Caterpillar to acquire Progress Rail

PEORIA, Ill. – Caterpillar Inc. (NYSE: CAT) has reached an agreement to acquire Progress Rail Services, Inc. (Progress Rail) for $1.0 billion in cash, stock and assumption of debt. Progress Rail is majority owned by One Equity Partners, a private equity affiliate of JP Morgan Chase & Company, Inc.

Based in Albertville, Alabama, Progress Rail is a leading provider of remanufactured locomotive and railcar products and services to the North American railroad industry. With 2005 sales of $1.2 billion, the company has one of the most extensive rail service and supply networks in North America. It operates more than 90 facilities in 29 states in the United States, Canada and Mexico, with about 3,700 employees.

Wouldn’t it be great if a new facility were to open in Peoria, say maybe in Growth Cell 2?  As long as Peoria keeps trying to kill the Kellar Branch and rely solely on Union Pacific service from the west, it ain’t gonna happen.

Preemptive amendments only protection against activist courts

The Journal Star’s editorial board either hasn’t been paying attention to recent events or simply can’t put two and two together.

In their editorial today, “Same-sex marriage referendum a divisive distraction,” they observe, “Illinois already has a law that defines marriage as a relationship between a man and a woman, so this is redundant.” But the newspaper of record surely knows that in an age of judicial activism, passing laws is not enough. Massachusetts had a law defining marriage as a relationship between a man and a woman, too, but the courts overturned it. So the only way to safeguard this law from judicial activism is to make it part of the constitution itself.

The editorial does mention that a constitutional amendment is the ultimate goal: “The November referendum is only advisory, intended to pressure Illinois lawmakers to put another referendum on another ballot to change the state constitution.” This is what happens when judges start legislating from the bench. The only recourse citizens have is to start writing laws directly into the constitution. And because this is such a long process, traditional marriage advocates don’t want to wait until the laws have been overturned to get started, like they did in Massachusetts.

The editorial goes on to say, “It’s a shame that petition organizers didn’t put their substantial grass-roots skills toward other family-friendly issues…,” as if the the definition of marriage is merely one issue in a litany of equivalent causes. Actually, marriage is the foundation upon which our definition of family is built, so “family-friendly issues” are dependent on our society’s view of marriage, not equal to it.

The editorial concludes with this admonition: “What Illinois is ready for is a focus on issues that make a real difference in people’s lives, not unnecessary and divisive distractions.” It’s actually quite practical to firmly establish the definition of marriage in Illinois. The very issues the Journal Star thinks are more important — health insurance, pensions — would be seriously impacted if same-sex marriage were legalized through some sort of court action, and Illinois would be ill-prepared for it.  Laws would need to be rewritten, financial projections would have to be completely refigured, and all within a short period of time.  Settling the issue of marriage by putting the definition in the constitution will provide stability both for families and the government.

City pushes school district to build on current site

Several City of Peoria department heads — including the police chief — met with District 150 representatives to strongly request Glen Oak School stay put, according to today’s Journal Star. Whether they refurbish or rebuild, the school should be in the center of the neighborhood, not on the fringe. The two biggest concerns with the Glen Oak Park location the school district is considering are (1) traffic on Prospect — every walking student would have to cross this busy street and dangerous intersection, and (2) crime at this corner — the convenience store at Prospect and Abingdon/Frye is a hotbed of crime, according to Peoria Police.

I wonder if the school board is getting the message…. The residents, parents, police, Heart of Peoria Commission, etc., all want to see Glen Oak School stay at its current site. It looks like the only ones who want to see it move are the school board members.

One concern I have from the article, though was this:

[Third District Councilman Bob] Manning said officials told Hinton the city is willing to close off streets around Glen Oak Primary School if a new school goes there [corner of Frye and Wisconsin].

Does he mean permanently or just during school hours, like they do near Kellar Primary? Either way, there is no justification for closing streets at that site. At Kellar, they have a split campus and children are crossing the street all day (or so they tell me), but Glen Oak is a unified campus and children only cross the streets when they come to school in the morning and when they leave for the day — and I’m pretty sure they already block off Frye during those times. The speed limit is only 30 mph — 20 when children are present. The school sits at a 4-way stop, and there are crossing guards when children are arriving and leaving. It appears the traffic situation is in control at that site without taking any further action.

Manning also offered to implement a façade improvement plan for the businesses along Wisconsin. That’s a great idea. So far, the current façade improvement plans have been well-received — there are two requests for grants on the council’s agenda tonight.

Make plans now to attend the charrette

“An important part of maintaining the traditional neighborhoods of Peoria has to do with recognizing, preserving, and, when necessary, reinforcing their historic character.”

— Andres Duany, Heart of Peoria Plan, 2002

The city really, really wants you to come to their charrette this weekend. They’re begging you. As a long-time proponent of New Urbanism and the Heart of Peoria Plan, I urge you to attend as well. Here’s what it is and how you can participate:

The City of Peoria, led by the Planning Department and Heart of Peoria Commission, is initiating a significant project impacting nearly 8,000 acres of the Heart of Peoria. The Planning Department and Heart of Peoria commission are being assisted by commission representatives from Renaissance Park, Zoning, and Planning Commission, plus business representatives from Prospect, Sheridan, and the Warehouse District. The project is the second major phase in the implementation of the Heart of Peoria (H.O.P.) Plan that was completed in 2002 by Duany Plater-Zyberk. The first was the impressive work that has been done, and continues to be done, for the Renaissance Park area.

This project, Phase II, provides an opportunity for Peoria citizens to work with a team of nationally recognized experts to create a plan, and implement that plan through a form-based code. This will be a Peoria plan to represent what Peoria wants in residential and business neighborhoods. The new codes that are created to represent what we want will be tools to help in the revitalization and redevelopment of established business and residential neighborhoods.

It may seem like zoning/coding is somewhat arcane, but it really can make a big difference to the character and health of our older neighborhoods. If you’ve ever had a home or business pop up near you that just didn’t fit the character of your neighborhood, you know what a negative impact it can have. This is an opportunity for you to have input into how the heart of Peoria should look and feel and have it codified; plus, this is open to everyone. You don’t have to own a big business or be some sort of mover and shaker to have your ideas taken seriously.

If you want to go, here’s the schedule:

Studio H.O.P. Kick Off Presentation

  • Friday, May 19—6:30 p.m. to 8:30 p.m.
    Peoria Civic Center, room 221 and 222

Charrette Sessions (Studio H.O.P., 2nd floor Iron Front Building, 424 S.W. Washington, Peoria)

  • Saturday, May 20—8:30 a.m. to 12:30 noon
    Heart of Peoria charrette sessions for Sheridan-Loucks, Prospect Road and Heart of Peoria neighborhoods
  • Sunday, May 21—2:00 p.m. to 6:00 p.m.
    Heart of Peoria charrette sessions for the Warehouse District

Studio H.O.P. Designers at Work (Studio H.O.P., 2nd floor Iron Front Building, 424 S.W. Washington, Peoria) You are invited to watch Ferrell Madden urban designers at work on our plans.

  • Monday, May 22—8:00 a.m. to 8:00 p.m.
  • Tuesday, May 23—8:00 a.m. to 6:00 p.m.
  • Wednesday, May 24—8:00 a.m. to 2:00 p.m.

Work in Progress Presentation (Peoria Civic Center, room 221 and 222)

  • Thursday, May 25—6:30 p.m. to 8:30 p.m.
    Studio HOP Work-in-Progress Presentation
    Ferrell Madden Associates and their team present plans for our neighborhoods

It’s worth attending. I hope you can make it.

Shocker: Carver Lumber rail service poorer over western spur

If you’ve been reading my blog for awhile, you’ve heard me say many, many times that the Kellar Branch provides neutral access to eight rail lines, whereas the western spur only has access to one — Union Pacific — and that this means service over the western spur will always be more expensive because there’s no competition.  So this letter to the editor from Carver Lumber Co. should come as no surprise:

We receive deliveries only two days per week, a 60 percent reduction from when the Kellar branch was operating.

It takes two to four times longer to get cars delivered from Downtown to our yard than it did over the Kellar branch.

Because the Union Pacific is not required to publish a rate, our suppliers must use its general tariff rate for forest products, which adds $1,000-$1,500 per car over Kellar line rates.

Carver goes on to hope that the city will help negotiate a better arrangement with UP.  That’s not going to happen.  First of all, the city has demonstrated that it’s not concerned about Carver at all (not enforcing its contract with DOT Rail, wanting to tear up the Kellar Branch before verifying Carver has comparable service via the west, etc.), and even if they were concerned, they have no bargaining power with UP.

The city should immediately start negotiating with Pioneer Railcorp to sell the Kellar Branch line.  If they want to continue pursuing the trail, they should build it side-by-side with the rail line.

Franken’genda

The agenda for Tuesday night’s City Council meeting has enough business on it to keep the council there until the wee hours of the morning — Thursday morning.  Okay, I’m exaggerating.  But it’s a really, really long agenda.  Of note:

  • The city is providing a little over $3,000 to various neighborhood associations to help with the cost of producing neighborhood newsletters.  The money comes from a HUD grant.
  • The new facade-improvement programs along Prospect (3rd district) and Sheridan (2nd district) roads are getting their first requests for grant funds.  A new “working art studio” on Prospect called “Tittamus-Tottamus” (I don’t make this stuff up, folks) is getting $10,000 and Craig’s Upholstery on Sheridan is getting $14,350.  The funds are for things like replacing glass/glazing, washing/sanding/painting the building exterior, landscaping/fencing, replacing doors/awnings, etc.
  • The Heart of Peoria (HOP) Commission wants to expand the borders of the HOP to include more of the Center and East Bluffs.  All the affected neighborhood associations were in favor of being added to the HOP area.
  • The City wants to change the way parking tickets are enforced, adopting what’s called an “administrative adjudication system” similar to the way Normal, Chicago, Champaign, and other cities handle them.  Basically, it would mean unpaid parking tickets are sent to a collection agency instead of through the court system.
  • Bar Louie and Famous Dave’s are switching places, and Bar Louie wants to be able to stay open until 2:00 a.m. Thursdays, Fridays, and Saturdays.  Just to make things confusing, Bar Louie is currently located in Famous Dave’s old location across the street from the Shoppes.  So, Famous Dave’s is moving back to its original location and Bar Louie is moving into Famous Dave’s current spot in the Shoppes.  Clear as mud?
  • As you probably know, the city has set up “institutional districts” in certain areas, most notably Bradley University.  Institutions like Bradley can do whatever they want within their institutional district, but they’re not allowed to stray outside of it, the idea being that adjacent neighborhoods want some form of predictability and stability — i.e., they don’t want to be worried about the institution taking over their neighborhood.  Of course, that’s exactly what’s worrying the Arbor District as Bradley keeps buying houses in that neighborhood in an attempt to expand westward.  What Bradley is going to ask at some point is for their institutional boundary to be changed, and when that happens the council will have to vote on it.  An item on the agenda tonight would require a 2/3 supermajority for such an expansion to pass.  Expect lots of discussion (or a deferral) on this one.
  • The Seventh-Day Adventist Church on Knoxville wants to build a youth center and parking lot addition, but it encroaches into the adjacent neighborhood.  Staff recommends allowing the parking lot, but not the youth building.
  • Finally, the council will resume arguing about a parking agreement with AmerenCILCO that was deferred from an earlier meeting.

Whew!  And that’s just the “highlights.” If you go to the meeting, bring a pillow.

Pioneer’s offer to buy Kellar Branch and help build trail next to it still stands

After reading the details of Pioneer Railcorp’s offer to purchase the Kellar Branch rail line from the city and help the Park District construct a trail next to it, one has to wonder why in the world the city wouldn’t jump at the opportunity. There’s no reasonable explanation for this offer to be rejected.

The offer, detailed in a letter to the city council dated September 24, 2004, can be read in its entirety by clicking here. I’d just like to bullet out a summary of applicable parts of the offer here. Pioneer is offering to:

  • Purchase the Kellar Branch and western spur from the City of Peoria for $565,000, or accept a long-term lease on the lines;
  • Grant the Park District a 999-year lease on a portion of the right-of-way for the use of a trail;
  • Donate up to $100,000 in in-kind services (railcar usage, train service, equipment use, flagging and other labor services) to the Park District to assist in the construction of said trail;
  • Work with the Park District to provide for joint use of the right-of-way, including the joint use of existing bridges;
  • Provide the labor, materials and equipment to construct a trestle for the trail to traverse the section behind Versailles Garden where the track elevation has caused the Park District the most concern;
  • Upgrade the Kellar Branch track to Federal Railroad Administration (FRA) “Class I” standards;
  • Aggressively seek new business in Pioneer Park and Growth Cell Two;
  • Develop a “dinner train” as a tourist attraction for the city (similar to a successful dinner train Pioneer runs on their Gettysburg & Northern Railroad);
  • Develop, in cooperation with the city, tourist/commuter service from downtown;
  • Pursue the establishment of a “railroad academy” in partnership with Illinois Central College and/or other appropriate partners, to train students in train operation and maintenance, using Pioneer’s equipment and facilities; and
  • Give the city right of first refusal to repurchase the line if another entity wants to buy it from Pioneer.

According to Pioneer Railcorp, this offer still stands. Look at those items above again. The city gets $565,000. The rail line gets upgraded to Class I standards at no expense to the city. The trail is built beside the rail line, so the Rock Island and Pimiteoui Trails will be connected. And Pioneer will agressively seek new business along the line, which could bring in more higher-paying manufacturing jobs to Peoria.

Why isn’t the City taking this offer?

Journal Star: Trail at any cost

The Journal Star has another editorial on the Kellar Branch today. I’m surprised it took them this long to write it, considering all their editorials on this issue follow the same boilerplate. Once again, it’s time to set the record straight:

Recall that Carver was the Kellar branch’s only customer, and that the city of Peoria built the company a $2 million extension so it could continue getting deliveries.

This is revisionist history. Peoria did not “buil[d] the company a $2 million extension.” The resolution which passed on May 15, 2001 stated explicitly the reason for extending the spur was “to retain long-term cost effective, direct rail service to Pioneer Industrial Park and future rail service to Growth Cell #2….” It was not just to benefit Carver Lumber, unless the council was lying about their reason for building it. (Insert cynicism here.)

It’s also worth noting that there were several other businesses on the Kellar Branch before the city started their attempt to de-rail it. So the fact that Carver is the “only” customer now is to the city’s shame. Is the Journal Star happy they’ve run these businesses out of town for the sake of a trail?

And the $2 million cost did not come out of Peoria’s coffers. Most of that was a grant, just like the $4 million in grants that the Park District wants to use to build the trail. The Journal Star likes to think of grants as free money when it comes to building a trail, but for rail service it’s seen as a liability. More hypocrisy. The city only spent $175,000 out of the capital improvement fund for the spur.

Carver’s number-crunching ought not interfere with the trail conversion. At this point, they are two separate issues. There must be a way to walk and chew gum – to help Carver and build the trail – at the same time.

They are not two separate issues. Getting Surface Transportation Board (STB) approval is part of the process precisely so that rail line owners can’t do what Peoria is trying to do: take a line out of service without any regard for the businesses using that line. The process is working the way it was intended.

If the city and Park District were really willing to “walk and chew gum,” they could have had this trail completed years ago — by putting it side-by-side with the Kellar Branch.

Does the STB think the Kellar branch would magically reopen overnight and, poof, Carver’s problem would be solved? Parts of the line are in disrepair. It cost $350,000 for the city of Peoria to rehab a just small swatch of track in Pioneer Park. Multiply that by 8 1/2 miles and you get an idea of the prohibitive price tag.

This is a red herring. First of all, the tracks should not be in disrepair, and if they are, then it was due to a breach in contract with DOT Rail (d/b/a Central Illinois Railway), and Peoria should take legal action against them to pay for the repairs.

According to the city’s April 27, 2004, contract with DOT Rail, the city is only responsible for “maintenance of roadways and street crossings (excluding rails, ties and signal devices on roadways and streets) under the jurisdiction of the city.”

DOT Rail, on the other hand, “shall assume the responsibility for all maintenance of tracks, crossing protection, and roadbed including weed, brush, snow and ice control thereon, all drainage control maintenance, and all weed and brush control on the remainder of the right-of-way, following the guidelines set forth by the Federal Railroad Administration (FRA).”

Granted, this particular contract expired 60 days after the western spur was completed, but the spur was completed in February, which means the contract expired in April, just last month. If there are tracks in need of repair, that means DOT Rail was in breach of contract. Of course, since they never made a single delivery over the Kellar Branch, they were in breach of contract the entire time that Carver Lumber had to haul their lumber via truck at tremendous expense.

The decision to close Kellar has been made.

No, Journal Star Editorial Board, the decision hasn’t been made. It’s up to the STB, and they’ve said it can’t be closed yet. The Journal Star’s statement is a bald-faced lie.

Serious money has been spent on an alternative. It would be crazy to tap local taxpayers for even more millions to have two competing branches – one of which is old and rickety and interrupts traffic at several major intersections. Service to Carver would probably be faster by rickshaw, on a bike path.

Again, taxpayers would not be tapped for anything if the Kellar Branch were reopened. In fact, Pioneer would probably still be interested in buying it, in which case, rather than costing the taxpayers, the City of Peoria could rake in over a half-million dollars instead!

Also, the branches wouldn’t be “competing” with each other. The UP has access to both ends of the Kellar Branch (sole access at the western spur and neutral access downtown via the TZPR). So this is another nonsense statement.

There’s talk of getting a short-haul operator to run cars over UP’s line. But these are logistical matters that can be sorted out without derailing the trail.

Sure. And there are just a few logistical matters with getting pigs to fly, too. By all accounts from every railroad worker and enthusiast I know or have read, there’s not a snowball’s chance in hell that UP is going to let a short-haul operator run cars over its mainline.

The level of Carver’s rail service is not a little “logistical matter.” It’s the difference between them staying in business in Peoria or either moving out of Peoria or going out of business. This is a business that has been in this area over 60 years. But it’s apparently just collateral damage to the Journal Star, the City of Peoria, and the Peoria Park District, who continue to fight for a hiking trail at any cost.

Ideas abound at special council meeting

The Journal Star has an excellent report (it was written by Jennifer Davis, so I expected nothing less) on the special council meeting last night. Last year, new council members Bob Manning and Barbara Van Auken were just learning the ropes of city budget planning. This year, they’re ready to make good on their campaign promises of increased fire protection and elimination of the regressive garbage tax.

Mayor Ardis is helping that cause by starting early to establish budget priorities and communicate them proactively to city staff (in the past, the city manager would write up a proposed budget and the council would react to it). But the big question is, how do you pay for more fire protection and eliminate a $2.4 million revenue source (garbage tax)?

In 2007, Mayor Jim Ardis wants the city to fully restore Fire Station 11 and find a “dedicated total public safety revenue stream.” Exactly what that is, Ardis admits he doesn’t know yet….

One idea is to take public safety funding off the property tax bills and replace it with a separate public safety tax. The difference is that the public safety tax could be applied to everyone who benefits from public safety services. Right now, non-profit organizations like hospitals, churches, and charities don’t pay property taxes, yet they benefit from police and fire protection.

If the protection we all share were paid for through a public safety tax instead of property taxes, the cost of that protection would be shared by all as well. Spreading out the cost would be more equitable, and may actually lower the amount homeowners pay for public safety services while increasing overall revenue at the same time.

Council members Van Auken and Manning also are throwing around ways to help strengthen Peoria’s older neighborhoods:

Van Auken also supports helping stabilize the older neighborhoods by freezing their property taxes so any additional increase in property tax revenue can be reinvested in those areas, somewhat of a pseudo TIF district. […] Third District Councilman Bob Manning suggested a similar “urban renewal” plan to Van Auken’s – freezing property taxes in certain areas to entice people to move back into the city’s core and reinvest.

It should be mentioned that these are just ideas and nobody has run the numbers yet to see how much such a plan would cost. This meeting was more of a brainstorming session. If the cost estimates come back too large, then the whole idea may be scrapped. But I’m glad to see them (forgive me for using this cliche) “thinking outside the box.”

That said, I doubt this plan is going to get off the ground. Whenever you freeze property taxes, you’re taking money out of district 150’s pocket, and they can’t afford any more revenue loss. And the state of the schools is one of the prime reasons people aren’t moving to the older neighborhoods (crime being the other reason) in the first place — not high property taxes. So this plan would seem to be self-defeating.

John Morris had several ideas, including one to make Peoria “a walkable city”:

He suggests $2 million each year from capital for sidewalks connecting Peoria’s neighborhoods to its assets, like the library and parks. “I can’t walk my two children from my home in the heart of the city to the library without feeling I’m taking our lives in my hands,” he said.

Well, there’s a difference between making the “heart of the city” more walkable and making the whole city more walkable.

In the heart of the city, sidewalks will help, but only if it’s coupled with slower traffic and a buffer between the sidewalk and the street. For instance, not long ago I walked from my house in the Uplands to the Blockbuster video store in Campustown. Walking on my street with its on-street parking and 25 mph speed limit was very pleasant. Walking on Main Street was a nightmare. Main Street is five lanes, which means traffic moves much faster than the posted 30 mph speed limit, and the narrow sidewalks abut the street, making you feel very unsafe as cars go whipping past you.

In the newer parts of the city, as you go north, these areas were not created to be “walkable,” but to be accessible only by automobile. Adding sidewalks (other than for recreational walking around the neighborhood) is not going to allow you to walk to the park or the library, unless you’re willing to walk several miles along an arterial road. My dad and I have walked down the shoulder of Route 150 from Charter Oak Road to Glen Hollow and let me tell you, it’s not a pleasant walk on which you’d want to take your family. And when you get to the end, you still haven’t seen a park or library. It would take some radical changes to make these newer neighborhoods “walkable” in the way Morris describes.

There were more ideas that I may discuss in future posts, but this one is long enough!

New state budget includes money for more Amtrak routes

The Chicago Tribune reports that funding for Amtrak routes in Illinois was doubled in the 2007 budget — from $12 million to $24 million — so they’re planning to use that money for “[t]wo additional daily Amtrak roundtrips between Chicago and St. Louis and an extra run each on the Quincy and Carbondale lines….”

I hope the extra trains make it possible for me to take Amtrak down to St. Louis for a Cardinals game and come back the same day.

Even before gas prices started soaring, I would always take the train to Chicago for business meetings and stuff because it was so much cheaper than driving. Parking alone can cost you $20 up there, plus gas and tolls. The train? $30 round trip. And, frankly, it’s the civilized way to travel. I bet adding more routes will increase ridership.

Now, when are we going to get a passenger train to come through Peoria again? We can always re-convert the old Rock Island Depot (aka “The River Station”) back into a train station.