From railroad easement to tax deduction during railroad merger to Millennium Park

Where did the land for Chicago’s Millennium Park come from?

In 1993, I went to work with Forrest Claypool in the Chicago Park District. I was responsible for the lakefront district. It always made no sense to me that there was this muddy, ugly hole right off Michigan Avenue. It also made no sense that if the Illinois Central Railroad owned that land, they would use it as a surface parking lot. You would think they would do something else with it. The other thing that stood out was that there was one track on the eastern edge with a single boxcar on it. It was just an eyesore. For a century, city and parks groups would try to buy the land, and the railroad would never sell it…

I did a title search. I just wanted to get to the bottom of it. I was sort of a zealot about the use of public land. I found out that the railroad didn’t own the land after all. It was always the city’s land. What the railroad had was an easement. So they could use the land for rail purposes, but they couldn’t build a building. They had no air rights. And to maintain the fiction of rail purposes, they kept the single track and the single boxcar. The railroad was happy to make some ancillary revenue as a parking operation. At this point, Forrest and I advised the mayor of what we had found. And [in 1996] the park district and the city Law Department together sued the railroad.

Without Randy Mehrberg’s discovery, none of this happens. Daley was in action mode almost immediately. As in: “Let’s go through the legal process here to get this thing done.” It was not until this sort of virgin land in the middle of the city became available that he saw that this was the chance.

The railroad was not terribly happy or receptive. But a funny thing happened: The Illinois Central was in the process of being sold to the Canadian National Railway. And I suggested to the railroad that instead of litigating with us, they make a donation to the city of all of their title and interest rights from Randolph Street to McCormick Place. They would get a nice tax deduction, and it would enhance their merger, because the purchase price was based on a multiple of earnings, and a large tax deduction would improve their earnings. We were able to negotiate that.

The area around the Chicago River and the lakefront was a shipping area with railroads converging and boats coming in and out. Yet, it sounds like it took a while to figure out what to do with all this space once transportation activity moved elsewhere. It is not as if Chicago stopped being a transportation center; the action shifted and this area eventually became a park.

Having been in Millennium Park many times, I do not recall seeing any documentation of the previous history of the land. If it is not marked, why not tell some of the story of railroads and other lakefront uses in the past to what the park is today? I am in favor of more resources for residents and visitors to learn and visualize what used to be where they are standing or looking. (Some of this could come from virtual reality or augmented reality devices but we are not there yet.)

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