Market Rate Sale Provides Significant Revenue for CTA Operating Budget
The Chicago Transit Board today authorized the sale of property at the Chicago Transit Authority's Wilson Yard to the City of Chicago at the market rate price of $6.6 million. The City of Chicago will, in turn, sell the property to a developer to develop the rail yard into a multi-use facility that will include retail space and mixed income housing. The $6.6 million sale adds revenue to the CTA's operating budget.
?CTA has worked tirelessly to control costs and find additional avenues for generating revenue," said CTA President Frank Kruesi. ?The sale of this surplus property is an example of the CTA's successful efforts to increase operating revenue."
'selling Wilson Yard at market rate enables the CTA to maximize the value of this resource, as well as add much needed revenue to its operating budget," said Chicago Transit Board Chairman Carole Brown. ?Without the revenue from this anticipated sale, CTA's 2005 Gridlock budget proposal would have contained even more substantial service cuts."
The 164,000 square foot property is located between Wilson and Montrose Avenues on Chicago's North Side just east of the CTA's Red Line tracks. The property currently contains a CTA maintenance shop and outdoor storage areas. The CTA does not need the property to conduct regular CTA operations.
CTA will retain permanent easement rights necessary in order to have access for activities related to operations and maintenance of Red Line service and track structure. The maintenance shop and storage areas will be relocated to other CTA property.
In addition to the sale of the property, the CTA has agreed to pay up to $750,000 for environmental remediation of the property. The money will come out of the sale of the property and be held in escrow to assist the City and the developer.# # #