Successful Rail Property
Cleanup and Redevelopment
Lessons Learned and Guidance to Get Your
Projects on Track
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Prepared by:
SRA International, Inc. (Contract No. 68-W-01-048)
2801 Clarendon Blvd., Suite 100
Arlington, VA 22201
Prepared for:
U.S. Environmental Protection Agency
Office of Solid Waste and Emergency Response
Office of Brownfields Cleanup and Redevelopment
Washington, D.C. 20460
EPA does not endorse purchasing goods or services from any of the commercial organizations
mentioned in this guide or the policy positions taken by any non federal organization.
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Table of Contents
Table of Contents
Introduction and Purpose of this Guide
Rail Ownership and Abandonment
1
3
5
Rail Industry Perspective 6
Success Stories and Lessons Learned 9
Conclusion 16
Appendix A: Railfields Directory 17
Appendix B: Additional Background on
Rail Regulation in the United States 19
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SUCCESSFUL RAIL PROPERTY
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Introduction
and Purpose of this Guide
Overview
The history of railroads in the
United States began almost two
centuries ago when the first charter
for a railroad was awarded in
1815. After the completion of the
transcontinental railroad in 1869,
the growth of the railroad industry
continued rapidly, and by 1916 the
rail network had grown to 254,000
miles. However, in the mid-twentieth
century the rail industry began
facing significant competition
— the trucking industry entered the
freight shipment market, air travel
became the predominant mode of
long-distance passenger travel, and
the automobile was used for many
purposes. Competition led to declines
in the rail industry and significant
consolidation over several decades.
By the second half of the twentieth
century the miles maintained by the
entire rail system had decreased by 50
percent, leaving an extensive legacy
of underutilized, contaminated, and
sometimes abandoned rail properties
also known as railfields, across the
United States. For more information
on the history and current status of
the railroad industry, refer to the
Association of American Railroads
(AAR) Web site www.aar.org.
Brownfields, of which railfields are
a subset, are defined by the federal
brownfields law "as real property, the
expansion, redevelopment, or reuse
of which may be complicated by the
presence or potential presence of a
hazardous substance, pollutant, or
contaminant." Brownfields are located
all across the country, and although
brownfields are often located in areas
with access to transportation and
utility infrastructure, developers and
other potentially interested parties
are hesitant to redevelop brownfields
because of the investment risk and
potential cleanup liability associated
with the property. In 2002, Congress
enacted the Small Business Liability
Relief and Brownfields Revitalization
Act, which provided the Brownfields
Program with a congressional
mandate and increased funding to
advance brownfields cleanup and
reuse. For more information on the
Brownfields Law, go to www.epa.
gov/bmwnfields/sblrbra. htm.
Railfields are located in rural,
urban, and suburban areas, and
vary greatly in size and former
usage. Railfields include rail tracks,
rights-of-way, rail depots, industrial
areas, and other support facilities.
Residual contamination including
herbicides, petroleum products and
byproducts, metals, and creosote, is
often present as a result of the former
railroad operations and associated
industrial activities. Notwithstanding,
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many of these properties provide
considerable opportunities for reuse
and community revitalization. Their
redevelopment can transform blighted
areas into resources that meet the
needs of the community and support
the local economy.
Many of these properties are
returning to productive use through
the efforts and partnerships of
communities, rail companies, and
other stakeholders — and even more
are waiting to be reused. While
railfields share some characteristics
common to all types of brownfields,
they also offer unique challenges and
opportunities. As opportunities, many
railfields offer large parcels of lands
with ideal locations for community
revitalization efforts. However, rail
properties present a unique challenge
in that they benefit from certain
legal protections and are subject to
regulatory steps for property transfer
as compared to non-rail property.
Rail property that has not been
lawfully abandoned is not subject
to the power of eminent domain.
However, the railroad may make the
property available for a voluntary
sale. In addition, rail companies are
market driven, privately owned, for-
profit corporations. Their primary
responsibility is to make a profit
for their shareholders, and local
governments should understand
that perspective — rail property
transactions need to be financially
beneficial to the rail company.
Purpose
This guide is intended to assist
local governments with the unique
aspects of redeveloping railfields
and provide them the information
they need to successfully work
with rail companies. The guide is
targeted at communities that are
beginning to address a railfields
project rather than those that are
already grappling with the more
complex issues involved with railroad
property reuse. This guide provides
a history of rail development, the
regulatory framework governing
rail companies and their properties,
and the current landscape of
underutilized rail properties. It also
provides information on the rail
companies' perspective of railfields
redevelopment, and relates stories
of successful projects to give
communities tools and approaches
for addressing rail properties. The
guide concludes with a directory
of rail companies and contacts for
redevelopment projects. To develop
the guide, EPA consulted various
local government and rail company
representatives to identify successful
railfields redevelopment projects;
the different stakeholders' policies
and incentives; and the elements that
promote success. The most common
themes from these conversations are
summarized in the following sections.
About challenges:
"Addressing rail property in our community has been
challenging, but rewarding. Through our partnership with
the rail company and other stakeholders, we've redeveloped
a rail yard and spur tracks into a shopping center, mixed-
income housing, and a pedestrian and bicycle greenway.
Our track record shows that railfields provide the economic
engine and environmental quality-of-life benefits that are
well worth the effort."
Ignacio Dayrit, Emeryville, CA
Brownfields Project Director
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Rail Ownership
and Abandonment
While there are several federal
statutes governing railroads, the
Interstate Commerce Act (ICA), as
revised in the ICC Termination Act of
1995 (ICCTA), is the primary source
of protection for railroad companies
against eminent domain actions by
local governments. The ICA gives
the Surface Transportation Board
(STB) broad authority over railroads
and associated property. The ICA
gives the STB exclusive jurisdiction
over rail transportation, and defines
rail transportation expansively
to encompass not only railroad
operations over the nation's rail
network, but also property, facilities,
structures, and equipment related
to the movement of passengers and
property by rail. The STB's broad and
exclusive jurisdiction over railroad
transportation and facilities prevents
application of state and local laws
that would otherwise be available,
including the use of state or local
eminent domain procedures to take
rail property for other use that would
conflict with the rail uses. The STB
tias the sole authority to authorize
the removal of such railroad property
from the national transportation
system. But after such properties
are lawfully abandoned, they may
be sold or used for other purposes
since the STB's regulatory mission
has come to an end. Visit the STB's
Web site at www.stb.dot.gov/fQr more
information.
If a railroad wants to discontinue
service or abandon particular lines,
it first needs STB approval. In
making abandonment decisions,
the STB balances the needs of
local communities and shippers
for continued rail service with the
financial burden that continued
service would place upon the railroad.
The STB will also determine whether
the property may be appropriate
for another public purpose (e.g.
highway, conservation, or recreation).
Once the STB decides that a line
may be abandoned, any financially
responsible person may acquire the
line, at the constitutional minimum
value, to continue rail service. When
such a sale does not occur, the STB
may impose a 180-day waiting
period during which other parti
may negotiate with the railroad
purchase of the property for pul
uses. If no agreement is reachec
jitk''
the railroad may dispose of the
property as it sees fit. Alternatively,
the Trails Act provides a voluntary
process under which a rail line can
be converted to recreational trail
use while being "railbanked" for
possible future rail use. Finally,
STB abandonment authority is
permissive. When abandonment
authority is granted by the STB,
the rail company generally mus
exercise the authority within on year
or , or the property reverts back to t
national transportation system a id
1C
is once again subject to the STI
jurisdicti
CLEANUP AMD REDEVELOPMENT
1 The abandonment process is described in more
detail in Appendix B.
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Rail Industry
Perspective
Most rail companies — with
the exception of Amtrak — are
private companies that are
responsible for making profits
for their shareholders. As private
entities, rail companies are not
likely to transfer a property unless
there is a tangible benefit. The
following information, developed
from conversations with rail
company representatives, presents
the rail companies' perspective
on several aspects of railfields
property transfer, cleanup, and
redevelopment. Representatives
from major rail companies as well
as EPA and STB rail contacts are
listed in Appendix A of this guide
for reference.
Marketing and Divesting
Properties
Rail companies often have a
real estate branch that tracks and
monitors their properties. In addition,
several rail companies keep a list of
"surplus" properties, or properties
that are not currently being used as a
part of their rail operations. Surplus
properties are classified based on
work loads, future rail plans, and risk
assessments, and are the properties
that are targeted by the rail company
for divestment and sale. Naturally,
rail companies are selective about
divesting these properties because
the future value of their operations
is influenced by having access to
a wide network of rail properties.
Some real estate branches are more
proactive about marketing their
surplus properties than others. For
example, Union Pacific staffs an
80-person real estate department
dedicated to expanding lines,
facilities, and business; recycling
older properties; and actively
managing leasing arrangements for
all of its properties. Union Pacific
also employs 25 field representatives
in different geographic areas
throughout the United States who
specialize in marketing properties for
sale and lease. Rail companies that
do not actively market their surplus
properties primarily rely on private
industry or local governments to
approach them regarding properties
they are interested in leasing or
purchasing.
Environmental
Contamination and
Liability
A majority of rail companies
perform an environmental review
on every property transaction
as an evaluation process to
determine if there are significant
contamination concerns. According
to the rail companies, a common
hurdle in disposing of railfields
is the misconception that all rail
properties are large, polluted areas.
Although fueling stations and large
transportation hubs are heavily
polluted, there are many former rail
properties that have minimal or no
contamination. Many rail companies
are interested in confronting
the stigma associated with their
properties by working with local
groups and state or federal agencies.
SUCCESSFUL RAIL PROPERTY
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.
Similar to other brownfields
redevelopment projects, liability
concerns about environmental
contamination on the property are
a common roadblock for the rail
companies in addressing railfields
properties. The rail companies
recommend that local governments
work with the rail companies
and state environmental agencies
on liability issues. Often, if
contamination is found during the
investigation process of the railfields
project, all of the liability rests with
the rail company. This creates a major
disincentive for the rail companies
to proceed. Most rail companies
evaluate every potential property sale
to limit liability concerns; however,
even with their due diligence, they are
still open to liability.
Environmental insurance is a tool
used to quantify and transfer risks
related to brownfields cleanup costs
and liability from project stakeholders
to an insurance company. Sellers,
buyers, developers, and local
governments use environmental
insurance to manage risk, including
cost overruns and third-party liability
claims that can arise during cleanup
and redevelopment. Environmental
insurance not only limits liability,
but sometimes is required to get
the development project off the
ground. For more information on
environmental insurance, visit EPA's
Web site at www.epa.gov/brownfields/
insurebf.htm.
Redevelopment
Rail companies have an interest
in working with municipalities
during the planning process of
redevelopment of rail properties
that are no longer needed for the
national rail transportation system.
This allows them to provide early
input into reuse options as they have
valuable knowledge about potential
contamination concerns.
Rail companies recommend that
local governments spend significant
time exploring whether the end use
is appropriate based on the cleanup
level prior to planning redevelopment.
This will enable municipalities to
create redevelopment plans based
on the level of cleanup necessary
(i.e., planning a light industrial
or commercial use, rather than
a community park, on a historic
industrial rail property). EPA has
developed a site profile guide,
entitled "Technical Approaches to
Characterizing and Cleaning up
Brownfields Sites: Railroad Yards," to
assist stakeholders in characterizing
rail properties. Go to www.epa.
gov/ORD/NRMRL/pubs/625r02007/
625r02007.htm to download the
report.
In addition, the rail companies
recommend contacting them before
applying for and receiving grants to
carry out assessment and cleanup
efforts at their properties. Since the
rail companies have knowledge of
the property's historic use(s) and
contamination concerns, they can
play an integral part in developing
a clear vision for a project. Several
local governments indicated that it
is important to make contact with
the rail company before getting too
far into the planning process. Rail
company representatives noted that
CLEANUP AMD REDEVELOPMENT
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rail companies and local governments
should reach agreement on the
property reuse before funding is
allocated for specific redevelopment
activities. Early communication and
cooperation between rail companies
and local governments can enable
them to work together to determine a
mutually beneficial reuse.
Partnering with States
Several rail companies and local
governments reported that conducting
property cleanup through the state
voluntary cleanup programs (VCPs)
is a key component to the success
of railfields projects. Enrollment in
the VCP at the start of the cleanup
process enables the rail company,
the local government, and the state
environmental regulatory agency to
work together throughout the cleanup
process. State environmental agencies
have been a vital part of the success
of the railfields cleanup planning
process. Rail companies commented
that in some cases, state agencies
require cleanup to a level beyond
which any involved party is willing
to commit; therefore, the property
deals can fall through. However, in
recent years, the state agencies, rail
companies and purchasing parties
have been able to reach consensus
because state agencies developed
more flexible expectations and better
processes for evaluating the end
use of properties, resulting in the
selection of an appropriate cleanup
level. For more information on state
VCPs visit www.epa.gov/brownfields/
pubs/st_res_prog_report.htm.
Partnership:
"As rail companies retire facilities, the opportunity to redevelop historic rail yards
can infuse new life or further enhance growing urban centers. Union Pacific takes
great pride in working with community leaders and developers to realize the vision
of transforming Railfield sites. It truly is a win-win opportunity."
Tony Love, General Manager, Real Estate, Union Pacific
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Success Stories
and Lessons Learned
Working with the rail industry
to purchase and redevelop
former rail properties can be
difficult. There are several steps
local governments can take
to successfully facilitate and
complete their railfields project.
The following tips have been
developed based on conversations
with local governments and rail
company representatives, and
include lessons learned from past
projects.
Communication and
Education
The success of any project begins
with communication and education
— and even more so with railfields
projects because of their complexity.
Developing a strong relationship
with the rail companies facilitates
trust between decision makers
in the rail company and the local
government. This relationship also
helps ensure that the appropriate
people are involved, and that both
parties understand each other's needs
and expectations. As part of fostering
this relationship, local governments
should educate themselves as much
as possible about:
• Properties they are interested
in redeveloping, including any
possible reuse issues
• Applicable financial or tax
incentives
• Rail property abandonment policies
• Laws and regulations that govern
rail companies
Building and fostering a positive
relationship with the real estate
branch of the rail company can start
with scheduling regular meetings to
discuss future redevelopment plans
and properties of interest in the
community. This forum provides the
rail company with the opportunity to
inform the community of its interests.
It could also lead to the disclosure
of other surplus properties that the
railroad may be interested in selling
or leasing in the short and long term.
See Appendix A for a list of rail
company real estate contacts.
Make contact with rail companies
before applying for and receiving
grants to carry out assessment and
cleanup efforts at their properties.
Early communication and cooperation
BridgeCourt Redevelopment Project
Emeryville, California
In Emeryville, CA, as part of the larger East Baybridge redevelopment
project, an abandoned rail yard was redeveloped into the BridgeCourt. The
city assisted Catellus Development Corporation with the development of
the four-acre rail yard. Catellus approached the city and solicited input
as to the eventual reuse. In response, the city held several workshops to
gather ideas on the development project. The project was completed in
1997 and consists of 220 housing units of which 40 percent are affordable.
For more information, contact Ignacio Dayrit, a project manager for
the City of Emeryville Redevelopment Agency, at 510-596-4356.
CLEANUP AMD REDEVELOPMENT
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between rail companies and local
governments can enable them to work
together to determine a mutually
beneficial reuse. Rail companies
want to see that a local government
has a proposed plan for reusing the
property that is supported by the
community and lays out possible
roles and responsibilities for the
stakeholders. The plan can then serve
as the focus of initial discussions
between the local government and
the rail company, with rail companies
providing the best knowledge about
the property characteristics and any
potential contamination concerns.
This knowledge enables the rail
company to provide input into reuse
options as well as the cleanup
plan. Rail company participation at
the early stages of redevelopment
helps stakeholders form realistic
expectations about the project.
Patience and Flexibility
The majority of railfields projects
are long-term efforts that require
persistence and patience to succeed.
Some local governments pointed out
that negotiations for the sale of a rail
property took over a year to complete.
Potential environmental liability
concerns require rail companies be
cautious and thorough when making
a real estate transaction. Local
governments should be aware that
addressing liability concerns with
the state regulatory agency is a time
consuming process. Understanding
the demands and constraints on
all parties can help avoid creating
adversarial relationships. According
to interviews with rail company
representatives, pushing the
companies to make decisions too
quickly is counterproductive to the
success of the project.
In addition, because of the
complexities of rail redevelopment
projects and because rail
companies have significant power
in any transaction or negotiation,
Loco Works/Liberty Commons
Industrial Park Project
Lima, Ohio
The former Locomotive Works site in Lima, Ohio was used to
manufacture locomotives until the 1950s. After locomotive production
ceased, the property was used by a number of manufacturing firms and
eventually became a storage location for a salvage business. In August
1999 the city purchased the site for $687,500, and as part of the purchase
agreement, the property owner agreed to pay any cleanup costs incurred
over $50,000. This site is now part of the larger Liberty Commons
Industrial Park project. The city negotiated a $1.5 million purchase
agreement with Global Energy, LTD, which plans to invest over $600
million in the project and to construct a 540 megawatt electrical generator
that would employ an innovative technology, coal gasification, to produce
electricity for the long term contract market.
For more information, contact Gary Sheely, Utilities Director of the
City of Lima, at 419-221-5294.
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communities need to remain flexible
to get a project off the ground.
The Chelsea Creek Restoration
Partnership is working to create a
park and greenway along the Chelsea
River, an industrial waterway close
to downtown Boston, Massachusetts.
A Chelsea Creek representative
emphasized that they are willing
to negotiate with the current lessee
to accommodate multiple uses and
hopes that through creative planning,
a recreational trail may even be able
to co-exist with a rail line. Several
other interviewees from companies
and local governments emphasized
the importance of flexibility cost-
sharing among the local government,
private organizations, and other
governmental entities to help ensure
that the project does not place
excessive burden on a single party.
Incentives
Rail companies are motivated
by the market. Creating a situation
that rewards these companies for
working with other stakeholders is
critical in enticing rail companies to
participate in the process of railfield
development. To this end, local
governments should think creatively
about financial and other tools that
will make a redevelopment project
attractive to a rail company.2
Local governments should also
consider purchasing "bundles" of
clean and contaminated properties
for sale. This strategy is beneficial
to the rail company and the public,
making the properties easier to sell,
expediting negotiations, and reducing
paperwork. This approach succeeded
in Baltimore, Maryland, where
Camden Yards baseball stadium
is located. The area previously
contained several lawfully abandoned
rail properties, some that were
contaminated and some that were not.
All were sold to the city in a package
deal.
Rail companies are for-profit
businesses that have a financial
responsibility to their shareholders.
While the rail companies are
interested in working with local
governments and state and federal
agencies on redeveloping rail
properties, ultimately, the property
transaction must be financially
beneficial to the rail company. Local
governments should use available
incentives and have funding in
place to ensure that the property
transactions and redevelopment plans
succeed.
Railroad Reservation Park and District
Birmingham, Alabama
The Railroad Reservation Park and District in Birmingham was reserved
for rail-related distribution and warehouse uses at the founding of the city
over a century ago. The city acquired the 14-acre inactive rail yard adjacent
to a lively AMTRAK and Intermodal Station eight years ago and agreed
to interpret the site as part of historic preservation agreement. The city, in
partnership with Friends of the Railroad Reservation District, is engaging
residents, workers, and the corporate community in the area's revitalization
through the building of the park as a new economic engine. In addition to
many recreational and water features, public art, and interactive-media will
tell the geographic, economic, and socio-cultural history of the city. The
Railroad Reservation Park is to be completed within the next two to five
years through strong public/private partnerships.
For more information, contact Renee Kemp Rotan, Director, Capital
Projects, Mayor's Office, City of Birmingham at 205-254-2275.
2For example, the Federal Brownfields Tax Incentive allows taxpayers to reduce their taxable income by the cost of their eligible
cleanup expenses in the year that they are incurred. Visit www.epa.gov/brownfields/bftcainc.htm for more information.
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Northpoint Project
Cambridge and Somerville, Massachusetts
Across the river from downtown Boston, a former rail freight yard
owned by Guilford Transportation Industries is being transformed into
a 45-acre mixed-use development. Guilford initiated the development
after declining freight traffic in Boston made the property redundant. The
project will include commercial and residential development. Significant
area will devoted to greenspace, and a regional bicycle trail will traverse
the development. The property will be easily accessibly by public
transportation and will include the relocation of a subway station to within
the development. Ultimately, it will integrate an underused industrial
property to the communities around it. The company will continue to
maintain ownership of the property as it is developed.
For more information, contact Stephen Winslow, an official in the
community development office of the City of Somerville, at 617-625-6600
x2519.
Reuse Planning
In addition to cultivating
relationships with the rail companies,
there are a number of strategies a
local government should pursue to
successfully redevelop rail properties.
These strategies, in whole or in
part, were suggested by multiple
representatives of rail companies and
interested local governments.
Pursue a Shared Vision of
Redevelopment
While differences of opinion
among community members about
redevelopment are to be expected, it
is important to come to a common
understanding about the project
vision. According to representatives
of the Chester County, Pennsylvania
Economic Development Council,
. \
Crandic Railroad
Coralville, Iowa
The City of Coralville purchased the 14-acre Crandic Railroad property
as part of a larger redevelopment project being conducted along the banks
of the Iowa River. This property housed a 50-year old, four-acre coal pile
that was owned by the University of Iowa. The city purchased the property
for $1.8 million in 2000 and used EPA Brownfields Assessment funding
to assess the site. The removal of the coal pile, some soil, and a layer of
asphalt was funded by University of Iowa, the owner of the pile. The site is
currently slated to be redeveloped into a combination open and developed
park space called Riverfront Park, which will be accompanied by some
mixed-use development.
For more information, contact Dan Holderness, City Engineer of the
City of Coralville, at 319-248-1720.
SUCCESSFUL RAIL PROPERTY
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stakeholder cooperation is essential.
It is much easier for a rail company
to negotiate with a community if
there is a unified voice representing
community interests. In one instance,
a former rail property in Brunswick,
Maine sat vacant for many years in
city ownership before a vision was
developed for the property. Once the
vision was developed and pursued,
the project began to proceed rapidly,
despite other challenges associated
with it. Although this strategy is
relevant to all brownfields projects,
it is particularly essential in order
to make a compelling case for
redevelopment to a rail company and
to other potential partners.
Ensure Redevelopment is
Consistent with Prior Uses and
Remaining Contamination
A representative from CSX
Transportation emphasized that
local governments should always
consider the contamination level
and previous uses of a property, as
well as the planned level of cleanup,
in determining a property's reuse.
Different levels of cleanup are
required for different uses.
These issues are being successfully
navigated in ongoing redevelopment
of the Cornfields Property in Los
Angeles, California. Community
advocates wanted to transform the
property into a park, creating sorely
needed greenspace in downtown
Los Angeles. A prior owner was
already planning to pay for cleanup to
industrial standards, but the planned
park required a more rigorous cleanup
with a higher cost. The creation of the
park was contingent on the dedication
of additional funds, which was
deemed a priority by community and
government groups. It was essential
to account for prior use, cleanup
standards, and availability of cleanup
funding in designing a reuse plan.
Using Available
Resources
Outside resources are available to
help communities struggling with the
cleanup and redevelopment of rail
properties. Below are some programs
and organizations that can help local
governments navigate their railfields
project.
Participate in a state Voluntary
Cleanup Program (VCP)
Working with a state
environmental regulatory agency
often allows projects to proceed
smoothly, whether the rail company
works directly with the VCP or the
entity purchasing a rail property
works with the VCP. Representatives
of Canadian Pacific, Union Pacific,
and CSX all noted that there are
benefits to working through VCPs.
Some companies have developed
good relationships with specific
state programs that can benefit
future projects. For example, Union
Pacific notes successful working
relationships with the programs in
California and Texas. Among other
benefits, the Texas VCP protects non-
responsible parties, future owners,
and lenders from liability. A former
rail property on Houston's Fulton
Street entered into the Texas VCP,
aiding the cleanup and redevelopment
effort. At the Los Angeles Cornfields
Property, discussed above, a
preliminary assessment was
performed by the city brownfields
program through the VCP program.
The quick turnaround process
enabled the project to proceed and
the community is now successfully
building a park.
Learn the Role of The Surface
Transportation Board
The exclusive jurisdiction of
the STB over railroad operations
and associated property protects
the national interest in an efficient
and effective interstate rail system.
However, the STB also provides
procedures for allowing the removal
of unnecessary or outdated rail
lines and associated property from
the national rail system. The STB
provides several different procedures
for abandonment, described in
further detail in Appendix B. While
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abandonment proceedings typically
are initiated by the railroad, in certain
circumstances, outside third parties
can initiate STB proceedings to
authorize abandonment of the line
in order to allow the rail property to
be removed from the national rail
transportation system. Go to the STB
Web site at www.stb.dot.gov/for more
information.
In many cases, abandonment
proceedings at the STB move
swiftly. It may be a good idea for
a community to engage an outside
expert who is practiced in following
and using STB abandonment
procedures, particularly if the project
involves a request for a condition
permitting the use of rail property
authorized to be abandoned as a
recreational trail. The Trail Act,
16U.S.C. 1247(d), permits parties
to negotiate a voluntary trail use
agreement when a local sponsor
(e.g. nonprofit organization) agrees
to accept financial responsibility for,
and maintain, the rail property for
the duration of the trail use, with the
understanding that all or part of the
corridor may be reactivated as a rail
line in the future. For information on
the Trail Act, go to http://frwebgate.
access.gpo.gov/cgi-bin/getdoc.
cgi? dbname=browse_usc&docid=
Cite: +16USC1247. In Greenville,
South Carolina, the city pursued
creating parkland on rail line along
the Reedy River that is not currently
being operated, which would connect
several sections of the city.
Consider Using Third Parties
Local governments and rail
companies are not alone in pursuing
redevelopment of rail properties.
Other stakeholders may be able to
provide crucial help with funding,
technical expertise, or facilitation.
In Chester County, Pennsylvania,
the Chester County Economic
Development Council provides
technical assistance to the small
communities of Downingtown
and Coatesville that are seeking to
redevelop rail properties within their
boundaries. Neither small community
Abandoned Kailyard Property
Brunswick, Maine
The town of Brunswick, Maine, is currently redeveloping a four-
acre abandoned railyard property. After the bankruptcy of development
company left the property vacant for several decades, the Town purchased
the property in 1998 for $600,000. The planning process is currently
proceeding rapidly and includes significant community involvement. The
town is looking to use creative methods of handling the presence of coal
ash — the primary contaminant on the property — by blending it with
pavement or concrete materials that will be used in construction, covering
in place where possible, and removal when necessary. Although the plans
are not yet finalized, the redevelopment will likely include a rail station,
hotel, housing, retail, and other services, as well a pedestrian connection to
the heart of downtown Brunswick.
For more information, please contact Mathew Eddy, Director of
Economic Development for the Town of Brunswick, at 207-721-0793.
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has the capacity to complete the
desired rail redevelopment projects on
its own. Although the projects have
not yet come to fruition, this third
party group has been able to raise the
profile of the issue, obtain political
support, and assist in ongoing
negotiations with the relevant rail
company.
In the redevelopment of the
Cornfields Property in Los Angeles,
California, financial assistance from
the Trust for Public Land (TPL)
was crucial to the project's success.
TPL purchased the property when it
became available — before another
owner could put it to a different use.
The property was then sold to the
State of California for use as a park.
Although the state eventually paid
for the property, it was not able to
do so immediately. The involvement
of TPL made the project a reality.
TPL is a nonprofit land conservation
organization that can assist local
governments with a variety of
services including project planning,
research and education, property
transaction, and finances. For more
information about the TPL, visit their
Web site at www.tpl.org/index.cfin.
The Rails to Trails Conservancy
(RTC) can also be a valuable
resource for those who have rail
lines in their communities and are
interested in their potential reuse
as a trail. The RTC is a nonprofit
organization whose mission is to
Cornfield Property
Los Angeles, California
After the consolidation of the rail industry in the Los Angeles region,
a developer purchased a former Union Pacific rail yard for industrial
use. However, the local community desired a park at the location on the
LA River in downtown Los Angeles. The Trust for Public Land played
an essential role in facilitating the transfer of the property from an
industrial developer to the State of California, and the City of Los Angeles
Brownfields Program performed an environmental assessment at a crucial
moment in the project. Subsequently, the state funded additional cleanup
that was necessary to convert the property to recreational use. The state is
currently developing an interim park use and developing final use plans.
This new state park will be part of a larger initiative to reclaim the blighted
LA River and to create greenspace in the midst of Los Angeles.
For more information, contact Craig Tranby of the City of Los Angeles
Brownfields Program at 213-978-0871.
create a nationwide network of trails
from former rail lines and connecting
corridors to build healthier places
for healthier people. For more
information on the Rails to Trails
Program, their Web site at www.
railtrails.org. RTC provides materials
to communicate the benefits of
rail-to-trail projects, strategies to
obtain funding, and ideas on how to
highlight successful projects. RTC
can also provide technical assistance
to communities engaging in these
projects. The assistance may even
include help purchasing a trail
and following the STB regulatory
procedures for abandonment and
recreational trail use under the Trails
Act. One representative from the
rail industry stated that incentive
programs like "Rails to Trails" are
valuable, especially to the public.
Because it is not a comprehensive
program, local governments should
continue to pursue the Rails to Trails
program in combination with other
resources and incentives.
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Conclusion
It is important to remember that
rail properties are fundamentally
different than traditional brownfields
projects and their redevelopment
poses unique challenges. Railfield
projects must take into account
the broad jurisdiction of STB, as
well as any applicable state and
federal environmental programs.
Furthermore, the rail companies and
other site owners have their own
incentives and interests that must be
factored into any planned railfield
redevelopment.
Using innovative approaches,
successful railfield developments
have been achieved. The examples
presented in this guide are just a few
of the many railfield redevelopment
projects completed around the
country. Some keys to success are:
• Communication — build and
maintain lasting relationships
among stakeholders.
• Incentives — explore stakeholders'
interests and seek alternatives that
provide benefits to all parties.
• Planning — working with the
railroad company and other
stakeholders, developing a unified
vision of what is desired for the
project and making sure it is
consistent with past, future, and
neighboring land uses.
• Maximize resources — explore all
I resources available, including state
programs or working with a third
party to complete a project.
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Appendix A:
Railfields Directory
EPA Railfields Contacts:
U.S. EPA Office of
Brownfields Cleanup and
Redevelopment (OBCR)
Tony Raia
Phone: 202.566.2758
E-mail: raia.anthony@epa.gov
Web: www.epa.gov/brownfields
Surface Transportation
Board (STB) Contact:
Surface Transportation
Board
Victoria Rutson
Chief, Section of Environmental
Analysis
Phone: 202.565.1545
E-mail: rutsonv@stb.dot.gov
Web: www.stb.dot.gov
Rail Industry Contacts:
American Short Line
and Regional Railroad
Association
Jenny McKinney
Executive Director, Federal and
Industry Programs
Phone: 202.585.3434
E-mail: jmckinney@aslrra.org
Web: www.aslrra.org
Amtrak
Sally Bellet
Vice President, Real Estate
Development
Phone: 215.349.1612
E-mail: bellets@amtrak.com
Web: www.amtrak.com
Amtrak
Roy Deitchman
Vice President, Environmental Health
and Safety Department
Phone: 202.906.3272
E-mail: deitchr@amtrak.com
Web: www.amtrak.com
Association of American
Railroads
Robert Fronczak
Assistant Vice President
Phone: 202.639.2839
E-mail: rfronczak@aar.org
Web: www.aar.org
Canadian National Railway
Stella Karnis
Manager, Corporate Site Assessment
Phone: 514.399.8731
E-mail: stella.karnis@cn.ca
Web: www.cn.ca
Canadian Pacific Railway
David Drach
Director, Real Estate Marketing
Phone: 612.904.6139
E-mail: david_drach@cpr.ca
Web: www.cpr.ca
Conrail
Patrick Rogers
Vice President of Tax and Real Estate
Phone: 856.231.7229
E-mail: Patrick.Rogers@conrail.com
Web: www.conrail.com
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CSX Transportation
Kevin Hurley
Director, Real Estate Services
Phone: 904.633.4838
E-mail: Kevin_Hurley@CSX.com
Web: www.csx.com
Kansas City Southern
Railway
Chet Culley
General Director, Environmental and
Hazardous Materials
Phone: 816.983.1343
E-mail: Chester.A.Culley@KCSR.
com
Web: www.kcsi.com
Norfolk Southern
Steve Portnell
Director, Real Estate
Phone: 404.962.5803
E-mail: Steve.Portnell@nscorp.com
Web: www.nscorp.com
Union Pacific
Tony Love
General Manager, Real Estate
Phone: 402.997.3640
E-mail: TKLOVE@up.com
Web: www.up.com
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Appendix B:
Additional Background on Rail
Regulation in the United States
Congress has extensively regulated
the nation's railroad system for over
a century. The Interstate Commerce
Act of 1887 (ICA) brought the rail
industry under the regulation of the
Interstate Commerce Commission
(ICC). Among other activities, the
ICC was tasked with regulating
railroad rates and services, the
construction, operation, and
abandonment of rail lines, and rail
consolidations, mergers, and common
control arrangements.
To ensure a functional national
shipping and transit system, rail
lines were required to maintain
passenger operations even when
they were not profitable. In 1970,
federal law created Amtrak as the
national corporation for passenger
rail travel, removing passenger
operations from the responsibilities
of the rail industry. By the 1970s,
the rail freight industry was on the
brink of financial collapse. Ten years
later, in the Staggers Rail Act of
1980, Congress began the substantial
economic deregulation of the surface
transportation industry. The Staggers
Act streamlined the processes for
abandonment of rail lines, which
are currently the responsibility of
the federal Surface Transportation
Board (STB), the successor agency
to the ICC. The ICA, as broadened
by the ICC Termination Act of
1995 (ICCTA), further minimized
regulatory burdens on the industry
and vested exclusive authority
over rail transportation, including
associated facilities, exclusively with
the STB. Specifically, 49 U.S.C.
10501(b) now states:
The jurisdiction of the STB over:
• transportation by rail carriers, and
the remedies provided in this part
with respect to rates, classifications,
rules (including car service,
interchange, and other operating
rules), practices, routes, services,
and facilities of such carriers; and
• the construction, acquisition,
operation, abandonment, or
discontinuance of spur, industrial,
team, switching, or side tracks,
or facilities, even if the tracks are
located, or intended to be located,
entirely in one state, is exclusive.
Except as otherwise provided in this
part, the remedies provided under
this part with respect to regulation
of rail transportation are exclusive
and preempt the remedies provided
under federal or state law.
Railroads typically have a
common carrier obligation to provide
service to any shipper that makes a
reasonable request. In cases where
providing service is no longer cost-
efficient for a particular carrier, the
carrier can ask the STB to authorize
the line's abandonment. Once a line
is lawfully abandoned, it is no longer
part of the national transportation
system, and the railroad can sell or
donate the property (if it owns the
necessary property interest). Eminent
domain laws also would apply and
quiet title actions can be filed.
If a railroad decides to abandon
a particular line, the STB has a
prescribed process that must be
followed. There are three ways that
rail lines and associated properties
can be abandoned: through formal
application under 49 U.S.C. 10903,
use of the so-called "out-of-service"
class exemption, under 49 U.S.C.
10502 and CFR 1152.50, or a petition
for an individual exemption under 49
U.S.C. 10502 and 49 CFR 1152.60.
• Formal Applications — Formal
applications for abandonment
are typically filed when the
abandonment is controversial and
the lines in question are actively
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used. In a formal application,
the STB weighs shipper and
community need for the line against
the burden that keeping the line
open would impose on the carrier
and on interstate commerce. The
STB usually grants permission to
abandon lines when the railroad
suffers significant losses and
existing uses of the line can be
re-routed. Formal Abandonment
applications generally take about
110 days to process.
Out-of-Service Exemptions — The
out-of-service "class" exemption
allows the abandonment of any line
that has not originated or terminated
any traffic in the past 2 years and
that carries no overhead traffic that
cannot be rerouted to other lines.
The use of the exemption generally
is effective 50 days after it is filed
with the STB. Anyone who believes
that a particular line does not
qualify for the exemption or that
there is a need to retain the line may
petition for a stay and revocation
of the exemption as it applies to the
line.
Petitions for Individual Exemption
— When the railroad expects
no significant opposition to its
proposal to close a line, it may
instead file a petition for individual
exemption from the full application
procedures involved in processing
abandonments under 49 U.S.C.
10903. The petition process
typically takes 110 days. If the STB
decides to grant the exemption, it
will publish a notice in the Federal
Register. Anyone can then object
to the closing of the line by filing
a petition to stay and/or revoke the
exemption.
Communities:
"There exists a sense of pride among the residents of the area as this
site has been restored to productive industrial use. The overall project
has energized the area and there have been other redevelopment
projects in the area, like riverwalk and YMCA. This has created a
sense of reinvestment in the core area of the community."
Gary Sheely, Lima, Ohio
about the Loco Works/Liberty Commons Industrial Park Project.
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A less common method of
abandonment is known as the adverse
abandonment procedure. Under this
process, anyone who believes that a
line is no longer needed and should
be abandoned may apply to the STB
for adverse abandonment authority,
even if the railroad doesn't want
to close the line. If the STB grants
adverse abandonment authority,
its decision serves to remove the
jurisdictional obstacle to an eminent
domain or quiet title action in an
appropriate state court.
Abandonment authority is
permissive: the railroad can elect not
to exercise the authority it has been
granted. Abandonment authority
generally expires after one year
if the railroad has not submitted a
consummation notice within that
time indicating the date on which
it exercised that authority. After
railroad property has been lawfully
abandoned, state condemnation laws
can be applied, since the property
is no longer part of the national rail
system and the STB's regulatory
mission has come to an end.
Once the STB decides that a line
may be abandoned, any financially
responsible person may acquire the
line, at the constitutional minimum
value, to continue rail service. 49
U.S.C. 10904. When such a sale
does not occur, the STB may impose
a 180-day waiting period under 49
U.S.C. 10905, during which other
parties may negotiate with the
railroad for purchase of the property
for other public purposes. If no
agreement is reached, the railroad
may dispose of the property as it sees
fit. Alternatively, the Trails Act, 16
U.S.C. 1247(d), provides a voluntary
process under which a rail line can
be converted to recreational trail use
while being "railbanked" for possible
future rail use. Trail use conditions
providing time for the parties to
negotiate a voluntary trail use/rail
banking agreement are imposed by
the STB whenever a trail sponsor
(e.g. local nonprofit organization,
etc.) agrees to accept financial
responsibility for, and maintain, the
rail property for the duration of the
trail use, with the understanding that
all or part of the corridor may be
reactivated as a rail line in the future.
Trail sponsors must work closely with
the rail company to reach a mutually
acceptable agreement for interim trail
use, since this is a voluntary program
for rail companies.
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United States
Environmental Protection
Agency
Office of Solid Waste
and Emergency Response
EPA-560-F-05-231
August 2005
www.epa.gov/brownfields/
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