7.2. SR 07-19-2004 - Laserfiche WebLink

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4. Connection to Hiawatha As the Hiawatha project completes construction this year, opportunities for minimizing the costs of constructing the extension are at risk (e.g. the expertise of the HPO and contractors in final design, utility relocation, and construction issues). Note, too, that the option to purchase additional light rail vehicles ex. pires in January, 2005. If vehicles are not procured pursuant to the option, the cost of the additional two vehicles is likely to be substantially higher. 5. Right-of-Way Acquisition Costs Two of the proposed station sites (Fridley and Minneapolis) are located on currently available, privately owned, vacant land. Delay in acquiring these properties could result in significantly higher costs or loss of the sites due to private development. BNSF Ne.qotiations 1. Lost Opportunities for Reducinq Capital Costs BNSF is currently evaluating its freight operations in the Northstar Corridor, as well as its future usage of its property and facilities affecting the Corridor. BNSF's planning activities have factored in Northstar commuter rail and have created opportunities to reduce the amount and costs of capital improvements deemed necessary by BNSF for Northstar. In particular, BNSF has identified as negotiable $38,000,000 in capacity improvements based on these new opportunities. If the State fails to commit funding, BNSF's decisions will be made in a manner consistent with its current business needs without regard for commuter rail operations. Current opportunities to realize economies will be lost. (For example, cost saving opportun~ies include the possibility of the purchase of existing facilities up for sale by BNSF. Due to interest by other potential buyers, these facilities may not be available in the future.) Delay Jeopardizes Future Neqotiations For the last six months, BNSF has given Northstar priority attention, expended considerable resources, and involved a variety of professionals in the negotiations regarding necessary capacity improvements. These discussions were conducted in good faith after a hiatus of three years. If the Legislature does not fund Northstar, BNSF's willingness to invest time and money in ongoing negotiations is likely to be greatly diminished, and it cannot be assumed that BNSF will reopen negotiations with the same level of commitment.