Loading...
HomeMy WebLinkAbout2015.02.02 CC PowerPoint Rail Spur UpdateUpdate on Railroad Spur February 2, 2015 ImHUg Background Council discussed the rail spur at November Executive Session Discussed usage of spur Impacts of noise, loading practices Obtained legal advice Federal Pre-emption statutes Requested staff return in 45 days with rules for possible implementation at the spur. Loading practices Staff has not done that yet.... MHu`g o Railroad Minnesota Commercial operates rail BNSF owns the main rail line and property Agreement created the rail spur Hugo Minnesota Commercial Schwieters Rules for operation, maintenance, etc. 'SiHugo 9!6 Railroad Hugo Line 10 mile line extending southward 3 businesses use the line Schwieters Loadmaster Lubricants NRI All shipping occurs at the northern terminus of the Hugo Line y INHUgo Railroad Part of BEIP TIF District Hugo service Rail spur created with CSAH 8 realignment Economic Development / Jobs Rail volumes are lower than original projections NorLakes (Loadmaster) shipping of grease Schwieters —shipping of lumber Impacts of North Dakota oil boom 84 Lumber Lack of other users Recession City 11HU go Uncertain Future Hugo Line needs maintenance Deferred maintenance Low-cost, stop -gap measures Low -speed 10mph trains Significant capital project needed to upgrade line and maintain service Strict Federal safety standards Mi u`go Status Mayor Weidt, Council Member Petryk met with MN Commercial, BNSF, WCRRA, & businesses MN Commercial — Intends to discontinue rail service Low volume = low revenues Safety improvements = high costs Process to begin with STB in April 11HU o Businesses Schwieters, Loadmaster load directly into their yard / building Rail service is critical to their business Alternate rail sites, trucking, not feasible Increased truck traffic NRI trans -loads scrap remotely at the spur Alternate sites are available NRI prefers Hugo site Spur would need improvements City 11HU go What's next Short time -frame Additional meetings with businesses RR needs commitments "Take or pay" contracts Financing for capital improvements on rail line Owned by BNS F Improvements to spur to lessen impacts Discussion with WCRRA, State & Feds Grants, loan programs Additional shippers on rail line ,siHu`go What if the rail goes away? Discontinuance of service summertime Reversion to BNSF Abandonment process is lengthy Rail would remain for at least two years Abandonment might sound good to some... Rush Line Corridor — future transit line Trail advocates Nearby neighbors IMHUg What if the rail stays? Who are the users? Users may need to make long-term commitments Are improvements necessary to the spur? Depends on the users Are there additional users to lessen burden? INHU o Discussion / Direction Not a decision for the city Difficult business decisions lie ahead For Railroad and Rail users City support of impacted businesses... Facilitate meetings Contacts with agencies Develop a plan / strategy to keep rail service Assistance finding grants Economic Development Find new rail users Direction to staff IMHUg