocation components are just about ready to go. The CN right-of-entry and the design engineering for CSX will be ready to come before the authority for approval at its Feb. 13 meeting.

Wheeler also said the airport will appear at Tuesday’s Common Council Finance Committee meeting to discuss the city’s vacating the easement at Airport Road and Chicago Avenue. It will give up the easement for an aerial easement, and the tracks will then be moved across Chicago Avenue.

In other business, the authority awarded the grade separation contract to Superior Construction of Gary for $11,562,269.56; the airfield grubbing contract to Dyer Construction of Dyer for $1,798,432 and the Illini State demolition to C. Lee Construction Services of Griffith for $29,507.88.