Riverport Railroad receives option to buy industrial park, pursues 'rail-car mall' project (2/9/2010)
2/9/2023The Jo-Carroll Depot Local Redevelopment Authority (LRA) recently agreed to grant Riverport Railroad L.L.C. a three-year option to purchase a 400-acre industrial park at the former Savanna Army Depot in Savanna, Ill.
The short line can exercise the option on tracts no less than 40 acres and must prove to the LRA that development is about to occur on a tract before it’s sold. By granting the option, the LRA and Riverport hope to encourage Rescar Inc. — which operates a rail-car repair shop at the former 3,000-acre depot — and other rail-related industries to grow in the industrial park, said LRA Executive Director Diane Komiskey in a prepared statement.
Meanwhile, Riverport, Rep. Don Manzullo (R-Ill.) and the Illinois Chamber of Commerce are pursuing a “rail-car mall” concept at the depot under which freight cars can be repaired, re-stenciled, cleaned, stored or scrapped at one location. Although the short line is exploring private-sector financing for the project — which would require the construction of several rail-car facilities and infrastructure upgrades — Manzullo is encouraging the LRA to seek $2 million in federal funds for the infrastructure improvements.
The LRA must obtain the title to necessary land from the U.S. Army before it can convey the property to Riverport. So far, the authority has taken ownership of 35 percent of the property designated to be transferred by the Army to the LRA for economic development.
A switching and terminal railroad, the 55-mile Riverport serves as a property development company at the depot. The short line interchanges with BNSF Railway Co.
Source: Progressive Railroading Daily News