Elwood, Illinois is a town of 2,200 people just southwest of Joliet, near the intersections of several rail lines and Interstates 55 and 80 and Interstates 90, 94, 57, 88, 65 and 39 are all within 30 or 40 miles because of Chicago being nearby.
Some 17 years ago, the tiny town became the home to one of the largest land ports in America, and the number of shipping, warehousing, logistics and fulfillment centers in the area have only grown exponentially since.
The problem of course is that the people of Elwood have only seen misery over the last decade and change, and now the town is finally fighting back.
In Elwood, geography is destiny. For homesteaders and farmers heading west in the 19th century, the flat terrain and quality soil made the region a major draw. “This area is kind of like a fertile crescent,” said Baum-Coldwater, whose 540-acre farm has been worked by her family for 160 years and counting. The Coldwaters are one of many multi-generational farming families in the area, producing soybean seeds, primarily, as well as corn and oats. From the front porch, they can still see the original residence Julie’s husband’s great-great-grandfather built in 1858, as well as the houses his grandmother and grandfather each grew up in, before they married.
Even the most thorough tour of Elwood doesn’t last long. The town’s nucleus sits on the west side of a highway, where a small strip mall, home to Silver Dollar restaurant and the Dollar Tree, leads to a handful of municipal buildings and a few blocks of housing. That denser development quickly gives way to a broad campestral swath, with the occasional farmhouse identifiable only because the area is so flat.
But it wasn’t topsoil that caught the eye of industry—it was Elwood’s serendipitous proximity to the country’s major infrastructure. Six class-1 railroads and four interstate highways pass through the region, which is situated a day’s drive from a full 60 percent of the country. Chicago is some 40 miles northeast as the crow flies.
For much of the 20th century, Elwood sat in the shadow of the Joliet Arsenal, an Army facility built in 1940 that churned out bombs and TNT to feed the American war machine from World War II through the Cold War. But once the Vietnam War ended, its utility subsided. In 1976, the facility was shuttered.
What to do with 23,500 idle acres became the subject of great debate. Mining and asphalt plants were suggested; a coal-fired power plant was proposed; so, too, was a new landfill. The passage of the Illinois Land Conservation Act in 1996 enshrined a solution. Nineteen thousand acres were converted into protected prairie land, where 73 head of bison currently roam. The Abraham Lincoln National Cemetery, the country’s second-largest military cemetery, was also established. That left 2,000-odd remaining acres, officially a Superfund site, too spoiled to farm. This remaining tract was zoned for light industry. For Jerry and Connie Heinrich, who headed up the effort to preserve the region’s prairies, it was the best of all possible outcomes, considering the alternatives. “The Greens were excited,” Jerry told me.
Soon after, CenterPoint came through with its proposal for the Intermodal. The deal sounded good. CenterPoint, which is now owned by CalPers, the California public sector pension group, bought the land for an undisclosed amount. In addition to the tax abatement, Elwood, then shy of 1,700 people in total, agreed to build out a big-league water and sewer system for the facility, and extend municipal fire and police protection. In anticipation of the population and economic growth to come, they even built a new town hall, a tan, multi-story structure complete with a backyard pond and a fountain, referred to playfully as the Taj Ma-hall.
When the facility opened in 2002, it was centered around the Burlington North Santa Fe (BNSF) railroad, which subsequently bought the loading zone. Warehouses were constructed nearby. The plan proved to be an immediate success: An ambitious forecast claimed that within eight to ten years the facility would see 500,000 containers annually; that threshold was surpassed in four.
That was enough to attract the eye of a notable investor: Warren Buffett, who made a pilgrimage to little Elwood in the late 2000s to survey the facility. According to one version of local legend, Buffett took in the scene of BNSF trains unloading containers onto trucks, and the trucks casting off into all corners of the United States, and declared, “This is the future of logistics.” On November 3, 2009, Buffett bought BNSF in its entirety—and with it, the Intermodal.
After that, it was on. The success of the BNSF Intermodal, no doubt aided by the star power of Buffett, inspired railroad rival Union Pacific to set up a smaller, copycat facility across the street. The country’s richest families moved in, at least in name. In addition to two Wal-Mart warehouses, each between 1.6 million and 1.8 million square feet, Elwood got a Walton Drive, named after the Walton dynasty that owns the big-box chain.
For Delilah Legrett, a lifelong resident of the area and mother of four, the drawbacks came quickly—starting with all the trucks. Property values were supposed to skyrocket, but Legrett didn’t even feel comfortable letting her children play in front of their house with the semis hurtling through the town, sometimes as fast as 40 or 50 miles per hour. With toddlers, the persistent diesel exhaust was concerning. “We had problems with our baby monitor because it would pick up frequencies” from passing truck radios and warehouse dispatchers, she told me.
According to the Will County Center for Economic Development, at least 25,000 tractor trailers a day come through the Intermodals. That amounts to three million containers annually, carrying $65 billion worth of goods. A staggering $623 billion worth of freight traversed Will County infrastructure in 2015 alone, roughly equivalent to 3.5 percent of the U.S.’s total GDP.
And yet the town of Elwood has almost gone bankrupt because of all the tax abatements and sweetheart deals these giant companies have gotten. They pay virtually nothing to be in Elwood, and the constant flow of trucks makes the city dangerous to drive around. Nearly all the jobs created in the 21st century have been temp jobs or contractor jobs, and nowhere in America is that more apparent than the fact that
almost two-thirds of Elwood's workers are temps with no benefits.
This is American labor today: no unions, no corporate tax base, and a race to the bottom to exploit as many workers as possible...and this was all happening
before Trump gave corporations a $1.5 trillion tax cut a year ago.
We're all just one paycheck away from hell. Elwood just went there together.
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