Colorado public transit agency buys $185 million in UP land
The public transit provider for the Denver-Boulder six-county region Thursday reached a $185 million deal with Omaha, Neb.-based Union Pacific Railroad to purchase property from the railroad needed to complete three FasTracks commuter rail corridors.
Under terms of the deal, the Regional Transportation Department would also acquire track rights to the Boulder Industrial Lead from UP.
The deal, which comes after negotiations following RTD's balk earlier this year at UP's first asking price of $700 million, will cover less land than the previous offer and also include the relocation of rail facilities.
The sale is still subject to negotiations of final legal terms and approval by the boards of both parties.
To complete the three commuter rail projects, the RTD will still have to acquire additional land along the routes that are not owned by the railroad.
Dennis Duffy, UP's executive vice president for operations, told the Rocky Mountain News that the deal allows RTD 'to move forward with FasTracks and also enabled (UP) to continue to serving our customers and maintain capacity for future growth.'
The $7.9 billion FasTracks program plans to build six commuter rail corridors throughout the six-county region by 2017. The project is struggling with a projected cash deficit of $2.3 billion, and the agency has said it may have to trim back the scope of the project, delay portions of it, or seek a second tax increase to raise the cash by 2017.
Colorado public transit agency buys $185 million in UP land
