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Commission recommends annexation and rezoning for Compass Railroad railcar storage yard

Lakeville City Planning Commission · December 5, 2025
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Summary

The planning commission recommended City Council approval of annexing about 33.31 acres into Lakeville’s MUSA and rezoning to allow a railcar storage yard by Compass Railroad, in partnership with Progressive Rail; the commission noted airport adjacency and building height limits but voted unanimously to recommend approval.

On Dec. 4 the Lakeville City Planning Commission recommended that City Council approve comprehensive plan amendments and a rezoning to allow a railcar storage yard proposed by Compass Railroad, Lakeville LLC. The request would annex roughly 33.31 acres into the municipal urban service area (MUSA), reguide parcels from rural residential density to industrial and airport uses, and rezone properties from Rural Agricultural to I-2 General Industrial and I-3 Airport Industrial districts.

"So now that we have the annexation approved, we need to go through the comprehensive plan and the rezoning for the properties," said Miss Goodhue, representing Compass Railroad and the MAC. She said the annexation had been approved by the state on Nov. 5 and described CompassRail as a Texas firm that will operate the railcar storage yard in cooperation with Progressive Rail. The project aims to move railcars that have been stored along County Road 50 into a dedicated storage yard.

Commissioners asked whether the railcar yard is compatible with airport-related height restrictions and whether existing track access will be sufficient. Miss Goodhue said railcars are compatible with airport adjacency, noted there are height limitations for buildings near the airport that the city would enforce, and said the developer envisions a possible maintenance building that would be worked through subject to those limits. She also stated that tracks will be built within the property and that existing access should be sufficient to service the site.

After discussion, a commissioner moved to recommend City Council approval of the comprehensive plan amendments (including adding roughly 33.31 acres to the MUSA), the reguiding from rural residential to industrial/airport, and the zoning amendments to rezone the parcels to I-2 and I-3. The motion passed on roll call with all present commissioners voting "Aye."