City Council approves selling Peru Rail

Peru Rail isn’t a long rail line but it connects the industrial corridor north of Interstate 80 to a rail system that leads to Zearing and ultimately out of the region.  By the end of Thursday it should be the property of Peru Industrial Railway. The city council Wednesday night approved the sale. An intent-to-sell agreement was reached in October.

The city bought the line in the early 1990s as a way to attract industry, but the rail line is in poor shape and needs expensive upgrades which could be done by the new owner. The city has also been unable to get liability insurance coverage for it.

Alderman Rodney Perez was the only aldermen to vote against the sale. He thinks they should have talked with James Hardie and is concerned that the new owner will raise the rates and force James Hardie to start trucking their product and laying off workers.

Alderman Dave Potthoff thinks selling the rail so it can be upgraded is another marketing tool for Peru.

The sale price is $1.25 million and the city retains all utility easements.