Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

CC:

Cynthia Boecker, Assistant City Manager

 

Date:

 

March 19, 2009

RE:

Letter to BNSF Regarding Acquisition of the Depot

 

Please place the following agenda item on the March 24, 2009 City Commission agenda:

 

Authorize the Mayor and Vice Mayor to sign the letter to BNSF requesting expeditious ownership transfer of the BNSF depot to the City of Lawrence.

 

Background:

In June 2008, the City Commission received a request from Depot Redux and a staff report regarding the BNSF depot.  As a result of that meeting, Staff has been proceeding with the direction to begin the acquisition process of the BNSF depot trying to achieve the lowest possible costs for acquisition. Since that time, a number of discussions have been held between BNSF and the City. 

 

Summary of Discussions:

Discussions to date have largely focused on efforts to gain as much attention as possible by BNSF to deferred maintenance needed at the facility.  In November 2008, the City wrote a letter to BNSF, with the assistance of Depot Redux, identifying a number of repairs that were needed at the facility.  To date, we have not received a formal response from the letter.  However, BNSF has undertaken a few small, yet important, plumbing repairs in the range of $4,500.  The City understands the delay from BNSF is a result of a number of staff changes that have occurred over the past few months at BNSF.

 

Over this same time, there have also been discussions regarding acquisition of the facility between the City and BNSF. BNSF has been open to these discussions.  Generally, the City is aware of BNSF’s issues regarding such a transfer.  City staff understands these 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. City staff understands that a long-term lease would still enable the City to be able to access grants for the restoration of the depot.  The lease would need to be of appropriate duration to meet any needed assurances for the acquisition of grant funding. It should be noted that approximately 10 feet of ground on the track-side of the Union Pacific Depot in North Lawrence is still owned by the Union Pacific. 

2)          BNSF would be open to ownership transfer of the depot as long as the crew quarters are maintained or are replaced with like quarters in a convenient location at no cost to BNSF.  Staff believes that the most expeditious approach would be to have BNSF crews remain at the depot facility.  If the crew were to need to move, this would cause complications regarding additional resources as well as delay. Under the scenario that the BNSF crews would remain at the depot after the depot has be acquired by the City, the City would have a lease with the BNSF regarding its crews use of the space and the City would like to have some appropriate level of participation by BNSF in common costs, such as utilities.

 

It should also be mentioned that City staff has been working with Depot Redux and others regarding improvements to the facility.  The City has worked with Depot Redux and Amtrak to secure additional signage opportunities.  A new kiosk sign on the platform will soon be installed at no cost to the City and other opportunities are currently being explored with Amtrak.  Also, the City is working with BNSF to allow volunteers with Depot Redux the ability to proceed with restoring the rusted canopy poles surrounding the building.  BNSF requires that a permit be provided for this work and appropriate insurance be in hand. 

 

At the City Commission meeting on February 24, 2009, at which the Commission discussed possible grant funding opportunities for the BNSF depot, the City Commission discussed that the Mayor and Vice Mayor should write a letter to the BNSF indicating the City’s desire to have the depot acquired as expeditiously as possible in order for the City to be positioned to take advantage of possible grant opportunities.  Attached is a draft letter for consideration. 

 

Action Requested:  Authorize the Mayor and Vice Mayor to sign the letter to BNSF requesting expeditious ownership transfer of the BNSF depot to the City of Lawrence.