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Council approves railroad track license template for industrial park users
Summary
The council approved a railroad track license agreement between the city and Insulation Incorporated, establishing a template for industrial users and confirming maintenance costs will be prorated and covered by industrial-park taxes (TIRZ/TUR One), not resident general funds.
The McGregor City Council approved a railroad track license agreement template that staff said will govern industrial users who require rail service in the city’s industrial park. The agreement outlines maintenance cost-sharing on a pro‑rata basis and must be accepted by BNSF before rail service begins.
Staff described the template as necessary to standardize terms for rail users and said costs will be paid from taxes collected in the industrial park (TUR One/TIRZ), not from resident tax dollars. "This is paid out of the tax dollars of the people that are out there, the real property taxes," staff said in explaining how maintenance costs will be covered.
Council approved the agreement by voice vote with one member noting they would stand aside (abstain) where appropriate. Staff said further rail use agreements will follow the same template for other industrial users.
Next steps: staff will complete required approvals, including BNSF’s review, and return any final documents to council if material changes are required.
