[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Notices]
[Pages 59205-59206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26969]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36157]


City and County of Denver--Acquisition Exemption--Western Stock 
Show Association in the City and County of Denver, CO

    The City and County of Denver, Colo. (the City), a political 
subdivision of the State of Colorado and a noncarrier, has filed a 
verified notice of exemption under 49 CFR 1150.31 to acquire from the 
Western Stock Show Association (WSSA) the real property underlying two 
lines of railroad for a total distance of approximately 1.2 miles in 
the Denver Stockyards in the City (the Lines). The Lines consist of two 
corridors of rail line: (1) The National Western Drive Corridor (NWD 
Corridor), which is adjacent to National Western Drive, from the south 
right-of-way line of East 47th Avenue, extending northeast and then 
north to the northeastern right-of-way line of Race Court; and (2) the 
River Corridor, which is adjacent to the east bank of the South Platte 
River, from the intersection with the NWD Corridor at a point just 
north of that corridor's southern endpoint, extending north and then 
northeast to an intersection with the NWD Corridor just south of Race 
Court.
    The City states that it will acquire no right or obligation to 
provide freight rail service over the Lines.\1\ According to the City, 
although WSSA owns the real property, the Lines are operated by the 
Denver Rock Island Railroad (DRIR), a Class III rail carrier, which 
owns the rail, ties, and ballast over which it conducts its service. 
The City states that DRIR will retain its common carrier rights to 
provide rail service over the Lines and ownership of the rails, ties, 
and track bed, and it will continue its operations on the Lines 
following the City's acquisition of the real property from WSSA.\2\ 
According to the City, DRIR's nonexclusive freight operating easement 
over the Lines will remain in effect, subject to any amendments 
necessary to address the City's acquisition of the underlying real 
property and future improvements to and relocation of the Lines, on 
which the City states it will coordinate with DRIR.\3\ The City states 
that it will at no time have the right to interfere with DRIR's ability 
to fulfill its common carrier freight obligation.
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    \1\ A motion to dismiss the notice of exemption on grounds that 
the transaction does not require authorization from the Board was 
concurrently filed with this notice of exemption. The motion to 
dismiss will be addressed in a subsequent Board decision.
    \2\ The City states that over time a number of railroads have 
operated on the Denver Stockyards. Due to acquisitions and 
consolidations, the City has not been able to confirm that all prior 
operators have either merged into DRIR or the two carriers for which 
the agency has authorized discontinuance of service. However, 
according to the City, for the past two decades DRIR has been the 
only freight rail operator on the Lines. The City states that it 
will pursue further proceedings as appropriate to resolve the status 
of any lingering previously granted common carrier interests.
    \3\ The notice states that following the acquisition, the status 
quo would continue ``with respect to freight rail operations . . . 
and any future alterations to the site [would] be designed to allow 
current operations to continue. Further Board approval would be 
required for DRIR to discontinue or abandon any freight service that 
DRIR currently offers on the line.'' (Notice 6-7.) The concurrently 
filed motion to dismiss states that the ``redevelopment includes the 
proposed consolidation of rail operations on a single corridor.'' 
(Mot. 5.) This notice should not be construed as approving, or 
indicating whether Board approval would be required for, any 
consolidation of track associated with the redevelopment.
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    The City explains that it is acquiring the property to implement a 
comprehensive redevelopment plan of the Denver Stockyards to: (a) 
Provide improved facilities for Denver's annual National Western Stock 
Show and Rodeo; (b) develop, in conjunction with Colorado State 
University (CSU), an equine sport medicine facility and stock animal 
research complex; (c) create additional mixed-use facilities, and (d) 
establish a public park. In connection with the real property 
acquisition and development project, the City states that the City, 
WSSA, and CSU entered into a Framework Agreement. As part of the 
agreement, the parties entered into a Real Property Conveyance 
Agreement that will govern the transfers of real property including the 
real property associated with the Lines.
    The City certifies that, because it will not conduct any rail 
carrier operations on the Line, its projected revenues from freight 
operations will not result in the creation of a Class I or Class II 
carrier.
    The City states that it expects to consummate the proposed 
transaction in approximately the second quarter of 2018. The earliest 
this transaction may be consummated is December 28, 2017, the effective 
date of the exemption (30 days after the verified notice of exemption 
was filed).
    If the notice contains false or misleading information, the 
exemption is void ab initio. Petitions to revoke the exemption under 49 
U.S.C. 10502(d) may be filed at any time. The filing of a petition to 
revoke will not automatically stay the effectiveness of the exemption. 
Petitions for stay must be filed no later than December 21, 2017 (at 
least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36157, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on Charles A. Spitulnik, Kaplan Kirsch & 
Rockwell LLP, 1001 Connecticut Ave. NW, Suite 800, Washington, DC 
20036.
    Board decisions and notices are available on our website at 
WWW.STB.GOV.

    Decided: December 11, 2017.


[[Page 59206]]


    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2017-26969 Filed 12-13-17; 8:45 am]
BILLING CODE 4915-01-P