In a journey that spanned back to the 1990’s Sioux Falls is almost to the finish line of a transformational purchase of downtown property. The City announced the impending purchase agreement of the BNSF rail yard.

A few dotted i’s and crossed t’s from now the sale will be complete as Mayor Mike Huether told those gathered Wednesday at Carnegie Town Hall.

“After years of painstaking work spanning two Mayors, two Governors, two Presidents, multiple Senators and a bevy of dedicated public servants we can see the finish line. (It has been) one of the most challenging projects but also one of the most important projects that Sioux Falls has ever tackled.”

The purchase price between the City and BNSF came out to $27,334,500 which will utilize funds from a federal highway bill earmark that was set aside in 2005. If you recall, the total amount of the earmark was $40 million.

Remaining funds from the earmark totaling $7 million will be used to help prepare the 10 acres downtown for development. Among those preparations are track removal and crossing repair at 6th and 8th Streets, demolition of a freight building and construction of historic kiosks to commemorate 125 years of rail history in downtown Sioux Falls.

Director of Public Works Mark Cotter says there are three key components to this agreement.

“(The purchase involves) raw land value, construction costs for the two new siding tracks and connection track along with the replacement value of the yard that is being purchased. BNSF has up to two years to use the (existing) rail yard and construct the new assets and we anticipate development to begin in 2018.”

The new siding tracks will be built along existing rail line north of Rice Street and west of Timberline Road.

Sioux Falls City Council will be presented with the purchase agreement on August 4. Pending their approval, the Mayor will sign it by the end of August with the closing process on the property taking approximately eight months.

The City does anticipate covering the costs of soil mitigation on the property. Topsoil will be removed because of the presence of petroleum and lead. It is considered contaminated, but not hazardous.

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