Sponsor: Property Management
Sponsor: Regional Railroad Authority
Title
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Second Amendment to Station Lease Agreement with National Railroad Passenger Corporation (Amtrak)
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Recommendation
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1. Approve the second amendment between National Railroad Passenger Corporation (Amtrak), 60 Massachusetts Avenue, N.E., Washington, DC 20002, and the Ramsey County Regional Railroad Authority to provide additional space and services associated with storage of one train overnight at Union Depot for the term of the lease.
2. Authorize the Chair to execute the second amendment.
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Background and Rationale
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The Ramsey County Regional Railroad Authority (RCRRA) executed a twenty-year lease agreement with National Railroad Passenger Corporation on December 16, 2013, for space at the renovated Union Depot in downtown Saint Paul, a multi-modal transit and transportation hub. Concurrent with the execution of the lease agreement, an operating and maintenance agreement was executed allowing National Railroad Passenger Corporation, operating under the business name of Amtrak, to operate the Empire Builder, a passenger train service between Chicago and Seattle/Portland, at and through Union Depot. Amtrak began train service and train passenger operations at Union Depot in second quarter 2014. A first amendment to the lease agreement was executed in 2015 to provide Amtrak with additional unfinished space under the train deck, near the leased premises, to better accommodate customer package shipments and provide a storage area for equipment.
Amtrak intends to add a second west-bound train in 2024 arriving at Union Depot from Chicago and returning to Chicago the following day. The additional service will follow the same route and serve the same station cities as Amtrak’s Empire Builder long-distance train, plus two additional stops in Wisconsin. The new service will be complementary to the Empire Builder schedule, leaving Union Depot approximately three hours later and arriving at Union Depot approximately three hours earlier. The new service will be a state-supported route, meaning Minnesota, Wisconsin and Illinois fund the service and Amtrak provides equipment and crews.
The second amendment provides for the overnight storage of one train at Union Depot and addresses the ancillary space and services associated with this expanded use of the facility. Revenue for storage is estimated at $108,000 per year, prorated for 2024, with Amtrak responsible for utility and trash costs associated with the trains and for any additional services required. The amendment also establishes an increased rent limit for 2024 with annual 3% increases.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
RCRRA strives to build a robust, multi-modal, public transportation system that is connected to long-distance transportation services such as intercity bus and passenger train. Union Depot is the Twin Cities premier transportation hub and is the only intercity passenger train station in the Twin Cities. Maintaining multimodal transit and transportation services at Union Depot provides access to these resources in one location for all to use. Additional intercity passenger train service provides more affordable and accessible travel options that are better connected to urban centers and other destinations. Contracts for construction of track and signal improvements will comply with federal rules for hiring of disadvantaged and minority-owned businesses.
Community Participation Level and Impact
RCRRA facilitates community participation in the development of additional intercity passenger train services and investments through the Great River Rail Commission. RCRRA is a member and fiscal agent to the Commission, where Minnesota Department of Transportation staff provide updates and respond to questions at all Commission meetings.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The amendment with Amtrak will generate additional rental income effective with the start of the second train and the need for train storage at Union Depot throughout the remaining term of the twenty-year lease agreement. The estimated additional revenue in 2024 is $130,000 and for 2025 is $170,000.
Revenue related specifically to this lease amendment was not planned in the 2024-2025 Union Depot operating budget however it is not expected to affect the total revenue budget. Recent negative impacts to revenue from unplanned lease terminations and parking lot restrictions during the Kellogg Bridge project (2024-2026) will offset this new revenue. There is no tenant improvement allowance provided in the amendment. Amtrak will be responsible for reimbursing costs for utilities and trash related to the amendment.
Last Previous Action
On August 18, 2015, Ramsey County Regional Railroad Authority approved the First Amendment to the Station Lease Agreement with National Railroad Passenger Corporation (Amtrak) (Resolution R2015-11).
On November 12, 2013, Ramsey County Regional Railroad Authority approved the Lease Agreement with National Railroad Passenger Corporation (Amtrak) (Resolution R13-37).
Attachments
1. Second Amendment