City and BNSF reach purchase agreement on rail yard

SIOUX FALLS, S.D. (KELO AM) - Mayor Mike Huether calls the purchase agreement of the B-N-S-F rail yard bigger news than the Event Center.

Huether says the city has agreed to pay the railroad over $27 million  in federal highway money for ten acres in downtown Sioux Falls.

Public Works Director Mark Cotter says the purchase price includes the raw property, the railroad's construction of one connection and two siding tracks and replacement of the rail yard.        

B-N-S-F can use the yard for two years and development can begin in 2018.  Soil contamination of petroleum and lead is to be cleaned up by the city.

The agreement does need city council approval.