Enhancing Transportation Should Always Be a Slam Dunk
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Wisconsin Central, a subsidiary of Canadian National Railway (CN), is planning to build an intermodal facility and logistics park in Channahon, Illinois. The development would bring thousands of jobs to the area and reduce the number of long-haul trucks on our nation’s highways, decreasing pollution and road damage. 

While most of the logistics park would be in Channahon, a portion of it would be in an unincorporated area of Minooka, and one route from the facility to the highway would put trucks through a small portion of the town. Because of this, the Minooka government is balking at the development, threatening to derail the project unless its demands are met. 

Minooka wants CN to restrict the route trucks can go from the facility, lengthening and consequently slowing the way trucks would access the facility. The restriction would also limit access to the facility to a single-entry point. Such operational restrictions would unnecessarily limit flexibility and the company’s capacity to preserve operational continuity in case of unexpected delays. Rightfully, CN did not agree to their terms.

It now appears that Minooka is playing games in an attempt to defeat the project altogether. For starters, it changed the weight limits on the street just outside the project (twice!) in an attempt to block future trucks from accessing the site, and then it sued CN in federal court to say the city’s actions didn’t violate federal laws prohibiting interference with railroads and interstate commerce. Given the absurdity of the argument and half-hearted solutions it has proposed, Minooka is going down a lengthy and potentially thorny route. 

Rather than taking the litigious and costly route, Minooka’s leaders could take a more constructive path and negotiate a deal that would give its government and the community more tangible benefits from the project. For instance, it might follow the example set by New Richmond, Wisconsin, which contested the Wisconsin Central railroad over an autoport that would increase truck traffic and road crossings. It eventually reached a settlement that allowed the terminal to be built in exchange for a road upgrade, alternative emergency access, and a $175,000 payout to settle the town’s ownership rights to the part of a street that closed.

The attorney for New Richmond, Tim O’Brien, stated that “although the agreement is not perfect, it meets the needs of the town and taxpayers.” This is the responsible route, given that other towns have taken the litigious route against federally preempted projects, costing their taxpayers millions in avoidable legal costs. One  Canadian community facing a similar intermodal facility build – spent nearly $30 million in avoidable legal expenses so far, with its mayor threatening to continue fighting.

For Minooka to devote any amount of tax dollars on unnecessary legal proceedings to derail a project that will actually support local economic development by bringing in new jobs and additional tax revenues – seems misguided.

Constructing a new intermodal facility in Will and Grundy Counties would significantly benefit the local and state economies in numerous ways, and the potential gains suggest there should be ample room for CN to reach an accord that ultimately mitigates any traffic increase and other concerns while still creating numerous jobs and new tax revenue for the towns. 

Minooka should view this project as an opportunity to improve its infrastructure and ensure its residents benefit as much as possible from this project. 

Michael Gorman is the Niehaus Chair in Business Analytics and Operations at the University of Dayton School of Business. 


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