12.C.
City Council Meeting - FINAL
- Meeting Date:
- 10/06/2026
- Co-Submitter:
- Christine Cameron
- From:
- Bryce Doty, Real Estate Manager
TITLE:
Consideration and Approval of Contract: Real Estate Purchase and Sale Agreement between the City of Flagstaff and BNSF Railway Company for real property required for the Rio de Flag and Lone Tree Overpass Projects.
STAFF RECOMMENDED ACTION:
Approve the Real Estate Purchase and Sale Agreement.
Executive Summary:
The City of Flagstaff and BNSF Railway (BNSF) are seeking to execute a Real Estate Purchase and Sale Agreement as a necessary action for construction of two City Capital Improvement projects, the Rio de Flag Flood Control Project and the Lone Tree Overpass Project. Both projects have significant components which cross underneath, above, and at surface grade of BNSF property in central Flagstaff. This agreement will be a part of the BNSF Construction and Maintenance Agreement, which City staff in Capital Improvements, Legal, and Real Estate have worked to complete with BNSF. Aside from these fee simple interests, acquisition of required easements from BNSF will be executed through subsequent agreements presented to Council.
In this purchase agreement, the City is acquiring 14.28 acres of BNSF property immediately south of the railway corridor and north of Butler Avenue between Elden Street to the west and Sawmill Road to the east for $6,850,000. The Rio de Flag Flood Control Project will fund the purchase of 4.13 acres for project impacts, and Lone Tree Overpass funds will cover the remaining 10.15 acres. Because these projects result in a loss of rail access, BNSF required the City to include in the purchase uneconomic remnant sections and full parcels that serve no future rail use. These remnant lands offer opportunities to provide access to existing property owners and redevelopment opportunities close to downtown which can advance a number of community priorities.
In this purchase agreement, the City is acquiring 14.28 acres of BNSF property immediately south of the railway corridor and north of Butler Avenue between Elden Street to the west and Sawmill Road to the east for $6,850,000. The Rio de Flag Flood Control Project will fund the purchase of 4.13 acres for project impacts, and Lone Tree Overpass funds will cover the remaining 10.15 acres. Because these projects result in a loss of rail access, BNSF required the City to include in the purchase uneconomic remnant sections and full parcels that serve no future rail use. These remnant lands offer opportunities to provide access to existing property owners and redevelopment opportunities close to downtown which can advance a number of community priorities.
Financial Impact:
The cost of the acquisition will be split between the Rio de Flag Flood Control Project and the Lone Tree Overpass Project based on area impact.
Project Name: Lone Tree Overpass Project Cost: $4,828,872.55
Account Number Budgeted: 047-10-112-3054-6
FY Budgeted Amount 2026-2027: $28,749,900
Project Name: Rio de Flag Flood Control Project Cost: $1,981,127.45
Account Number Budgeted: 206-08-385-3236-0
FY Budgeted Amount 2026-2027: $9,781,000
Project Name: Lone Tree Overpass Project Cost: $4,828,872.55
Account Number Budgeted: 047-10-112-3054-6
FY Budgeted Amount 2026-2027: $28,749,900
Project Name: Rio de Flag Flood Control Project Cost: $1,981,127.45
Account Number Budgeted: 206-08-385-3236-0
FY Budgeted Amount 2026-2027: $9,781,000
Policy Impact:
None.
Previous Council Decision or Community Discussion:
Yes, City Council has approved many agreements, ordinances/resolutions, and contracts pertaining to the Rio de Flag Project and Lone Tree Project over the previous 20 years.
Options and Alternatives to Recommended Action:
The Lone Tree Overpass and Rio de Flag Projects cannot proceed as designed without acquiring this real estate from BNSF.
Background and History:
The Rio de Flag Project and Lone Tree Project have been long-term planning and design efforts for the Flagstaff community. The goal of these projects is to provide flood mitigation to central Flagstaff and connectivity and safety for the City's multimodal and vehicular transportation network.
Connection to PBB Priorities and Objectives:
- Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
- Strengthen Flagstaff’s resilience to climate change impacts on built, natural, economic, health, & social systems.
Connection to Regional Plan:
- Manage watersheds and stormwater to address flooding concerns, water quality, environmental protections, and rainwater harvesting.
- Increase the region’s preparedness for extreme climate events.
- Incorporate pedestrian access, trails, and watchable wildlife opportunities into natural watercourses when practical.
- Improve mobility and access throughout the region.
- Increase the availability and use of pedestrian infrastructure, including FUTS, as a critical element of a safe and livable community.
Connection to Carbon Neutrality Plan:
- Encourage vibrancy, appropriate density, and attainability in existing neighborhoods, so that more residents live within walking distance of their daily needs.
- Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages.
Connection to 10-Year Housing Plan:
None
Connection to Division Specific Plan:
None