TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 15, 2025
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
Title
Authority to negotiate and enter into an Intergovernmental Agreement with the Chicago Transit Authority for the Red Line Extension Project
Body
Dear Sir:
Authorization is requested to negotiate and enter into an Intergovernmental Agreement (IGA) with the Chicago Transit Authority (CTA) for the Red Line Extension Project (Project). CTA’s overall Project includes extending the CTA’s Red Line from 95th Street to 130th Street, construction of a new Red Line station south of 130th Street, and a rail yard near the District’s Calumet Water Reclamation Plant (Calumet WRP).
Because a portion of the new Red Line extension will cross the Calumet WRP, CTA will need to coordinate construction activities with the District and obtain certain real estate interests. In particular, CTA must purchase three parcels of the Calumet WRP west of Cottage Grove Avenue, obtain a permanent easement near the Kensington Marsh, and obtain a temporary construction easement within the Calumet WRP. Although the real estate interests will be negotiated as part of the IGA, the required real estate interests will be brought to the Board separately for its consideration and approval. In total, the fair market value of the real estate interests is estimated to be $4,490,000.00.
The IGA is also needed to ensure the continuity of District operations. The Red Line extension will disrupt the Calumet WRP’s east and west connectivity and operations over Cottage Grove Avenue. The District’s trucks will no longer be able to move low density solids from the Calumet WRP to its drying beds east of existing railroad tracks. Due to this disruption, CTA has agreed, in addition to the real estate acquisition costs, to provide $45,510,000.00 in funding toward a District construction project to rebuild the District’s pipeline under the railroad tracks, restore the centrifuge facility and perform other related construction work. The CTA’s funding and the District’s construction project will be memorialized in the IGA.
In addition, the IGA will require CTA to construct a private roadway to replace the current Cottage Grove Avenue and grant the District a permanent easement to use the roadway to access its west drying beds at the Calumet WRP. CTA and MWRD will also be required to coordinate their respective construction activities in furtherance of the Project.
Based on the foregoing, it is requested that the Board of Commissioners grant authority for the District to negotiate and enter into an Intergovernmental Agreement with the Chicago Transit Authority for the Red Line Extension Project. It is further requested that the Chairman of the Committee on Finance, Acting Executive Director, and Clerk be authorized to execute said agreement on behalf of the District, upon approval by the Director by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:nl
Recommended, John P. Murray, Acting Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 15, 2025
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