City looks to add rail spur in MidPort Industrial Park

Feb 19, 2010 — Waterloo-Cedar Falls Courier

Tim Jamison

Feb. 19, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- WATERLOO -- City leaders hope federal economic stimulus funding will help them bring two more businesses to the MidPort Industrial Park.

Waterloo City Council members have authorized an application to the Iowa Department of Transportation asking for $1.5 million in American Recovery and Reinvestment Act funds for rail development.

The proposed mile-long rail segment would serve lots in the MidPort Industrial Park, which is south of the Waterloo Regional Airport. The spur from the Chicago Central and Pacific line specifically would provide railroad access to an area west of Airport Boulevard and the existing Waterloo Tent and Tarp plant.

"The city of Waterloo is in conversation with two companies looking for development in the MidPort area that would require rail connectivity for their business needs," said Community Planning and Development Director Noel Anderson.

"We don't know exactly how much the state's going to get for rail," Anderson said. "But we think the potential projects we have are good job creation, which is one of the top things they look at."

The application notes the city is working on a 40,000-square-foot and a 10,000-square-foot warehousing and manufacturing center, with a combined investment of $6.2 million. Those unidentified prospects would create 25 new jobs with an average hourly wage rate of $19.20 and benefits.

"If we don't get the grant, the state has a standard railroad program where we would look for funds," Anderson said. The alignment of the rail spur could be adjusted to lower costs and just to serve the two prospects, without opening up additional lots for rail service, he added.

Major projects in the MidPort park include ConAgra's (NYSE:CAG) pudding plant, Advanced Heat Treat and Waterloo Tent and Tarp.

While the city has secured the Federal Aviation Administration's release of 400 more acres of airport land for development, there has been little activity in recent years.

Anderson notes the strict design criteria, including limits on metal buildings, may be pushing smaller projects to other business parks. But the air, highway and rail access in the MidPort area is attractive to many economic development prospects.

Newstex ID: KRTB-0150-42219739