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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