The yard could potentially go here:
https://www.google.com/maps/@41.7125.../data=!3m1!1e3
Here's what I would do if I were king:
First, RLX one stop to Bishop Ford / Cottage Grove / CSU, where a new ME station would be built. Put the yard where I mentioned. I would not be completely opposed to another stop at 103rd street serving Olive Harvey College and a giant park and ride lot.
Then we force Metra to run proper, fare-integrated local service at reasonable. This could look something like:
ME Commuter Service, which would only stop at Kensington/Bishop Ford/57th/McCormick/18th (game days only)/Museum Campus/Van Buren/Millenium. This could run at whatever frequencies Metra thinks are reasonable. Kensington would need some upgrades to be a 2-platform station.
ME Mainline Service from a new stop at 130 st/Altgeld Gardens to Millenium Station, running every 10-20 minutes depending on time of day. It would turn "expressish" north of 53rd street, skipping stops between 53 and McCormick Place. This would of course stop at the new Bishop Ford station. Eventually, some runs could be extended to stations at Brainard/131 and Hegesewich and maybe even Hammond (if NICTD pays for it).
ME South Chicago Service would run at 10-20 minute frequencies depending on time of day. This would pick up local stops between 53rd and McCormick (which would have 2-3 additional stops between 27th and 47th, perhaps at 35th and 41st). Eventually this could be extended to serve the East Side as well.
ME Blue Island service would operate as a branch line, interchanging at Kensington with 20-30 minute frequencies (depending on time of day). More frequencies can't be accommodated without making it double track and are probably unnecessary anyway.
If Metra refuses to do that, then CTA should take over at least 2 of the tracks in that corridor and ME would only operate the "Commuter" service.