The Rochelle City Council approved the purchase of property from GREDCO for 7.29 acres of land for the expansion of the Rochelle Industrial Rail at last night’s meeting. This will enable several industries to bring unit train service to Rochelle. Unit trains consist of 80-100 cars and require 6-8,000 linear feet for switching purposes. To accommodate the needs of unit trains, the Rochelle Industrial Rail would need to be extended by 3000 feet. In addition, the City must own the land in order to get assistance for funding the project.
GREDCO will sell the 7.29 acres to the city for $255,150. This price equates to $35,000 per acre and is based on comparable appraisals for rail served property. The proposed Contract for Purchase and Sale includes payments of $70,000 at closing, $70,000 on September 1st, 2014, $70,000 on September 1st, 2015, and the remaining balance, including two percent simple interest per year, in the amount of $52,059 on September 1st, 2016. GREDCO will pay the real estate taxes for the 2012 tax year and the 2013 taxes will be prorated between the City and GREDCO.
Also last night, the Board rescinded a 2011 resolution for Maintenance of Streets and Highway in the amount of $235,000 and approved a resolution of $239,414.20. The Illinois Department of Transportation was unable to locate the original document, as the actual expenditures on the 2011 Seal Coat Project totaled the $239,000 figure.