Thursday, Sept 13, 2001

The Ohio Rail Development Commission (ORDC) today approved a grant of $85,250 and a loan of the same amount to the City of Jackson to remove quicksand and replace it with stable rock and soil to complete a 3,000-foot rail spur to serve the American Warehousing, Inc., facility in Jackson.

James E. Seney, ORDC executive director, said work on the spur was underway when construction workers unexpectedly discovered quicksand last month. The ORDC staff and Jackson’s city engineer reviewed the situation and concluded that removing the quicksand would be the cheapest way to solve the problem.

The $4 million, 100,000-square-foot warehouse is in operation and employs 35 persons. The City of Jackson has committed to having the spur in operation by October 1. Seney said the short time frame made ORDC assistance crucial to the project’s success.

The ORDC earlier approved a $150,000 grant and $75,000 loan for the project. The City of Jackson contributed $112,000 and the Ohio Department of Development $150,000.

American Warehousing will generate 325 carloads a year. It will be served by the Great Miami Railway. The city will require the railway to repay the $85,250 grant through revenue from customers using the track. The city will pay the ORDC $50 a carload for loads for anything over 325 carloads a year.

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