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• <br />0 <br />b Of <br />01 <br />UBRKWON <br />the city that works for you <br />REQUEST FOR COUNCIL <br />CONSIDERATION <br />Report Number <br />Agenda Section <br />Report Date <br />Council Meeting Date <br />ITEM DESCRIPTION: Approval of Amendment to Railroad Team Track Project Budget <br />08-099 <br />VI -8 <br />March 20, 2008 <br />March 25, 2008 <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report 1ILZ ( Comments attached <br />Recommendation: <br />Staff recommends that the City Council approve an amendment to the budget for the railroad learn track <br />project with. Minnesota Commercial Railway. <br />Legislative History: <br />October 9, 2007: The City Council approved a Letter of Understanding by and between the City of <br />New Brighton and Minnesota Commercial Railway and MT Properties, Inc. <br />Financial Impact: <br />The amendment will add $37,437 to the cost of the team track project. The team track project will be <br />funded out of the City's Municipal Development Fund (450). <br />Explanation: <br />As you recall, last October the City executed a Letter of Understanding (LOU) with Minnesota <br />Commercial Railway and MT Properties, Inc. for several railroad related projects. These projects <br />included the abandonment of the Butcher's Spur; construction of a functional replacement (team track); <br />and construction of a railroad wye. <br />Over the course of the last few months, the City has been working with many parties on this effort. For <br />example, the City has acquired the necessary land from Estes Express Lines to accommodate the two <br />projects and has started the abandonment process with the railroad's cooperation. Staff has also met <br />with the railroad on construction details for both the railroad wye and the team track. In addition, staff <br />has had on-going meetings with the State of Minnesota over the $1.0M grant that was authorized in <br />2005 to help pay for construction of the railroad wye. <br />We expect that it will take 60 to 90 days to finalize the wye project, due to the complexity of the state's <br />grant funding requirements and additional agreements that need to be worked out with MT Properties <br />and the Canadian Pacific. Because this delay could impact the ability to start any railroad construction <br />this year, both staff and the railroad believe we need to commence the team track project first, and then <br />proceed with the wye project separately. <br />