$. 2. l : º- sº sº ||2-ºx ºi.y 2 is s E. : 7 ſ TRANSPORTATION LIBRARY H. E. 5.54- C-4- Report on LAKE CALUMET HARBOR DEVELOPMENT CHICAGO REGIONAL PORT DISTRICT JULY 1955 DE LEUW, CATHER & COMPANY e CONSULTING ENGINEERS • CHICAGO --> - - - LA K E CA LUM ET H A R B O R P R O J E CT I NIT I A L S T A GE T_' ) ) ) • • • • • • • • • → → → → → → → → → → Report on LAKE CALUMET HARBOR DEVELOPMENT CHICAGO REGIONAL PORT DISTRICT JULY 1955 DE LEUW, CATHER & COMPANY e CONSULTING ENGINEERS e CHICAGO 2. Transporation * Library D E L EUVV, CAT H E PR & CONM PANY EI N G | N E E R S | 5 O NO R T H WA C K E R D R | V E. CH | CAGO 6 F | NAN CIA L 6 - O 424 July 15, 1955 Chicago Regional Port District Board 160 North LaSalle Street Chicago 1, Illinois Gentlemen: Pursuant to your instructions we have prepared construction plans and specifications for the initial stage of a proposed Lake Calumet Harbor development and are transmitting herewith our report including estimates of cost, maintenance and operating expenses and revenues. This report supplements an earlier report on the same subject dated December 15, 1954, which contained an economic analysis and engineering appraisal prepared jointly by Mr. Walter P. Hedden, transportation consultant, Mr. Louis W. Byrne, consultant on port terminal development, and De Leuw, Cather & Company. During the year 1955, your General Manager-Secretary has been engaged in negotiating leases for the several major facilities incorporated in this project and as a result, you have now entered into firm leases with private operators for all but one of these more important installations. As a result of these lease negotiations, it has been found advisable to make certain modifications in the general planning proposed in the 1954 report. Final contract plans and specifications for these facilities have been completed and agreements have been entered into for virtually all of the work involved in the project, so that the final construction costs have been established within narrow limits, thus reducing the need for contingent allowances to those limited funds required to provide for unforseen items of cost arising during the period of construc- tion of the work. vii You have provided, in our opinion, an excellent basis for the sale of revenue bonds required to finance the undertaking. This has been accomplished by the transfer of the deed for the land of the entire Calumet Harbor area to your Board by the City of Chicago, by firm contracts for construction of the entire improvement, by completion of definite arrangements for land trans- portation access, and by confirmed lease contracts for the use of most of the harbor facilities. The modifications to the 1954 report plan, the revised estimates of revenues, as well as maintenance and operating expenses estimates, have all been reviewed in detail by Messrs. Hedden and Byrne and we are attaching hereto a confirming statement from these consultants. We take this opportunity to acknowledge the most effective cooperation we have had from Mr. Maxim M. Cohen, General Manager-Secretary, and other members of the staff, as well as that of members of your Board. Finally, we wish to express our ap- preciation of the privilege of participating in this project which is to be of such vital importance to the entire Chicago metropolitan area. Respectfully submitted, DE LEUW, CATHER & COMPANY 2-’ Charles E. De Leuw viii Iransportatiº library MAY 7 58 July 15, 1955 Mr. Charles E. De Leuw De Leuw, Cather & Company 150 North Wacker Drive Chicago 6, Illinois Dear Mr. De Leuw : In December 1954 the under signed presented an economic analysis of the Lake Calumet Harbor Development of the Chicago Regional Port District which was joined with an engineering appraisal by your company and presented in a joint report. Since that time your firm has been retained by the Chicago Regional Port District to prepare plans and specifications for this project and to complete a report there on, including estimates of revenues and maintenance and operating expenses. At your request, we have gone over the revised plans and, in consultation with your staff, have analyzed the revenues in the light of the new plans and leases negotiated by the Chicago Regional Port District. Also in conference with your staff we have reviewed the projected operation and maintenance, administration and insurance expenses. We concur in the figures and conclusions reached as stated in your report of July 15, 1955. ºnſ. your*~~ Walter P. Hedden Transportation Consultant 111 Eighth Avenue Terminal Development Two Broadway New York 4, New York FOREWORD The Lake Calumet Harbor Development, as envisaged by the Chicago Regional Port District, presents a realistic charter as to how the Chicago metropolitan area may plan for and construct facilities needed to sustain the growing economy of the middlewestern part of the United States. It is proposed to construct a comprehensive Lake Calumet marine terminal, with access to the Illinois Waterway and the inland water transportation network. and to the Great Lakes, the St. Lawrence Seaway and the oceans. On the landward side, the terminal would be connected directly to the heartland of the country’s industrial and agricultural activity over the most extensive rail and truck highway network in the world. The project is stra- tegically located, whether considered on a local basis, on a regional basis, or on a mid-continent basis. Its planning and design are based on sound and proven engineering and economic principles. The terminal construction will provide the physical means by which private enterprise can satisfy the tre- mendous and growing need of mid-America for efficient and low cost trans- portation of goods in ever-increasing quantities. xi TA B L E O F C O N T E N T S Page Letter of Transmittal .................................................................................................... vii Statement of Transportation and Port Terminal Development Consultants............ ix Foreword …~~~~ xi Chicago–A World Port................................................................................................ | Land Transportation Available ............................................................................ 6 Present Port Facilities in Chicago........................................................................ 6 Need for Adequate Harbor Facilities.................................................................. 8 The Chicago Regional Port District............................................................................ I3 Available Harbor Sites.......................................................................................... 14. The Lake Calumet Area........................................................................................ 14. Preliminary Steps … |7 Description of Project.................................................................................................. 19 Site Preparation … 19 Road and Rail Facilities ...................................................................................... 20 Dock Bulkhead and Wharf .................................................................................. 24. Transit Sheds … 27 Back-up Warehouse .............................................................................................. 28 Fire Protection and other Utilities........................................................................ 28 Grain Elevators … 3] Port Office and Service Building .......................................................................... 32 Estimate of Cost of Construction ................................................................................ 37 Construction Program ...…...............…....…. 39 Estimated Progress Schedule and Fund Requirements ...................................... 39 Maintenance and Operating Expenses ........................................................................ 40 Maintenance Reserve Fund .......................................................................................... 42 Renewal and Replacement Fund .................................................................................. 42 xii TABLE OF CONTENT'S (Continued ) Page Estimates of Revenues * * * * * * * w = * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * sº es as * * * * * *s a sº ºn - tº º ºs º as ºs e a m = * * * * * * 42 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * - - - - - as as a • * ~ * * * * * * * * * * * * * * * - - - e s as as ºn 43 Other Income ... * - ... 45 Back-Up Warehouse .................................................................................... 45 Ocean Tonnage – Wharfage ...................................................................... 45 Ocean Tonnage – Dockage ........................................................................ 45 Elevator Dockage ....................................................................... - - - - - - - - - - - - - - - - - - - 45 Barge Wharfage … 46 Barge Dockage … 46 Railroad Track Rentals ................................................................................ 46 Back-Up Area Rentals .................................................................................. 46 Other Miscellaneous Revenues .................................................................. 47 Summary of Estimates .........................…..........…........…. 47 Guaranteed Income … 48 Financial Summary … 48 LIST OF EXHIBITS Number I Water Routes Accessible to Lake Calumet Harbor.................................. 3 2 Trend of Grain Receipts and Elevator Storage Capacity in Chicago...... 9 3 Initial Project – Lake Calumet Harbor.................................................... 2] 4. Transit Shed … 25 5 Back-Up Warehouse .................................................................................. 29 6 Grain Elevator ~…~~~~~~~…~~~~ 33 7 Port Office and Service Building................................................................ 35 A PPEND IX A Letter from Chicago, Rock Island and Pacific Railroad Company B Letter from Department of Public Works and Buildings, Division of Highways C List of Contracts — Initial Project D Leases for Major Facilities xiii CHICAGO — A WORLD PORT Chicago’s predominant position as an inland transportation center needs no elaboration. The factors that have created its present importance are: ideal geographical location, population growth with accompanying enlarging com- mercial activity, and accessibility to producers and consumers in balanced proportions. These same factors are more valid today than ever before. The enhancement of Chicago's strategic position which will follow the completion of the St. Lawrence Seaway and the improvement of the Calumet- Sag Channel are of such import that the background of Chicago’s present water transportation experience is here summarized to permit adequate under- standing of its potential for the future. In a word, when the St. Lawrence Seaway is opened for traffic, Chicago’s destiny to be one of the world’s lead- ing ports can be realized. At a later date, when the Calumet-Sag Channel is enlarged, the trend will be even more pronounced. Of the four water trade routes leading to the rich interior of the con- tinent, the Mississippi and the St. Lawrence provide by far the most effective transportation penetrating as they do into the heart of the great central agri- cultural and manufacturing area. It was inevitable that a great city should rise on the divide between these two giant waterways to bring together the complementary products of north and south, east and west. The relationship of Chicago and Lake Calumet Harbor with the network of waterways is shown on Exhibit No. 1. In recent years, the waterway traffic of the Chicago area has been of three types: (l) lake shipping, amounting to almost two-thirds of the total traffic for the port, consisting principally of bulk commodities such as iron ore, coal, limestone, grain, sulphur, petroleum and other cargoes, much of which is carried in 540-foot long vessels with 21-foot draft of the type that can operate practi- cally through the Calumet River and to Lake Calumet; (2) internal barge movements of the inland waterway system of mid-America and the Calumet-Sag, amounting to nearly one- third of the total traffic, handling grain, coal, sand and gravel, sulphur, petroleum products, and iron and steel manufac. turers; and (3) direct overseas traffic handled in ocean-going vessels able to negotiate the present restricting St. Lawrence canal and lock system. Overseas traffic was initiated in 1941 and has only very recently begun to be an important factor with the re- sumption of normal post World War II trade relationships. Shipments through the Port of Chicago reached a total of almost 40,000,000 tons in the year 1953, with an additional 30,000,000 tons handled through Indiana Harbor, Gary and Buffington. The growth of traffic of all sorts through the Port of Chicago since 1935 is shown in the following tabulation: Total Shipments — Port of Chicago.” Year Tons Year Tons 1935 10,875,664 1945 21,183,511 1936 15,314,966 1946 19,984,027 1937 19,292,353 1947 27,805,103 1938 13,663,521 1948 27,956,084 1939 17,449,354 1949 26,139,332 1940 20,329,521 1950 32,651,794 194] 24,546,442 1951 35,259,948 1942 23,468,725 1952 31,059,745 1943 22,719,483 1953 39,560,726 1944. 25,699,390 *Source: Corps of Engineers, Chicago Even before the creation of a direct link by canal from the Mississippi to Lake Michigan, Chicago was the logical breaking point. As water trans- port grew, a direct connection was made between the Mississippi, the Great Lakes and the St. Lawrence. Today the greatest movement of freight on the vast inland water system is on the Mississippi River and the Illinois water- 2 EXHIBIT M A X / C 0 C A N A D ------------ | TS--~ \ W-S, \ N. DAK O TA | ( ). Duluth . A \, &\ | TTT ----——— — — — . . W * f T - - - - - 3 MINNE SoT A/. r \S º, sº | f . | Minneapolis & |St. Paul 2^* º | W | S Gº O N S | N To º S. D A K OT A | “º | Jo- 4Sº e _ºp Buffalo - - - - - - - - - - - - - - - -- Un - TTTT------------- º, Milwaukee Cº. v. Sº \ \\ … ( 2-stºga% --- ~ T SS ~ -- ~ / ºn W P is \ | c.......ſº, /* c Rºžº L_--- T. ** > < \ * - * \o Sioux City Dubuque ÖA ––––– -- ~~ º \ * | O W A CHICAG dº *-* \ º º BS ZºC, , , , PEN N (f, º Clevelond W * N E B R A S K A * Davenport O/o Rock Island r \ ----- Tº Ornd ho Ri \ Pittsburgh | \ smass- º -- ~ T | \-------------- N C. Peorid | 0 H ! 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V! — — — — — — --- \ ,-- \- - - -— — — — - - - - - / / \ \- W ſ Bot on Rouge --ºs ) 3& Tº &_4 --~ / tº * New Orleons N £-º-º-º: SSS \º º \ º S C A LE T--~~ O 3O IOO 200 ſº L ºf $ : ; CH | C A G O REGIONAL PORT DISTRICT WATER ROUTES ACCESSIBLE TO LAKE CALUMET HARBOR DE LEUw, cATHER a COMPANY ENGINEERS CH |CAGO CHICAGO AND LAKE CALUMET HARBOR way connecting Lake Michigan with the Gulf. The growth in traffic on the Illinois waterway during the past 12 years has been substantial. The follow- ing tabulation shows the total tonnage of freight on the Illinois waterway, as well as the portion delivered to the Calumet Industrial Area via the Calumet-Sag Channel: Total Shipments on the Illinois Waterway” Portion on Calumet-Sag Channel Year Total Tons Total Tons Per Cent 1943 6,455,373 828,261 12.9 1944. 7,803,577 1,165,388 14.9 1945 6,590,939 1,027,686 15.6 1946 6,913,721 1,093,786 15.8 1947 10,165,293 1,779,921 17.6 1948 12,279,945 2,092,772 17.1 1949 12,895,114 2,775,788 21.5 1950 16,420,619 3,223,853 19.6 195] 17,617,941 3,133,507 17.8 1952 17,393,742 3,529,166 19.1 1953 20,077,000 3,575,688 17.9 *Source: Corps of Engineers, Chicago This development of water transportation has been steady, sound and significant. It has to date been of greatest interest and benefit to commerce involving bulk commodities, characteristic of the region served. With the recent rapid growth of industrial production in the mid-west, quite naturally the attention of shippers of these newer interests is being directed to the already established water transportation system. In the lower St. Lawrence region, industry will be stimulated, not only by the improved shipping advantage of the seaway itself, but also by the new power developments in Ontario and Quebec Provinces. In short order, we can expect an increase in steel and related heavy industry, further growth in smaller industries throughout the entire lake region, and cheaper bulk transport for iron ore, coal, petroleum and grain. 5 An important factor in the balanced economy that will evolve in the St. Lawrence valley region will be more two-way loads. For example, ships bringing iron ore to Chicago from Labrador and Quebec will carry back bulk cargoes of grain, coal, sulphur and similar commodities. The St. Lawrence Seaway Development Corporation estimates that the through traffic on the St. Lawrence-Great Lakes waterway will rise to a total of 36,500,000 tons in 1959 and to 52,000,000 tons by the year 1965. This is more than five times the 1953 total tonnage, which was approximately 10,000,000 tons. Land Transportation Available Twenty-three railroads radiating from Chicago in all directions have long provided rail transport facilities of a magnitude found nowhere else in the world. Connected by three belt lines and served by modern and efficient yard and switching facilities, these railroads provide an unexcelled oppor- tunity for flexible and competitive rail movements. This vast and effective rail system has been paralleled during the last thirty years by the completion of a state and federal highway network similar in scope. Thus, it is that the Chicago area now has available to it first, an estab- lished water-route transportation network capable of expansion and adap- tation to new needs; second, an established rail and highway transportation system growing with the demands of the wide areas served; third, a great productive activity and a great productive potential. These three points ex- plain how and why Chicago's evolution into a world port is now becoming a reality. Present Port Facilities in Chicago There are approximately 150 separate water transportation terminals in the Chicago area at the present time. Most of these handle bituminous coal, building materials, grain, petroleum products, iron ore or bulk chem- icals for consuming or producing industries located adjacent to a waterway. Cargoes move over the Great Lakes and the Lakes-to-Gulf Waterway to and from these plants. A number of the terminals operate as transfer points for the handling of general cargo, the grain trade and other bulk items. 6 Chicago by virtue of its location has long been an important center for the handling, marketing, and shipping of grains of all kinds. Its total grain storage capacity in 1954 was 59,328,000 bushels and completion of the new Glidden Company elevator on a Calumet River site will increase this total to approximately 65,000,000 bushels. Much of this imposing total of grain storage capacity has been in very old facilities not conducive to economical large volume operation. Approxi- mately 40 per cent of the total storage capacity was constructed prior to 1920 and only about 50 per cent has been built during the past thirty- five years. Fires and the ravages of time have caused retirement of elevator storage and operating capacity roughly equal to the volume of new construc- tion, so that the total available capacity over the long term has remained fairly constant. See Exhibit 2. Total movements of grains and soybeans through Chicago during the past fifteen years are shown in the following tabulation: Total Movements of Grains and Soybeans Through Chicago.” Year Bushels 1940 179,609,000 194] 204,891,000 1942 211,143,000 I943 242,510,000 1944 243,645,000 I945 234,307,000 1946 236,370,000 I947 280,605,000 1948 219,642,000 1949 254,619,000 1950 241,894,000 195] 245,361,000 1952 268,977,000 I953 238,123,000 1954. 231,140,000 *Statistical Department, Chicago Board of Trade Studies from several independent sources indicate that the trend of increased grain movements will continue before and after the completion of the St. Lawrence Seaway and the Calumet-Sag Channel. There is and there will be a need for additional grain elevator installations, especially those that can offer the best in transportation access and opportunities for favorable operating conditions. Chicago's most important present general cargo terminals are housed in improvised quarters, adopted for use by their operators as a matter of necessity. While they are well located with respect to their water access for barge, lake vessel and overseas freighter, they are not satisfactory from the standpoint of cargo handling on the dock face, or for the transfer of cargo to or from rail and truck shippers. This fact is reflected in the excessively high terminal and stevedoring costs that now prevail, acting as a deterrent to the normal volume of business generated in and through Chicago. Steam- ship and barge operators and terminal managers are unanimous in agreeing that they are now unable to offer efficient and competitive service while operating through presently available dock and wharf facilities. The in- adequacies of Chicago's port facilities are now probably most pronounced for the handling of general and merchandise cargo. Need for Adequate Harbor Facilities The Chicago Port currently ranks second among Great Lakes ports in volume of water-borne traffic. The tonnage handled in Chicago and the nearby Indiana ports exceeds that of all salt water ports of the United States with the single exception of the Port of New York. The water-borne tonnage of Chicago is now appreciably greater than that of the Panama Canal. On the Great Lakes, Chicago's trade by water is second to that of the Port of Duluth-Superior, which is characterized by an almost complete con- centration on bulk cargoes, especially ore and grain from producing areas that are defined and fixed geographically. Bulk cargoes have been and will be important to Chicago, but not to the exclusive degree true of many other ports, Chicago's position as a shipping center is indeed unique. The bulk commodities shipped to and from the Chicago area are essential to a tre- mendous variety of consuming and producing industries which are major components of the economic base of the metropolitan area and the entire midwest. EXHIB|T 2 3OO 25O 2OO |5O |OO 5O | 935 NOT E : SOURCE OF DATA – C H | CAGO BOARD OF TRADE STO RAGE CA PAC | T Y DOES NOT I NCLUDE PRO POS E D 6.5 M | LL | ON BUS HEL EL EVA T OR UN DER CONSTRUCT | ON FOR GLI DDEN COMPANY 1940 ANNUAL REC El PTS OF A LL GRA| N GRA | N ELE VAT OR STORA GE CAPA CITY 1945 |95 O 1955 CH | CA G O REGION AL PORT D S T R | CT TREND OF GRAIN REC E | PTS AND ELE VAT OR STOR A G E CAPAC | T Y |N CH | CAGO D E L E Uw, CATHER a COMPANY E NG|N E E RS CHICAGO Diversity of traffic has been the key-note of the growth of Chicago’s commerce. This diversity has been a natural result of Chicago's being the only Great Lakes port with inland waterway barge traffic of real importance and industry and population of real consequence, while being the long es- tablished nerve center of the nation’s rail and truck traffic. Chicago's wide variety of activities makes it naturally a focal point for the shipping of bulk commodities needed by heavy industry, grains and general merchandise items. Of the total grain storage capacity now available or building in the Chicago area, 13 per cent was constructed prior to 1900, 25 per cent during the period 1900-1920, and almost 4,500,000 bushels of capacity is of partial wood frame construction. Only about one-half of the projected total capacity for 1956 has been built in the past 35 years. A substantial proportion of the present grain elevator installations are in places that are not well located to make best use of the transportation services most attractive today and in the future. A casual analysis of the experience of the Chicago area’s grain traffic will show that the over-all annual receipts of grain each year have recently been approximately four times the gross storage capacity of elevators of all kinds in the area. A study in more detail will show that through the years an increasing proportion of the total volume of grain is moving through the best located and best equipped of the existing elevators. It is apparent that grain operators seeking expansion opportunities or the establishment of operations for mass handling, holding and movement of grains desire modern low-hazard, low unit-cost terminal facilities. Such ideal installations are not now available in the Chicago or Great Lakes area. Chicago's existing marine general cargo terminals do not have modern transit sheds for efficient low-cost cargo handling and direct transfer of freight to and from land transport facilities of the railroads and trucking lines. There are no harbor terminal facilities with immediate access to ad- jacent warehousing units so common in or near other successful port opera- tions. The presence of these transit sheds and allied storage units permits the shipper of domestic and overseas cargo freight to avail himself of what amount to in-transit storage, while giving the terminal operator opportunity for offering efficient service and mechanized freight handling, with resultant 11 lower operating costs. It is well known by shippers and marine terminal managers that well planned and located physical plant facilities are condu- cive to creating an excellent competitive position. Metropolitan Chicago, through its strategic location with respect to sources of raw materials and agricultural products, has become the nation’s most important diversified industrial production center, with a 1955 output of 17 billions of dollars, as compared to 4.3 billion in 1939 and 8.7 billion in 1946. Its increase in productive plant facilities since World War II has been more than double that of any other metropolitan area in the United States. This is the sort of expansion that generates shipping needs for general cargo, consisting of merchandise and manufactured items of high value, either produced or marketed in the land area of the Chicago transportation complex. The diversity and also the potential for growth of water-borne cargoes in the metropolitan area of Chicago have no equal elsewhere on either the inland waterway system stemming from the Mississippi, Missouri and Ohio River areas, or on the Great Lakes. This situation is the result of Chicago’s strategic position and the many other factors that have made this city’s economy great and steadily growing. The completion of the St. Lawrence Seaway in 1959 will be a decided factor in the development and character of water shipping of the Chicago area; the later projected improvements in the Calumet-Sag Channel will prove to be an additional cause of expansion. Chicago is today, by virtue of its position in the country’s economy, needing only adequate and timely local water-rail-truck transfer facilities to sustain its position as the leading comprehensive inland port in America. | 2 THE CHICAGO REGIONAL PORT DISTRICT The Chicago Regional Port District Act, passed by the Illinois General Assembly and approved by the Governor in June 1951, established a Port District Board and required it, among other things, to study existing harbor plans and to make recommendations for the extension of harbor and terminal facilities within the bounds of the District. The Chicago Regional Port District embraces parts of Cook and Du Page Counties, including Calumet Harbor on Lake Michigan, the Calumet River, Lake Calumet, the Illinois portions of the Little Calumet River, the Calumet- Sag Channel, and a portion of the Chicago Sanitary and Ship Canal. The first biennial report of the Port District Board dated February 1953, entitled “Where Two Great Waterways Meet” outlined organizational and preliminary planning progress accomplished during the first two years of the Board’s existence. The report contained a number of recommendations for physical improvements of the Calumet-Sag Channel and Calumet River waterways with the cooperation of the United States Government, and the Port District’s development of a comprehensive ship-barge-rail-truck terminal on Lake Calumet. It further recommended certain revisions in the enabling legislation to enlarge the territory of operations of the Board to more ade- quately cover the entire Greater Chicago area, and to broaden the Board's powers to arrange financing for the construction of harbor and terminal facilities. In 1953, the Port District Act was amended by the General Assembly, vesting with the Board the power to issue revenue bonds to provide capital funds for construction. The amendment provided that all such indebtedness would be an obligation of the Port District itself and that fixed charges on the debt would be payable solely from net revenues to be derived from the leasing and operation of the constructed installations. In 1955, the Port District Act was further amended to eliminate the unworkable provisions of the law which limited the Board to the construction and leasing of facilities to those for temporary storage. | 3 Available Harbor Sites The Chicago metropolitan area, while it fronts on Lake Michigan, is severely limited in the number of lake sites available to it for comprehensive harbor, port terminal and associated industrial development. Any location to be seriously considered for improvement must have ready access to Lake Michigan, to Chicago's unique trunk line railway connection system, to the area's highway network, and to the already established Illinois Lakes-to-Gulf Waterway. The Lake Michigan shore is largely committed for recreational and park facilities, non-commercial vehicular transportation, housing and heavy manufacturing. The few shore areas available are not readily acces- sible to rail and truck arteries that must handle almost all traffic, either in- bound or outbound from a deep water harbor terminal. The Chicago River and the Calumet River properties have long attracted intensive industrial growth because of their opportunities for cheap trans- portation. These locations do not now have sufficient available raw land for terminal development. Studies of the Chicago Plan Commission and other agencies show that approximately three-quarters of all City of Chicago acreage usable for future industrial development is in the vicinity of Lake Calumet. Much of the vacant land in this area, zoned for industrial and manufacturing use, is now owned by railroad companies and other producing organizations which have a vital interest in the future of the Lake Calumet region. It is clear that this district will be developed soon within the framework of the natural growth of Chicago industry, and that this growth will be closely related to needs for economical transportation. It is for these reasons that the Port District Board and its staff have focused their primary attention on the Lake Calumet area and its waterway connections. The Lake Calumet Area Lake Calumet, a natural body of water, approximately 1,800 acres in area, is located in the southeastern portion of the City of Chicago (See Exhibit 1). It is directly served by two highways—the Calumet Expressway (South Doty Avenue—U. S. Highway Route Alternate 30) on the west and by East 130th Street on the south. The bottom of the lake is clay, and much 14. of the surrounding land is low and marshy, undeveloped except for limited areas—largely along the westerly shore. The north end of the lake is now being filled by the City of Chicago. Title for all underwater lands and for riparian rights, for a tract of approximately 2,300 acres formerly held by the City of Chicago, has been transferred to the Port District under a quit-claim deed dated April 19, 1955. A one-quarter-mile long natural inlet connects Lake Calumet with the Calumet River. The river flows northward, providing an approximately six- mile long route to Lake Michigan through Calumet Harbor. Since 1884, the United States Government, through the Corps of Engineers, has maintained the Calumet River as a 21-foot depth navigable waterway to Lake Michigan. To the south, Lake Calumet has a 9-foot depth connection to the Lakes- to-Gulf Waterway via the Little Calumet River and the Calumet-Sag Channel. Since 1930, the Cal-Sag channel has been a part of the federally sponsored inland waterways system. Lake Calumet keeps the same water level as that of Lake Michigan and the connections. In 1936 the United States Engineers dredged a 60-acre, 21-foot deep basin in the southern end of Lake Calumet, and a deep water channel con- necting with Turning Basin No. 5 on the Calumet River. This improvement, maintained by the Federal Government, provides Lake Calumet with a direct access to the Great Lakes and to the Lakes-to-Gulf Waterway. The adequacy of the present Calumet River and Calumet-Sag Channel connections to Lake Calumet are important, for they will be a factor in the ability of this inland harbor terminal to attract and retain water transporta- tion business. The Calumet River is presently 200 feet wide, and has three turning basins between Lake Calumet and Calumet Harbor on Lake Michigan. With its navigation depth of 21 feet, and with minimum horizontal bridge clear- ances of approximately 80 feet, it is now capable of handling lake and ocean vessels of up to 540 feet in length. This compares with the present limitations of the St. Lawrence Canals which restrict vessels to a 258-foot length, 14-foot draft. The new locks to be constructed in connection with the St. Lawrence Seaway will be approximately 800 feet long and will have a depth of 27 feet. 15 Statistics available through the Chicago Division office of the Corps of Engineers indicate that approximately 23.5 million tons of shipping moved through all or part of the Calumet River in 1953. There are a number of moveable bridges over the Calumet River which create highway congestions at several locations, but lesser problems for water transport. Present normal travel time over the river from Lake Calumet to Calumet Harbor on Lake Michigan is about two and one-half hours, which is considered satisfactory. The Corps of Engineers have unofficially estimated the present practical capacity of the Calumet River at thirty million tons per annum. Thus, the connection to Lake Calumet is entirely adequate for access to Lake Calumet Harbor from the Great Lakes. The 9-foot deep Calumet-Sag Channel carried slightly under four million tons of barge traffic in 1954 and has the capacity for somewhat higher volumes. At present, this portion of the waterway has a usable width of 60 feet, restricted to a 50-foot width at controlling lock locations. It is well known that the potential tonnage for this route is many times larger than presently handled, and that channel widening to 225 feet, and bridge improvements authorized this year by Act of the United States Con- gress (with an initial appropriation of $4,000,000) will encourage the use of larger barges, larger tows and more powerful tow boats. Much of this future added tonnage may be expected to be handled at Lake Calumet Harbor, but because of the projected time schedule of the Cal-Sag improvements, this future influence has not been considered in estimating the revenues for the Initial Stage Harbor Development. Since 1921, the City of Chicago has had an official plan for a deep water harbor development at Lake Calumet. In the year 1940, the City of Chicago completed the construction of a steel sheet piling dock approximately 755 feet long on part of the southern edge of the dredged basin of Lake Calumet. At the same time, the City dedicated street accesses to allow the beginning of barge and ship and truck transfer of general and bulk cargo. | 6 PRELIMINARY STEPS The Board, upon its organization, determined that its efforts should be pointed toward first, initiating an extensive study of previous and existing Chicago port development activities and second, preparing in direct accord- ance with the spelled-out mandate of the Act, the outline of a broad founda- tion for a comprehensive plan for port development in the Chicago region, contingent upon the continuation and expansion of the powers, jurisdiction and budget available to the Board. From this early activity, came the pub- lication, in February 1953, of the First Biennial Report of the Chicago Re- gional Port District entitled, WHERE TWO GREAT WATERWAYS MEET. This document, prepared through the cooperation of the Board staff, the Board members themselves, and numerous other public-spirited citizens from many walks of life, has proven to be a most enlightened and penetrating study of the problem of port facility need and development. The report critically and constructively reviewed the position of the new Chicago Re- gional Port District with respect to earlier water transportation activities in the region, analyzed the immediate and long-term needs of the whole area, and then made several positive recommendations for first attention of the interested public. Among these were: (1) the need for amendments in the enabling Port District Act (since approved and passed by the 68th and 69th General Assemblies of the State of Illinois) and (2) the need, as a first order of business, of the immediate de- velopment of a major marine terminal port for the Chicago region. On June 1, 1954, the Chicago Regional Port District Board submitted to its investment bankers, definitive proposals in the form of a prospectus for the Initial Stage of a Harbor Development in the Lake Calumet area. This material served as a basis for a detailed report, ECONOMIC ANALYSIS AND ENGINEERING APPRAISAL, dated December, 1954, prepared by Walter P. Hedden, Transportation Consultant; Louis W. Byrne, Consultant on Port Terminal Development of New York; and De Leuw, Cather & Com- pany, Consulting Engineers, Chicago, which determined the feasibility of revenue bond financing of the initial project. 17 In the early months of 1955, the activities of the Board, its staff and its consultants have been directed to defining the details of the initial Lake Calumet Harbor project; and to the negotiation of leases for the several facilities. The Board has entered into a contract with De Leuw, Cather & Company for the engineering services required for the completion of plans, estimates, specifications and supervision of construction of the initial project. The Board advertised for bids for the construction of work included in the initial de- velopment; has awarded contracts for same; and has entered into contracts with various private operators, providing for the leasing of the grain elevators and transit sheds included in the initial project. 18 DESCRIPTION OF PROJECT The first stage of the Lake Calumet Harbor development will consist of a 70-acre ship and barge mooring basin, flanked by approximately 5,700 feet of modern steel docks and about 125 acres of man-made land, forming the usable port area. Railroad connection from the west and highway en- trances from the west and the south will provide land transportation access to the two major portions of the facilities: 1. the grain elevator area 2. the transit shed, open dock and back-up warehouse area. The general layout of the initial project is shown on Exhibit 3. There will be two reinforced concrete grain elevators, each with 6% million bushel storage capacity, designed and located for efficient handling of midwest and foreign grains. The covered transit sheddage, adjacent paved wharfside open areas, and nearby back-up warehouse space provide facilities for economic transfer of general and bulk cargo between barge, ship, rail, and truck transport. Each of the individual operating units, with the ex- ception of the warehouse, have been leased to experienced private business concerns; the Port District will manage the entire harbor area as a compre- hensive whole. A list of lessees for major facilities is shown in an appendix. Site Preparation A substantial share of the land assigned for the transit shed, open paved area and warehouse portion consists of dredged clay spoil, placed when the present small mooring and ship basin was dredged in 1936. Recent test pit observations, soil borings and laboratory tests of soil samples show that much of the clay is well consolidated with a reasonably low moisture content, making it suitable for light building foundations and as a base for open hearth steel slag fill for open areas, roads and railroad trackage. The dredging of the new slip servicing the grain elevator area and the extension of the deep water basin will provide a substantial quantity of spoil material which will be used to fill and make usable an existing swampy de- pression ten acres in area near Doty Avenue. Soil test borings to rock have 19 been analyzed to determine the character of the material in the harbor area. Tests indicate that the soils lack the stability required to permit the support of heavy loads on spread footings. Consequently, untreated timber pilings are planned to provide the most feasible and economical foundations for grain elevator and other major structures’ foundations. Entrance gates and security fencing will be provided in the immediate vicinity of the harbor site highway access on the west off the Calumet Express- way, and on the south off East 130th Street. The topography of the property borders at other locations will provide an effective barrier to trespassers or uncontrolled vehicle movements. Road and Rail Facilities Design criteria for road and rail facilities for the Lake Calumet Harbor have been based on intensive studies of the shipping habits of the private firms that will lease the grain elevators, transit sheds, open areas and ware- house space. Initially it is anticipated that some nine-tenths of cargo handled through transit sheds will be moved by truck, and that about two-thirds of the total volume of grain will be shipped by rail. It is indicated that within a ten-year period incoming grain shipments will probably be approximately one-half by rail and truck and one-half by barge operating over the inland waterway system. All-weather bituminous type pavement will be used for the areas ad- jacent to the truck docks of the warehouse and transit sheds and for the en- trance roadways and access roads to the two major functional areas of the harbor. Parking areas for these facilities will be provided on leveled, com- pacted and drained surfaces of the slag used for fill. Approximately ten miles of railroad tracks, including a rail yard for classification and short term car storage, and about two miles of roadways will be provided properly to accommodate the volume and character of business projected for the harbor. The Chicago Plan Commission late in 1954 completed a comprehensive survey concerning anticipated industrial development, population trends and vehicular traffic in and near the Lake Calumet region, projected to 1970. The traffic density studies are of particular interest as they offer a scientific projection as to the adequacy of trucking access to the Lake Calumet Harbor location. They show that the two principal arterial routes connecting to the 20 EXHIBIT 3 L A /K A O A 4- {Z // A 7. Ax/S7//v G D AEATH 4': - RIPRAPPED EM BANKMENT O 2OO 4 OO 6 OO SCA LE | N F EET ãºss tºº, FUTURE GRADE SEPARATED CONNECTION TO C.R.I. a P. R.R._rºw AND CALUM ET EXPRESSWAY TEMPORARY AT-GRADE CONNECTION TO C.R.1. 8 P. R. R. \ RELOCATION OF THIS T RACK BY OTHERS Sº 7 OAP/V//VG s 64% a FRöPFRTYTLINETOFTLAKETEALUMETTAREORIZ ^ Chicago Regional Port District |N|T| AL PROJECT LAKE CALU M ET HAR B O R DE LEUW, CATHER 8 COMPANY ENG | N E E RS CHICAGO \ EXISTING C. R. I. A P RR. Track is > N FUTURE LOCATI / N \ – ~ EAST 130th ST. S. s. T = TIE – --- – ----sæ- harbor area—the Calumet Expressway north and south, and East 130th Street east and west—are now being used to somewhat less than 40 per cent of their practical present capacities. By 1970 it is predicted that these routes will still be adequate by virtue of their present design and the ad- dition of several connecting improvements that are already in the planning Stage. Potential operators of harbor leaseholds and the trucking industry have expressed their satisfaction with the on-site road and parking facilities planned. It is believed that anticipated truck movements will be adequately provided for and controlled by the general plan and facility locations for Stage One of the harbor development. Daily railroad switching service for the harbor will be furnished by the Chicago, Rock Island & Pacific Railroad, under the rules of the Chicago Switching District, from the Rock Island classification yards, located north of Lake Calumet at East 95th Street. Interchange connections with Chicago’s three belt line railroads (Belt Line Railway of Chicago; Elgin, Joliet and Eastern Railway; and Indiana Harbor Belt Railroad) and 23 trunk line railroads serving the entire Middle West are available from this location. In 1954 the State of Illinois Division of Highways and the Rock Island Railroad entered into an agreement to provide for a rail entrance to the Port District from the west. The present trackage of the Pullman Railroad Company (now owned and operated by the Rock Island) will be relocated to coordinate with the west highway entrance. Initially the rail crossing of the Calumet Expressway (South Doty Avenue) will be at grade, but for the future, a rail and highway grade separated overpass is proposed. The distribution of construction cost for this improvement is subject to negotia- tion between the Railroad Company and the State of Illinois. The car storage area for the two grain elevators will allow their use at full operating capacity. Rail access to the warehouse and both the water and land sides of the transit sheds have been designed to allow efficient handling, distribution and collection of harbor rail freight. 23 Dock Bulkhead and Wharf The present maintained navigation depth at Lake Calumet, in the Calumet River, and at Calumet Harbor on Lake Michigan is 21.0 feet. Some maintenance dredging is currently required in the Lake Calumet Basin, where recent soundings showed an actual depth of 15.0 feet below Chicago City Datum. The Port District Board and the Corps of Engineers have reached an agreement whereby the necessary maintenance dredging to be done by the Corps of Engineers is being scheduled as follows: slightly over one-half of the work will be performed in fiscal year 1955, the remainder in fiscal year 1956. Over-all plans for the future development of facilities for Great Lakes and ocean shipping through the St. Lawrence Seaway are based on working depths of 27.0 feet. Accordingly, all new steel sheet piling docks for the proposed harbor have been designed to allow future dredging without the necessity of later structural dock changes. Soil tests indicate that the stiff clay into which the new dock bulkhead will be driven will satisfactorily hold the dock face and tie-backs needed for stability. The City of Chicago dock adjacent to the present dredged basis of Lake Calumet is in good condition. The plans for the initial program pro- vide for the raising and strengthening required for continued use with ex- pected heavier railroad track and wharf loads. The eventual increased basin depth will require some additional modification of the existing dock wall. Thus the present city dock will become a part of the structure for the new transit shed area. The paved dock apron for the transit shed and open paved wharf-side areas will be built to an elevation 8.0 feet above lake level to permit de- pendable all-weather drainage for the adjacent operating area. The top of the steel bulkheads for the grain elevator area has been set at elevation 6.0 feet above lake level. Both of these heights will allow satisfactory load- ing and unloading of barges and lake and ocean vessels. Adequate mooring cleats and bollards on the docks and mooring dolphins in the anchorage basin have been provided. The dock facilities are being designed to furnish facilities for the winter berthing of lake vessels. Water and power connections will be available through the Port District’s installation. It is anticipated that fuel and other needed supplies will be obtained from bulk dock concessionaires. 24 EX H |BIT 4 0 FF 1 c E A N D E M P Low E E S Lunch WAS H R O O M S A N D LO C K E R R O O M S C O N T | N U OU S C A N OPY C O N C R E T E PLAT F O N M EAST E L E VAT |O N .5 s” V E N T | LAT O RS C O N C R E T E W A LL OF F 1 C E AND E MPLOY E E S L UNC H., WA 8 H R O OM S AND LOC K S R R O O M 8 | 5 B A Y S A T 4 O' = 6 O O" - O O NORTH E L E VAT | ON V E R T I C A L L | F T DO O RS | 2 O'- O " C O R RU G AT E D AS B E S TO S C E M E N T S I D | N G 6 O'- O" CONT | NUOU 8 “nor, ZE =& -(3) G-: O T R UC K C O N C O U R S E TRAN SV E R S E S D O C & A P R ON ECT | ON C H | C A G O REG | O N AL PORT D | STR | CT TRANS IT SHED E LEVAT I O N S AND SECT |ON DE LE Uw, cATHER a co M P A NY E N G | N E E RS C H | C A GO Transit Sheds Three noncombustible transit sheds as illustrated in Exhibit 4, two with working areas of 72,000 square feet each, and one with an area of 172,800 square feet, are to be built. These will be flanked by large open improved areas for the handling of general and bulk cargo. Double track rail access has been provided on both the wharf and landward sides of the buildings and a continuous covered truck dock opens to the truck concourse on the south. Each shed will be a self-contained operating unit and will include a two-story administrative unit for the lessee's office organization and for the United States Customs. Wash room and locker facilities for dock and warehouse workers are provided on the transit shed level near the lessee's office areas. The sheds are designed to be 120 feet wide inside, and either 600 feet or 1440 feet long, with the roofs supported by single rows of interior steel columns, placed 40 feet apart. The clear interior minimum heights will be 20 feet to allow pallet cargo handling operation across the houses and cargo doors will be of the vertical lift type. The roof decks will be insulated steel, while the exterior walls will be reinforced concrete where exposed to cargo movements, and corrugated cement asbestos siding above. These materials have been selected to require the least continuing maintenance and to qualify for reasonably low insurance rates. The sheds and adjacent paved areas have been placed to allow the berthing, loading and unloading of five 540-foot lake or ocean vessels simul- taneously. This spacing was chosen after careful study of cargo movements expected at the dock face and through the sheds. The general arrangement of the sheds, their relation to dock bulkheads, general storage areas and land transportation facilities and their oppor- tunity for good supervisory control of cargo movements have been com- mended by shipping firms and terminal operators intending to lease the new quarters. The sheds have been designed to permit the installation of such heated areas as may be required for the handling of parishable car- goes. They will have modern ventilation and will be equipped with fluor- escent interior lighting and outdoor flood lighting to permit round-the-clock operations. 27 Back-up Warehouse The initial project includes a single one-story warehouse 200,000 square feet in area, shown on Exhibit 5, for receiving and sorting goods for trans- shipment. This building will be separated by dividing fire walls into four separate working areas, one heated and three unheated. The general con- struction provisions and materials used will follow the same design criteria established for the transit shed structures. Rail access doors and covered track dock entrances will be placed to permit across the house movement of merchandise and goods. A centrally located two-story office and service unit within the warehouse structure will permit supervisory control and will pro- vide adequate facilities for office and warehouse personnel. Fire Protection and other Utilities The entire Harbor District area will be serviced by strategically lo- cated hydrants and all of the warehouse and transit sheds and contents will be protected by modern automatic sprinkler systems and fire detection devices. Around-the-clock watchman service will be provided. Adequate water pressures for fire protection purposes will be assured by an independent water supply system fed by a 100,000-gallon 90-foot high elevated storage tank and supply lines fed from a City of Chicago 36-inch diameter water main which is now being constructed on East 130th Street, scheduled for completion on December 15, 1955. The Port District will have its fire alarm system tied in with the services of the City of Chicago Fire Department whose closest company station is located approximately four minutes east of the harbor at South Burley Avenue and East 134th Street. The Port District will provide sanitary sewer connections to the system of the Chicago Sanitary District located in East 130th Street. A combina- tion gravity and pressure storm sewer system for the drainage of the usable harbor areas will empty into the harbor. The domestic water supply which will be operationally independent of the fire protection system, will be serviced by the City main in East 130th Street. Electrical power for Port District and lessee's consumption will be available from a number of strategi- cally located substations maintained by the Commonwealth Edison Com- pany at harbor sites provided by the Port District. 28 EXHIBIT 5 25 BAYS (ß) 4 o' = looo' O FF | C E A N D E M PLOY E ES - LU NC H, Lock E R & WAS H.Roo MS F | R. E. W. A. L. L. CO RR U GATED AS B E S TO S CEM E N T S ] D | NG RO OF VENT | LAT OR S V ERT | C A L 4' CONCRETE CU RTA | N WA L. L. T R U C K DOCK LIFT Doo Rs - N ORT H E L E V A T | O N == 2O O' 2~T RO OF *— 50' 5 O' 50' *— — a 5 o' Rºzsºs ZºZº. ZSPNZSZSZSZSZSZSZSL’īSPSzszSzsz SzsasP C OM T | N U O U S CAN OPY ; , ; } : CO N T | NU O U S CANO PY s # ||||| / C O N T | N U O U S CAN OPY |H | * ** - .* tº - - 4. :-- 2P-k : - I { * - ...; SS - D- RO *; Way . º - :: *%. , ~. . . . . . . . . . . . Jº 33 - 3: - - - - - - - - - - - -2T, - 2.....'...}}|ºtº-RöH=%5 £rs.: Lºs = * †† ====T--, - . . . . . --> - - ... • - - - * - " .. " ... - . . . ...' . . . . . ...- - - - - |& N.S.F. Tº ØNYZZZ t ZSNZ Z/ZSNZANYZZZZSNZZZZXXZZZXN&ZZXNN t zzzzºSNZZZzzSNRZZZ º º KZ YZ Nº.2 N. KZ WZZ ZS zzzzºSzzz's ZZXSNZZzº&*R* Ž ... • ** ** * * * - * * * * * & *zzrºz zzºNYZZzz NYZZZ º º * * * - * - - zzzzrºzzº ëzzºzzºzz Z RAM P RAM P ºs I -ºl i T R U C K C O N C O U R S E w; ET - O |(} 32 4, 8 SCA L E | N. F. E. ET EA S T E L E V A T | O N T R A N S V E R S E SEC T | O N chic Ago R E G | O NAL PO RT D S T R | CT B A C K - U P WAR E H O U S E E L E VAT I O N S A N D S E C T J O N D E L E U W , cat H E R a co M PA NY E N G | N E E R S C H C A G O Grain Elevators Two identical grain elevators with a working capacity of 6% million bushels each are planned. These are shown on Exhibit 6. Each structure will be supported on timber pile foundations and will include an enclosed incombustible workhouse and car and truck dumper installations. Each elevator structure will consist of 122 twenty-four-foot diameter silos, sup- ported by storage interstices. Silos will be 135 feet high and will be con- structed of reinforced concrete. The lessee of each of the two terminal units will have a general office for supervision and control of operations and for the convenience of employees. Grain will be moved by rail, truck, barge, lake vessels and ocean ves. sels. Truck dumpers with an unloading capacity of 12,000 bushels per hour and railroad car dumpers with a capacity of eight 50-foot cars per hour are provided for each elevator. Two marine legs will allow unloading of barges or larger ships at the combined rate of 50,000 bushels per hour. Eight dock spouts, each with a capacity of 25,000 bushels per hour are provided at each elevator for transferring grain to ocean or lake boats. Driers are included for the handling of high moisture corn. Bagging equip- ment for foreign grain and shipments and additional drying equipment will be optional with the elevator lessees. Each elevator installation has the capacity of handling, at any one time, 75,000 bushels per hour of incoming grain or 100,000 bushels per hour of outgoing grain or a combined shipping and receiving of 100,000 bushels per hour. These capacities for elevator equipment items have been selected for an economical and efficient integrated terminal operation. The terminal will be well adapted to the water and land transportation facilities. The railroads, the shipping companies, the barge line operators and the trucking companies have cooperated in establishing the design criteria for the grain elevator area. The design of the structures and equipment, the availability of fire hydrants in the area, the Port District’s plans for continuous watchman ser- vice, will qualify plant and contents of the elevators for the lowest insur. ance rate brackets. 3] Port Office and Service Building A strip of land fronting on the main harbor access road and the truck- ing area of the transit sheds has been reserved for a service and administra- tive area for the entire facility. Mobile equipment, including a foam-type fire truck, a plant police prowl car, two automobiles, a pickup truck and a larger truck will be required for fire and security protection, road and track maintenance, snow removal, and the routine operations of the terminal. Shop facilities for the upkeep of buildings and grounds and Port District equipment will be needed and have been provided. These administrative, servicing and maintenance facilities will be housed in a separate Port District office and service building fronting on the main access road across the harbor district area. See Exhibit 7 for this facility. This building will have concrete foundations and floors, brick and concrete block walls, steel sash, standard insulated metal roof deck con- struction. Immediately adjacent will be paved parking areas for Port District personnel and for the public having business at the harbor. 32 EXHIBIT 6 O C K L | NE APSTAN NO. 2 MARINE L E G A. A. A. Aſ C A / / / // A T // A AP E O AP NO. I MAR N E L E G LOAD IN G SPOUTS i D R ERS CAR LOADER TRACK SHED ERH EAD TRUCK CONVE YOR BRIDGE M---N ar--N O | L TANKS -e—º- 9 @ y R UNLOADER TRACK SHED UL TRUCK DUMP 8 OFFICE OAD | N G SPOUTS TRANSFORMER º x-X º Hil WELFA R E 8, OFFICE PLAN Hº [...] ſº ſº [2] º [E] =S_0=l tº * -º *—º–= TT [E] [...] ||| El | Pi— H - | § & * = * [E] em E LEVAT | ON | A PSTAN B OAT PULLER D O C K L | NE NOTE: ELEVATOR CAPACITY = 6,500, Ooo BUSHELS C H | C A G O R E G | O NAL PC, . . ; D | STR CT G R A | N E L EVAT OR DE LE U W , CAT H E R & COMPANY E N G | N E E RS C H | CAGO ExHIBIT 7 0NICITIT 18 GHOIABIGHS (IN V GHOI, HOEHO LHO. I --------·ae :,:¿¿.* !!!!!!!!!!!!~~~_-__ ( )ſae |× |×\ |-·)- ^,|, \!\, ,ae ! !101 (1SIOE INOd ( -:TwNO103& 09:01 HD ESTIMATE OF COST OF CONSTRUCTION Construction costs on all items except electrical power transmission and transformer installation; mobile equipment, shop equipment and office equipment at the harbor, have been determined by lump sum and unit price contracts secured by performance bonds, which have been awarded by the Board after competitive biddings subject to the completion of arrangements for financing within 77 days of the date of the award, July 15, 1955. The small items not yet under contract are estimated to cost approximately $125,000, or less than one per cent of the total. The cost of the site, $250,000 has been determined by provisions of a quit claim deed contract with the City of Chicago, dated April 19, 1955. Engineering costs include all expenditures for surveys; borings and soil tests; preparation of contract plans and specifications; checking of shop drawings; supervision and inspection of all construction work; and, in short, all engineering services necessary to the completion of the undertaking. Administrative expenses include the salaries, expenses, and all other costs of the Board and its staff, including administrative, accounting, legal and all expenses incurred during the period of construction in the operation of the general office; also all costs incidental to the training of personnel for the operation and maintenance of the harbor. The amount reserved for construction period contingencies has been estimated in the light of the firm construction contracts which the Board has awarded, and provides adequately, in the opinion of your consultants, for any unforeseen items of additional cost which may arise during the period prior to the beginning of full operations of the harbor and its leaseholds. Our estimate of cost of the project, exclusive of interest during con- struction and financing charges, is as follows: 37 SUMMARY OF ESTIMATE OF COST Contract I Dredging and Dock Wall.................................................. $ 1,694,363.25 Contract II Site Preparation, Paving and Utilities............................ 1,612,195.55 Contract III Transit Shed No. 1........................................ $921,940.00 Transit Shed No. 2........................................ 379,799.00 Transit Shed No. 3........................................ 379,799.00 Back-Up Warehouse .................................... 850,289.00 Port Office and Service Building.................. 84,293.00 Miscellaneous Work...................................... 84,159.00 Supervision of Other Contracts (2%%) ..., 17,311.67 2,717,590.67 Contract IV Railroads .......................................................................... 667,547.00 Contract V Elevator No. 1............................................ $5,847,115.00 Elevator No. 2............................................ 5,807,800.00 11,654,915.00 Contract VI Electrical Work.................................................................. 353,197.00 Contract VII Heating and Ventilating Work........................................ 94,416.00 Contract VIII Plumbing Work ................................................................ 99,545.00 Contract IX Automatic Sprinkler System .......................................... 145,137.00 Office, Shop and Mobile Equipment .......................................................... 90,000.00 Outside Electrical Facilities ........................................................................ 34,093.53 Total Construction ...................................................................... $19,163,000.00 Contingencies …~~~~ 407,000.00 Site Acquisition … 250,000.00 Engineering Expense … 580,000.00 Administration Expense .............................................................................. 200,000.00 Total …~~~~ $20,600,000.00 38 CONSTRUCTION PROGRAM It is anticipated that financing will be completed and contracts awarded early in September 1955, which will permit work to start on the dredging, construction of the dock wall, foundations for structures, and site preparation during the month of September. Completion of dredging and dock wall is scheduled for May 1956. Work on foundations of all structures and installa- tion of pumping equipment in the lift station will be advanced sufficiently to permit work on super-structures to be started January 1, 1956. New fill will be sufficiently consolidated, it is estimated, to permit work on railroad track installation to be started on January 1, 1956. Site preparation, con- struction of pavements, fencing, and similar items are scheduled to start in September 1955. Adherence to this schedule will permit partial occupancy and use of the transit sheds and back-up warehouse on or about August 1, 1956, and complete operations on or about November 1, 1956. The grain elevators are scheduled for partial operations starting about January 1, 1957, with completion of all construction work, including general cleanup of the entire project, ready for operation on or before April 1, 1957. The following chart shows estimated progress and fund requirements: ESTIMATED PROGRESS SCHEDULE AND FUND REQUIREMENTS PER CENT OF EXPEND ITURES |OO DRED G|NG AND DOCK WALLS 90 80 SITE PRE PARATION 70 60 TRANSIT SHEDS, WAREHOUSE AND OFFICE 50 40 RAILROADS 30 20 GRA |N ELEVATORS TO A S ; O N | D J F i M ; A M ; J J A S O N D : J F : M A M J 1955 | 956 1957 39 MAINTENANOE AND OPERATING EXPENSES Under the heading of Administration are included administrative sal- aries, accounting service, public relations and advertising, paying agent's fee, public auditors, consulting engineers, legal services, and the general expenses of the administrative office in downtown Chicago, including social security taxes, insurance, and other miscellaneous general expenses. Insurance coverage is anticipated for all structures owned by the Dis- trict, including protection of the buildings and structures themselves, all types of public liability, employee compensation, fire, theft, and use and occupancy. Coverages contemplated total: dock and wharves $800,000; Port headquarters and maintenance equipment $100,000; transit sheds $2,- 600,000; grain elevators $10,000,000; a total of $13,500,000. In general, the Board will maintain installations at Lake Calumet that are common and necessary to the whole harbor area, such as the railroads, highways, and immediate Lake Calumet basin water facilities outside of the scope of the federally maintained waterways. Lessees will conduct their private businesses within their leaseholds; they will, within the defined scopes of their lease contracts with the Board, be responsible for certain sustaining building and structure and equipment maintenance obligations, in addition to their normal business operations. The Corps of Engineers will maintain the deep water access to the Harbor ship and barge mooring basin and also the connecting navigable channels within the limits of appropriations made available by the Congress of the United States. Experience on other similar port facilities provides a sound basis for estimating the operating and maintenance expenses on this project. From an operating standpoint, the activity of the Port District would be minimal. Nevertheless, it will be necessary to maintain at the Lake Calumet terminal a small supervisory, clerical, security and operating and maintenance force, the latter to take care of necessary day-to-day emergencies, preventive main- tenance and certain periodic maintenance activities. The harbor superintendent at Lake Calumet with the aid of a chief clerk and two additional office staff workers, will have over-all operating 40 responsibility for the entire installation. A maintenance staff consisting of a maintenance foreman, two mechanics, four laborers and eight watchmen will be required at the harbor. All estimates of maintenance and operating costs are based on 1955 wages and material prices. We estimate that there will be a gradual increase in administration, maintenance and operating expenses from a total of $195,- 000 in the year 1957 to a total of $242,000 in the year 1970, when the facilities in the initial project will be operated to their full practicable capacity. A summary of maintenance and operating expenses for the fiscal year starting July 1, 1957, the first year of operation, and for the fiscal year starting July 1, 1970, and succeeding years follows: SUMMARY OF MAINTENANCE AND OPERATING EXPENSES Fiscal year starting July 1 1970 and succeeding ADMINISTRATION 1957 years Administrative Salaries and Expenses.................................... $ 23,000 $ 32,000 Office Manager and Port Representative................................ 15,200 17,200 Payroll Costs and Employee Benefits...................................... 5,700 7,500 Consulting Engineer's Fee...................................................... 6,000 6,000 Paying Agent's Fee.................................................................. 5,000 5,000 General Counsel's Fee.............................................................. 3,000 3,000 Audit …~~~~~~~~~~~~~ 3,000 3,000 Office Supplies and Expenses.................................................. 3,500 4,500 Telephone and Telegraph........................................................ 2,000 2,500 Travel and Advertising .......................................................... 1,000 1,500 Insurance …~~~~~~~~~~~ 32,000 32,000 Miscellaneous .......................…. 1,600 2,800 $101,000 $117,000 MAINTENANOE AND OPERATING Supervision … 7,000 9,000 Clerical Staff … 10,500 14,000 Maintenance Staff.................................................................... 20,000 32,000 Watchmen … 24,000 24,000 Payroll Costs and Employee Benefits...................................... 9,000 11,800 Maintenance Supplies and Materials...................................... 5,000 15,000 Heat, Light, Power, Water and Telephone............................ 11,500 11,500 Contract Service for Snow and Debris Removal, ADT Service, and Non-Staff Maintenance ........ 5,000 5,000 Miscellaneous ....................................…. 2,000 2,700 Total …~~~~ $195,000 $242,000 4] MAINTENANCE RESERVE FUND In addition to the foregoing expenses, there will be certain heavy maintenance items to be contracted out at periodic intervals. Most of these will cover items such as dredging, structural painting, track work, road main- tenance, and similar items. To provide adequate funds for such maintenance work, to be done by outside contractors, we recommend that annual pay- ments be made into the Maintenance Reserve Fund in the amount of $15,000 commencing in the fiscal year starting July 1, 1960. RENEWAL AND REPLACEMENT FUND Except for pavements, railroad tracks, maintenance equipment and other relatively unimportant installations, all of the facilities to be built in the initial installation will have a useful life extending beyond the period required for amortization of the bond issue. Major renewals of pavements, tracks, elevator equipment, fences and like items may, however, be required - in from 15 to 25 years after their construction. To provide funds for such renewals, we recommend the creation of a renewal and replacement fund and that the moneys in such fund be spent to pay the cost of renewals and replacements. It is recommended that deposits to the credit of the Renewal and Replacement Fund be made annually, starting in the fiscal year July 1, 1970, in the amount of $65,000. It is our opinion, based on current costs of labor and materials, that the funds thus provided will be sufficient to maintain the initial harbor facilities continu- ously in first class condition. ESTIMATES OF REVENUES Estimates of revenues are based very largely on lease contracts which have been made by the Port District Board with several lessees, covering the two elevators and three transit sheds, and in part on income from charges on wharfage, dockage, track rental, back-up warehouse and back-up area rental, and mooring charges for the use of the several port facilities. 42 Where estimated revenues are based on projected volumes of water transportation, allowances have been made only for assured future improve. ments of the waterways. The effect of the St. Lawrence Seaway after 1960 has been reflected in increased tonnages to be handled; no increases in ton- nages because of the planned enlargement of the Calumet-Sag Channel have been incorporated into the estimates. Estimated revenue from water sales to tenants, parking fees for trucks and other vehicles is also included. Leases The lease contract with the Illinois Grain Corporation of Chicago for Elevator No. 1 provides for the payment of a minimum rental of $425,000 per annum and additional payments for grain handled in excess of 13,000,- 000 bushels per annum as follows: Bushels of Grain Per Annum 1 cent per bushel for each bushel from....13,000,000 to 17,000,000 !/2 cent per bushel for each bushel from....17,000,000 to 21,000,000 2 cents per bushel for each bushel from...21,000,000 to 23,000,000 3 cents per bushel for each bushel from...23,000,000 to 25,000,000 1/4 cent per bushel for each bushel over ... 25,000,000 The contract with the Rice Grain Corporation of Chicago for Elevator No. 2 provides for the payment of a minimum rental of $330,000 per annum plus eight-tenths of a cent per bushel per month on average storage in excess of 3,500,000 bushels each year. In addition, payments for grain handled during each year of the lease will be made as follows: Bushel of Grain per Annum 1 cent per bushel up to .............................................. 2,500,000 % cent per bushel on the next .................................... 2,500,000 % cent per bushel on the next .................................... 2,500,000 % cent per bushel on the next .................................... 2,500,000 % cent per bushel on the next .................................... 2,500,000 % cent per bushel on the next .................................... 2,500,000 % cent per bushel on all over .................................... 15,000,000 43 Estimates of revenues from grain elevator leases are based upon these contracts, which extend through fiscal year 1995 on each of the 6,500,000- bushel elevators and upon the basis of the following estimates of grain stored and grain handled by each: Millions of Bushels Per Cent Capacity Grain Grain Four Turnovers Year Stored Handled Per Annum 1957 3.5 13 50% 1960 4.5 17 63% 1965 5.5 22 85% 1970 and after 5.5 22 85% The contract with the North Pier Terminal Company of Chicago for the use of Transit Shed No. 1 covers the period through the fiscal year 1969. It provides for an annual rental for the transit shed proper (approximately 172,800 square feet in area) of 40 cents per square foot initially, increasing to 45 cents in the fiscal year starting July 1, 1960 for the next five years, and increasing to 50 cents on July 1, 1965 on to the expiration of the lease at the end of the fiscal year 1969. It is estimated that a shed rental rate of 60 cents per square foot per year will prevail for the period beginning July 1, 1970. This lease also provides for the rental of approximately 42,000 square feet of open bulk dock area at a rate of 12 cents per square foot per annum for the entire life of the contract. Transit Shed No. 2 has been leased by the Packers Terminal and Ware- house Corporation of Chicago through the fiscal year 1974. This shed, which has an area of approximately 72,000 square feet will be rented for 40 cents per square foot per year through the fiscal year 1959, for 45 cents for the five year period through the fiscal year 1964, for 50 cents for the next five year period through the fiscal year 1969, and for 60 cents for the last five years of the contract. Transit Shed No. 3, leased by Overseas Shipping Incorporated of Chicago, includes a shed with an area of approximately 72,000 square feet and two black-top paved areas aggregating about 36,000 square feet. The shed proper will be rented at rates identical to those for Shed No. 2, that is–40 cents for the initial period, and 45 cents, 50 cents and 60 cents for the succeeding five year periods extending through the fiscal year 1974. The paved areas will be rented at a rate of 25 cents per square foot per yard for the life of the lease. 44 Other Income Back-up Warehouse It is proposed to offer for lease the 200,000 square foot back-up ware- house prior to completion of construction of this facility. It is estimated that the rentals will be established on a basis of 40 cents per square foot during the period 1957-1965, 50 cents per square foot from 1965 to 1970, and 60 cents per square foot thereafter, on the basis of an analysis of present interest in such a facility. Ocean Tonnage — Wharfage Wharfage charges for ocean tonnage have been figured at 20 cents per cargo ton and revenues based on estimated volumes of business as follows: 200,000 tons in 1957; 400,000 tons in 1960; 625,000 tons in 1965; and 625,000 tons in 1970 and succeeding years. Ocean Tonnage — Dockage Dockage charges on ocean tonnage are based on a rate of two cents per gross registered ton per vessel per day. Pre-St. Lawrence Seaway vessels average 1,450 gross registered tons and post-St. Lawrence Seaway vessels (1960 and after) have been figured at 4,500 gross registered tons per vessel. The smaller ships will require two days in berth at approximately $30 per day and the larger ships will require about five days in berth at approxi- mately $90 per day. The number of small ship berthing days in 1957, based on a 30-week season has been estimated at 400 days. The number or large ship berthing days has been estimated at: 500 days in 1960; 788 days in 1965; and 788 days in 1970 and succeeding years. Revenues from dockage charges on ocean tonnage are based on these estimates. Elevator Dockage No dockage charges will be applied to lake vessels for use of the elevator docks. Beginning in the year 1960, two cents per gross registered ton per 45 vessel per day will be charged for ocean-going grain vessels using the elevator docks. This dockage charge will be approximately $90 per vessel per day. The number of revenue berthing days has been estimated at: 48 in 1960; 80 in 1965; and 120 in 1970 and succeeding years. Barge Wharfage A charge of 15 cents per cargo ton will be applied to an estimated: 50,000 tons in 1957; 175,000 tons in 1960; and 200,000 tons in 1965 and succeeding years. Barge Dockage Barge dockage at $3 per barge per day will be applied to estimated volumes of: 100 barge days in 1957; 350 barge days in 1960; 400 barge days in 1965; and 400 barge days in 1970 and succeeding years. Railroad Track Rentals Estimated income from these facilities is based on a revenue amounting to about 6 per cent on the capital investment in railroad track installation, which may be expected to handle the highest carloading volumes, excluding the trackage serving the general cargo and transit shed area. Back-up Area Rentals Immediately behind the transit sheds and back-up warehouse is a back- up area of some 30 acrés composed of fill that has been in place for more than 17 years and is capable of supporting one story structures without costly foundations. The ground rentals from the use of this area by private terminal operators interested in water-borne commerce has been estimated on the basis of 10 cents per square foot per annum, and the estimate logically assumes a gradual growth and development over a period of ten years as indicated by the following tabulation: 46 Other Miscellaneous Revenues - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rentals Other revenues will be realized from charges for barge and lake vessel mooring—the later during the closed navigation season on the lakes—sales of water to ships, and vehicular parking fees, all estimated at a total of about $14,000 per annum. Summary of Estimates Estimates of gross revenues for the years 1957, 1960, 1965, 1970 and succeeding years are shown in the following tabulation: SUMMARY OF REVENUES 1957 Elevator No. 1........................ $ 425,000 Elevator No. 2........................ 425,000 Transit Shed No. 1................ 74,200 Transit Shed No. 2................ 28,800 Transit Shed No. 3................ 37,800 Back-up Warehouse .............. 80,000 Ocean Tonnage—Wharfage. 40,000 Ocean Tonnage—Dockage.... 12,000 Elevator Dockage .................. --- Barge Wharfage .................... 7,500 Barge Dockage ...................... 300 Railroad Track Rentals ........ 50,000 Back-up Area Rentals .......... *- Miscellaneous Revenue ........ 14,400 Totals .................... $1,195,000 Fiscal year starting July 1 1960 $ 465,000 534,000 82,800 32,400 41,400 80,000 80,000 45,000 4,300 26,300 1,100 50,000 17,000 14,700 $1,474,000 1965 $ 505,000 642,500 91,500 36,000 45,000 100,000 125,000 71,000 7,200 30,000 1,200 50,000 109,000 14,600 $1,828,000 1970 and succeeding years $ 505,000 642,500 108,700 43,200 52,200 120,000 125,000 71,000 10,800 30,000 1,200 50,000 130,000 14,400 $1,904,000 47 Guaranteed Income The firm contract leases on the grain elevators and transit sheds, track rental and warehouse rental which will be in effect when full harbor opera- tion begins in the spring of 1957, will yield fixed income regardless of the variations in cargo tonnage or the volume of shipping. The leases now in effect and under contract (which exclude the back-up warehouse and the railroad track rental) will provide guaranteed revenue in the initial year starting July 1, 1957, in the total amount of $895,000, increasing to $911,600 in the fiscal year starting July 1, 1960. Thus, three-fourths of the estimated gross revenue in the initial year is guaranteed by responsible private lessee corporations. Additional facilities to be leased on a fixed annual basis—the back-up warehouse and the railroad tracks—will, it is estimated, produce an additional $130,000, bringing the total fixed minimum guaranteed income to $1,025,800, or 86 per cent of the total estimated revenue in the initial year. FINANCIAL SUMMARY Estimates of gross revenues, maintenance and operating expenses and net revenues for the fiscal year starting July 1, 1957 to 1970, inclusive, appear in the following tabulation: SUMMARY OF ESTIMATES OF REVENUES AND EXPENSES Fiscal Year starting July 1 Gross Revenues Expenses Net Revenue 1957 ................................ $1,195,000 $195,000 $1,000,000 1958 ................................ 1,288,000 199,000 1,089,000 1959 ................................ 1,381,000 202,000 1,179,000 1960 ................................ 1,474,000 220,000 1,254,000 1961 ................................ 1,545,000 224,000 1,321,000 1962 ................................ 1,616,000 228,000 1,388,000 1963 ................................ 1,687,000 231,000 1,456,000 1964 ................................ 1,758,000 235,000 1,523,000 1965 ................................ 1,828,000 239,000 1,589,000 1966 ................................ 1,843,000 242,000 1,601,000 1967 ................................ 1,858,000 245,000 1,613,000 1968 ................................ 1,873,000 249,000 1,624,000 1969 ................................ 1,888,000 253,000 1,635,000 1970 and after................ 1,904,000 322,000 1,582,000 48 APPEND IX EX H | B | T A CHICAGO, ROCK ISLAND AND FACIFIC RAILROAD COMPANY R. E. JOHNSON. VICE-PRESIDENT, OPERATIONs LA SALLE STREET STATION CHICAGO 5, ILL. August 5, 1955 FILE 39846 Mir . Maxim M. Cohen General Manager-Secretary Chicago Regional Port District 160 North LaSalle Street, Chicago l, Illinois Dear Mir . Cohen: With reference to the first stage development for the south end of Lake Calumet, first covered by our letter of July 13, 1954, above file. In conformity with agreements made at the last conference, held in the offices of the Division of Highways on August 3, 1955, at which were present members of the Chicago Regional Port District; your engineers, DeLeuw, Cather & Company; the Division of Highways; and representatives of our engineering, legal and operating departments, it is now our under- standing that an over pass will be constructed at approximately 129th Street, crossing the Expressway on a skew, and then running northward along the Expressway. Insofar as the Rock Island Railroad is concerned, this crossing is satisfactory and it is our further understanding that the Division of Highways will at their cost construct, (a) the overpass and a single track from near 130th Street west of the Express — way to a point of tie-in with the Port District is development at approximately 126th Street, and (b) a track running from said point of tie-in to the track of the Rock Island as presently constructed near lä0th Street east of the Expressway • It is our further under standing that the Port District will grant the Rock Island Railroad permanent rights for these tracks to be built by the THE ROAD OF FLANNED PROGRESS - 2 - State (said rights to cover rights-of-way 50 feet wide) and for necessary tracks to accommodate 50-car trains, to be located north of said point of tie-in to be used as tail tracks to allow for the movement of cars to and from the track designated as (b) in the first paragraph above , all so that service to the Calumet Harbor Terminal property by the Rock Island Railroad will be uninterrupted. We will, on completion of details covering the exchange of land, as well as approval by your engineers, arrange for a temporary track coming off of our main track east of the Expressway, which we understand will serve the Port District is temporary needs and later be used as the track designated as (b) in the second para- graph above, said track to be built when requested and as soon thereafter as materials are available . The Rock Island is prepared, on completion of the overpass over the Expressway and the necessary tracks, to offer their switch service to the harbor property and in the meantime will serve them as indicated above by temporary track. Very truly yours, aeº- EXH | BIT B STATE OF ILLINOIS Department of Public Works And Buildings DIVISION OF HIGHWAYS BUREAU OF TRAFFIC SPRINGFIELD, ILLINOIS (rºy District Serial No. I THE CHICAGO REGIONAL PORT DISTRICT QName of Applicant) of CHICAGO, IELINOIS (Address) hereinafter termed the applicant, request permission and authority to construct a driveway(s) on the right-of-way of the State Highway known as Route F.A. 122 Section l;2–3 and 6AXrºm Station gº a to Station tº ºr Section from Station to Station Coºk. County The proposed driveway is described in detail as follows: Construct, operate, and maintain one (l)temporary entrance - exit driveway, twenty- four(2h)feet wide and a paved median forty(ho)feet long, on the east side of Doty Avenue, all in accordance with drawing number G-100, Site Plan, Initial Project, Chicago Regional Port District, Lake Calumet Harbor, which is attached hereto and becomes a part of this Permite The petitioner hereby represents that he is the owner in fee simple of the tract of land to be served by the entrance driveway des- cribed herein, said land being situated in the county of Cook, State of Illinois and described as follows: Southeast quarter of Section 26, Township 37 North Range lly - East of the Third Principal Meridian in Cook County, Illinois. - This permit is subject to the regulations listed in the “Policy on Permits for Access Driveways to State Highways”, adopted September 1, 1952, as printed on the reverse side of this sheet. The applicant agrees to complete the work authorized by this permit within -2 after the date of approval, otherwise the permit becomes null and void. The applicant binds and obligates himself to construct the driveway(s) in accordance with the above description and attached sketch, and to abide by the Policy regulations. Ž -*. This permit is hereby accepted and its provisions agreed to at 7” as O º Signed ~4. 4.-- /4%z. º T27- - 2 Witness: /.43% % A-Cée-ºv Aº º SIGN AND RETURN TO: District Engineer 160 North La Salie Street, Chicago , Illinois ...” --", Address_ Approved this Ż% day of < 24. 19 -j-. º QT OP-PUBLIC WORKSA º Form B. T. 717 By F; \A4/LAZ Sºistrict Engine (93951—30M–7-50 egºs D BUILDINGS First: That applicant(s) (grantee) represents all parties in interest, and that any drive- way or approach constructed by him is for the bona fide purpose of Securing access to his property and not for the purpose of servicing vehicles on the highway right-of-way. Second: That the grantee(s) shall furnish all materials, do all work, and pay all costs in connection with the construction of the driveway(s) and its appurtenances on the right-of- way. All materials used shall meet the requirements of the Illinois Division of Highway's Standard Specifications for Road and Bridge Construction, and the type of construction shall be as designated and/or approved by the Engineer. Third: That no revisions or additions shall be made to the driveway(s) or its appurtenances on the right-of-way without the written permission of the Department. Fourth: The Department reserves the right to make such changes, additions, repairs, and relocations within statutory limits, to the driveways(s) or its appurtenances on the right-of-way as may at any time be considered necessary to permit the relocation, reconstruction, widening, and maintaining of the highway and/or to provide proper protection to life and property on or adjacent to the highway. Fifth: That the grantee(s), his successors or assigns, agrees to hold harmless the State of Illinois and its duly appointed agents and employees against any action for personal injury or property damage sustained by reason of the exercise of this permit. Sixth: The location, design, and construction of the driveway or driveways described above shall be in accordance with the Policy or Permits for Access Driveways to State Highways. The limits stated therein and shown on the design sketches are in no case to be exceeded. In certain unusual cases the Department may demand suitable dimensions inside of these limits should the local condition warrant. The petitioner understands that the above described entrance culvert and drive is Within the limits of the freeway established on this highway by an order issued March 6, 1915 and amended April 20, 1915 and November 9, 1916 by the Department of Public Works and Buildings acting under authority conferred by existing legislation, and further that such entrance shall be extinguished or revised at such time that said Department completes nego- tiations for access rights to the property. It is further understood that the petitioner shall not claim additional damages by virtue of existence of the entrance described herein. It is also understood that this permit is accepted with the full understanding that any improvements constructed on the property after March 6, 1915 shall not be construed as increasing the value of rights of access or right-of-way at such time as these rights are acquired for purpose of developing the freeway. LIST OF CONTR A CTS Initial Project . Contract No. I Dredging and Dock Construction Great Lakes Dredge & Dock Co. 228 No. LaSalle St. Chicago, Ill. . Contract No. II Site Preparation, Drainage, Utilities and Pavements Krug Excavating Co. and Charles J. Wilson Co. 7601 Wentworth Ave. Chicago, Ill. . Contract No. III Transit Sheds, Warehouse and Port Office & Service Building A. L. Jackson Company 300 W. Washington Chicago, Ill. . Contract No. IV Railroad Trackage Paschen Contractors, Inc. 2739 Elston Avenue Chicago, Ill. . Contract No. V Two 6,500,000 Bu. Grain Elevators James Stewart Corporation 228 N. LaSalle St. Chicago, Ill. . Contract No. VI Electrical Work for Buildings Edward Electric Company 1345 W. Washington Blvd. Chicago, Ill. . Contract No. VII Heating and Ventilating for Buildings S. J. Reynolds Co., Inc. 2229 Ogden Avenue Chicago, Ill. . Contract No. VIII Plumbing for Buildings T. J. Prendergast Plumbing & Heating Co. 7852 S. Wood Street Chicago, Ill. . Contract No. IX Sprinkler Systems P. Nacey Company 927 S. State Street Chicago, Ill. EX H | B | T C LEASES FOR MAJOR FACILITIES Lessor — Chicago Regional Port District Board Unit Transit Shed No. 1 (172,800 sq. ft. shed; 42,000 sq. ft. open area) Transit Shed No. 2 (72,000 sq. ft. shed) Transit Shed No. 3 (72,000 sq. ft. shed; 36,000 sq. ft. paved area) Elevator No. 1 (6,500,000 bu. capacity) Elevator No. 2 (6,500,000 bu. capacity) Lessee North Pier Terminal Company 444 N. Lake Shore Drive Chicago 11, Illinois Packers Terminal & Warehouse Corporation 224 S. Michigan Avenue Chicago 4, Illinois Overseas Shipping Corp., Inc. 224 S. Michigan Avenue Chicago 4, Illinois Illinois Grain Company Room 1845 Board of Trade Bldg. 14] W. Jackson Blvd. Chicago 4, Illinois Rice Grain Corporation Room 302 Board of Trade Bldg. 141 W. Jackson Blvd. Chicago 4, Illinois Approximate Term in Years 15 20 20 EXHIBIT D |- - -----–---****----~