SOUTH BEND -- Economic development officials want St. Joseph County to approve a rail spur off the Norfolk Southern line in the western part of the county. It would run parallel to Walnut Road, roughly between U.S. 20 and State Road 2.

Officials with Project Future say there have been companies considering that part of the county, but they don't locate here because there's no rail access.

Project Future director Pat McMahon told WSBT News 10-15 percent of the companies looking to locate in St. Joseph County ask whether rail service is close by.

“Rail is becoming increasing important, especially as gasoline and diesel prices go up,” McMahon said. “It is really providing a resurgence of traffic in the railroads themselves.”

McMahon also says building a rail spur would put the western part of the county in prime position to benefit if a proposed intermodal project in LaPorte County ever gets built.

“We're not very competitive with business bringing containers into Chicago and then want to put them on their manufacturing floor, because we're a little too far away to make that economical,” McMahon said. “Activity in LaPorte County would put us right next door.”

McMahon says the county would have to pay for at least part of the line, with the rest possibly coming from the railroads and the state.

County commissioners seemed receptive to the idea, but Commissioner Steve Ross wants to see something more concrete before he commits.

“I think just to 'build it and they will come' type of philosophy may not be the best at a time where we're in dire financial straits,” Ross said.

McMahon and the county commissioners plan to meet with New Carlisle officials to discuss this more. The rail line proposal would have to be approved by the St. Joseph County Redevelopment Commission. McMahon also asked commissioners to change the boundaries of the TIF districts. That would allow infrastructure improvements to be made at lower costs to taxpayers.