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Finance committee recommends easement assignment for north business-park rail spur; maintenance estimated at about $1 million
Summary
The committee recommended sending an easement assignment for a small rail spur in the north business park to council. Staff said maintenance needs identified in an inspection could cost about $1 million and that Strand surveyors prepared the legal description; Ortega is a potential assignee and BNG has signed assignee documents pending city closing.
The Stoughton Finance Committee on June 23 recommended that council consider an assignment of easement for a small rail spur in the north business park after staff described unclear historic ownership, required maintenance and potential assignees.
Staff said a recent inspection identified maintenance work on the spur that would cost roughly $1 million to bring the track up to a safe, usable condition. The rail spur currently has limited, intermittent use — primarily for storage and occasional freight movements — and staff said Ortega (a nearby business) is the primary user and a potential assignee of the easement. Other adjacent businesses (including Maris Metals and an operation described as handling wastewater-related materials) have used the spur at times.
Staff said the city attorney and staff researched records and that Strand, the city engineer/surveyor, walked the property and prepared the legal description. A city representative said BNG (an assignee listed in the packet) has signed the assignee documents and is awaiting the city's closing steps. Staff also said they are exploring grant opportunities with Becker Professional Services to fund initial maintenance work and that ongoing maintenance would be the responsibility of the eventual owner.
Committee members asked about liability and whether the legal description had been verified; staff confirmed Strand produced a survey and checked monuments/metes and bounds. Brett moved to recommend the easement assignment to council; Azie seconded, and the committee voted to forward the item.
The committee also discussed how to handle maintenance funding and possible arrangements among adjacent businesses if ownership transfers. Staff said the easement approval would allow the city to transfer responsibility and continue pursuing grant funding or cost-sharing with businesses.
