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DATE: July 23, 2010 Worksession Item CITY OF NEW BRIGHTON COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: Dean Lotter, City Manager FROM: Grant Femefius, Community Development Director 6W -- SUBJECT: Railroad Wye Update As you're aware, staff has been trying to finalize the remaining details of the railroad wye project in order to secure a grant agreement with the State of Minnesota and commence construction. While we have reached agreement with most of the stakeholders, there have been some delays in working with the Canadian Pacific. Some of these issues are still being resolved. Staff fell it was appropriate to provide an update given the complexity of this project and the fad it has been quite some time since our last discussion. In the mid -1990's the City was first approached by a group of four railroads (Minnesota Commercial, Wisconsin Central, Union Pack and Canadian Pacific) about constructing a new interconnection point near the Bulwar Junction. The railroads were concerned about increased freight traffic, mostly coal from Wyoming, to be moved through New Brighton on its way to power plants in Wisconsin. Due to the configuration of existing tracks, trains coming from the south and heading east (and vice versa), had to maneuver in such a way that multiple crossings were blocked (1'i Sheet SW, 1't Street NW, a Street NW and 10"' Street NW). Trains often idled in these locations for up to 20 minutes at a time. By 1998 the discussions ceased due to a lack of funding interest by the railroads, although traffic volume continued. While the coal train traffic has been diverted in the last couple of years, there is the possibility that it could return in the future. In addition, both MT Properties and Minnesota Commercial have said that the new wye connection will have operational benefits for regular freight train traffic. The Canadian Pacific has been more indifferent to the project.