City seeks resolution of intent to open landlocked dairy property amid railroad demands

Mayor opened the meeting by moving the dairy property item to the top of the agenda so the council could hear updates while Senator Rasmussen joined by video. City leaders said the city (and previously the port authority) acquired the 27‑acre dairy parcel and completed demolition, but the site remains landlocked by railroad right‑of‑way.

The city secured a $4,000,000 state grant to buy the land, build a trail and fund crossings, but staff said portions of the grant have already been allocated. "The first $1,200,000 went toward the transaction from the port authority to the city," staff said, and about $1,300,000 is set aside for rail crossings while roughly $800,000 is estimated for trail construction; any remaining funds could pay for public amenities. The transcript records staff’s estimate that “probably less than 400,000, 300 or less” would remain after those obligations.

Senator Rasmussen, on the video call, described years of negotiations with Genesee Wyoming, the parent railroad, and said company leaders were willing in principle to give the city more time to complete safety enhancements. "One of the opportunities they have offered in principle is giving us additional time, up to five years to complete some of these safety enhancements," Rasmussen said.

City staff and council members described a narrow set of options imposed by the railroad. Staff said early railroad responses would have required closing several other crossings; after legislative engagement, railroad representatives proposed adding signals at two crossings and rebuilding the crossing bed at another as a trade‑off. Staff characterized current terms as effectively a final offer: “This is as good as it's gonna get,” staff said.

Council members pressed staff on consequences of declining the railroad’s terms. Staff warned that without permission for key crossings the council would be unable to upgrade Broadway or Saint Andrews and that a constructed trail could end as a disconnected segment. They also said unencumbered bond or grant balances would be forfeited to the state if funds are not spent or encumbered.

Mayor and staff said the immediate next step is to return to the council with a resolution of intent and continue negotiating with the railroad to secure access and a possible multi‑year window to perform required safety work. No formal resolution was adopted at the committee meeting; staff said the council will consider a resolution and bids for construction when design and procurement proceed.

What’s next: staff will pursue an agreement with Genesee Wyoming, refine budget/bid alternates for crossings and trail construction, and present a formal resolution and procurement schedule to the council for action.