I3. Reso 5799 - Request to BN to Abandon Rail LineCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Request to Burlington Northern for rail abandonment
Meeting Date: January 17, 2017
BACKGROUND: As part of the Core Area Redevelopment effort, a project within the West
Side Urban Renewal Plan, the City of Kalispell is looking at removal of the existing rail line with
the intent of creating a linear trail. Burlington Northern has previously identified support for
discontinuing rail service and abandoning the rail line between approximately Milepost 1225.17
and Milepost 1227.58.
One of the conditions Burlington Northern placed on this support includes the support of the
abandonment by existing rail users. CHS has previously expressed their support to Burlington
Northern for this project. In the preceding agenda item, Council has considered a memorandum
of understanding between the City of Kalispell, Flathead County Economic Development
Authority, and Northwest Drywall. This MOU will be sent to Burlington Northern
demonstrating that an agreement has been reached with this party, and that this specific condition
has been met.
The resolution attached and recommended for approval is the request for Burlington Northern to
begin abandonment of the rail line.
FISCAL IMPACT: This request does not have a direct fiscal impact. It is anticipated that there
will be future costs for rail development, which are part of the previously adopted West Side
Urban Renewal Plan.
RECOMMENDATION: It is recommended that the City Council approve Resolution No.
5799, a resolution requesting that Burlington Northern begin the abandonment process for the
rail identified for removal as part of the Core Area Redevelopment Project.
RESOLUTION NO.5799
A RESOLUTION EXPRESSING TO THE BURLINGTON NORTHERN SANTA FE
RAILROAD THE DESIRE OF THE CITY THAT THE EXISTING RAILROAD
TRANSPORTATION INFRASTRUCTURE WITHIN THE CITY TO BEGIN TO BE
ABANDONED FOR THE REASON THAT ALL RAIL USERS WITHIN THE CITY
HAVE AGREED TO SUPPORT THE ABANDONMENT.
WHEREAS, on February 4, 2013 the Kalispell City Council, through Resolution No. 5605,
adopted the Kalispell Core Area Plan as an amendment to the Kalispell West Side
Urban Renewal District Plan, overlaid with a Tax Increment Financing District;
and
WHEREAS, essential elements of the Kalispell Core Area Plan are the removal of the
Burlington Northern Santa Fe Railroad [BNSF] tracks traversing it, as well as
removing the industries served by rail to a location outside of the Core Area; and
WHEREAS, by letter dated, July 10, 2015, BNSF advised the City of Kalispell that it agreed to
abandon the railroad services and existing rail transportation infrastructure in the
city upon the support of existing rail users located on the rail section proposed for
abandonment; and
WHEREAS, the businesses located on the real property at 160 8Ch Avenue West North,
Kalispell, Montana consisting of approximately 1.6 acres identified as Tract
2821X07-MDC-2 in the Meridian Complex East Subdivision of the City of
Kalispell, in addition to a private easement area of approximately .5 acres that
benefits the subject property, have been served with railroad transportation by
BNSF and are the last remaining businesses so served that have not already
expressed support for the removal of the track; and
WHEREAS, the owner of the subject property set forth above and the businesses located
thereon have entered into a Memorandum of Understanding with the City in
which the parties have agreed that those entities receiving rail transportation
services at 160 8th Street West North, Kalispell, Montana shall finally and forever
relinquish all rights and privileges of receiving such services as well as any rights
to assign such rights and privileges, in consideration for certain relocation funding
provided by the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the Kalispell City Council continues to support the
abandonment of the existing BNSF Rail infrastructure in the City
as well as a program to assist the relocation of businesses in the
city served by rail transportation to the Glacier Rail Park.
SECTION II. That the City Manager is hereby directed to communicate with
BNSF regarding the Memorandum of Understanding set forth in
the recitals above in which the last remaining users of the rail
services in the City have agreed to relinquish all rights and
privileges of receiving such services as well as any rights to assign
such rights and privileges, in consideration for certain relocation
funding provided by the City and to request that BNSF begin it
abandonment processes.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 17TH DAY OF JANUARY, 2017.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk