Chicago Suburb Sues to Track Down Millions in Redevelopment Funds

$150 million to finance industrial park that didn't turn out as expected

A tiny Chicago suburb claims a developer refuses to provide an accounting on $150 million in public financing for an industrial park, which provided far fewer, poorer-paying jobs than promised, more traffic, and not enough tax revenue to cover even the interest on the loan.

The Village of Elwood sued CenterPoint Intermodal, CenterPoint Realty Services, and the Bank of New York Mellon Trust Co., in Cook County Court.

Elwood, pop. 2,300, a far southwest suburb of Chicago, says that in 2000 it entered into a development agreement with CenterPoint, which promised to bring 12,500 jobs to town and $20 million to 40 million in additional tax revenues.