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b siv of <br />NEW <br />BRKA-frON <br />the city that works for you <br />REQUEST FOR COUNCIL <br />CONSIDERATION <br />Report Number <br />Agenda Section <br />Council Meeting Date <br />08-247 <br />VI -5 <br />September 8, 2008 <br />ITEM DESCRIPTION: Approval of Final Reimbursement to Minnesota Commercial Railway for Team Track <br />Project. <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director <br />CITY MANAGER'S APPROVAL: <br />No comments to sunnlement this report--� Comments attached <br />Recommendation: <br />Staff recommends that the City Council approve the final reimbursement to Minnesota <br />Commercial Railway for the Team Track Project. <br />Legislative History: <br />October 9, 2007: The City Council approved a Letter of Understanding (LOU) by and between the <br />City of New Brighton, Minnesota Commercial Railway and MT Properties, Inc. <br />The basic agreement outlined that the City would pay the railroad up to <br />$150,000.00 for the team track portion of the project. There was a provision in <br />the agreement that provided for a 10 percent contingency in the project. <br />March 26, 2008: The City Council approved an amendment to the LOU to increase the project <br />maximum reimbursement from $150,000.00 to $187,437.00. The 10% <br />contingency was still included in the agreement. <br />Financial Impact: <br />The actual cost of the team track project was $205,874.06, of which Minnesota Commercial has <br />already received $83,360.00. The final reimbursement to the railroad is $122,514.06. The final <br />amount is within 10% of the amended budget. The team track project has been funded out of the <br />City's Municipal Development Fund (460). <br />Explanation: <br />The City has been working with the railroad for nearly four years on the relocation of the Butcher's <br />Spur. The abandonment of the Butcher's Spur was finally approved by the Surface Transportation <br />Board (STB) in July, with an effective date of August 15, 2008, subject to two conditions. Staff is <br />awaiting final review of a historical report by the State Historic Preservation Office. In the meantime, <br />the railroad has finished construction of the team track project. The City is trying to work with the <br />0 railroad for early access to remove the tracks located within Old Highway 8. So far the railroad has <br />