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Hugo City Council Meeting Minutes for February 2,2015 <br /> Page 7 of 11 <br /> Weidt made motion, Petryk seconded,to continue with the steps as presented by WSB Engineer <br /> Bob Barth. <br /> All Ayes. Motion carried. <br /> Update on MN Commercial Railroad Spur <br /> On January 22, 2015, Mayor Weidt,Council Member Petryk, and City Administrator Bryan Bear <br /> met with representative of MN Commercial Railroad and users of the rail spur to discuss the <br /> future of rail service in Hugo. The last time this was discussed by Council was in an executive <br /> session in November 2014 as a response to neighborhood complaints about the loading of cars by <br /> National Recycling, Inc. (NRI)at the rail spur. <br /> City Administrator Bryan Bear explained that the rail line is operated by MN Commercial <br /> Railroad and Burlington Northern Sante Fe(BNSF)own the rail line and property. Additionally, <br /> there is an agreement between the City of Hugo,MN Commercial Rail, and Schwieters for <br /> operation of the rail spur. The 10-mile"Hugo"line extends southward and is only used by <br /> Schwieters, Loadmasters Lubricants(both located in the Bald Eagle Industrial Park),and <br /> National Recycling, Inc. Schwieters and LoadMasters load and unload directly into their yards, <br /> and is critical to their business. NRI also loads remotely at the spur,but an alternate site is <br /> available for them. Traffic on the rail line is lower than originally projected due to changes in <br /> business and the lack of ability to get cars. Hugo has been informed that the Hugo line needs <br /> maintenance and a significant capital project is needed to upgrade it. At a recent meeting with <br /> MN Commercial Railroad, it was stated they intend to discontinue rail service,and there are <br /> plans to start the process in April. If rail goes away, service would discontinue in summer, and it <br /> would revert back to BNSF. Abandonment of the railroad may allow for a future transit line and <br /> trials. If the rail stays,users may need to make long-term commitments,and improvement to the <br /> track and spur need to be made. MN Commercial Rail will need to have commitments and <br /> determine a way to finance the capital cost since they do not own rail line. Bryan stated that <br /> additional meetings need to be held with the businesses. Staff also hopes to continue discussions <br /> with Washington County Regional Rail Authority and the State and Federal government on <br /> possible grants or loan programs. <br /> The Council agreed it was a business decision,not a decision for the Council,but the City can <br /> continue to support the impacted businesses. The Council acknowledged that it was an important <br /> part of the Bald Eagle Industrial Park development. <br /> Weidt made motion, Klein seconded,to direct staff to schedule a follow-up meeting with <br /> businesses who use the rail spur and discuss options to maintain rail service in Hugo. <br /> All Ayes. Motion carried. <br /> Update on Lions Park <br /> At the City Council meeting of June 16,2014,a landscape architecture consultant was hired and <br /> a stakeholder group was appointed for the next phase planning of Lions Park. Immediately <br /> following the dedication of a 2.11 acre expansion of the park property,to 10.21 acres,planning <br />