Houbolt Road Extension JV, LLC v. Centrepoint Properties Trust

2023 IL App (3d) 220433-U
CourtAppellate Court of Illinois
DecidedJuly 5, 2023
Docket3-22-0433
StatusUnpublished
Cited by1 cases

This text of 2023 IL App (3d) 220433-U (Houbolt Road Extension JV, LLC v. Centrepoint Properties Trust) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houbolt Road Extension JV, LLC v. Centrepoint Properties Trust, 2023 IL App (3d) 220433-U (Ill. Ct. App. 2023).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2023 IL App (3d) 220433-U

Order filed July 5, 2023 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

HOUBOLT ROAD EXTENSION JV, LLC, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellant, ) Will County, Illinois, ) CENTERPOINT PROPERTIES TRUST ) and CENTERPOINT JOLIET TERMINAL ) RAILROAD, LLC, ) ) Interested Parties/Plaintiffs-Appellants, ) ) v. ) Appeal No. 3-22-0433 ) Circuit No. 22-MR-138 THE CITY OF JOLIET, ) ) Defendant-Appellee, ) ) EAST GATE-LOGISTICS PARK CHICAGO, ) LLC; NEW WAVE FARMS, LLC; THE ) COUNTY OF WILL; and THE ) DEPARTMENT OF TRANSPORTATION, ) Honorable ) John J. Pavich, Interested Parties-Appellees. ) Judge, Presiding. ____________________________________________________________________________

JUSTICE DAVENPORT delivered the judgment of the court. Justices Brennan and Albrecht concurred in the judgment. ____________________________________________________________________________

ORDER ¶1 Held: The circuit court improperly dismissed plaintiff’s complaint upon finding its allegations failed to state a breach of an intergovernmental contract. Contrary to the court’s finding, not all of plaintiff’s allegations lacked contractual basis. Reversed.

¶2 Plaintiff Houbolt Road Extension JV, LLC, appeals from the dismissal of its complaint

seeking declaratory and injunctive relief against the City of Joliet (City). The complaint alleged

that an annexation agreement between the City and East Gate-Logistics Park Chicago, LLC, (East

Gate) infringed on a prior understanding between the City and plaintiff’s predecessor in interest,

CenterPoint Properties Trust (CNT), restricting truck-accessible routes adjacent to an intermodal

complex developed by CNT and CenterPoint Joliet Terminal Railroad, LLC (collectively,

CenterPoint). Finding the City’s actions did not violate the prior understanding, the circuit court

dismissed the complaint with prejudice. For the reasons stated below, we reverse.

¶3 I. BACKGROUND

¶4 The facts stated herein are derived from plaintiff’s verified complaint and its attached

exhibits. Pursuant to a 2008 annexation agreement with the City, CenterPoint developed an

intermodal freight complex in City-annexed territory south of Interstate 80 and west of Illinois

Route 53 (hereinafter, CNT Intermodal Center, the intermodal complex, or the complex). The

intermodal complex included rail-terminal facilities, distribution centers, and logistics centers. As

originally designed, the complex was accessible to tractor-trailers via two roads: Baseline Road

and Laraway Road. The parties under the 2008 agreement agreed that “the portion of Millsdale

Road located east of intersection of Brandon Road and Millsdale Road *** shall not be designed

or intended for use by commercial motor vehicles.”

¶5 A. Memorandum of Understanding

¶6 In December 2016, CNT entered into a memorandum of understanding (MOU) with the

City, the County of Will, and the Illinois Department of Transportation (IDOT). The MOU

2 provided that CNT would assume responsibility for extending Houbolt Road, a road adjacent to

the complex, “by constructing a bridge over the Des Plaines River.” The bridge would create a

third access point for tractor-trailers entering and exiting the intermodal complex. Under the MOU,

CNT would fund the bridge’s construction, estimated to cost over $125 million, and the parties

would “take all reasonable steps to ensure that CNT can impose toll rates sufficient to support full

funding of the BRIDGE.” CNT later assigned plaintiff its rights and responsibilities under the

MOU. Plaintiff began constructing the bridge in March 2021 and completed the project in April

2023. 1

¶7 The MOU’s Restrictions

¶8 The MOU restricts the City and County’s ability to create alternative truck access points

to the complex. Section XII(B) of the MOU provides as follows:

“The CITY and COUNTY agree that they will take no steps or actions to

(1) eliminate CNT’s authority to impose tolls and place restrictions on North

CenterPoint Way; (2) build new roads adjacent to the CNT Intermodal Center on

which trucks may travel or build new roads that enter or exit the CNT Intermodal

Center on which trucks may travel; and (3) eliminate trucking restrictions, weight

limits, or other similar regulations on roads that enter or exit the CNT Intermodal

Center or on roads that are adjacent to the CNT Intermodal Center.”

The MOU defines “adjacent to the CNT Intermodal Center” as “all territory within the area

depicted in Exhibit A to this MOU as the ‘Study Area’.” Illinois Route 53 forms the eastern

boundary of the Study Area. Exhibit A to the MOU is included below.

1 Houbolt Road extension opening to traffic April 27, American Journal of Transportation (Apr. 25, 2023, 12:29 PM), https://www.ajot.com/news/houbolt-road-extension-opening-to-traffic-april-27/.

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EXHIBIT A

¶9 Section XII(G) of the MOU provides, “[I]n no event shall the CITY improve Millsdale

Road between Illinois 53 and the railroad tracks east of Brandon Road or Schweitzer Road between

Illinois 53 and Brandon Road so as to legally permit truck traffic.” The non-truck-accessible

segments of Millsdale and Schweitzer Roads are between the railroad tracks and Route 53 in the

map below, attached as Exhibit 4A to the verified complaint. The map identifies the three current

truck-access points (circled below).

4 ¶ 10 The MOU also restricts the County and IDOT’s ability to change trucking restrictions

within the Study Area. With respect to the County, the MOU provides that “in no event shall the

COUNTY improve Arsenal/Manhattan Road from Baseline Road [now Houbolt Road] to Illinois

53 so as to legally permit truck traffic.” Similarly, the MOU requires IDOT to notify CNT before

taking steps to build new roads adjacent to the complex and before taking steps to change trucking

restrictions for existing roads adjacent to the complex. The MOU requires IDOT, upon notifying

CNT of its proposed action to change trucking restrictions, to meet with CNT to discuss the

action’s necessity and “any risk to the fiscal responsibility of the BRIDGE.” The MOU’s term is

forty years from the date of execution.

¶ 11 B. East Gate Agreement

¶ 12 In December 2021, the City entered into an “Annexation and Development Agreement”

with East Gate to develop Compass Business Park, a light industrial business park just east of the

CNT Intermodal Center (East Gate Agreement or agreement).

5 ¶ 13 1. Closed Loop Truck Network (CLTN)

¶ 14 The agreement requires East Gate to develop Compass Park with a “closed loop truck

network” (CLTN), complete with all necessary bridges, “to minimize the current amount of truck

traffic on Illinois Route 53 and other local roads outside of the park.” The proposed CLTN would

include truck barriers, truck turnarounds, and cul-de-sacs “to prevent tractor-trailer access or

egress to or from [Compass Park] other than via the CLTN.” Tractor-trailers would be unable to

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Houbolt Road Extension JV, LLC v. City of Joliet
2023 IL App (3d) 220433-U (Appellate Court of Illinois, 2023)

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2023 IL App (3d) 220433-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houbolt-road-extension-jv-llc-v-centrepoint-properties-trust-illappct-2023.