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.
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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
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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.
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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.
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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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