Metra board's review finds 'no ethical concerns' so far with Harvey warehouse purchase

CHICAGO (WLS) -- The Metra board on Wednesday concluded there was "no indication of ethical concerns" surrounding the purchase and development of a storage warehouse that has ballooned in costs for taxpayers.

It was supposed to be a simple storage warehouse for the Metra transit agency, but as the ABC7 I-Team first reported last month, the project has since turned into a sinking money pit for the cash-strapped public transit agency.

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The Harvey warehouse, located at 17010 Halsted St., was purchased by Metra in 2020 to meet its storage needs, but nearly four years later, the project has cost taxpayers nearly 18 million dollars, with millions more needed to complete the project.

The costs were due in part to Metra buying the property "as is" and not realizing how many repairs were necessary to make the building functional.

The I-Team found the previous owner of the warehouse also had contracts to supply the transit agency with hand sanitizer during the pandemic.

To see the I-Team's initial report, click here.

At Metra's board of directors' meeting on Wednesday, Director Mimi Rodman said in the last month, the board formed a committee to review the project.

While it's review is still under way, Rodman said so far, it has found no ethical concerns surrounding the project.

"We have found no indication, based on all of our work, of any ethical concerns regarding Metra's purchase or development of the Harvey warehouse," Rodman told the board.

Romayne Brown, Chair of the Metra board, echoed those remarks.

"It's clear some mistakes were made in the process of acquiring and rehabbing the property. But not in the purchase of the property," Brown said. "As we saw, it's the right purchase, it's the right location, it fills our need for space and room to grow to do more with that property."

Later this year, the board is expected to decide whether to move forward with the warehouse development project, or cut its losses and sell the property, among its options.

The warehouse challenges come at a time when Metra has said it's facing a "fiscal cliff" in the coming years, stemming from significant financial struggles brought on by the pandemic.