DEPARTMENT: Parks
FILE TYPE: Consent Action
TITLE
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Authorization To Rescind County Board Resolution No. 26-332 And Execute Use Agreement With Union Pacific Railroad And Progressive Rail To Improve Existing Railroad Crossing At Byllesby Bluff As Part Of Lake Byllesby Regional Park Master Plan Improvements
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RESOLUTION
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WHEREAS, the 2025 - 2029 Parks Capital Improvement Program Adopted Budget includes a project to formalize access and create basic trailhead amenities at project sites on the west side of Lake Byllesby Regional Park; and
WHEREAS, schematic design concepts were presented to and approved by the Dakota County Board of Commissioners by Resolution No. 26-113 (March 24, 2026); and
WHEREAS, the existing and only access to the Byllesby Bluff site crosses an existing railroad line owned by Union Pacific Railroad, leased and operated by Progressive Rail; and
WHEREAS, the two railroads have agreed to allow the existing crossing to remain a private, rural crossing as long as it is upgraded to two-way traffic and meets current railroad standards; and
WHEREAS, the required improvement work on and around the railroad tracks can only be completed by railroad-approved contractors through a formal Use Agreement; and
WHEREAS, pricing and scope for this required improvement work have been negotiated and can be constructed in the fall of 2026 if a Use Agreement is executed; and
WHEREAS, the negotiated pricing and scope included $267,500 for the physical work, but did not include $10,000 for the right to cross the railroad right of way and tracks until the final agreement was received by the County; and
WHEREAS, Resolution No. 26-332 (August 4, 2026) authorized execution of an agreement up to $275,000; and
WHEREAS, the total agreement amount is now $277,500.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners rescinds Resolution No. 26-332 (August 4, 2026); and
BE IT FURTHER RESOLOVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager or delegate to execute a Use Agreement between Dakota County, Union Pacific Railroad, and Progressive Rail to govern the access and required improvement work at the Byllesby Bluff access; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes up to $277,500 for the access and construction work on and around the rail line to improve the crossing by a railroad-approved construction contractor named in the Use Agreement.
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BACKGROUND
The Lake Byllesby Regional Park Master Plan Improvements project includes development of basic park trailhead facilities at three locations as shown in the Reference Map attachment. At the Byllesby Bluff site, this will include an aggregate driveway and parking lot for ten vehicles and a natural surface trail extending to a bird-watching structure. These amenities may be constructed in a future phase of the project. However, it is in the County’s best interest to complete the railroad-required improvements of the existing crossing to this site as soon as possible. Negotiations under the railroads’ processes have been productive, and a Use Agreement amenable to all parties can be completed in 2026. This will allow the work on and around the railroad tracks to be completed in the fall of 2026 and additional railroad-required improvements, such as paving, signage, and pavement markings, to be completed by the County in 2027. The County Board previously authorized up to $275,000 for this agreement. The final documents from the railroad now also include the right to cross the railroad right of way and tracks for an additional fee. The agreement amount will now be $277,500 to include the right to cross and the work to be performed by the railroad contractor.
RECOMMENDATION
recommendation
Staff recommends that County Board Resolution No. 26-332 (August 4, 2026) be rescinded. Staff also recommends the County Board approve the Use Agreement between Dakota County, Union Pacific Railroad, and Progressive Rail and the authorization of up to $277,500 under the agreement to govern the access and to complete work on and around the railroad tracks by a railroad-approved contractor set out in the Use Agreement.
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FINANCIAL AND STAFFING IMPACTS
The 2025 Parks Capital Improvement Program includes $1,493,333 for Project 2000457 Lake Byllesby Regional Park Master Plan Improvements and is funded from the Minnesota Department of Natural Resources (MN DNR) Environmental and Natural Resources Trust Funds, Environmental Legacy Funds, and County Program Aid. This project budget includes funding for construction and can support the approval of this Use Agreement and the embedded construction work.
Project 2000457 Lake Byllesby Regional Park Master Plan Improvements
|
Funding Source |
Total Approved Budget |
Available Budget |
|
MN DNR Environmental and Natural Resources Trust Fund |
$1,120,000 |
$495,309 |
|
Environmental Legacy Fund |
$341,436 |
$298,126 |
|
County Program Aid |
$31,897 |
$7,706 |
|
Total |
$1,493,333 |
$801,141 |
PREVIOUS BOARD ACTION
26-113; 3/24/26
26-332; 8/4/26
ATTACHMENTS
Attachment: Draft Private Crossing Agreement
CONTACT
Department Director: Niki Geisler
Author: Mike Lexvold