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Hugo City Council Meeting Minutes for September 21,2015 <br /> Page 3 of 6 <br /> Approve Letter Supporting Washington County Star Trail Association's Federal Grant <br /> Application <br /> The Washington County Star Trail Association had requested the City of Hugo's support in their <br /> application for Federal grant money to upgrade the equipment used to groom the snowmobile <br /> trails. The snowmobile club also generously donates their time to groom the cross-country ski <br /> trails in Irish Avenue Park. Adoption of the Consent Agenda approved the letter for signature by <br /> the Mayor supporting grant money for snowmobile trails.. <br /> Update on Railroad <br /> City Administrator Bryan Bear provided a review of discussions that began during the winter of <br /> 2014 when the City received complaints about National Recycling's usage of the rail spur. It <br /> was realized at that time that there needed to be repairs to the rail line serving the Bald Eagle <br /> Industrial Park or service would be terminated, impacting businesses. The rail spur was created <br /> in the BEIP when CSAH 8 was realigned, leading to significant economic development in Hugo. <br /> This line is currently being used by Load Master Lubricants and Schwieters, and the loss of the <br /> railroad would likely result in the loss of those business who depend on it, and hinder future <br /> development and economic investment in the park. <br /> The Council had expressed support for the businesses and the railroad during the 2015 legislative <br /> session, and the State of MN appropriated $145,000 to MN Commercial Railway for emergency <br /> repairs to the rail line as part of the Transportation Bill. Repairs are nearly complete;however, <br /> approximately$1.1 million is still needed for permanent repairs. Deteriorating rail lines is a <br /> problem all over the state impacting businesses dependent on the service, and there is no grant <br /> program in place like there is in the surrounding states of Iowa and Wisconsin. <br /> Bonding proposals are now being submitted for the 2016 Legislative session, and committees <br /> will begin tours this fall. Three avenues are being explored: bonding request, general fund <br /> request, and the Minnesota Freight Railroad Preservation and Infrastructure Improvement Act. <br /> There is a statewide effort looking for support for the MFRPII Act, which would be a grant <br /> program for improvements. <br /> The Council talked about long term sustainability based on having enough businesses to support <br /> the rail line and would like to see stakeholder involvement to help them work on promoting other <br /> business to come to the park. Current businesses would be good promoters of the BEIP. <br /> Weidt made motion,Petryk seconded,to draft letter a letter of continued support of legislative <br /> activities regarding reconstruction of the railroad system. <br /> All ayes. Motion carried. <br /> Hass made motion,Weidt seconded,to direct staff to consult with the railroad and businesses <br /> using the spur to explore public relation opportunities to bring businesses to Hugo to make the <br /> railroad viable in the future. <br /> All Ayes. Motion carried. <br />