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<br />Agenda Date Requested: <br />Requested By: Ron Bottoms <br /> <br /> <br />T FOR CITY COUNCIL AGENDA ITEM <br /> <br />ecember 14 2009 <br /> <br />Bude:et <br /> <br />Source of Funds: <br /> <br />Department: <br /> <br />Administration <br /> <br />Account Number: <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />Amount Budgeted: N/ A <br /> <br />Rail Spur Agreement <br /> <br />Amount Requested: <br /> <br />Exhibits: <br /> <br />Exhibits: <br /> <br />Site Plan <br /> <br />Budgeted Item: YES NO <br /> <br />Exhibits <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Tim and Stacey and I met recently with George Cook of Frontier Logistics and a consultant, <br />former Houston City Councilwoman Helen Huey, who will be representing Frontier and the <br />other partners in the rail service project just north of Barbours Cut Boulevard, at North <br />Broadway. The city signed a rail agreement with Frontier and Dragon in 2007; the plan at that <br />time was to extend rail service from the existing tracks just east of North Broadway, across a <br />portion of the Flanagan Yard, over North Broadway and westward down the H Street right-of- <br />way. The city received a down payment of $200,000 at the time, with the understanding that if <br />Frontier and Dragon were not able to get eventual approval of the plan, all but $25,000 of the <br />initial payment would be returned. Hurricane Ike forced a delay of the project, as the shipping <br />industry in the area suffered a significant slowdown, and financing for such projects all but dried <br />up. <br /> <br />Mr. Cook and Mrs. Huey have asked that the rail agreement be extended another year. They <br />pointed out that a number of advances have been made in the past year toward the eventual <br />completion of this project. One is that Clay Development, which developed the large site at <br />Underwood Road and Highway 225, has now become a pa11 of this project. Also, we have <br />received from Frontier and Dragon the rail engineering drawing we needed in order to be able to <br />proceed with the sale of the remainder of the Flanagan Yard property. We have also received a <br />tentative site plan (attached) showing not only the rail, but also the warehouse that will be built <br />on the west side of North Broadway near the Barbour's Cut intersection, just south of the new <br />rail line. Staff recommends extending the agreement for another year. Should the extension be <br />denied, we would be required to return $175,000 of the $200,000 down payment. <br /> <br />. <br /> <br />Action Required bv Council: <br /> <br />Approve an additional one year extension to the Rail Spur Agreement. <br /> <br />Approved for Citv Council Ae:enda <br />