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HomeMy WebLinkAboutItem 03 City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Justin Miller, City Administrator Kati Bachmayer, Economic Development Specialist Date: September 25, 2018 Subject: Progressive Rail Federal Grant Application Several months ago the City was contacted by representatives of Progressive Rail regarding a federal grant application they were pursuing. It was a Consolidated Rain Infrastructure and Safety Improvement (CRISI) Grant application through the Federal Rail Administration (FRA). The grant application is to secure funding for the construction of a rail car storage facility along the CP Railway line between Lakeville and Northfield. For a number of years, Progressive Rail has utilized the inactive CP Railway line that runs through the City of Lakeville for both short term and longer term rail car storage. As a result, an agreement between the City and Progressive Rail was recently approved by the th City Council on September 4. This agreement provides that the City provide a letter of support for the grant application and to contribute $10,000 in financial support to the project contingent on Progressive Rail receiving the federal grant and constructing the rail car storage facility. In exchange, Progressive Rail agrees to no longer store rail cars north and west of Dodd Boulevard in the City and will limit the storage of cars between County Road 70 and Dodd Boulevard to no more than 10 days at a time. Action Requested: This is for information only. Updates of the status of this grant application will be provided to the EDC in the future.