Representing the city’s First Ward 10 years ago, Mayor Sam Cunningham said the Waukegan City Council missed an opportunity to acquire the abandoned right of way of the Canadian National Railway tracks, long a stumbling block to developing the south lakefront and more.

Running from the decommissioned NRG power plant to around 10th Street, Cunningham said the abandoned railroad tracks have stymied attempts to remediate the south lakefront and scared away potential developers.

Now sitting in the mayor’s office, Cunningham said the time has come to talk to the railway’s decision-makers and find a price acceptable to both the city and Canadian National, thus opening 3.6 miles of lakefront for potential residential and light commercial development.

Located east of the operating railroad tracks near downtown Waukegan and its lakefront, the abandoned Canadian National right of way is unused but an impediment to development of the area. (Steve Sadin/For the Lake County News-Sun)

“That’s the largest stretch of (undeveloped) lakefront land along Lake Michigan in Illinois, outside of (possibly) Chicago,” Cunningham said. “There could be very affordable housing there.”

Cunningham and his staff plans to resume good-faith conversations with Canadian National in the near future to remove a major obstacle to both lakefront and downtown development in Waukegan.

“This is a major catalyst in the rebuilding of Waukegan,” Cunningham said. “If Canadian National and Waukegan can work together on this, it will be a win for everyone. There are environmental issues which have never been solved, and we need the land to do it.”

Though some discussions took place after the rejection by the City Council in 2015, Joshua May, the mayor’s chief of staff, said talks have been at a standstill since 2021with no decision-makers involved.

Running along the lakefront from near Greenwood Avenue to 10th Street, Noelle Kischer-Lepper, the city’s director of planning and economic development, said the abandoned railroad tracks are a huge impediment to development of both downtown Waukegan and the lakefront.

Kischer-Lepper said the tracks discourage lenders from financing projects at the lakefront. They pose the biggest problem at the south lakefront, which has failed to attract potential developers because of the uncertainty created by the strip of tracks.

At one time, the tracks were used to transport coal to the now decommissioned NRG electric power plant. Now, Kischer-Lepper said the right of way is not only unused, but it is overgrown with weeds and the steel is showing rust.

“They’re a major impediment from the Waukegan River south,” Kischer-Lepper said. “Removal of the tracks and remediation of the land will unlock the whole area for developers and financial investment. Lenders will not touch it now with the railroad tracks there.”

Factories once filled the south lakefront, but most are gone. Kischer-Lepper said when a number of them moved, they left behind land laden with industrial waste. Some was remediated by the city and awaits proposals, but the train tracks remain an issue.

A remaining factory is aerospace coatings manufacturer AkzoNobel which is north of the Waukegan River and apart from the marina. The company makes the paint and other coatings which cover airplanes.

Along with the land beneath the tracks, Canadian National also owns some lakefront property where a variety of residences — homes, townhomes or multifamily buildings — could be built. Kischer-Lepper said it can be part of the transaction.

“Canadian National has not made any to effort clear it or make any environmental improvements,” she said. “They haven’t removed any of it. Trash and invasive species need to be removed.”

Acquiring the railroad right of way and land is essential for Waukegan’s growth. Kischer-Lepper said the city cannot grow north, south or west unless it annexes land there.Growth can come from currently unused land along the lakefront. Additional land could come from dredging the lake.

This will help create the economic future Waukegan deserves,” Kischer-Lepper said.

Cunningham sees the south lakefront as a place for affordable housing, where residences can be built and sold for far less than the cost in the North Shore suburbs like Lake Forest or Winnetka. He said a single-family home for between $300,000 and $400,000 are a possibility.

Last year, Waukegan finished the environmental cleanup from the former Fansteel industrial plant on the south lakefront. At the time, the idea of a residential development with a small commercial component, like small stores of a coffee shop, was considered.

https://www.chicagotribune.com/2025/08/25/waukegan-railroad-right-of-way/