March 19, 2009

Steve Kuzma

Manager - Land Revenue

BNSF Real Estate

PO Box 961050

Fort Worth, TX 76161

RE:  Lawrence, Kansas BNSF Depot

Dear Mr. Kuzma:

The City of Lawrence is appreciative of your efforts to assist with various deferred maintenance activities at the BNSF depot in our community.  However, in order to achieve the desired long-term goal of restoring the depot and having it placed on the Historic Register, it is evident that the City will need to hold title to the depot to access various grant opportunities.  Therefore, the City wishes to acquire ownership of the BNSF depot in Lawrence as expeditiously as possible. 

We understand your major issues as follows:  1) BNSF is not willing to sell the underlying ground under the depot, but would be willing to consider a long-term lease of the ground. 2) BNSF would be open to ownership transfer of the depot as long as the crew quarters are maintained.  3) We would need to protect the interest of Amtrak in the use of the facility.

We are hopeful that we could achieve a no-cost donation of the depot property to the City.  As you are aware, there are certain larger deferred maintenance items that will need to be addressed by the City in the short term.  Additionally, we are hopeful that BNSF might be open to some appropriate level of contribution toward monthly utilities at the depot in exchange for a favorable lease arrangement with the City. 

We understand that your typical land lease is a 30-day lease.  However, as you know, the City desires to seek grants for the restoration of the depot and granting agencies will not look favorably on such a short-term land lease.  We understand that granting agencies will look to the possible life of the improvements funded with the grant.  Therefore, we propose an initial 50-year term land lease, with two 25-year renewable clauses.

March 24, 2009

Steve Kuzma

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There are certain opportunities present at this time with the stimulus package that the City may be able to take advantage of if this transaction can occur swiftly.  We look forward to your quick response on this matter and look forward to continued discussions.  Please continue to utilize Diane Stoddard, Assistant City Manager, as your point of contact with the City of Lawrence on this matter. 

Sincerely,

Michael Dever, Mayor                             Rob Chestnut, Vice Mayor

cc:      City Commission

          David L. Corliss, City Manager

          Diane Stoddard, Assistant City Manager