Prepared by: 

SRA International, Inc. (Contract No. 68-W-01-048)

2801 Clarendon Blvd., Suite 100

Arlington, VA 22201

Prepared for: 

U.S. Environmental Protection Agency

Office of Solid Waste and Emergency Response

Office of Brownfields Cleanup and Redevelopment

Washington, D.C. 20460

EPA does not endorse purchasing goods or services from any of the commercial organizations 

mentioned in this guide or the policy positions taken by any non federal organization.
CLEANUP AND REDEVELOPMENT 1

Table of Contents

Table of Contents ................................................................... 1

Introduction and Purpose of this Guide ................................. 3

Rail Ownership and Abandonment ........................................ 5

Rail Industry Perspective ....................................................... 6

Success Stories and Lessons Learned .................................... 9

Conclusion ........................................................................... 16

Appendix A: Railfields Directory ....................................... 17

Appendix B: Additional Background on

Rail Regulation in the United States .............. 19
2 SUCCESSFUL RAIL PROPERTY
CLEANUP AND REDEVELOPMENT 3

and Purpose of this Guide

Introduction

3

Overview

The history of railroads in the 

United States began almost two 

centuries ago when the first charter 

for a railroad was awarded in 

1815. After the completion of the 

transcontinental railroad in 1869, 

the growth of the railroad industry 

continued rapidly, and by 1916 the 

rail network had grown to 254,000 

miles. However, in the mid-twentieth 

century the rail industry began 

facing significant competition 

— the trucking industry entered the 

freight shipment market, air travel 

became the predominant mode of 

long-distance passenger travel, and 

the automobile was used for many 

purposes. Competition led to declines 

in the rail industry and significant 

consolidation over several decades. 

By the second half of the twentieth 

century the miles maintained by the 

entire rail system had decreased by 50 

percent, leaving an extensive legacy 

of underutilized, contaminated, and 

sometimes abandoned rail properties 

also known as railfields, across the 

United States. For more information 

on the history and current status of 

the railroad industry, refer to the 

Association of American Railroads 

(AAR) Web site www.aar.org.

Brownfields, of which railfields are 

a subset, are defined by the federal 

brownfields law “as real property, the 

expansion, redevelopment, or reuse 

of which may be complicated by the 

presence or potential presence of a 

hazardous substance, pollutant, or 

contaminant.” Brownfields are located 

all across the country, and although 

brownfields are often located in areas 

with access to transportation and 

utility infrastructure, developers and 

other potentially interested parties 

are hesitant to redevelop brownfields 

because of the investment risk and 

potential cleanup liability associated 

with the property. In 2002, Congress 

enacted the Small Business Liability 

Relief and Brownfields Revitalization 

Act, which provided the Brownfields 

Program with a congressional 

mandate and increased funding to 

advance brownfields cleanup and 

reuse. For more information on the 

Brownfields Law, go to www.epa.

gov/brownfields/sblrbra.htm.

Railfields are located in rural, 

urban, and suburban areas, and 

vary greatly in size and former 

usage. Railfields include rail tracks, 

rights-of-way, rail depots, industrial 

areas, and other support facilities. 

Residual contamination including 

herbicides, petroleum products and 

byproducts, metals, and creosote, is 

often present as a result of the former 

railroad operations and associated 

industrial activities. Notwithstanding, 
4 SUCCESSFUL RAIL PROPERTY

many of these properties provide 

considerable opportunities for reuse 

and community revitalization. Their 

redevelopment can transform blighted 

areas into resources that meet the 

needs of the community and support 

the local economy. 

Many of these properties are 

returning to productive use through 

the efforts and partnerships of 

communities, rail companies, and 

other stakeholders — and even more 

are waiting to be reused. While 

railfields share some characteristics 

common to all types of brownfields, 

they also offer unique challenges and 

opportunities. As opportunities, many 

railfields offer large parcels of lands 

with ideal locations for community 

revitalization efforts. However, rail 

properties present a unique challenge 

in that they benefit from certain 

legal protections and are subject to 

regulatory steps for property transfer 

as compared to non-rail property. 

Rail property that has not been 

lawfully abandoned is not subject 

to the power of eminent domain. 

However, the railroad may make the 

property available for a voluntary 

sale. In addition, rail companies are 

market driven, privately owned, forprofit corporations. Their primary 

responsibility is to make a profit 

for their shareholders, and local 

governments should understand 

that perspective — rail property 

transactions need to be financially 

beneficial to the rail company.

Purpose 

This guide is intended to assist 

local governments with the unique 

aspects of redeveloping railfields 

and provide them the information 

they need to successfully work 

with rail companies. The guide is 

targeted at communities that are 

beginning to address a railfields 

project rather than those that are 

already grappling with the more 

complex issues involved with railroad 

property reuse. This guide provides 

a history of rail development, the 

About challenges:

“Addressing rail property in our community has been 

challenging, but rewarding. Through our partnership with 

the rail company and other stakeholders, we’ve redeveloped 

a rail yard and spur tracks into a shopping center, mixedincome housing, and a pedestrian and bicycle greenway. 

Our track record shows that railfields provide the economic 

engine and environmental quality-of-life benefits that are 

well worth the effort.”

Ignacio Dayrit, Emeryville, CA

Brownfields Project Director 

regulatory framework governing 

rail companies and their properties, 

and the current landscape of 

underutilized rail properties. It also 

provides information on the rail 

companies’ perspective of railfields 

redevelopment, and relates stories 

of successful projects to give 

communities tools and approaches 

for addressing rail properties. The 

guide concludes with a directory 

of rail companies and contacts for 

redevelopment projects. To develop 

the guide, EPA consulted various 

local government and rail company 

representatives to identify successful 

railfields redevelopment projects; 

the different stakeholders’ policies 

and incentives; and the elements that 

promote success. The most common 

themes from these conversations are 

summarized in the following sections.
CLEANUP AND REDEVELOPMENT 5

Rail Ownership

and Abandonment

While there are several federal 

statutes governing railroads, the 

Interstate Commerce Act (ICA), as 

revised in the ICC Termination Act of 

1995 (ICCTA), is the primary source 

of protection for railroad companies 

against eminent domain actions by 

local governments. The ICA gives 

the Surface Transportation Board 

(STB) broad authority over railroads 

and associated property. The ICA 

gives the STB exclusive jurisdiction 

over rail transportation, and defines 

rail transportation expansively 

to encompass not only railroad 

operations over the nation’s rail 

network, but also property, facilities, 

structures, and equipment related 

to the movement of passengers and 

property by rail. The STB’s broad and 

exclusive jurisdiction over railroad 

transportation and facilities prevents 

application of state and local laws 

that would otherwise be available, 

including the use of state or local 

eminent domain procedures to take 

rail property for other use that would 

conflict with the rail uses. The STB 

has the sole authority to authorize 

the removal of such railroad property 

from the national transportation 

system. But after such properties 

are lawfully abandoned, they may 

be sold or used for other purposes 

since the STB’s regulatory mission 

has come to an end. Visit the STB’s 

Web site at www.stb.dot.gov/ for more 

information.

If a railroad wants to discontinue 

service or abandon particular lines, 

it first needs STB approval. In 

making abandonment decisions, 

the STB balances the needs of 

local communities and shippers 

for continued rail service with the 

financial burden that continued 

service would place upon the railroad. 

The STB will also determine whether 

the property may be appropriate 

for another public purpose (e.g. 

highway, conservation, or recreation). 

Once the STB decides that a line 

may be abandoned, any financially 

responsible person may acquire the 

line, at the constitutional minimum 

value, to continue rail service. When 

such a sale does not occur, the STB 

may impose a 180-day waiting 

period during which other parties 

may negotiate with the railroad for 

purchase of the property for public 

uses. If no agreement is reached, 

1 The abandonment process is described in more 

detail in Appendix B. 

the railroad may dispose of the 

property as it sees fit. Alternatively, 

the Trails Act provides a voluntary 

process under which a rail line can 

be converted to recreational trail 

use while being “railbanked” for 

possible future rail use. Finally, 

STB abandonment authority is 

permissive. When abandonment 

authority is granted by the STB, 

the rail company generally must 

exercise the authority within one year 

or the property reverts back to the 

national transportation system and 

is once again subject to the STB’s 

jurisdiction.1 
6 SUCCESSFUL RAIL PROPERTY

Rail Industry

Perspective

Most rail companies — with 

the exception of Amtrak — are 

private companies that are 

responsible for making profits 

for their shareholders. As private 

entities, rail companies are not 

likely to transfer a property unless 

there is a tangible benefit. The 

following information, developed 

from conversations with rail 

company representatives, presents 

the rail companies’ perspective 

on several aspects of railfields 

property transfer, cleanup, and 

redevelopment. Representatives 

from major rail companies as well 

as EPA and STB rail contacts are 

listed in Appendix A of this guide 

for reference.

Marketing and Divesting 

Properties

Rail companies often have a 

real estate branch that tracks and 

monitors their properties. In addition, 

several rail companies keep a list of 

“surplus” properties, or properties 

that are not currently being used as a 

part of their rail operations. Surplus 

properties are classified based on 

work loads, future rail plans, and risk 

assessments, and are the properties 

that are targeted by the rail company 

for divestment and sale. Naturally, 

rail companies are selective about 

divesting these properties because 

the future value of their operations 

is influenced by having access to 

a wide network of rail properties. 

Some real estate branches are more 

proactive about marketing their 

surplus properties than others. For 

example, Union Pacific staffs an 

80-person real estate department 

dedicated to expanding lines, 

facilities, and business; recycling 

older properties; and actively 

managing leasing arrangements for 

all of its properties. Union Pacific 

also employs 25 field representatives 

in different geographic areas 

throughout the United States who 

specialize in marketing properties for 

sale and lease. Rail companies that 

do not actively market their surplus 

properties primarily rely on private 

industry or local governments to 

approach them regarding properties 

they are interested in leasing or 

purchasing.

Environmental 

Contamination and 

Liability

A majority of rail companies 

perform an environmental review 

on every property transaction 

as an evaluation process to 

determine if there are significant 

contamination concerns. According 

to the rail companies, a common 

hurdle in disposing of railfields 

is the misconception that all rail 

properties are large, polluted areas. 

Although fueling stations and large 

transportation hubs are heavily 

polluted, there are many former rail 

properties that have minimal or no 

contamination. Many rail companies 

are interested in confronting 

the stigma associated with their 

properties by working with local 

groups and state or federal agencies. 
CLEANUP AND REDEVELOPMENT 77

Similar to other brownfields 

redevelopment projects, liability 

concerns about environmental 

contamination on the property are 

a common roadblock for the rail 

companies in addressing railfields 

properties. The rail companies 

recommend that local governments 

work with the rail companies 

and state environmental agencies 

on liability issues. Often, if 

contamination is found during the 

investigation process of the railfields 

project, all of the liability rests with 

the rail company. This creates a major 

disincentive for the rail companies 

to proceed. Most rail companies 

evaluate every potential property sale 

to limit liability concerns; however, 

even with their due diligence, they are 

still open to liability.

Environmental insurance is a tool 

used to quantify and transfer risks 

related to brownfields cleanup costs 

and liability from project stakeholders 

to an insurance company. Sellers, 

buyers, developers, and local 

governments use environmental 

insurance to manage risk, including 

cost overruns and third-party liability 

claims that can arise during cleanup 

and redevelopment. Environmental 

insurance not only limits liability, 

but sometimes is required to get 

the development project off the 

ground. For more information on 

environmental insurance, visit EPA’s 

Web site at www.epa.gov/brownfields/

insurebf.htm.

Redevelopment 

Rail companies have an interest 

in working with municipalities 

during the planning process of 

redevelopment of rail properties 

that are no longer needed for the 

national rail transportation system. 

This allows them to provide early 

input into reuse options as they have 

valuable knowledge about potential 

contamination concerns.

Rail companies recommend that 

local governments spend significant 

time exploring whether the end use 

is appropriate based on the cleanup 

level prior to planning redevelopment. 

This will enable municipalities to 

create redevelopment plans based 

on the level of cleanup necessary 

(i.e., planning a light industrial 

or commercial use, rather than 

a community park, on a historic 

industrial rail property). EPA has 

developed a site profile guide, 

entitled “Technical Approaches to 

Characterizing and Cleaning up 

Brownfields Sites: Railroad Yards,” to 

assist stakeholders in characterizing 

rail properties. Go to www.epa.

gov/ORD/NRMRL/pubs/625r02007/

625r02007.htm to download the 

report.

In addition, the rail companies 

recommend contacting them before 

applying for and receiving grants to 

carry out assessment and cleanup 

efforts at their properties. Since the 

rail companies have knowledge of 

the property’s historic use(s) and 

contamination concerns, they can 

play an integral part in developing 

a clear vision for a project. Several 

local governments indicated that it 

is important to make contact with 

the rail company before getting too 

far into the planning process. Rail 

company representatives noted that 
8 SUCCESSFUL RAIL PROPERTY

rail companies and local governments 

should reach agreement on the 

property reuse before funding is 

allocated for specific redevelopment 

activities. Early communication and 

cooperation between rail companies 

and local governments can enable 

them to work together to determine a 

mutually beneficial reuse.

Partnering with States

Several rail companies and local 

governments reported that conducting 

property cleanup through the state 

voluntary cleanup programs (VCPs) 

is a key component to the success 

of railfields projects. Enrollment in 

the VCP at the start of the cleanup 

process enables the rail company, 

the local government, and the state 

environmental regulatory agency to 

work together throughout the cleanup 

process. State environmental agencies 

have been a vital part of the success 

of the railfields cleanup planning 

process. Rail companies commented 

that in some cases, state agencies 

require cleanup to a level beyond 

which any involved party is willing 

to commit; therefore, the property 

deals can fall through. However, in 

recent years, the state agencies, rail 

companies and purchasing parties 

have been able to reach consensus 

because state agencies developed 

more flexible expectations and better 

processes for evaluating the end 

use of properties, resulting in the 

selection of an appropriate cleanup 

level. For more information on state 

VCPs visit www.epa.gov/brownfields/

pubs/st_res_prog_report.htm.

Partnership:

“As rail companies retire facilities, the opportunity to redevelop historic rail yards 

can infuse new life or further enhance growing urban centers. Union Pacific takes 

great pride in working with community leaders and developers to realize the vision 

of transforming Railfield sites. It truly is a win-win opportunity.”

Tony Love, General Manager, Real Estate, Union Pacific
CLEANUP AND REDEVELOPMENT 9

Success Stories

and Lessons Learned

Working with the rail industry 

to purchase and redevelop 

former rail properties can be 

difficult. There are several steps 

local governments can take 

to successfully facilitate and 

complete their railfields project. 

The following tips have been 

developed based on conversations 

with local governments and rail 

company representatives, and 

include lessons learned from past 

projects. 

Communication and 

Education 

The success of any project begins 

with communication and education 

— and even more so with railfields 

projects because of their complexity. 

Developing a strong relationship 

with the rail companies facilitates 

trust between decision makers 

in the rail company and the local 

government. This relationship also 

helps ensure that the appropriate 

people are involved, and that both 

parties understand each other’s needs 

and expectations. As part of fostering 

this relationship, local governments 

should educate themselves as much 

as possible about:

• Properties they are interested 

in redeveloping, including any 

possible reuse issues 

• Applicable financial or tax 

incentives

• Rail property abandonment policies

• Laws and regulations that govern 

rail companies 

Building and fostering a positive 

relationship with the real estate 

branch of the rail company can start 

with scheduling regular meetings to 

discuss future redevelopment plans 

and properties of interest in the 

community. This forum provides the 

rail company with the opportunity to 

inform the community of its interests. 

It could also lead to the disclosure 

of other surplus properties that the 

railroad may be interested in selling 

or leasing in the short and long term. 

See Appendix A for a list of rail 

company real estate contacts. 

Make contact with rail companies 

before applying for and receiving 

grants to carry out assessment and 

cleanup efforts at their properties. 

Early communication and cooperation 

BridgeCourt Redevelopment Project

Emeryville, California 

In Emeryville, CA, as part of the larger East Baybridge redevelopment 

project, an abandoned rail yard was redeveloped into the BridgeCourt. The 

city assisted Catellus Development Corporation with the development of 

the four-acre rail yard. Catellus approached the city and solicited input 

as to the eventual reuse. In response, the city held several workshops to 

gather ideas on the development project. The project was completed in 

1997 and consists of 220 housing units of which 40 percent are affordable. 

For more information, contact Ignacio Dayrit, a project manager for 

the City of Emeryville Redevelopment Agency, at 510-596-4356.
10 SUCCESSFUL RAIL PROPERTY

between rail companies and local 

governments can enable them to work 

together to determine a mutually 

beneficial reuse. Rail companies 

want to see that a local government 

has a proposed plan for reusing the 

property that is supported by the 

community and lays out possible 

roles and responsibilities for the 

stakeholders. The plan can then serve 

as the focus of initial discussions 

between the local government and 

the rail company, with rail companies 

providing the best knowledge about 

the property characteristics and any 

potential contamination concerns. 

This knowledge enables the rail 

company to provide input into reuse 

options as well as the cleanup 

plan. Rail company participation at 

the early stages of redevelopment 

helps stakeholders form realistic 

expectations about the project.

Patience and Flexibility 

The majority of railfields projects 

are long-term efforts that require 

persistence and patience to succeed. 

Some local governments pointed out 

that negotiations for the sale of a rail 

property took over a year to complete. 

Potential environmental liability 

concerns require rail companies be 

cautious and thorough when making 

a real estate transaction. Local 

governments should be aware that 

addressing liability concerns with 

the state regulatory agency is a time 

consuming process. Understanding 

the demands and constraints on 

all parties can help avoid creating 

adversarial relationships. According 

to interviews with rail company 

representatives, pushing the 

companies to make decisions too 

quickly is counterproductive to the 

success of the project. 

In addition, because of the 

complexities of rail redevelopment 

projects and because rail 

companies have significant power 

in any transaction or negotiation, 

Loco Works/Liberty Commons

Industrial Park Project

Lima, Ohio

The former Locomotive Works site in Lima, Ohio was used to 

manufacture locomotives until the 1950s. After locomotive production 

ceased, the property was used by a number of manufacturing firms and 

eventually became a storage location for a salvage business. In August 

1999 the city purchased the site for $687,500, and as part of the purchase 

agreement, the property owner agreed to pay any cleanup costs incurred 

over $50,000. This site is now part of the larger Liberty Commons 

Industrial Park project. The city negotiated a $1.5 million purchase 

agreement with Global Energy, LTD, which plans to invest over $600 

million in the project and to construct a 540 megawatt electrical generator 

that would employ an innovative technology, coal gasification, to produce 

electricity for the long term contract market.

For more information, contact Gary Sheely, Utilities Director of the 

City of Lima, at 419-221-5294.
CLEANUP AND REDEVELOPMENT 11

communities need to remain flexible 

to get a project off the ground. 

The Chelsea Creek Restoration 

Partnership is working to create a 

park and greenway along the Chelsea 

River, an industrial waterway close 

to downtown Boston, Massachusetts. 

A Chelsea Creek representative 

emphasized that they are willing 

to negotiate with the current lessee 

to accommodate multiple uses and 

hopes that through creative planning, 

a recreational trail may even be able 

to co-exist with a rail line. Several 

other interviewees from companies 

and local governments emphasized 

the importance of flexibility costsharing among the local government, 

private organizations, and other 

governmental entities to help ensure 

that the project does not place 

excessive burden on a single party.

Incentives

Rail companies are motivated 

by the market. Creating a situation 

that rewards these companies for 

working with other stakeholders is 

critical in enticing rail companies to 

participate in the process of railfield 

development. To this end, local 

governments should think creatively 

about financial and other tools that 

will make a redevelopment project 

attractive to a rail company.2

Local governments should also 

consider purchasing “bundles” of 

clean and contaminated properties 

for sale. This strategy is beneficial 

to the rail company and the public, 

making the properties easier to sell, 

expediting negotiations, and reducing 

paperwork. This approach succeeded 

in Baltimore, Maryland, where 

Camden Yards baseball stadium 

is located. The area previously 

contained several lawfully abandoned 

rail properties, some that were 

contaminated and some that were not. 

All were sold to the city in a package 

deal.

Rail companies are for-profit 

businesses that have a financial 

responsibility to their shareholders. 

While the rail companies are 

interested in working with local 

governments and state and federal 

agencies on redeveloping rail 

properties, ultimately, the property 

transaction must be financially 

beneficial to the rail company. Local 

governments should use available 

incentives and have funding in 

place to ensure that the property 

transactions and redevelopment plans 

succeed.

2 For example, the Federal Brownfields Tax Incentive allows taxpayers to reduce their taxable income by the cost of their eligible 

cleanup expenses in the year that they are incurred. Visit www.epa.gov/brownfields/bftaxinc.htm for more information. 

Railroad Reservation Park and District

Birmingham, Alabama

The Railroad Reservation Park and District in Birmingham was reserved 

for rail-related distribution and warehouse uses at the founding of the city 

over a century ago. The city acquired the 14-acre inactive rail yard adjacent 

to a lively AMTRAK and Intermodal Station eight years ago and agreed 

to interpret the site as part of historic preservation agreement. The city, in 

partnership with Friends of the Railroad Reservation District, is engaging 

residents, workers, and the corporate community in the area’s revitalization 

through the building of the park as a new economic engine. In addition to 

many recreational and water features, public art, and interactive-media will 

tell the geographic, economic, and socio-cultural history of the city. The 

Railroad Reservation Park is to be completed within the next two to five 

years through strong public/private partnerships.

For more information, contact Renee Kemp Rotan, Director, Capital 

Projects, Mayor’s Office, City of Birmingham at 205-254-2275.
12 SUCCESSFUL RAIL PROPERTY

Crandic Railroad 

Coralville, Iowa

The City of Coralville purchased the 14-acre Crandic Railroad property 

as part of a larger redevelopment project being conducted along the banks 

of the Iowa River. This property housed a 50-year old, four-acre coal pile 

that was owned by the University of Iowa. The city purchased the property 

for $1.8 million in 2000 and used EPA Brownfields Assessment funding 

to assess the site. The removal of the coal pile, some soil, and a layer of 

asphalt was funded by University of Iowa, the owner of the pile. The site is 

currently slated to be redeveloped into a combination open and developed 

park space called Riverfront Park, which will be accompanied by some 

mixed-use development.

For more information, contact Dan Holderness, City Engineer of the 

City of Coralville, at 319-248-1720.

Reuse Planning

In addition to cultivating 

relationships with the rail companies, 

there are a number of strategies a 

local government should pursue to 

successfully redevelop rail properties. 

These strategies, in whole or in 

part, were suggested by multiple 

representatives of rail companies and 

interested local governments.

Pursue a Shared Vision of 

Redevelopment

While differences of opinion 

among community members about 

redevelopment are to be expected, it 

is important to come to a common 

understanding about the project 

vision. According to representatives 

of the Chester County, Pennsylvania 

Economic Development Council, 

Northpoint Project

Cambridge and Somerville, Massachusetts

Across the river from downtown Boston, a former rail freight yard 

owned by Guilford Transportation Industries is being transformed into 

a 45-acre mixed-use development. Guilford initiated the development 

after declining freight traffic in Boston made the property redundant. The 

project will include commercial and residential development. Significant 

area will devoted to greenspace, and a regional bicycle trail will traverse 

the development. The property will be easily accessibly by public 

transportation and will include the relocation of a subway station to within 

the development. Ultimately, it will integrate an underused industrial 

property to the communities around it. The company will continue to 

maintain ownership of the property as it is developed.

For more information, contact Stephen Winslow, an official in the 

community development office of the City of Somerville, at 617-625-6600 

x2519. 
CLEANUP AND REDEVELOPMENT 13

stakeholder cooperation is essential. 

It is much easier for a rail company 

to negotiate with a community if 

there is a unified voice representing 

community interests. In one instance, 

a former rail property in Brunswick, 

Maine sat vacant for many years in 

city ownership before a vision was 

developed for the property. Once the 

vision was developed and pursued, 

the project began to proceed rapidly, 

despite other challenges associated 

with it. Although this strategy is 

relevant to all brownfields projects, 

it is particularly essential in order 

to make a compelling case for 

redevelopment to a rail company and 

to other potential partners.

Ensure Redevelopment is 

Consistent with Prior Uses and 

Remaining Contamination

A representative from CSX 

Transportation emphasized that 

local governments should always 

consider the contamination level 

and previous uses of a property, as 

well as the planned level of cleanup, 

in determining a property’s reuse. 

Different levels of cleanup are 

required for different uses.

These issues are being successfully 

navigated in ongoing redevelopment 

of the Cornfields Property in Los 

Angeles, California. Community 

advocates wanted to transform the 

property into a park, creating sorely 

needed greenspace in downtown 

Los Angeles. A prior owner was 

already planning to pay for cleanup to 

industrial standards, but the planned 

park required a more rigorous cleanup 

with a higher cost. The creation of the 

park was contingent on the dedication 

of additional funds, which was 

deemed a priority by community and 

government groups. It was essential 

to account for prior use, cleanup 

standards, and availability of cleanup 

funding in designing a reuse plan.

Using Available 

Resources

Outside resources are available to 

help communities struggling with the 

cleanup and redevelopment of rail 

properties. Below are some programs 

and organizations that can help local 

governments navigate their railfields 

project.

Participate in a state Voluntary 

Cleanup Program (VCP) 

Working with a state 

environmental regulatory agency 

often allows projects to proceed 

smoothly, whether the rail company 

works directly with the VCP or the 

entity purchasing a rail property 

works with the VCP. Representatives 

of Canadian Pacific, Union Pacific, 

and CSX all noted that there are 

benefits to working through VCPs. 

Some companies have developed 

good relationships with specific 

state programs that can benefit 

future projects. For example, Union 

Pacific notes successful working 

relationships with the programs in 

California and Texas. Among other 

benefits, the Texas VCP protects nonresponsible parties, future owners, 

and lenders from liability. A former 

rail property on Houston’s Fulton 

Street entered into the Texas VCP, 

aiding the cleanup and redevelopment 

effort. At the Los Angeles Cornfields 

Property, discussed above, a 

preliminary assessment was 

performed by the city brownfields 

program through the VCP program. 

The quick turnaround process 

enabled the project to proceed and 

the community is now successfully 

building a park. 

Learn the Role of The Surface 

Transportation Board

The exclusive jurisdiction of 

the STB over railroad operations 

and associated property protects 

the national interest in an efficient 

and effective interstate rail system. 

However, the STB also provides 

procedures for allowing the removal 

of unnecessary or outdated rail 

lines and associated property from 

the national rail system. The STB 

provides several different procedures 

for abandonment, described in 

further detail in Appendix B. While 
14 SUCCESSFUL RAIL PROPERTY

Consider Using Third Parties 

Local governments and rail 

companies are not alone in pursuing 

redevelopment of rail properties. 

Other stakeholders may be able to 

provide crucial help with funding, 

technical expertise, or facilitation. 

In Chester County, Pennsylvania, 

the Chester County Economic 

Development Council provides 

technical assistance to the small 

communities of Downingtown 

and Coatesville that are seeking to 

redevelop rail properties within their 

boundaries. Neither small community 

abandonment proceedings typically 

are initiated by the railroad, in certain 

circumstances, outside third parties 

can initiate STB proceedings to 

authorize abandonment of the line 

in order to allow the rail property to 

be removed from the national rail 

transportation system. Go to the STB 

Web site at www.stb.dot.gov/ for more 

information.

In many cases, abandonment 

proceedings at the STB move 

swiftly. It may be a good idea for 

a community to engage an outside 

expert who is practiced in following 

and using STB abandonment 

procedures, particularly if the project 

involves a request for a condition 

permitting the use of rail property 

authorized to be abandoned as a 

recreational trail. The Trail Act, 

16 U.S.C. 1247(d), permits parties 

to negotiate a voluntary trail use 

agreement when a local sponsor 

(e.g. nonprofit organization) agrees 

to accept financial responsibility for, 

and maintain, the rail property for 

the duration of the trail use, with the 

understanding that all or part of the 

corridor may be reactivated as a rail 

line in the future. For information on 

the Trail Act, go to http://frwebgate.

access.gpo.gov/cgi-bin/getdoc.

cgi?dbname=browse_usc&docid=

Cite:+16USC1247. In Greenville, 

South Carolina, the city pursued 

creating parkland on rail line along 

the Reedy River that is not currently 

being operated, which would connect 

several sections of the city. 

Abandoned Railyard Property

Brunswick, Maine

The town of Brunswick, Maine, is currently redeveloping a fouracre abandoned railyard property. After the bankruptcy of development 

company left the property vacant for several decades, the Town purchased 

the property in 1998 for $600,000. The planning process is currently 

proceeding rapidly and includes significant community involvement. The 

town is looking to use creative methods of handling the presence of coal 

ash — the primary contaminant on the property — by blending it with 

pavement or concrete materials that will be used in construction, covering 

in place where possible, and removal when necessary. Although the plans 

are not yet finalized, the redevelopment will likely include a rail station, 

hotel, housing, retail, and other services, as well a pedestrian connection to 

the heart of downtown Brunswick.

For more information, please contact Mathew Eddy, Director of 

Economic Development for the Town of Brunswick, at 207-721-0793.
CLEANUP AND REDEVELOPMENT 15

Cornfield Property

Los Angeles, California

After the consolidation of the rail industry in the Los Angeles region, 

a developer purchased a former Union Pacific rail yard for industrial 

use. However, the local community desired a park at the location on the 

LA River in downtown Los Angeles. The Trust for Public Land played 

an essential role in facilitating the transfer of the property from an 

industrial developer to the State of California, and the City of Los Angeles 

Brownfields Program performed an environmental assessment at a crucial 

moment in the project. Subsequently, the state funded additional cleanup 

that was necessary to convert the property to recreational use. The state is 

currently developing an interim park use and developing final use plans. 

This new state park will be part of a larger initiative to reclaim the blighted 

LA River and to create greenspace in the midst of Los Angeles. 

For more information, contact Craig Tranby of the City of Los Angeles 

Brownfields Program at 213-978-0871.

has the capacity to complete the 

desired rail redevelopment projects on 

its own. Although the projects have 

not yet come to fruition, this third 

party group has been able to raise the 

profile of the issue, obtain political 

support, and assist in ongoing 

negotiations with the relevant rail 

company.

In the redevelopment of the 

Cornfields Property in Los Angeles, 

California, financial assistance from 

the Trust for Public Land (TPL) 

was crucial to the project’s success. 

TPL purchased the property when it 

became available — before another 

owner could put it to a different use. 

The property was then sold to the 

State of California for use as a park. 

Although the state eventually paid 

for the property, it was not able to 

do so immediately. The involvement 

of TPL made the project a reality. 

TPL is a nonprofit land conservation 

organization that can assist local 

governments with a variety of 

services including project planning, 

research and education, property 

transaction, and finances. For more 

information about the TPL, visit their 

Web site at www.tpl.org/index.cfm. 

The Rails to Trails Conservancy 

(RTC) can also be a valuable 

resource for those who have rail 

lines in their communities and are 

interested in their potential reuse 

as a trail. The RTC is a nonprofit 

organization whose mission is to 

create a nationwide network of trails 

from former rail lines and connecting 

corridors to build healthier places 

for healthier people. For more 

information on the Rails to Trails 

Program, their Web site at www.

railtrails.org. RTC provides materials 

to communicate the benefits of 

rail-to-trail projects, strategies to 

obtain funding, and ideas on how to 

highlight successful projects. RTC 

can also provide technical assistance 

to communities engaging in these 

projects. The assistance may even 

include help purchasing a trail 

and following the STB regulatory 

procedures for abandonment and 

recreational trail use under the Trails 

Act. One representative from the 

rail industry stated that incentive 

programs like “Rails to Trails” are 

valuable, especially to the public. 

Because it is not a comprehensive 

program, local governments should 

continue to pursue the Rails to Trails 

program in combination with other 

resources and incentives.
16 SUCCESSFUL RAIL PROPERTY

Conclusion

It is important to remember that 

rail properties are fundamentally 

different than traditional brownfields 

projects and their redevelopment 

poses unique challenges. Railfield 

projects must take into account 

the broad jurisdiction of STB, as 

well as any applicable state and 

federal environmental programs. 

Furthermore, the rail companies and 

other site owners have their own 

incentives and interests that must be 

factored into any planned railfield 

redevelopment. 

Using innovative approaches, 

successful railfield developments 

have been achieved. The examples 

presented in this guide are just a few 

of the many railfield redevelopment 

projects completed around the 

country. Some keys to success are: 

• Communication — build and 

maintain lasting relationships 

among stakeholders.

• Incentives — explore stakeholders’ 

interests and seek alternatives that 

provide benefits to all parties. 

• Planning — working with the 

railroad company and other 

stakeholders, developing a unified 

vision of what is desired for the 

project and making sure it is 

consistent with past, future, and 

neighboring land uses. 

• Maximize resources — explore all 

resources available, including state 

programs or working with a third 

party to complete a project. 
CLEANUP AND REDEVELOPMENT 17

EPA Railfields Contacts:

U.S. EPA Office of 

Brownfields Cleanup and 

Redevelopment (OBCR)

Tony Raia

Phone: 202.566.2758

E-mail: raia.anthony@epa.gov

Web: www.epa.gov/brownfields 

Surface Transportation 

Board (STB) Contact:

Surface Transportation 

Board 

Victoria Rutson

Chief, Section of Environmental 

Analysis

Phone: 202.565.1545

E-mail: rutsonv@stb.dot.gov

Web: www.stb.dot.gov

Rail Industry Contacts:

American Short Line 

and Regional Railroad 

Association

Jenny McKinney

Executive Director, Federal and 

Industry Programs

Phone: 202.585.3434

E-mail: jmckinney@aslrra.org

Web: www.aslrra.org

Amtrak

Sally Bellet

Vice President, Real Estate 

Development

Phone: 215.349.1612

E-mail: bellets@amtrak.com

Web: www.amtrak.com

Amtrak

Roy Deitchman

Vice President, Environmental Health 

and Safety Department

Phone: 202.906.3272

E-mail: deitchr@amtrak.com

Web: www.amtrak.com

Association of American 

Railroads

Robert Fronczak

Assistant Vice President

Phone: 202.639.2839

E-mail: rfronczak@aar.org

Web: www.aar.org

Canadian National Railway

Stella Karnis

Manager, Corporate Site Assessment

Phone: 514.399.8731

E-mail: stella.karnis@cn.ca

Web: www.cn.ca

Canadian Pacific Railway

David Drach

Director, Real Estate Marketing

Phone: 612.904.6139

E-mail: david_drach@cpr.ca

Web: www.cpr.ca

Conrail

Patrick Rogers

Vice President of Tax and Real Estate

Phone: 856.231.7229

E-mail: Patrick.Rogers@conrail.com

Web: www.conrail.com

Appendix A:

Railfields Directory
18 SUCCESSFUL RAIL PROPERTY

CSX Transportation

Kevin Hurley

Director, Real Estate Services

Phone: 904.633.4838

E-mail: Kevin_Hurley@CSX.com

Web: www.csx.com

Kansas City Southern 

Railway

Chet Culley

General Director, Environmental and 

Hazardous Materials

Phone: 816.983.1343

E-mail: Chester.A.Culley@KCSR.

com

Web: www.kcsi.com

Norfolk Southern

Steve Portnell

Director, Real Estate

Phone: 404.962.5803

E-mail: Steve.Portnell@nscorp.com

Web: www.nscorp.com

Union Pacific

Tony Love

General Manager, Real Estate

Phone: 402.997.3640

E-mail: TKLOVE@up.com

Web: www.up.com
CLEANUP AND REDEVELOPMENT 19

Appendix B:

Additional Background on Rail 

Regulation in the United States

Congress has extensively regulated 

the nation’s railroad system for over 

a century. The Interstate Commerce 

Act of 1887 (ICA) brought the rail 

industry under the regulation of the 

Interstate Commerce Commission 

(ICC). Among other activities, the 

ICC was tasked with regulating 

railroad rates and services, the 

construction, operation, and 

abandonment of rail lines, and rail 

consolidations, mergers, and common 

control arrangements. 

To ensure a functional national 

shipping and transit system, rail 

lines were required to maintain 

passenger operations even when 

they were not profitable. In 1970, 

federal law created Amtrak as the 

national corporation for passenger 

rail travel, removing passenger 

operations from the responsibilities 

of the rail industry. By the 1970s, 

the rail freight industry was on the 

brink of financial collapse. Ten years 

later, in the Staggers Rail Act of 

1980, Congress began the substantial 

economic deregulation of the surface 

transportation industry. The Staggers 

Act streamlined the processes for 

abandonment of rail lines, which 

are currently the responsibility of 

the federal Surface Transportation 

Board (STB), the successor agency 

to the ICC. The ICA, as broadened 

by the ICC Termination Act of 

1995 (ICCTA), further minimized 

regulatory burdens on the industry 

and vested exclusive authority 

over rail transportation, including 

associated facilities, exclusively with 

the STB. Specifically, 49 U.S.C. 

10501(b) now states:

The jurisdiction of the STB over:

• transportation by rail carriers, and 

the remedies provided in this part 

with respect to rates, classifications, 

rules (including car service, 

interchange, and other operating 

rules), practices, routes, services, 

and facilities of such carriers; and

• the construction, acquisition, 

operation, abandonment, or 

discontinuance of spur, industrial, 

team, switching, or side tracks, 

or facilities, even if the tracks are 

located, or intended to be located, 

entirely in one state, is exclusive. 

Except as otherwise provided in this 

part, the remedies provided under 

this part with respect to regulation 

of rail transportation are exclusive 

and preempt the remedies provided 

under federal or state law.

Railroads typically have a 

common carrier obligation to provide 

service to any shipper that makes a 

reasonable request. In cases where 

providing service is no longer costefficient for a particular carrier, the 

carrier can ask the STB to authorize 

the line’s abandonment. Once a line 

is lawfully abandoned, it is no longer 

part of the national transportation 

system, and the railroad can sell or 

donate the property (if it owns the 

necessary property interest). Eminent 

domain laws also would apply and 

quiet title actions can be filed. 

If a railroad decides to abandon 

a particular line, the STB has a 

prescribed process that must be 

followed. There are three ways that 

rail lines and associated properties 

can be abandoned: through formal 

application under 49 U.S.C. 10903, 

use of the so-called “out-of-service” 

class exemption, under 49 U.S.C. 

10502 and CFR 1152.50, or a petition 

for an individual exemption under 49 

U.S.C. 10502 and 49 CFR 1152.60.

• Formal Applications — Formal 

applications for abandonment 

are typically filed when the 

abandonment is controversial and 

the lines in question are actively 
20 SUCCESSFUL RAIL PROPERTY

used. In a formal application, 

the STB weighs shipper and 

community need for the line against 

the burden that keeping the line 

open would impose on the carrier 

and on interstate commerce. The 

STB usually grants permission to 

abandon lines when the railroad 

suffers significant losses and 

existing uses of the line can be 

re-routed. Formal Abandonment 

applications generally take about 

110 days to process. 

• Out-of-Service Exemptions — The 

out-of-service “class” exemption 

allows the abandonment of any line 

that has not originated or terminated 

any traffic in the past 2 years and 

that carries no overhead traffic that 

cannot be rerouted to other lines. 

The use of the exemption generally 

is effective 50 days after it is filed 

with the STB. Anyone who believes 

that a particular line does not 

qualify for the exemption or that 

there is a need to retain the line may 

petition for a stay and revocation 

of the exemption as it applies to the 

line.

• Petitions for Individual Exemption 

— When the railroad expects 

no significant opposition to its 

proposal to close a line, it may 

instead file a petition for individual 

exemption from the full application 

procedures involved in processing 

abandonments under 49 U.S.C. 

10903. The petition process 

typically takes 110 days. If the STB 

decides to grant the exemption, it 

will publish a notice in the Federal 

Register. Anyone can then object 

to the closing of the line by filing 

a petition to stay and/or revoke the 

exemption. 

Communities:

“There exists a sense of pride among the residents of the area as this 

site has been restored to productive industrial use. The overall project 

has energized the area and there have been other redevelopment 

projects in the area, like riverwalk and YMCA. This has created a 

sense of reinvestment in the core area of the community.”

Gary Sheely, Lima, Ohio

about the Loco Works/Liberty Commons Industrial Park Project.
CLEANUP AND REDEVELOPMENT 21

A less common method of 

abandonment is known as the adverse 

abandonment procedure. Under this 

process, anyone who believes that a 

line is no longer needed and should 

be abandoned may apply to the STB 

for adverse abandonment authority, 

even if the railroad doesn’t want 

to close the line. If the STB grants 

adverse abandonment authority, 

its decision serves to remove the 

jurisdictional obstacle to an eminent 

domain or quiet title action in an 

appropriate state court. 

Abandonment authority is 

permissive: the railroad can elect not 

to exercise the authority it has been 

granted. Abandonment authority 

generally expires after one year 

if the railroad has not submitted a 

consummation notice within that 

time indicating the date on which 

it exercised that authority. After 

railroad property has been lawfully 

abandoned, state condemnation laws 

can be applied, since the property 

is no longer part of the national rail 

system and the STB’s regulatory 

mission has come to an end. 

Once the STB decides that a line 

may be abandoned, any financially 

responsible person may acquire the 

line, at the constitutional minimum 

value, to continue rail service. 49 

U.S.C. 10904. When such a sale 

does not occur, the STB may impose 

a 180-day waiting period under 49 

U.S.C. 10905, during which other 

parties may negotiate with the 

railroad for purchase of the property 

for other public purposes. If no 

agreement is reached, the railroad 

may dispose of the property as it sees 

fit. Alternatively, the Trails Act, 16 

U.S.C. 1247(d), provides a voluntary 

process under which a rail line can 

be converted to recreational trail use 

while being “railbanked” for possible 

future rail use. Trail use conditions 

providing time for the parties to 

negotiate a voluntary trail use/rail 

banking agreement are imposed by 

the STB whenever a trail sponsor 

(e.g. local nonprofit organization, 

etc.) agrees to accept financial 

responsibility for, and maintain, the 

rail property for the duration of the 

trail use, with the understanding that 

all or part of the corridor may be 

reactivated as a rail line in the future. 

Trail sponsors must work closely with 

the rail company to reach a mutually 

acceptable agreement for interim trail 

use, since this is a voluntary program 

for rail companies.
United States Office of Solid Waste EPA-560-F-05-231

Environmental Protection and Emergency Response August 2005

Agency www.epa.gov/brownfields/