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Village approves TEA agreements and awards rail-spur contract to serve Belkin; company must post $3.6M letter of credit
Summary
The Board approved Wisconsin DOT TEA-related agreements to build a rail spur serving Belkin USA (DOT grant up to $400,000); agreements require Belkin to create 80 jobs, maintain the spur and provide a letter of credit up to $3,599,535. Bids for construction were opened and the low bid ($2,251,525) was awarded.
The Village Board approved a suite of agreements required by a Wisconsin Department of Transportation Transportation Economic Assistance (TEA/T-grant) award to construct a rail spur serving Belkin USA.
Rob summarized the package, telling trustees the DOT would provide up to $400,000 in grant funding to support the spur and that the project is expected to support creation of 80 full-time jobs in the community: "This grant would fund a railway spur to their facility and this would lead and support the creation of 80 new jobs within the community." The agreements before the Board included the DOT T-agreement, a notice of lien on grant-purchased materials, a facility-use agreement between the village and Belkin, an industry-track agreement with Union Pacific, a consent-to-joint-use agreement, the spur-track obligations agreement (shifting maintenance, repair and replacement responsibilities to Belkin) and easements to allow construction on private land.
The obligations agreement requires Belkin to indemnify the village, procure commercial general liability and other coverages, and provide a letter of credit up to $3,599,535 to secure project obligations and protect the village from nonperformance or grant clawbacks. Staff recommended award of the construction contract to the low bidder, Butine Peterson Construction, at $2,251,525; trustees approved the contract award. The Board also approved associated easements, construction management and related agreements needed for the project to proceed under the DOT grant terms.
