The final agreement related to the construction of a team track rail siding project off West Main Street has been approved.
This week, Washington City Council members unanimously approved a supplemental agreement with Union Pacific Railroad for the construction of improvements, including installation of a manual switch.
The city will pay $406,964 to Union Pacific for the railroad’s portion of the project. The city previously deposited $75,000 with the railroad last September which was applied toward the signal design work. That leaves a balance of $331,964, according to the agreement.
Darren Lamb, community and economic development director, said that 27 percent of the cost will be paid out of a federal Economic Development Administration grant the city received for the project.
Meanwhile, the general contractor, Kolb Grading, St. Charles, is close to completing grading and site work for the project which will include a 1,900-foot team track and a secure building/office on a 4.4-acre lot adjacent to the Canam Steel plant.
The team track will provide a secure facility where local industries and businesses can load and unload products and materials onto railroad cars and trucks.
Lamb said that Kolb expected to complete site work by the end of April.
Kolb was awarded the contract on a bid of $3.25 million earlier this year. Total cost of the project, including engineering fees and other expenses, is expected to be close to $4 million.
The contractor has until Sept. 30, 2012, to complete the facility.
In addition to a $962,701 EDA grant approved for the project, the city will receive an estimated $2,052,810 community development block grant through the Missouri Department of Economic Development. The city’s share of the project cost is $786,063.30.
CG Power Systems USA Inc, formerly Pauwels Transformers, needs the rail siding to be able to ship extra-large transformers it is manufacturing at its new plant in the Heidmann Industrial Park.
Canam is interested in utilizing the rail siding to ship a “new line” of bridge steel. Other companies also have expressed interest in utilizing the facility.