Friday, December 29, 2006

Rail Yards Deal Closes!!!

Wonderful news.

Railyard deal completed
By Mary Lynne Vellinga - Bee Staff Writer
Published 10:29 am PST Friday, December 29, 2006

The purchase of the downtown Sacramento railyard by a Georgia developer was completed today, despite a last minute dispute with Union Pacific that stalled the transaction yesterday, a spokeswoman for the developer said.

Shortly before noon, Deborah Pacyna, a spokeswoman for developer Thomas Enterprises, said it had been given the "green light" from Union Pacific to close escrow on the downtown railyard, and was wiring money to Omaha. A formal announcement is scheduled for 12:30 p.m.

Sacramento City Councilman Rob Fong said a disagreement between UP and the development firm over which of them would move a pipe on the property got in the way of the complicated transaction closing Thursday.

"It's a $750,000 issue," he said. "It's literally like if you were buying a house and you suddenly said, 'Whose moving the washer and dryer?'"

When Thomas Enterprises takes possession of the railyard --ending almost 150 years of railroad ownership -- the city of Sacramento will simultaneously get ownership of the historic train station on I Street and the surrounding parking lots. City employees are standing buy to take over the much criticized parking operation from a private operator.