Burroughs still interested in buying Keokuk, Iowa, rail bridge

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The Pacific Rim Railway Company has withdrawn its notice of intent to buy the Keokuk-Hamilton railroad bridge that is used by the Keokuk Junction Railway, the Daily Gate City reports. The notice was filed with the Surface Transportation Board. However, Keokuk Mayor Tom Marion says Craig Burroughs of Pacific Rim Railway Company still is interested in buying the bridge.

"Burroughs told me last
week that they were going to withdraw their request. This does not mean that
they don’t still want to purchase the bridge," Marion said in an e-mail to the
Daily Gate City. "I think they realize that they were moving too fast based on
the (city) council."

Burroughs had offered to
buy the bridge for $500,000, payable in the form of a 10-year note with an
interest rate of four percent a year. Interest would be paid quarterly at the
rate of one percent of the outstanding principal amount with interest payments
due on the three-month post-closing date and continuing every three months
thereafter until maturity.

Keokuk City Council
members have balked at Burroughs’ proposal to have the bridge fund, which
currently has a balance of about $3.3 million, placed in a trust. Council
members also have pointed out when Burroughs appeared before the council on
March 4 he made it sound like an agreement in principal had been reached
between him and the city on the bridge’s purchase.

When contacted by phone
this morning, Burroughs expressed hope that a deal could be worked out with the
city.

"As soon as they (the
city) agree to the terms, it (the notice of intent to buy the bridge) will be
re-filed," he said.

Burroughs said the bridge
fund had a balance of about $3.6 million at the start of the year.

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