Anyone with experience leasing siding/land from Union Pacific Railroad?

[gregs3821958]

 I am have opportunity to purchase bins next to Union Pacific  tracks (track not used much anymore). Am wondering how Union Pacific railroad determines their rates for real estate leasing.  How often do they increase  rates?  Also, thoughts on negotiation of rates with them. Is it possible, or would one find themselves locked into owning a property that had increasing rental rates without much recourse? Thanks for any experience anyone has on this issue.

[Shaggy98]

Just my opinion, but my experiences with the railroads are sketchy. Worked for a manufacturing company a few years back where we were doing some equipment updating and needed to bring some additional electricity into the facility. By doing so, we had to cross over the top of the rail line and they wanted $11,000 just to cross the tracks. Nothing would even by touched to any part of the tracks, just crossing over the lines and they wouldn't budge. We eventually gave in and bad the money in hopes of returning the favor some day if you catch my drift. They came over and wanted to borrow a forklift and driver one day about 6 months later for about 1/2 hour work. I went over and spent about 30 minutes standing around and 10 minutes using the forklift. They asked me what they owed and I said I would need to run it through our office and submit them a bill but we would be fair. Long story short, I discussed it with the owner of the company and we sent a bill for $11,001. We got to them for a dollar.

[sw363535]

You never know, might be a good deal.  I would keep an eye on what you will be "liable" for.

[k-289]

Lots of  " depends on " in this scenario  - length of siding  - double switch - next to double track or single - distance to locomotive availability  - condition of siding - traffic volume on main line - and who holds the lease of  the right of way now - what area are you located I might could get you a contact - this could be a some what timely process ---

[tree fmr]

Shaggy, did you get paid?

[Shaggy98]

Yep, and a hand delivered check with a sit down meeting. We were willing to destroy the check if they were willing to refund our original $11,000 for the electrical crossing. They said it was out of their control and couldn't do so and that's the same thing we said when they were complaining about an $11,001 forklifting bill. Gave them an additional 60 days so we could get our differences worked out and they never responded. Like I said earlier, we got to them for $1.00.

[buckfarmer]

The factory I worked at always had problems with our rail service. Worst of which was when they derailed inside our building. causing extensive structural damage to the building. Had to sue to get them to pay. My understanding was the thing that helped us was that they tried to not report the accident.

[sw363535]

If you still have electrical service you did well.

[gregs3821958]

Electricial service will be ok.  

Thanks for the good comments everyone.....but sure would like someone who  has a contract with the RR people to post with information about rising leasing rates. I know the RR peolel to be tough negotiators and have pretty high charges.

How do cooperatives and private gain co's deal with their leases when they own property on the RR right of way? 

[lmcnutt9894729]

We took over a lease with UP when we bought our property 2 years ago.  We have had nothing but issues. We worked to get the lease down but UP is telling us that we cannot use our leased property 20 acers for anything. so, we are paying just to be able to drive on our land. we also have a crossing. they keep sending us bills for work they are doing after not doing any work for 40 years, we pay 10 k for the upkeep on this crossing yearly so We do not understand why the extra bills, and they are threating to take our crossing and the land leaving us land locked.  they also made us have a crossing meeting we did not want of need, and they forced us then sent us a bill for about 8 thousand they never said that we would be charged for this only that we had to have this meeting because we were new owners, the bill was a shocker. UP does not want to work with anyone. They are disconnected from what is going on with their properties and we are looking for advice on working with them and seeing if we can get a lawyer to help us navigate. nothing in the lease says we cannot stay on UP property, but they will not let us, and they have people come by and take photos of what we are doing on the property.  It is very scarry to think that we could lose everything because they decide not to let us have the crossing or the property. it is all intertwined. this is my experience with them. We are in Nevada.  We are also looking for help as there is nothing on the internet about any disputes or wins or settlements that I can locate to help me to stand up for what we need.