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. Table of Contents

Table of Contents ...... 1 Introduction and Purpose of this Guide ...... 3 Rail Ownership and Abandonment ...... 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

CLEANUP AND REDEVELOPMENT 1 2 SUCCESSFUL RAIL PROPERTY Introduction and Purpose of this Guide Overview The history of railroads in the entire rail system had decreased by 50 are hesitant to redevelop brownfields United States began almost two percent, leaving an extensive legacy because of the investment risk and centuries ago when the first charter of underutilized, contaminated, and potential cleanup liability associated for a railroad was awarded in sometimes abandoned rail properties with the property. In 2002, Congress 1815. After the completion of the also known as railfields, across the enacted the Small Business Liability transcontinental railroad in 1869, United States. For more information Relief and Brownfields Revitalization the growth of the railroad industry on the history and current status of Act, which provided the Brownfields continued rapidly, and by 1916 the the railroad industry, refer to the Program with a congressional rail network had grown to 254,000 Association of American Railroads mandate and increased funding to miles. However, in the mid-twentieth (AAR) Web site www.aar.org. advance brownfields cleanup and century the rail industry began reuse. For more information on the Brownfields, of which railfields are facing significant competition Brownfields Law, go to www.epa. a subset, are defined by the federal — the trucking industry entered the gov/brownfields/sblrbra.htm. brownfields law “as real property, the freight shipment market, air travel expansion, redevelopment, or reuse Railfields are located in rural, became the predominant mode of of which may be complicated by the urban, and suburban areas, and long-distance passenger travel, and presence or potential presence of a vary greatly in size and former the automobile was used for many hazardous substance, pollutant, or usage. Railfields include rail tracks, purposes. Competition led to declines contaminant.” Brownfields are located rights-of-way, rail depots, industrial in the rail industry and significant all across the country, and although areas, and other support facilities. consolidation over several decades. brownfields are often located in areas Residual contamination including By the second half of the twentieth with access to transportation and herbicides, petroleum products and century the miles maintained by the utility infrastructure, developers and byproducts, metals, and creosote, is other potentially interested parties often present as a result of the former railroad operations and associated industrial activities. Notwithstanding,

CLEANUP AND REDEVELOPMENT 33 many of these properties provide regulatory framework governing considerable opportunities for reuse rail companies and their properties, and community revitalization. Their and the current landscape of redevelopment can transform blighted underutilized rail properties. It also areas into resources that meet the provides information on the rail needs of the community and support companies’ perspective of railfields the local economy. redevelopment, and relates stories of successful projects to give Many of these properties are Purpose communities tools and approaches returning to productive use through This guide is intended to assist for addressing rail properties. The the efforts and partnerships of local governments with the unique guide concludes with a directory communities, rail companies, and aspects of redeveloping railfields of rail companies and contacts for other stakeholders — and even more and provide them the information redevelopment projects. To develop are waiting to be reused. While they need to successfully work the guide, EPA consulted various railfields share some characteristics with rail companies. The guide is local government and rail company common to all types of brownfields, targeted at communities that are representatives to identify successful they also offer unique challenges and beginning to address a railfields railfields redevelopment projects; opportunities. As opportunities, many project rather than those that are the different stakeholders’ policies railfields offer large parcels of lands already grappling with the more and incentives; and the elements that with ideal locations for community complex issues involved with railroad promote success. The most common revitalization efforts. However, rail property reuse. This guide provides themes from these conversations are properties present a unique challenge a history of rail development, the summarized in the following sections. 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 About challenges: lawfully abandoned is not subject “Addressing rail property in our community has been to the power of eminent domain. However, the railroad may make the challenging, but rewarding. Through our partnership with property available for a voluntary the rail company and other stakeholders, we’ve redeveloped sale. In addition, rail companies are a rail yard and spur tracks into a shopping center, mixed- market driven, privately owned, for- income housing, and a pedestrian and bicycle greenway. profit corporations. Their primary Our track record shows that railfields provide the economic responsibility is to make a profit engine and environmental quality-of-life benefits that are for their shareholders, and local well worth the effort.” governments should understand that perspective — rail property Ignacio Dayrit, Emeryville, CA transactions need to be financially Brownfields Project Director beneficial to the rail company.

4 SUCCESSFUL RAIL PROPERTY Rail Ownership and Abandonment

While there are several federal from the national transportation statutes governing railroads, the system. But after such properties Interstate Commerce Act (ICA), as are lawfully abandoned, they may revised in the ICC Termination Act of be sold or used for other purposes 1995 (ICCTA), is the primary source since the STB’s regulatory mission of protection for railroad companies has come to an end. Visit the STB’s against eminent domain actions by Web site at www.stb.dot.gov/ for more local governments. The ICA gives information. the Surface Transportation Board If a railroad wants to discontinue (STB) broad authority over railroads service or abandon particular lines, and associated property. The ICA it first needs STB approval. In gives the STB exclusive jurisdiction making abandonment decisions, over rail transportation, and defines the STB balances the needs of rail transportation expansively local communities and shippers to encompass not only railroad for continued rail service with the operations over the nation’s rail financial burden that continued network, but also property, facilities, service would place upon the railroad. structures, and equipment related The STB will also determine whether the railroad may dispose of the to the movement of passengers and the property may be appropriate property as it sees fit. Alternatively, property by rail. The STB’s broad and for another public purpose (e.g. the Trails Act provides a voluntary exclusive jurisdiction over railroad highway, conservation, or recreation). process under which a rail line can transportation and facilities prevents Once the STB decides that a line be converted to recreational trail application of state and local laws may be abandoned, any financially use while being “railbanked” for that would otherwise be available, responsible person may acquire the possible future rail use. Finally, including the use of state or local line, at the constitutional minimum STB abandonment authority is eminent domain procedures to take value, to continue rail service. When permissive. When abandonment rail property for other use that would such a sale does not occur, the STB authority is granted by the STB, conflict with the rail uses. The STB may impose a 180-day waiting the rail company generally must has the sole authority to authorize period during which other parties exercise the authority within one year the removal of such railroad property may negotiate with the railroad for or the property reverts back to the purchase of the property for public national transportation system and uses. If no agreement is reached, is once again subject to the STB’s jurisdiction.1

1 The abandonment process is described in more detail in Appendix B.

CLEANUP AND REDEVELOPMENT 5 Rail Industry Perspective

Most rail companies — with Marketing and Divesting the exception of Amtrak — are Properties private companies that are Rail companies often have a responsible for making profits real estate branch that tracks and monitors their properties. In addition, for their shareholders. As private several rail companies keep a list of entities, rail companies are not “surplus” properties, or properties likely to transfer a property unless that are not currently being used as a part of their rail operations. Surplus there is a tangible benefit. The properties are classified based on following information, developed work loads, future rail plans, and risk from conversations with rail assessments, and are the properties company representatives, presents that are targeted by the rail company for divestment and sale. Naturally, the rail companies’ perspective rail companies are selective about on several aspects of railfields divesting these properties because property transfer, cleanup, and the future value of their operations is influenced by having access to redevelopment. Representatives Environmental a wide network of rail properties. Contamination and from major rail companies as well Some real estate branches are more Liability proactive about marketing their as EPA and STB rail contacts are A majority of rail companies surplus properties than others. For listed in Appendix A of this guide perform an environmental review example, Union Pacific staffs an on every property transaction for reference. 80-person real estate department as an evaluation process to dedicated to expanding lines, determine if there are significant facilities, and business; recycling contamination concerns. According older properties; and actively to the rail companies, a common managing leasing arrangements for hurdle in disposing of railfields all of its properties. Union Pacific is the misconception that all rail also employs 25 field representatives properties are large, polluted areas. in different geographic areas Although fueling stations and large throughout the United States who transportation hubs are heavily specialize in marketing properties for polluted, there are many former rail sale and lease. Rail companies that properties that have minimal or no do not actively market their surplus contamination. Many rail companies properties primarily rely on private are interested in confronting industry or local governments to the stigma associated with their approach them regarding properties properties by working with local they are interested in leasing or groups and state or federal agencies. purchasing.

6 SUCCESSFUL RAIL PROPERTY Similar to other brownfields Environmental insurance is a tool Rail companies recommend that redevelopment projects, liability used to quantify and transfer risks local governments spend significant concerns about environmental related to brownfields cleanup costs time exploring whether the end use contamination on the property are and liability from project stakeholders is appropriate based on the cleanup a common roadblock for the rail to an insurance company. Sellers, level prior to planning redevelopment. companies in addressing railfields buyers, developers, and local This will enable municipalities to properties. The rail companies governments use environmental create redevelopment plans based recommend that local governments insurance to manage risk, including on the level of cleanup necessary work with the rail companies cost overruns and third-party liability (i.e., planning a light industrial and state environmental agencies claims that can arise during cleanup or commercial use, rather than on liability issues. Often, if and redevelopment. Environmental a community park, on a historic contamination is found during the insurance not only limits liability, industrial rail property). EPA has investigation process of the railfields but sometimes is required to get developed a site profile guide, project, all of the liability rests with the development project off the entitled “Technical Approaches to the rail company. This creates a major ground. For more information on Characterizing and Cleaning up disincentive for the rail companies environmental insurance, visit EPA’s Brownfields Sites: Railroad Yards,” to to proceed. Most rail companies Web site at www.epa.gov/brownfields/ assist stakeholders in characterizing evaluate every potential property sale insurebf.htm. rail properties. Go to www.epa. to limit liability concerns; however, gov/ORD/NRMRL/pubs/625r02007/ even with their due diligence, they are Redevelopment 625r02007.htm to download the still open to liability. Rail companies have an interest report. in working with municipalities In addition, the rail companies during the planning process of recommend contacting them before redevelopment of rail properties applying for and receiving grants to that are no longer needed for the carry out assessment and cleanup national rail transportation system. efforts at their properties. Since the This allows them to provide early rail companies have knowledge of input into reuse options as they have the property’s historic use(s) and valuable knowledge about potential contamination concerns, they can contamination concerns. 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 AND REDEVELOPMENT 7 rail companies and local governments work together throughout the cleanup should reach agreement on the process. State environmental agencies property reuse before funding is have been a vital part of the success allocated for specific redevelopment of the railfields cleanup planning activities. Early communication and process. Rail companies commented cooperation between rail companies that in some cases, state agencies and local governments can enable require cleanup to a level beyond them to work together to determine a which any involved party is willing mutually beneficial reuse. to commit; therefore, the property deals can fall through. However, in Partnering with States recent years, the state agencies, rail Several rail companies and local companies and purchasing parties governments reported that conducting have been able to reach consensus property cleanup through the state because state agencies developed voluntary cleanup programs (VCPs) more flexible expectations and better is a key component to the success processes for evaluating the end of railfields projects. Enrollment in use of properties, resulting in the the VCP at the start of the cleanup selection of an appropriate cleanup process enables the rail company, level. For more information on state the local government, and the state VCPs visit www.epa.gov/brownfields/ environmental regulatory agency to 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

8 SUCCESSFUL RAIL PROPERTY Success Stories and Lessons Learned

Working with the rail industry Communication and • Rail property abandonment policies to purchase and redevelop Education • Laws and regulations that govern former rail properties can be The success of any project begins rail companies difficult. There are several steps with communication and education Building and fostering a positive — and even more so with railfields relationship with the real estate local governments can take projects because of their complexity. branch of the rail company can start to successfully facilitate and Developing a strong relationship with scheduling regular meetings to complete their railfields project. with the rail companies facilitates discuss future redevelopment plans trust between decision makers The following tips have been and properties of interest in the in the rail company and the local community. This forum provides the developed based on conversations government. This relationship also rail company with the opportunity to with local governments and rail helps ensure that the appropriate inform the community of its interests. company representatives, and people are involved, and that both It could also lead to the disclosure parties understand each other’s needs of other surplus properties that the include lessons learned from past and expectations. As part of fostering railroad may be interested in selling projects. this relationship, local governments or leasing in the short and long term. should educate themselves as much See Appendix A for a list of rail as possible about: company real estate contacts. • Properties they are interested Make contact with rail companies in redeveloping, including any before applying for and receiving possible reuse issues grants to carry out assessment and • Applicable financial or tax cleanup efforts at their properties. incentives 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 AND REDEVELOPMENT 9 between rail companies and local the demands and constraints on governments can enable them to work all parties can help avoid creating together to determine a mutually adversarial relationships. According beneficial reuse. Rail companies to interviews with rail company want to see that a local government representatives, pushing the has a proposed plan for reusing the companies to make decisions too property that is supported by the quickly is counterproductive to the community and lays out possible success of the project. roles and responsibilities for the In addition, because of the stakeholders. The plan can then serve complexities of rail redevelopment as the focus of initial discussions projects and because rail between the local government and companies have significant power the rail company, with rail companies in any transaction or negotiation, providing the best knowledge about the property characteristics and any potential contamination concerns. This knowledge enables the rail company to provide input into reuse Loco Works/Liberty Commons options as well as the cleanup Industrial Park Project plan. Rail company participation at Lima, Ohio the early stages of redevelopment helps stakeholders form realistic The former Locomotive Works site in Lima, Ohio was used to expectations about the project. manufacture locomotives until the 1950s. After locomotive production ceased, the property was used by a number of manufacturing firms and Patience and Flexibility eventually became a storage location for a salvage business. In August The majority of railfields projects 1999 the city purchased the site for $687,500, and as part of the purchase are long-term efforts that require agreement, the property owner agreed to pay any cleanup costs incurred persistence and patience to succeed. over $50,000. This site is now part of the larger Liberty Commons Some local governments pointed out Industrial Park project. The city negotiated a $1.5 million purchase that negotiations for the sale of a rail agreement with Global Energy, LTD, which plans to invest over $600 property took over a year to complete. million in the project and to construct a 540 megawatt electrical generator Potential environmental liability that would employ an innovative technology, coal gasification, to produce concerns require rail companies be electricity for the long term contract market. cautious and thorough when making For more information, contact Gary Sheely, Utilities Director of the a real estate transaction. Local City of Lima, at 419-221-5294. governments should be aware that addressing liability concerns with the state regulatory agency is a time consuming process. Understanding

10 SUCCESSFUL RAIL PROPERTY communities need to remain flexible Local governments should also Rail companies are for-profit to get a project off the ground. consider purchasing “bundles” of businesses that have a financial The Chelsea Creek Restoration clean and contaminated properties responsibility to their shareholders. Partnership is working to create a for sale. This strategy is beneficial While the rail companies are park and greenway along the Chelsea to the rail company and the public, interested in working with local River, an industrial waterway close making the properties easier to sell, governments and state and federal to downtown Boston, Massachusetts. expediting negotiations, and reducing agencies on redeveloping rail A Chelsea Creek representative paperwork. This approach succeeded properties, ultimately, the property emphasized that they are willing in Baltimore, Maryland, where transaction must be financially to negotiate with the current lessee Camden Yards baseball stadium beneficial to the rail company. Local to accommodate multiple uses and is located. The area previously governments should use available hopes that through creative planning, contained several lawfully abandoned incentives and have funding in a recreational trail may even be able rail properties, some that were place to ensure that the property to co-exist with a rail line. Several contaminated and some that were not. transactions and redevelopment plans other interviewees from companies All were sold to the city in a package succeed. and local governments emphasized deal. the importance of flexibility cost- sharing among the local government, private organizations, and other Railroad Reservation Park and District governmental entities to help ensure Birmingham, Alabama that the project does not place The Railroad Reservation Park and District in Birmingham was reserved excessive burden on a single party. 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 Incentives to a lively AMTRAK and Intermodal Station eight years ago and agreed Rail companies are motivated to interpret the site as part of historic preservation agreement. The city, in by the market. Creating a situation partnership with Friends of the Railroad Reservation District, is engaging that rewards these companies for residents, workers, and the corporate community in the area’s revitalization working with other stakeholders is through the building of the park as a new economic engine. In addition to critical in enticing rail companies to many recreational and water features, public art, and interactive-media will participate in the process of railfield tell the geographic, economic, and socio-cultural history of the city. The development. To this end, local Railroad Reservation Park is to be completed within the next two to five governments should think creatively years through strong public/private partnerships. about financial and other tools that For more information, contact Renee Kemp Rotan, Director, Capital will make a redevelopment project Projects, Mayor’s Office, City of Birmingham at 205-254-2275. attractive to a rail company.2

2 For 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/bftaxinc.htm for more information.

CLEANUP AND REDEVELOPMENT 11 Reuse Planning Northpoint Project In addition to cultivating Cambridge and Somerville, Massachusetts relationships with the rail companies, Across the river from downtown Boston, a former rail freight yard there are a number of strategies a owned by Guilford Transportation Industries is being transformed into local government should pursue to a 45-acre mixed-use development. Guilford initiated the development successfully redevelop rail properties. after declining freight traffic in Boston made the property redundant. The These strategies, in whole or in project will include commercial and residential development. Significant part, were suggested by multiple area will devoted to greenspace, and a regional bicycle trail will traverse representatives of rail companies and the development. The property will be easily accessibly by public interested local governments. transportation and will include the relocation of a subway station to within the development. Ultimately, it will integrate an underused industrial Pursue a Shared Vision of property to the communities around it. The company will continue to Redevelopment maintain ownership of the property as it is developed. While differences of opinion For more information, contact Stephen Winslow, an official in the among community members about community development office of the City of Somerville, at 617-625-6600 redevelopment are to be expected, it x2519. 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.

12 SUCCESSFUL RAIL PROPERTY stakeholder cooperation is essential. benefits to working through VCPs. It is much easier for a rail company Some companies have developed to negotiate with a community if good relationships with specific there is a unified voice representing state programs that can benefit community interests. In one instance, future projects. For example, Union a former rail property in Brunswick, Pacific notes successful working Maine sat vacant for many years in already planning to pay for cleanup to relationships with the programs in city ownership before a vision was industrial standards, but the planned California and Texas. Among other developed for the property. Once the park required a more rigorous cleanup benefits, the Texas VCP protects non- vision was developed and pursued, with a higher cost. The creation of the responsible parties, future owners, the project began to proceed rapidly, park was contingent on the dedication and lenders from liability. A former despite other challenges associated of additional funds, which was rail property on Houston’s Fulton with it. Although this strategy is deemed a priority by community and Street entered into the Texas VCP, relevant to all brownfields projects, government groups. It was essential aiding the cleanup and redevelopment it is particularly essential in order to account for prior use, cleanup effort. At the Los Angeles Cornfields to make a compelling case for standards, and availability of cleanup Property, discussed above, a redevelopment to a rail company and funding in designing a reuse plan. preliminary assessment was to other potential partners. performed by the city brownfields Using Available program through the VCP program. Ensure Redevelopment is Resources The quick turnaround process Consistent with Prior Uses and enabled the project to proceed and Remaining Contamination Outside resources are available to help communities struggling with the the community is now successfully A representative from CSX cleanup and redevelopment of rail building a park. Transportation emphasized that properties. Below are some programs Learn the Role of The Surface local governments should always and organizations that can help local Transportation Board consider the contamination level governments navigate their railfields and previous uses of a property, as project. The exclusive jurisdiction of well as the planned level of cleanup, the STB over railroad operations in determining a property’s reuse. Participate in a state Voluntary and associated property protects Different levels of cleanup are Cleanup Program (VCP) the national interest in an efficient required for different uses. Working with a state and effective interstate rail system. These issues are being successfully environmental regulatory agency However, the STB also provides navigated in ongoing redevelopment often allows projects to proceed procedures for allowing the removal of the Cornfields Property in Los smoothly, whether the rail company of unnecessary or outdated rail Angeles, California. Community works directly with the VCP or the lines and associated property from advocates wanted to transform the entity purchasing a rail property the national rail system. The STB property into a park, creating sorely works with the VCP. Representatives provides several different procedures needed greenspace in downtown of Canadian Pacific, Union Pacific, for abandonment, described in Los Angeles. A prior owner was and CSX all noted that there are further detail in Appendix B. While

CLEANUP AND REDEVELOPMENT 13 to accept financial responsibility for, Consider Using Third Parties and maintain, the rail property for Local governments and rail the duration of the trail use, with the companies are not alone in pursuing understanding that all or part of the redevelopment of rail properties. corridor may be reactivated as a rail Other stakeholders may be able to line in the future. For information on provide crucial help with funding, the Trail Act, go to http://frwebgate. technical expertise, or facilitation. access.gpo.gov/cgi-bin/getdoc. In Chester County, Pennsylvania, cgi?dbname=browse_usc&docid= the Chester County Economic Cite:+16USC1247. In Greenville, Development Council provides South Carolina, the city pursued technical assistance to the small creating parkland on rail line along communities of Downingtown the Reedy River that is not currently and Coatesville that are seeking to being operated, which would connect abandonment proceedings typically redevelop rail properties within their several sections of the city. are initiated by the railroad, in certain boundaries. Neither small community 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 Abandoned Railyard Property Web site at www.stb.dot.gov/ for more Brunswick, Maine information. The town of Brunswick, Maine, is currently redeveloping a four- In many cases, abandonment acre abandoned railyard property. After the bankruptcy of development proceedings at the STB move company left the property vacant for several decades, the Town purchased swiftly. It may be a good idea for the property in 1998 for $600,000. The planning process is currently a community to engage an outside proceeding rapidly and includes significant community involvement. The expert who is practiced in following town is looking to use creative methods of handling the presence of coal and using STB abandonment ash — the primary contaminant on the property — by blending it with procedures, particularly if the project pavement or concrete materials that will be used in construction, covering involves a request for a condition in place where possible, and removal when necessary. Although the plans permitting the use of rail property are not yet finalized, the redevelopment will likely include a rail station, authorized to be abandoned as a hotel, housing, retail, and other services, as well a pedestrian connection to recreational trail. The Trail Act, the heart of downtown Brunswick. 16 U.S.C. 1247(d), permits parties For more information, please contact Mathew Eddy, Director of to negotiate a voluntary trail use Economic Development for the Town of Brunswick, at 207-721-0793. agreement when a local sponsor (e.g. nonprofit organization) agrees

14 SUCCESSFUL RAIL PROPERTY has the capacity to complete the desired rail redevelopment projects on Cornfield Property its own. Although the projects have Los Angeles, California not yet come to fruition, this third After the consolidation of the rail industry in the Los Angeles region, party group has been able to raise the a developer purchased a former Union Pacific rail yard for industrial profile of the issue, obtain political use. However, the local community desired a park at the location on the support, and assist in ongoing LA River in downtown Los Angeles. The Trust for Public Land played negotiations with the relevant rail an essential role in facilitating the transfer of the property from an company. industrial developer to the State of California, and the City of Los Angeles In the redevelopment of the Brownfields Program performed an environmental assessment at a crucial Cornfields Property in Los Angeles, moment in the project. Subsequently, the state funded additional cleanup California, financial assistance from that was necessary to convert the property to recreational use. The state is the Trust for Public Land (TPL) currently developing an interim park use and developing final use plans. was crucial to the project’s success. This new state park will be part of a larger initiative to reclaim the blighted TPL purchased the property when it LA River and to create greenspace in the midst of Los Angeles. became available — before another For more information, contact Craig Tranby of the City of Los Angeles owner could put it to a different use. Brownfields Program at 213-978-0871. 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 create a nationwide network of trails procedures for abandonment and of TPL made the project a reality. from former rail lines and connecting recreational trail use under the Trails TPL is a nonprofit land conservation corridors to build healthier places Act. One representative from the organization that can assist local for healthier people. For more rail industry stated that incentive governments with a variety of information on the Rails to Trails programs like “Rails to Trails” are services including project planning, Program, their Web site at www. valuable, especially to the public. research and education, property railtrails.org. RTC provides materials Because it is not a comprehensive transaction, and finances. For more to communicate the benefits of program, local governments should information about the TPL, visit their rail-to-trail projects, strategies to continue to pursue the Rails to Trails Web site at www.tpl.org/index.cfm. obtain funding, and ideas on how to program in combination with other highlight successful projects. RTC resources and incentives. The Rails to Trails Conservancy can also provide technical assistance (RTC) can also be a valuable to communities engaging in these resource for those who have rail projects. The assistance may even lines in their communities and are include help purchasing a trail interested in their potential reuse and following the STB regulatory as a trail. The RTC is a nonprofit organization whose mission is to

CLEANUP AND REDEVELOPMENT 15 Conclusion

It is important to remember that Using innovative approaches, rail properties are fundamentally successful railfield developments different than traditional brownfields have been achieved. The examples projects and their redevelopment presented in this guide are just a few poses unique challenges. Railfield of the many railfield redevelopment projects must take into account projects completed around the the broad jurisdiction of STB, as country. Some keys to success are: well as any applicable state and • Communication — build and federal environmental programs. maintain lasting relationships Furthermore, the rail companies and among stakeholders. other site owners have their own • Incentives — explore stakeholders’ incentives and interests that must be interests and seek alternatives that factored into any planned railfield provide benefits to all parties. redevelopment. • 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 resources available, including state programs or working with a third party to complete a project.

16 SUCCESSFUL RAIL PROPERTY Appendix A: Railfields Directory

EPA Railfields Contacts: Amtrak Roy Deitchman U.S. EPA Office of Vice President, Environmental Health Brownfields Cleanup and and Safety Department Redevelopment (OBCR) Phone: 202.906.3272 Tony Raia E-mail: [email protected] Phone: 202.566.2758 Web: www.amtrak.com E-mail: [email protected] Web: www.epa.gov/brownfields Association of American Railroads Surface Transportation Robert Fronczak Board (STB) Contact: Assistant Vice President Phone: 202.639.2839 Surface Transportation E-mail: [email protected] Board Web: www.aar.org Victoria Rutson Rail Industry Contacts: Chief, Section of Environmental Canadian National Railway Analysis American Short Line Stella Karnis Phone: 202.565.1545 and Regional Railroad Manager, Corporate Site Assessment E-mail: [email protected] Association Phone: 514.399.8731 Web: www.stb.dot.gov Jenny McKinney E-mail: [email protected] Executive Director, Federal and Web: www.cn.ca Industry Programs Phone: 202.585.3434 Canadian Pacific Railway E-mail: [email protected] David Drach Web: www.aslrra.org Director, Real Estate Marketing Phone: 612.904.6139 Amtrak E-mail: [email protected] Sally Bellet Web: www.cpr.ca Vice President, Real Estate Development Conrail Phone: 215.349.1612 Patrick Rogers E-mail: [email protected] Vice President of Tax and Real Estate Web: www.amtrak.com Phone: 856.231.7229 E-mail: [email protected] Web: www.conrail.com

CLEANUP AND REDEVELOPMENT 17 CSX Transportation Norfolk Southern Kevin Hurley Steve Portnell Director, Real Estate Services Director, Real Estate Phone: 904.633.4838 Phone: 404.962.5803 E-mail: [email protected] E-mail: [email protected] Web: www.csx.com Web: www.nscorp.com

Kansas City Southern Union Pacific Railway Tony Love Chet Culley General Manager, Real Estate General Director, Environmental and Phone: 402.997.3640 Hazardous Materials E-mail: [email protected] Phone: 816.983.1343 Web: www.up.com E-mail: Chester.A.Culley@KCSR. com Web: www.kcsi.com

18 SUCCESSFUL RAIL PROPERTY Appendix B: Additional Background on Rail Regulation in the United States

Congress has extensively regulated 1995 (ICCTA), further minimized the nation’s railroad system for over regulatory burdens on the industry a century. The Interstate Commerce and vested exclusive authority Act of 1887 (ICA) brought the rail over rail transportation, including industry under the regulation of the associated facilities, exclusively with Interstate Commerce Commission the STB. Specifically, 49 U.S.C. (ICC). Among other activities, the 10501(b) now states: ICC was tasked with regulating The jurisdiction of the STB over: railroad rates and services, the construction, operation, and • transportation by rail carriers, and abandonment of rail lines, and rail the remedies provided in this part consolidations, mergers, and common with respect to rates, classifications, the line’s abandonment. Once a line control arrangements. rules (including car service, is lawfully abandoned, it is no longer interchange, and other operating part of the national transportation To ensure a functional national rules), practices, routes, services, system, and the railroad can sell or shipping and transit system, rail and facilities of such carriers; and donate the property (if it owns the lines were required to maintain • the construction, acquisition, necessary property interest). Eminent passenger operations even when operation, abandonment, or domain laws also would apply and they were not profitable. In 1970, discontinuance of spur, industrial, quiet title actions can be filed. federal law created Amtrak as the team, switching, or side tracks, national corporation for passenger If a railroad decides to abandon or facilities, even if the tracks are rail travel, removing passenger a particular line, the STB has a located, or intended to be located, operations from the responsibilities prescribed process that must be entirely in one state, is exclusive. of the rail industry. By the 1970s, followed. There are three ways that Except as otherwise provided in this the rail freight industry was on the rail lines and associated properties part, the remedies provided under brink of financial collapse. Ten years can be abandoned: through formal this part with respect to regulation later, in the Staggers Rail Act of application under 49 U.S.C. 10903, of rail transportation are exclusive 1980, Congress began the substantial use of the so-called “out-of-service” and preempt the remedies provided economic deregulation of the surface class exemption, under 49 U.S.C. under federal or state law. transportation industry. The Staggers 10502 and CFR 1152.50, or a petition Act streamlined the processes for Railroads typically have a for an individual exemption under 49 abandonment of rail lines, which common carrier obligation to provide U.S.C. 10502 and 49 CFR 1152.60. are currently the responsibility of service to any shipper that makes a • Formal Applications — Formal the federal Surface Transportation reasonable request. In cases where applications for abandonment Board (STB), the successor agency providing service is no longer cost- are typically filed when the to the ICC. The ICA, as broadened efficient for a particular carrier, the abandonment is controversial and by the ICC Termination Act of carrier can ask the STB to authorize the lines in question are actively

CLEANUP AND REDEVELOPMENT 19 used. In a formal application, that a particular line does not the STB weighs shipper and qualify for the exemption or that community need for the line against there is a need to retain the line may the burden that keeping the line petition for a stay and revocation open would impose on the carrier of the exemption as it applies to the and on interstate commerce. The line. STB usually grants permission to • Petitions for Individual Exemption abandon lines when the railroad — When the railroad expects suffers significant losses and no significant opposition to its existing uses of the line can be proposal to close a line, it may re-routed. Formal Abandonment instead file a petition for individual applications generally take about exemption from the full application 110 days to process. procedures involved in processing • Out-of-Service Exemptions — The abandonments under 49 U.S.C. out-of-service “class” exemption 10903. The petition process allows the abandonment of any line typically takes 110 days. If the STB that has not originated or terminated decides to grant the exemption, it any traffic in the past 2 years and will publish a notice in the Federal that carries no overhead traffic that Register. Anyone can then object cannot be rerouted to other lines. to the closing of the line by filing The use of the exemption generally a petition to stay and/or revoke the is effective 50 days after it is filed exemption. with the STB. Anyone who believes

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.

20 SUCCESSFUL RAIL PROPERTY A less common method of a 180-day waiting period under 49 abandonment is known as the adverse U.S.C. 10905, during which other abandonment procedure. Under this parties may negotiate with the process, anyone who believes that a railroad for purchase of the property line is no longer needed and should for other public purposes. If no be abandoned may apply to the STB agreement is reached, the railroad for adverse abandonment authority, may dispose of the property as it sees even if the railroad doesn’t want fit. Alternatively, the Trails Act, 16 to close the line. If the STB grants U.S.C. 1247(d), provides a voluntary adverse abandonment authority, process under which a rail line can its decision serves to remove the be converted to recreational trail use jurisdictional obstacle to an eminent while being “railbanked” for possible domain or quiet title action in an future rail use. Trail use conditions appropriate state court. providing time for the parties to negotiate a voluntary trail use/rail Abandonment authority is banking agreement are imposed by permissive: the railroad can elect not the STB whenever a trail sponsor to exercise the authority it has been (e.g. local nonprofit organization, granted. Abandonment authority etc.) agrees to accept financial generally expires after one year responsibility for, and maintain, the if the railroad has not submitted a rail property for the duration of the consummation notice within that trail use, with the understanding that time indicating the date on which all or part of the corridor may be it exercised that authority. After reactivated as a rail line in the future. railroad property has been lawfully Trail sponsors must work closely with abandoned, state condemnation laws the rail company to reach a mutually can be applied, since the property acceptable agreement for interim trail is no longer part of the national rail use, since this is a voluntary program system and the STB’s regulatory for rail companies. 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

CLEANUP AND REDEVELOPMENT 21 United States Office of Solid Waste EPA-560-F-05-231 Environmental Protection and Emergency Response August 2005 Agency www.epa.gov/brownfields/