The Clinton Herald, Clinton, Iowa

Local News

April 9, 2013

Railport purchase moves forward on RAIL.ONE

CLINTON — The Clinton County Board of Supervisors voted to allow the city to move forward with development in the railport.

The board consented to the sale of property by the city of Clinton to RAIL.ONE. The county is required to approve any sale at the railport before it can be finalized. This is part of the 28E agreement between the county and the city where the county put up $6 million for the project.

“It goes without saying that we’re very happy the county is on board with this project,” Attorney John Frey saiD. “Without your assistance it wouldn’t have happened.”

Clinton Mayor Mark Vulich thanked the board for moving forward so quickly because of the sale’s tight time schedule. He added that RAIL.ONE hopes to begin breaking ground on May 15. To accomplish this, the city is working to approve permits and other documentation quickly.

As part of the 28E agreement, the county will receive 50 percent of the sale proceeds. County Attorney Mike Wolf said they are not clear what this amount will be yet. Frey said they currently know of $598,000 in costs, which would be subtracted from the proceeds. He is not sure what the total costs will be.

Supervisor Brian Schmidt understood deducting the cost of the sales. However, he thought some of the proposed costs were for future development. Frey said some of these costs, such as those for a road, are necessary to put the deal together. The city is planning on reapplying for a RISE grant for the road.

“When it’s all said and done, we’re going to trust you to do what you can to deal with these sale costs in a mutually beneficial way,” Frey said.

The county and city will work on the amount of the proceeds to be divided at a later date.

Schmidt applauded the city for its foresight in creating the project. He said it is excellent seeing someone purchase a part of the railport.

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