In a unanimous vote, the Washington (Iowa) City Council accepted a counter-offer from Canadian Pacific (CP) that would allow the city to allocate city funds and “community cooperation” to the proposed merger of CP and Kansas City Southern (KCS). that would “increase rail traffic in the region by more than 300 percent,” the Southeast Iowa Union reported Nov. 21.
The proposal that loud Southeast Iowa Union Report, was “the same as presented by Council members at their previous meeting”, includes:
- A $200,000 cash contribution from CP to be used at the city’s discretion.
- Payments of $225,000 from CP for each crossing that the city agrees to close.
- A $55,000 grant from the railroad for a quiet zone study.
- Railroad waived the cost of removing crossing surfacing, signals and signs at crossings that the city is willing to close.
According to that Southeast Iowa Union In the report, CP Representative Larry Lloyd said, “There was no sunset clause in the offer, meaning the city could use the closure of intersections as far into the future as it wished,” but added that “state and federal fund initiatives are likely.” would not have had any more money in the next few years.”
“The agreement would still stand,” Lloyd said. “It’s conceivable that the bipartisan infrastructure bill will expire in five to six years and the $100,000 completion will go away, so that’s probably the incentive for that [the city] to do sooner rather than later. But from CP’s perspective, that incentive is always there; We would like to close an intersection at any time.”
According to that Southeast Iowa Union City officials reportedly “brought up the idea of potentially reopening an intersection down the road,” but Lloyd said, “The current regulatory environment has made it difficult to reverse closures.”
“The general railway standard is if you want to open one crossing, you have to close two,” he said. “The long-term plan for the railroads, Iowa DOT, US DOT, Federal Railroad Administration, everyone, is to reduce the number of crossings. The general consensus is that if you ever want to bring an intersection back into service, you would have to cut it by two.”
Although the vote to accept CP’s offer was unanimous, several council members said they “still have reservations about it [CP-KCS] merger.”
“We will not improve the offer,” said Illa Earnest, according to the information Southeast Iowa Union Report made the request. “Maybe there will be questions later, but this will not affect the offer.”
“We are very pleased that the City of Washington has voted to ratify a municipal investment agreement with CP,” said CP spokesman Andy Cummings railway age. “From the outset, CP has been committed to proactively engaging with communities that will experience an increase in rail traffic as a result of the CP-KCS merger. The agreements CP has made with Washington and other communities reflect that commitment.”