News / Chicago port lease deal falls through

Chicago port lease deal falls through

🕔 October 4, 2013
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The Denver-based Broe Group said Monday it had "amicably suspended negotiations" with the Illinois International Port District for a 62-year lease of its Chicago port.

Alex Yeros, managing director of The Broe Group, said in a statement that they we were unable to come to full agreement in our negotiations with the Port District during their 60-day exclusive negotiation period. However, Broe will continue to operate the railroad at the port that it has run there for 20 years.Broe had proposed attracting $100 million in investment to the port in the first 10 years and attracting nearly $500 million in economic investment over the lifetime of the proposed 62-year lease.A preliminary agreement called for Broe to retain 90 cents of every dollar in new revenue generated by port operations. Broe also would pay the agency $1 million a year.Last year, external consultants wrote a report which made clear that the operation desperately needs capital investment "to redesign facilities, effectively market its property and re-establish relationships with key stakeholders of the region's freight transportation system."The Chicago port, which acts as a connector between the Great Lakes and the Gulf of Mexico, moves commodities such as scrap metal, lumber and grain. The port came into the black last year for the first time since 2001.

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