City negotiators say railroad won’t sell right‑of‑way; development may shift around track

City staff told the City Council that negotiations with Union Pacific over a roughly one‑acre railroad right‑of‑way remain unresolved and that the city’s available options are limited, potentially affecting a nearby $90 million development proposal. The mayor and staff reported the city has offered increasing sums to acquire the right‑of‑way but that the railroad typically will not sell. Staff said an earlier offer of $5,000 rose to $10,000, then to $70,000, and the current offer stands at $75,000; despite that, the railroad has not agreed to a sale. The right‑of‑way is under about one acre and the total developable parcel east of the track was described as about 1 and a third acres when combined with adjacent land. City staff said a new lease program — a lease‑instead‑of‑sale option the railroad is proposing — could complicate cleanup and development because the city is uncertain whether it could proceed with environmental remediation on leased land. If terms cannot be reached, staff said the developer may have to build outside the right‑of‑way on land east of the railroad and design the project around the track. Staff said legal staff is reviewing a lease agreement to see if cleanup under a lease is feasible; no final decision was made and no purchase occurred at the meeting. The council did not approve additional expenditures beyond what staff reported; the mayor described the escalating offers as “kind of shameful” and urged continued negotiation. Ending: Negotiations continue; staff will report back after legal review of the railroad lease option and further discussions with Union Pacific. No property transfer or contractual commitment was approved at the meeting.