Chicago Logistics Hub

In 2019, the Canadian National (CN) Railway began purchasing parcels of property in proximity to its railroad tracks west of McClindon Road. The totality of these purchases is approximately 900 acres. The majority of this land, which lies directly north of U.S. Rt. 6 across from heavy industrial users such as AuxSable Liquid Products and LyondellBasell, has been within the Village of Channahon limits and zoned I-2 Intensive Industrial for more than 20 years. A smaller portion of the property currently lies in unincorporated Grundy County and is zoned industrial, some of which is located on the Village of Minooka side of the Channahon-Minooka Boundary Agreement.

In September 2023, the Village received a professional fee agreement for the development of the Chicago Logistics Hub. This project is proposed to include the development of a multi-modal facility and logistics-oriented business park along the CN rail line. In anticipation of an official decision by the CN Board of Directors to pursue this project, the Village has been in discussion with our regional governmental partners to consider the potential impacts of the proposed project. These partners include the Village of Minooka, City of Morris, Grundy County administration, Grundy Economic Development Council, and Minooka Fire Protection District. Much of the focus to date has been on transportation-related matters concerning the proposed development. To that end, the Village has retained the services of a qualified traffic consultant to assist the Village and its partners to find the most advantageous scenarios to minimize traffic impacts on local residents. Such items include prioritizing the utilization of the Brisbin Rd. and I-80 interchange, which opened in 2012 and was created for these types of uses, as well as identifying other appropriate road connections and improvements.

Transportation issues are not the only matters to be addressed as this project moves through the various consideration processes. As more information is introduced, the Village of Channahon will continue to work closely with all regional stakeholders. As information is limited at this time, please check back for updates that will be posted here as they are available.

Update - Spring 2025

The Spring 2025 period has been focused on the logistics park portion of the Chicago Logistics Hub project. Several key areas have started to take shape, although discussions and revisions remain ongoing in many respects.

Traffic Study Revisions: A substantial amount of effort has been dedicated to the traffic study for the logistics park. There have been several rounds of revisions, with extensive communication between the CN, Village of Channahon, and consultants for both parties. This process is crucial for ensuring the proposed infrastructure can adequately handle the future traffic volume and minimize impacts on surrounding areas.

Utility Routing Discussions: Concurrent with the traffic study, a series of meetings have been held to discuss utility routing for the logistics park, including water and sewer services.

Annexation and Development Agreement Negotiations: Discussions have been taking place between the Village and CN regarding the annexation and development agreement, as well as the associated processes. This framework outlines the terms and conditions under which the logistics park will be integrated into the existing municipal jurisdiction. These negotiations cover a wide range of critical aspects, including zoning, land uses, and community benefits.

Regarding the portion of the project containing the intermodal facility, the CN has stated that they anticipate earthwork to begin sometime in August 2025. The intermodal facility falls under the jurisdiction of the federal government and will not be seeking approval from the Village of Channahon.

Update - January 21, 2025

A message from Mayor Missey regarding the CN:

Allow me to first provide some background regarding the project proposed by the CN to give you a better understanding of what is proposed and what the process will be for consideration of approval by the Village of Channahon.

The CN began purchasing this property in 2019. The Village of Channahon did not seek out this project in any manner. No financial incentives have been requested by the CN, nor have any been or will be offered by the Village of Channahon. Property taxes generated by the development will go to the various taxing bodies, with the majority of these taxes going to the Minooka 201 and Minooka 111 School Districts. Property taxes paid to the Village of Channahon from taxpayers in the Village amounts to approximately 5.5 cents for every one dollar in taxes paid, at a municipal property tax rate that we have lowered every year for the past eight consecutive years.

The property on which the project is proposed has, for the majority of the property, been annexed to the Village of Channahon since 2000 and has been zoned I-2 Intensive Industrial since then. To view an explanation of the land uses permitted in I-2 districts, please visit https://codelibrary.amlegal.com/codes/channahon/latest/channahon_il/0-0-0-29974 (link). Plans for this project were not provided to the Village until early 2023. The project proposed by the CN includes two parts: 1) the development of an intermodal facility, to be followed by 2) the development of 8-9 million square feet of industrial space. We must view these two as separate - but related - projects due to CN’s federal preemption status. Because railroads are considered a form of interstate commerce, federal preemption gives the federal government the authority to set the main rules for railroads to ensure consistency and safety across the country; thus, the federal government rules for railroads override state and local government. So, whether we like this project or not, the authority to approve the intermodal portion of the project does not lie with the local municipality.

We can, however, try to work with the CN and our regional partners to improve the project as much as possible for the region. When we received word that this project would be presented to the Village, I immediately reached out to the Village of Minooka, City of Morris, Grundy County, and the Grundy County Economic Development Corporation (GEDC) to discuss potential issues and impacts related to this project. We have consistently met monthly since April 2023 to discuss both the short and long term impacts of this project, primarily focusing on traffic impacts. This regional partner group has grown to include the Illinois Department of Transportation (IDOT), the Villages of Shorewood and Diamond, our state and federal legislators, local law enforcement - including the Village of Minooka and the Grundy County Sheriff’s Office - the Minooka Fire Protection District, the Will County Center for Economic Development, the Will County Governmental League, and the Grundy County Chamber of Commerce.

The Village of Channahon retained the services of two transportation consultants to assist us in the evaluation of traffic studies provided by CN to the Village. With funding committed by the Villages of Channahon, Minooka, Morris, Shorewood, Diamond, and Grundy County, along with some of the other regional partners noted above, the Village applied for and received a $400,000 grant from IDOT to develop a Regional Collaboration Plan for Northeast Grundy County that will coordinate regional transportation policy, transportation operational needs, and infrastructure development across the region. This effort is beginning this month and is expected to take 15-18 months to complete.

What we do have the authority to approve is the logistics park portion of the project - which has not yet been submitted for review or approval. The process for approval, including required public hearings, has yet to take place, and will take place as the project proposal progresses. No official action can be taken, except as stated on a meeting agenda. Every public meeting provides the opportunity for public comment. I recommend you sign up for alerts at the Village of Channahon website (www.channahon.org) to receive upcoming Planning & Zoning Commission and Village Board meeting agendas directly to your email.

The Village of Channahon has always been an open book. In addition to project information at the above link that is updated regularly and has been available to the public for several months, anyone who would like to have a discussion about this project or any other project in the Village of Channahon is welcome to schedule a meeting with us for one-on-one conversation.

Update - December 23, 2024

On 12/23/24, the Village of Channahon received notice that the CN is hosting a public open house on Tuesday, January 14, 2025 from 4-7 p.m. at Minooka Community High School South Campus. This event is unaffiliated with and unsanctioned by the Village of Channahon, but we encourage residents to attend to learn more about the project and have your questions answered by CN representatives. Please see the event flyer (PDF) for more details.

Update - December 11, 2024

In November 2024, the Village of Channahon's traffic consultant, TranSystems, submitted follow-up comments to the revised traffic study that was issued by CN's traffic consultant, V3 Companies, earlier in the year. Due to the size of the study and complexity of the information, IDOT District 3 is having two separate consultants review the traffic study and provide comments. IDOT will provide comments to V3 Companies when these reviews are complete.

Also in November 2024, the Village of Channahon issued a draft Development & Annexation Agreement for review by CN. The initial intermodal area of the project may not require permits and approvals from the Village of Channahon, due to Federal preemption rights afforded to the railroad. The Village's attorney has reviewed Federal preemption regulations and cases, and previous precedent has largely shown that railroads are not required to go through the typical municipal approval process. It is unclear at this time what, if any, Village review and/or approval process CN will choose to undergo.

In December 2024, the Village was made aware that CN plans to host a public open house in mid-January for residents and stakeholders to learn more about the project. This is not a Village-sanctioned or Village-planned event. The Village will provide more details as they become available from CN.

Update - October 11, 2024

The regional partners met again on October 2, 2024 to discuss regional transportation issues, including the proposed Chicago Logistics Hub by the CN Railway.

IDOT District 3 announced that it has submitted Route 6 from Route 47 to Interstate 55 for a potential Phase 1 engineering study for capacity increases. To be selected, the study area must be deemed to be warranted to study pursuant to state requirements. Project selection is expected to occur at the end of October 2024.

As previously announced, the regional partners group was selected as a recipient of the State Planning & Research Funds Grant. The grant agreement with IDOT is currently underway, and a Request for Proposals is anticipated to be issued by the end of the month.

The Village of Channahon received preliminary earth work plans from CN in late September regarding the area of intermodal development. This was stated to be provided as a courtesy opportunity to review and provide comments, but the railroad maintains they do not need permission or permits from any local entity, including municipalities, to construct the intermodal portion of their planned development. These preemptive rights are asserted to be granted to the railroad pursuant to several acts of the federal government. Earthwork plans are currently under review by the Village of Channahon's consulting engineer.

Update - September 3, 2024

Throughout the summer, consultants have been working with V3 to review and request information as it pertains to traffic. No applications for development have been received by the Village of Channahon.

It was announced that the regional partners group was selected as a recipient for the State Planning & Research Funds Grant for which they applied. For more information about the SPRF Grant, please click here (link).

The regional partners continue to work with the Illinois Department of Transportation to analyze traffic on area state roads and properly prepare for their needed improvement.

Update - May 21, 2024

The regional partners met again on May 15, 2024 to discuss the proposed Chicago Logistics Hub by the CN Railway. In attendance were representatives from:

The Village of Channahon (including Channahon Police Department)
The Village of Minooka (including Minooka Police Department)
The City of Morris
Grundy County
Representative Jed Davis’ office
Representative Jason Bunting’s office
Senator Tom Bennet’s office
Grundy Economic Development Council
Illinois Department of Transportation (IDOT)
Ann Schneider Consulting
TranSystems

Transportation continues to be the prevailing topic of discussion. IDOT has held meetings with existing area businesses to discuss entrance consolidation and existing intersection improvements along Route 6. Several options are being examined. TranSystems, the Village of Channahon’s hired traffic consultant, has analyzed the possible routing of new roadways and access points for what is physically possible to be constructed. The firm will next model traffic flows along these hypothetical routes to determine the impacts of the potential locations.

The ten partnering groups that have applied for a $400,000 State Planning & Research Funds Grant are awaiting the news of grant awards. The IDOT central office could make an announcement sometime in the July-November timeframe. Ann Schneider and Associates LLC is confident that the group has a competitive application. If awarded, the grant will be used for detailed transportation planning in the area to prepare for the expected development from a multitude of different projects throughout the region, including the Chicago Logistics Hub.

No new submittals of revised traffic studies have been received from CN or their engineer, V3 Companies. There remains no application on-file with the Village of Channahon for development. With the size and scope of this project, approval and review is required ranging from local jurisdictions -all the way to the federal government. Information and final details may be slow-coming.

Update - April 18, 2024

No new information is yet available. An expanded traffic analysis is still underway and is anticipated to be provided in May 2024. The Village of Channahon continues to work with the regional partners, and has also participated in meetings with area Route 6 businesses including Aux Sable Liquid Products (Pembina), LyondellBasell (LYB), ONEOK, Nouryon, and Quantix.

Update - February 15, 2024

The Village of Channahon continues to organize and participate in meetings with regional partners. This now includes several large businesses that are located in proximity to the proposed project: Aux Sable Liquid Products, LyondellBasell (LYB), Nouryon, ONEOK, and Quantix. These companies share similar concerns as other regional partners regarding possible traffic congestion and the ability of traffic to flow freely on roadways throughout the region.

On February 9, 2024, the Villages of Channahon and Minooka both received draft preliminary engineering packages that were provided for review and comment; No applications for approval have been received. A meeting was held with representatives from CN and V3 Engineering, on February 12, 2024, to further discuss and clarify the scope of needed additional traffic analysis, which will be forthcoming. It is the Village of Channahon’s opinion that until traffic routing and access is further defined, the review of specific site engineering is likely premature as traffic routing may cause complete changes to the draft site design.

Update - January 18, 2023

The Illinois Department of Transportation has provided comments to the traffic study that was submitted by V3 Companies, specifying multiple areas needed for further study, including extended analysis of downstream traffic impacts. Many comments are similar to those generated by TranSystems, the Village of Channahon’s consulting traffic engineer. V3 Companies will be conducting further study and resubmitting the report in the future.

Emergency services (police and fire) from the various emergency management agencies, fire protection districts, municipal police departments, and county sheriff have been made a part of the discussion and will be formalizing a synopsis of their needs and concerns regarding the project.

There remains no site plan or subdivision application on file for development of the land at this time with the Village of Channahon, Village of Minooka, or Grundy County. Nor have any engineering plans been received for review and comment by any of the approving entities. The CN Railroad has also not yet provided information on any planned upcoming public information meeting. Please check back regularly for updates.

Update - December 9, 2023

The Village of Channahon continues to work with our regional partners as details of the preliminary traffic study are being reviewed by the Village’s consultant, TranSystems, as well as the Village of Minooka’s consultant, KLOA. Several alternative traffic models are still to be presented and analyzed. On December 5, 2023 representatives from all regional partners met with the Illinois Department of Transportation at their District 3 offices in Ottawa, IL to ensure the State of Illinois is understanding of traffic concerns in our region. Attendees of the meeting included representatives from: Village of Channahon, Village of Minooka, City of Morris, Grundy County, Grundy County Economic Development Council, IDOT District 3 staff and IDOT Director of Highways Project Implementation.

The CN Railroad is in the planning stages of holding a community open house sometime in early 2024. Please check back regularly for updates.

Update - October 23, 2023

At the October 16, 2023 Village Board Meeting, the Board of Trustees voted to hire TranSystems (link) as the consultant working on the Village's behalf to review the transportation study that has been provided. Transystems possesses extensive knowledge and experience with similar projects in the Will and Grundy County region and will provide the Village with an independent review of potential traffic related impacts. Contracts from TranSystems were received over the weekend of 10/21-22/2023 and are now under review.

The Village remains committed to working with our partners at the local, state and federal levels regarding the potential impacts of the proposed project and the overarching need to minimize traffic impacts on local residents.