(The following story by Jeff Abell appeared on The Hawk Eye website on January 6, 2010.)
BURLINGTON, Iowa — For years, the former BNSF Railway locomotive repair shops have sat idle while railroad officials contemplated a future reuse.
The once bustling facility near West Burlington that helped to keep commerce moving along the rails may eventually have a new lease on life.
At Monday’s Burlington City Council meeting, City Manager Doug Worden said BNSF officials are looking at redeveloping the shops located off Mount Pleasant Street.
In a telephone interview, Worden explained, saying: “They have indicated they’re taking a serious look at a possible reuse. They’re looking at potentially having a manufacturer go in there. Beyond that, I can’t say what they have in mind or how soon it could happen.”
Steve Forsberg, a BNSF spokesman, could not be reached for comment Monday.
To lure prospective businesses to the vacant railroad shops and other properties, including the former Aldi warehouse and Fareway Center, the council approved expanding the Flint Hills Urban Renewal Area during Monday’s meeting.
The expansion includes a mix of retail properties located north of Mount Pleasant Street and west of Roosevelt Avenue. The existing urban renewal district encompasses the former Flint Hills Manor, a residential area the city has set aside for commercial redevelopment.
Worden said the expansion will allow employers to participate in the Targeted Jobs Withholding Tax Credit Program. The pilot program diverts withholding tax dollars earmarked for the state of Iowa and is tied to job creation.
“This will also allow us to create a TIF (tax increment finance) district, if needed. That would take an additional action on the part of the council. The expansion of the urban renewal district is the first step in that process,” Worden said.
Officials will request that the city’s enterprise zone commission designate the area as an transportation enterprise zone. The move would allow businesses to be eligible for tax credits, Worden added.
Dennis Hinkle, CEO of the Greater Burlington Partnership, praised the council for its unanimous approval of the resolution. He said the action will allow economic development officials to better market the sites.
“This gives us additional tools to work with. Two of the facilities we are talking about have the potential of creating some pretty significant job levels for our community,” he said.
Before the former repair shops could be redeveloped, BNSF officials needed to settled an environmental remediation issue with the U.S. Environmental Protection Agency, according to information released in 2006 by the Iowa Department of Natural Resources.
The railroad was required to establish an EPA-approved clean-up plan, a DNR official said at the time.
On Monday, a DNR spokesman could not be reached to comment.
In 2003, the railroad announced it was closing the Burlington locomotive repair shops and transferring or eliminating about 300 local shops jobs.
The city sued BNSF, alleging the railroad breached an 1858 agreement that stipulated the railroad could use the city’s riverfront as long as it maintained its principal machine shops in the city.
BNSF subsequently filed a counterclaim against the city, alleging that by filing its suit, the city breached the 1985 contract stating the railroad could use the riverfront property indefinitely as long as it was for railroad purposes. The agreement said nothing about principal shops.
The railroad also argued that the 1985 agreement supersedes the 1858 contract and another 1880 agreement.
Federal Judge Charles R. Wolle sided with the railroad. He ruled that the city’s claim was “without merit” and that “the railroad has prevailed because its evidence was more believable and its contract analysis was more reasonable and sensible.”
Since then, both parties have agreed to put the lawsuit behind them, according to Mayor Bill Ell.
“We’ll work with anybody as long as it is in the best interest of our citizens,” he said recently.