LA PORTE, Ind. — Farmers in northern Indiana may have to wait longer before the door of opportunity from a proposed intermodal facility opens for reaching more customers with their products.

That’s because the much-anticipated development in Kingsbury where produce would be moved to more distant markets on refrigerated railcars is deadlocked, and on the verge of collapse. The LaPorte County Commissioners last week turned down a request to try to bring the landowners together, with a foreclosure deadline fast approaching.

LaPorte County attorney Shaw Friedaman said the commissioners already tried resolving the matter before mediation by a retired federal judge out of Chicago, but failed to unite the landowners over their differences. “If he couldn’t get the thing resolved, then certainly the commissioners aren’t going to be able to get the parties together,” said Friedman.

The request was made by former LaPorte County commissioner Mike Bohacek, who felt the county acting as a mediator can bring the 50/50 landowners at the Kingsbury Industrial Park together before a 30-day notice to start moving the project forward expires. “Let’s start talking,” he said.

The county on Aug. 12 gave the landowners 30 days to resolve their differences or proceedings will start to foreclose on 200 acres of land the property owners put up as collateral to borrow $6 million from the county to extend a rail spur to the site. If the deadline passes, the county can also cash in liens placed on various other assets of the landowners to further help recover its investment.

The foreclosure option was included in a development agreement struck last New Year’s Eve between the county and other players involved in the project, including property owners, Halfwassen & Associates and Providence Logistics. Bohacek said foreclosure proceedings could result in more legal action and delays for a slow-moving project closely following in the agriculture community already several years in the making.

“As we all know with industrial development, the more time you take with legal maneuvering, it makes the park not quite as attractive to potential developers,” said Bohacek.

The commissioners decided to keep moving toward the 30-day deadline, feeling powerless to help the landowners resolve their financial differences over the project. Friedman said the county for eight months has tried bringing together the landowners, who could sense enough urgency to unite by the county standing firm on its decision to claim the property offered as collateral.

If the deadline passes, the county under an agreement can start proceedings to foreclose on 200 acres of the 600-acre development site and find another developer. Friedman said the agreement gives the county the right to move forward on foreclosure and secure another developer even with the landowners waiting for the outcome of the legal action.

Friedman said the commissioners are tired of waiting for Halfwassen & Associates and Providence Logistics to work things out while the potential for new jobs and more property tax revenue continues to hang in the balance.

There is a desire for the county to loosen the terms of the development agreement to help move the landowners toward settling their differences quickly and out of court. Friedman said, however, the county is not willing to amend the agreement, to avoid any chance of putting the county’s investment at risk.

Chris McGrath of Providence Logistics said it’s unfortunate the county doesn’t want to get more involved in the dispute. “We’re certainly willing and open to meet with the county. There’s always an opportunity to find common ground.  It’s just unfortunate that nobody seems to want to discuss the issues,” said McGrath, who’s from the Chicago area.

Plans call for CSX to run refrigerated railcars of fresh produce and other farm products between Kingsbury and Florida. Intermodal facilities at both sites would be used for cold storage of the products until loaded onto trucks and barges for delivery to more distant markets.

Friedman said the county is prepared to move toward finding another developer if the current landowners remain divided. Specifically, the deadline outlined in the agreement holds the landowners to a promise they will aggressively try to bring development to the site, he said. With the landowners now in court, he said things are at a standstill, giving the county authority to enforce the deadline.

CSX has already extended a rail spur to the intermodal site but is not connecting the spur to the main line until there’s an agreement with an actual customer that will use the new line, Friedman added.

“The commissioners are bound and determined that we’re going to get back to a point where that industrial park management is speaking with one voice to site selectors, manufacturing prospects and the railroad,” he said.