Gary airport railroad work could cost $45 million

BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com

It could cost Gary/Chicago International Airport $45 million to move railroad tracks for its expansion, and it will ask the Northwest Indiana Regional Development Authority to pay part of the cost.

That cost figure was given Thursday by Airport Authority lawyer Patrick Lyp in front of an RDA committee. He said the RDA could be asked to fund up to $18 million of the project.

One RDA member expressed shock at the total figure, saying it was above what he said was a previous cost estimate of $27 million.

"An $18 million hit is substantially different from where we were," said RDA member Harley Snyder.

RDA member Bill Joiner said the $27 million was never an agreed upon target for the airport. He said that is simply the amount the airport currently has on hand to pay for the project.

"I hope the RDA remains open-minded on a figure between zero dollars and $18 million, which the airport will be requesting to get this done," Joiner said.

Contacted after the meeting, Airport Director Chris Curry said a firm figure on how much it will cost to move the tracks won't be known until final engineering is done.

He said it could be more than or less than the $45 million figure given by Lyp.

Initially it was estimated that it would cost $27 million to move the EJ&E tracks that sit 130 feet from the end of its main runway, Curry said. That runway is being lengthened to 8,900 feet.

But two other railroads involved in the move have since agreed to move their tracks northward to make room for expansion of a second runway. The railroads also wanted a bridge built so they don't cross each other at grade level. The airport must pay the cost of those projects.

Curry and Northwest Indiana Forum Executive Director Vince Galbiati spent much of Thursday negotiating with railroads over the move.

Both said a memorandum of understanding with railroads on moving the tracks should conclude soon. That memo would allow final engineering on the move to begin.

The RDA already has approved $20 million for airport expansion projects. That money was all from a special state appropriation targeted at the airport expansion. It has paid for property acquisition and burying high-voltage power lines.

The special appropriation came from Gov. Mitch Daniels' lease of the Indiana Toll Road and was part of the political bargain that garnered support for the lease two years ago. At the time, then-Airport Director Paul Karas said the airport would use the full $20 million and would not rule out asking the RDA for more.