Title/Name/Summary
2024 License Agreement with Norfolk Southern Railway Company
History
Since the 1950’s, the Village of Orland Park has found it necessary to install water main, sanitary main, and storm mains under the rights-of-way of Norfolk Southern Railway Company to continue the growth of the Village and to supply its residents with these critical infrastructures.
Starting in 1981, then-named Norfolk Western Railway started to lease the land to the Village where some of the infrastructure crossed the railroad right-of-way. The railroad had the Village pay either a one-time lease fee or an annual lease. The Village continues to pay these land leases annually, with a current annual payment of $3,212.74 for seventeen (17) water main, ten (10) sanitary, and seven (7) storm crossings.
To complete a storm sewer project on Highland and 146th Avenues, the Village needs to jack and bore a new fifteen-inch (15”) storm sewer under the right-of-way of Norfolk Southern Railway to help alleviate the flooding of those residents, and to benefit the storm water management plans for the redevelopment of Doogan Park. In order to approve the permit for the work, Norfolk Southern Railway Company is requiring an agreement with the Village for a twenty (20) year lease with a one-time fee of $30,555.00, which averages to $1,527.75 annually and is in line with the other agreement fees from Norfolk Southern Railway Company. After the twenty (20) year agreement expires, then it would move to an annual fee.
The Village attorney has reviewed the license agreement, and has no issue with the language therein.
Financial Impact
There is sufficient funding in the FY24 budget line item 5008100-444100 to accommodate this License Agreement.
Recommended Action/Motion
I move to approve accepting the License Agreement with Norfolk Southern Railway Company for the amount of $30,555.00 for a twenty (20) year agreement;
AND
Authorize the Village Manager to execute all related co...
Click here for full text