Fremont council declines to sponsor Rail Modal Group’s $5 million federal rail grant application

Fremont’s City Council voted down Resolution 2026-150 on a motion that would have authorized the city to serve as lead applicant on behalf of Rail Modal Group for a Consolidated Rail Infrastructure and Safety Improvement (CRISI) Program grant.

City Administrator Jody Sanders told council members the group asked the city to apply because it is not eligible as a full-line railroad. Sanders said the grant is reimbursement-based and requires matching funds as expenses are incurred; she told council that staff asked RMG to provide proof of a $5 million match via escrow or a letter of credit, but the company provided only a bank letter showing a one-day balance. "This document is designed to protect the city" in the event of ineligible reimbursed expenses, Sanders said, referring to a proposed receipt, grant support and indemnification agreement.

Why it mattered: Council members from across the chamber said they were uncomfortable moving forward under current conditions. Several members pressed staff about whether the Nebraska Department of Transportation (NDOT) had committed in writing to accept transfer and administration of the award if Fremont were designated lead applicant; Sanders said NDOT had given verbal confirmation but that any transfer would return to council for approval before grant documents were signed.

Council members voiced a mix of interest in local economic opportunity and concern about due diligence. Councilman Horner said the project could create intermodal opportunities at North Town Port and described the city’s role as largely a pass-through to allow RMG to pursue federal funds. But Councilman Peterson called the application "vague" and criticized the applicant’s absence: "If I wanted $5 million, I'd sure as heck get on my corporate jet and be there," he said. Councilman Marsh raised allegations about RMG’s safety history, saying the company had "23 OSHA violations" and a death on site; Angie Olsen, the city’s grant coordinator, said she could not confirm those specific claims without a company representative.

Process and protections: Staff said the CRISI program permits administrative costs and that NDOT has administered similar projects for other communities. Sanders said the indemnity agreement and application language were intended to limit the city’s exposure but acknowledged the city could not guarantee 100% protection against legal challenge.

The vote and immediate outcome: Councilman Horner moved to approve Resolution 2026-150 and Councilman Jensen seconded. The mayor announced the result: "The motion fails, Mayor. Five no, five nays, three ayes." (The packet earlier noted eight members present; the transcript records the vote as stated.) The council then moved to adjourn; a subsequent motion to adjourn passed "eight to zero."

Public comment: A local resident, Steve Ray, testified that he had worked at the RMG site and recounted operational and safety problems, including a malfunctioning elevator; he said the applicant’s absence and limited documentation reinforced council concerns.

What’s next: Because the motion failed, the city will not serve as lead applicant in this grant cycle. Staff said CRISI funding is expected to be available in a later cycle (2027), but that availability is not guaranteed. Any future application or an award transfer from the city to NDOT would return to council for formal action.