Lakeville staff, Progressive Rail partners outline 225-car storage plan, annexation and $7 million state construction request

Lakeville City staff and private rail partners presented a conceptual plan for a freight rail car storage facility on roughly 22 acres south of the Progressive Rail (PGR) offices, saying the initial phase would provide railcar storage and later phases could add repair capacity.

Andrea Balcomen, identified in the presentation as CEO of Progressive Rail, and representatives from Compass Rail described the project purpose: storage capacity to reduce roadside switching, improve roadway access and address public-safety concerns west of Dodd Boulevard. "This initial phase is just really for storage," a Compass Rail representative said, citing the company's nationwide running-repair operations and a plan to site a storage siding that could hold about 225 railcars.

Staff outlined funding to date: $750,000 in federal congressional-directed funding earmarked primarily for design and environmental work, a proposed state allocation of roughly $7,000,000 intended for construction, and a required local match (reported as 20 percent). Staff said they are close to finalizing a state agreement and are coordinating with the Federal Railroad Administration and MnDOT.

The next procedural steps described were acquisition of the land/easements, annexation by ordinance (anticipated for a September public hearing after property closing), a land-use application (anticipated in October) and eventual design and construction procurement. Staff said the city would technically own the land and track while use agreements and operations would be performed by Progressive Rail and Compass Rail under negotiated contracts. A federal/state funding condition was noted: a 35-year requirement tied to the state funding that affects asset disposition.

Council members asked for capacity and timing details; staff said the existing downtown storage is "not many" cars now, the proposed siding would accommodate roughly 225 cars, and the city hopes to begin formal design by the end of the year with construction potentially occurring in the following construction season, subject to environmental review and final agreements. No council vote was taken; staff will return with annexation/land-use applications and draft use agreements for council consideration.