Sioux Falls, BNSF reach agreement on yard purchase

Written by Jenifer Nunez, assistant editor

Negotiations have concluded between the city of Sioux Falls, S.D., and BNSF for the purchase of the downtown rail yard. The city has agreed to purchase more than 10 acres of the rail yard for $27,334,500, utilizing funds from the federal highway bill.

 

“This monumental achievement for our city certainly has been a long time in the making, but the effort by so many has now paid off in a huge way,” said Mayor Mike Huether. “With the agreement on the terms of the sale, we are a giant step closer to redeveloping that critical piece of our downtown.”

The purchase agreement removes the majority of the rail yard in downtown and provides more than 10 acres of property for redevelopment. BNSF will construct two siding tracks along its mainline track north of Rice Street and west of Timberline Road. BNSF will retain two mainline tracks through the downtown area to maintain their rail operations.

With the conclusion of the negotiations, the purchase and sale agreement will be presented to the City Council on August 4, 2015, for approval. In the upcoming months, BNSF and the city will execute the purchase agreement and will close on the property. The city will take full possession of the property in two years, once BNSF completes construction of the siding tracks.

“BNSF has been a great ally with the city to develop a plan that facilitates redevelopment in downtown, maintains rail service to Sioux Falls and stays within the available federal funds,” said Mark Cotter, director of Public Works.

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