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Council hears concerns about steep Union Pacific lease increase for downtown parking used by farmers market
Summary
Councilors and staff discussed a sharp increase in the city’s year‑to‑year lease payment to Union Pacific for a downtown parking triangle used by the farmers market. Staff said the railroad controls the property and raised the annual fee to about $7,000; the city currently performs maintenance but cannot buy the property without UP approval.
Councilors questioned city staff about a steep increase in the annual lease payment to Union Pacific for a downtown parking area that hosts the farmers market, and staff said the city is searching for alternatives but remains constrained by the railroad’s ownership and terms.
Councilor Boatwright asked why the city is paying “a large amount of money for a parking lot” used for events and the farmers market. City staff said the property is owned by Union Pacific and the city previously paid a nominal long‑term fee under an older arrangement. Staff said UP converted the arrangement to a year‑to‑year lease and that the current payment is roughly $7,000 per year, a change staff described as a roughly 24,000% increase from the historical $10 annual fee under the prior long‑term contract.
Staff said the city performs maintenance on improvements and fencing and has covered potholes and other upkeep, but UP remains responsible for major repairs. Councilors asked whether the city could purchase the property; staff replied UP controls sale decisions and that the city cannot buy the parcel without UP consent. The lease currently allows city use for events such as the farmers market, but staff cautioned that abandoning the lease would remove that access.
Councilors discussed alternatives, including locating the farmers market elsewhere, but staff said abrupt relocation could harm market vendors and that every proposed alternative so far has been more expensive. Staff reiterated they are actively searching for an alternative site and said it could take time and resources to build a replacement parking area. The lease includes insurance and other bundled costs; staff said the $7,000 figure includes insurance and operational costs and is not a separate insurance policy payment.
The consent agenda, which included the item tied to the lease and farmers market use, passed by unanimous roll call.
Councilors directed staff to continue seeking alternatives and to provide cost estimates for potential relocation or parking solutions in future council briefing materials.
