After 10-year standstill, rail yard deal a reality

After 10 years of standstill, a multimillion-dollar deal between BNSF Railway and the city of Sioux Falls left the station Monday.

With more than a hundred people convened in the downtown Sioux Falls rail yard, Mayor Mike Huether and BNSF Railway Executive Roger Nober signed a purchase agreement transferring 10 acres of land owned by the railway to the city. The deal ushers in a chance for a new chapter of redevelopment downtown.

In July, it was announced that the rail company and city had reached a purchase agreement of $27.3 million for the land downtown. The agreement, which uses mostly federal money secured in 2005 by the state's delegation, will remove the majority of the rail yard ahead of eventual redevelopment.

City and state representatives at the ceremony were quick to point out the delay in completing the project. Huether said all parties involved were "tenacious" in efforts to secure a deal.

"When the funding was secured in 2005, no one expected it would take an additional 10 years before the wheels would be put into motion to develop this land," Huether said. "Securing these dollars was not easy. The project since then has been no less difficult. That is probably the way it should be."

But Huether said "dogged allies" in the state's delegation and from BNSF Railway were determined to find a solution, a combination of city and federal dollars.

"We tip our hat to Sioux Falls for being able to make it happen and as a 128-year community partner here we're just glad to be a part of it," Nober said.

Sen. John Thune spoke at the ceremony, and said the deal would greatly benefit the city and the people of Sioux Falls.

"This is the day when the city's past meets its future," Thune said. "When it's all said and done, these 10 acres that are going to be transferred today are going to lead to somewhere around $100 million in downtown development."

Huether echoed Thune's sentiment.

"Hundreds and hundreds of years from today, these 10 acres of land before you will be providing unconscionable dividends to the people of Sioux Falls," Huether said.

Former Sen. Tim Johnson, who was also involved in securing the federal funding for the agreement, called the deal a point of personal pride.

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(Below is the replay of live coverage from the ceremony)