Study Shows Joliet-Area Intermodal Site Will be Major Economic Engine for Will County

CenterPoint Intermodal Center-Joliet to Yield More Than 6,900 Jobs
and $765 million in annual economic output
OAK BROOK, Ill.--(Business Wire)--
The operation of a proposed intermodal rail and industrial park in
Joliet will create as much as $765 million in annual economic output
for Will County and 6,900 to 7,400 new full-time jobs, according to a
study by the research firm Cambridge Systematics, Inc. released today.
In addition to these gains from annual operations, construction
activity alone will generate another $1.2 billion in economic output.

Direct construction employment, and the resulting economic boost
to surrounding businesses, is expected to result in $1.2 billion of
additional economic output, with $542 million in labor income and $682
million value added, according to the Cambridge report. Annual labor
income generated by the completed facility is expected to be between
$290 million and $344 million.

Wages should also rise in Will County with the construction of the
intermodal park: estimated annual wage within the park is expected to
be $49,000 in 2006 dollars and indirect wages - jobs created by
increased economic activity - are pegged at $46,000, Cambridge
estimated. According to Census data, the 2005 average wage in Joliet
was $45,590.

"Freight transportation facilities are crucial to the economic
growth of the Chicago area," Erik Cempel of Cambridge Systematics
writes in the report. "The Chicago region has more freight tonnage
passing through it than any other port in the United States... the
vast majority is transferred via train or truck."

The intermodal rail and industrial park plan will be presented at
the Will County Center for Economic Development Board meeting Friday.
The Cambridge study was released to civic, business and local
government leaders in advance of the meeting.

CenterPoint Properties commissioned Cambridge Systematics, Inc., a
nationally-recognized company that specializes in the planning and
assessment of transportation investments, to conduct an independent
analysis of the benefits of CenterPoint Intermodal Center-Joliet
(CIC-Joliet).

"The study's findings reinforce our experience that the
responsible development of intermodal rail and industrial parks
benefits customers, boosts economies and enhances the quality of life
in the communities where we're located," said CenterPoint Properties
CEO Michael M. Mullen.

The new CenterPoint Intermodal Center in Joliet will join the
existing intermodal anchored industrial park developed by CenterPoint
in nearby Elwood, Illinois. According to Cambridge, the current
facility in Elwood has already created at least 2,300 jobs for Will
County-based workers, who have earned as much as $120 million in
wages, with as much as $158 million in added value for the county. It
has created as many as 870 indirect or induced jobs in the County. The
Village of Elwood's revenues have increased by almost nine times
between 2000 and 2007.

A Joliet intermodal center with a state-of-the-art integrated
logistics park surrounding it will also ensure that the host community
has access to an expanded tax base. Creating taxable facilities where
none currently exist will increase government revenues, the Cambridge
study says. Additionally, the study notes that expenditures on public
facilities follows that trend.

A previously released study by Kane McKenna and Associates, Inc.
found that over the first 21 years, the intermodal facility will
generate more than $305 million in cumulative property taxes; at year
31 the facility will have generated more than $550 million in
cumulative property taxes. Intermodal facilities typically generate
property taxes within an adjacent logistics park at a much faster rate
than traditional industrial-only developments, and the Joliet facility
will be no different, the Kane McKenna study said. Additionally,
CIC-Joliet will generate significant new tax revenue for area schools
without adding the costs associated with new students as is often the
case with residential development.

For example, 21 years into the development, Joliet Township High
School will be receiving an estimated $7 million of annual property
taxes from CIC-Joliet, versus approximately $5 million a traditional
industrial development would generate. This is the difference of more
than $40 million for JTHS alone in the first 21 years of CIC-Joliet.
Other schools in Will County would see a boost too. Laraway Elementary
Schools would receive an additional $2.4 million a year by the 21st
year of the project, and Joliet Junior College would receive an
additional $200,000 annually.

"An intermodal center in Joliet is just what our area needs to
build an even stronger community and provide our residents with good
jobs and a good education," said Tom White of Three Rivers Alliance of
labor leaders. "This study only makes the case stronger. Joliet
specifically, and Will County more broadly, are lucky to be in
position to benefit from these kinds of investments. As the economy
changes in the years ahead, we will be positioned to lead Illinois'
growth."

According to the Cambridge researchers, the development and
expansion of the Joliet facility will likely bring major investments
and support to the freight and highway infrastructures, additional
employment opportunities for residents and increased economic output
through added business for suppliers and through benefits to local
services. The transportation infrastructure alone at these facilities
fuels regional economic growth by decreasing travel time and costs,
increasing reliability and enhancing accessibility, the study said.
For instance, each freight train car takes 3.87 semi-trucks off the
road, it said.

Regional manufacturing and supply chain experts also laud the
project for the reach and growth and related benefits an intermodal
facility in Joliet will bring to Will County.

"As a native of Joliet and an expert in supply chain management, I
can affirm the positive impacts of this project are far and wide,"
said Donald Maier, a professor of supply chain management at the
University of St. Francis. "Joliet will become a critical hub in the
global supply chain and make the area stronger for manufacturing, jobs
and growth. Additionally, the 'greening' of the supply chain through
intermodal will make CenterPoint Joliet a model for other projects."

These benefits in turn will reduce area congestion and increase
productivity, labor and market access, and help integrate supply
chains, which has a positive implication for regional manufacturing.

"This project will help our region attract new investment,
new businesses and new jobs" said John Greuling, President and CEO of
the Will County Center of Economic Development. "It will open up an
important industrial district for new development that would not occur
without a new intermodal facility. Projects like this insure that Will
County and Joliet will successfully compete in the new global
economy."

The intermodal center will also play an important role sustaining
Illinois agriculture and the State's economy. After California,
Illinois is the second largest U.S. exporter of agricultural
commodities, up from third place in the 1990s. More than 44 percent of
Illinois grain is sold for export. Access to transportation is
essential for Illinois farmers to get their products to market quickly
and efficiently.

"A Joliet intermodal center will replace many of the grain
distribution centers lost over recent years," said Mark Schneidewind,
Manager of the Will County Farm Bureau. "This is our opportunity to
improve the economic well-being of Will County and the region and
enrich farming life by providing direct access to global markets."

About CenterPoint Properties

CenterPoint Properties is focused on the development, ownership
and intensive management of industrial real estate and related rail,
road and port infrastructure. We add value to our customers through
forward-thinking solutions aimed at enhancing supply chain and
operating efficiencies. We seek long term relationships with
customers, public and private business partners, internal colleagues
and the communities where we invest and operate.

CenterPoint Properties is owned by the CalPERS, the California
Public Employees Retirement System, which provides retirement, health,
and related financial programs and benefits to 1.5 million public
employees, retirees, and their families and more than 2,500 public
employers.

About Cambridge Systematics

Cambridge Systematics is recognized nationally for its work with
Federal, state, and local agencies to plan and manage transportation
systems in a way that supports broader economic goals. Cambridge
applies its core skills in consensus-building, strategic planning,
market research, and decision support to help establish state and
regional economic development strategies. The firm specializes in
transportation policy, planning, and management, and is dedicated to
ensuring that transportation investments deliver the best possible
results.

Using proven methodology, the Cambridge study utilized the IMPLAN
software tool to develop an economic input/output model that examines
production and consumption by industry type, and estimates the effects
of introducing increased investment and employment within particular
industry sectors. Will County-specific data and actual impacts in
Elwood were used as inputs.

A full copy of the report is available at CenterPoint Properties
Web site: http://www.centerpoint-prop.com/news/index.aspx

For CenterPoint Properties
Lena Parsons, Hill & Knowlton
312-255-3072 or 773-425-0725

Copyright Business Wire 2008