(The following story by Kevin Wright appeared on the Kansas City Star website on July 3, 2009.)
KANSAS CITY, Mo. — The Burlington Northern Santa Fe intermodal hub and logistics park could become part of Edgerton.
It’s too early in the process to say it’s a done deal, but both parties are willing to make it work.
The Edgerton City Council decided June 26 to negotiate with BNSF and The Allen Group on the intermodal hub and logistics park.
The council appointed a negotiating team comprised of Mayor Don Roberts, Council President Clay Longanecker, and City Administrator David Dillner. It also authorized Dillner to negotiate terms for a financial analysis of the project.
BNSF and The Allen Group, the principal developer in the project, approached Edgerton after the Gardner City Council voted June 22 to rescind its annexation, financial and project agreements it negotiated for the intermodal.
Bill Crandall, Kansas City president of The Allen Group, said BSNF is committed “100 percent” to reaching an agreement with Edgerton.
Although there was criticism about Edgerton not having the capability to handle a project as large as the 1,000-acre hub and park, Crandall said the city is a viable option.
For one, Edgerton has a lower excise tax than Gardner, an economic plus for developers.
Although the city does not have the infrastructure now, with the county’s help and the state backing bonds for the project, those concerns can be remedied without financially exposing Edgerton, Crandall said.
Also, if a deal is crafted similar to the one reached with Gardner, the project will be built in phases. The first phase can generate the funds needed to complete the infrastructure for phases two and three without putting Edgerton at financial risk, Crandall said.
“The project is providing the infrastructure, not the city,” Crandall said.
BNSF had put the intermodal project on hold because of the economy. The project received new life with the recent announcement that the Kansas Department of Transportation was trying to obtain $50 million in federal stimulus money for the intermodal hub.
This puts negotiations with Edgerton on a tight schedule. BNSF must have local agreements with Edgerton done before Sept. 15 for the stimulus application process.
“We’re operating on two tracks,” Crandall said. “While we’re negotiating in good faith with Edgerton, we’re going through the statutory process of de-annexation with Gardner,” Crandall said.
The Edgerton City Council will hear a project overview during a Monday study session.