Passenger Trains > New Fresno Amtrak depot finally gets go ahead

After much tadoo and chain jerking by the inept Fresno City Council, it appears that the renovation of the historic old Santa Fe depot will finally get done and Fresno will finally have a decent station for the thousands that use Amtrak each month.

http://www.fresnobee.com/local/v-indexlist/story/8101692p-8958174c.html

Santa Fe Depot project on track

Plan to cover added costs moves it ahead.

By Jim Davis
The Fresno Bee

(Updated Sunday, February 8, 2004, 5:34 AM)

A project to renovate the historic Santa Fe Depot has been approved by the Fresno City Council, opening the way for the downtown building to serve rail passengers for the first time in decades.

Council members, however, were stunned when the low bid was $1 million more than expected. But a majority decided Tuesday to move ahead with the project after embracing a plan to cover the additional cost by leasing the depot's second floor offices for 10 years.

If the project hadn't gone forward, the city may have been forced to return more than $1 million in grants.

Council Member Mike Dages said he would rather "pay $1 million and have something" rather than give back $1 million "and have nothing."

City staff members expect contractor Reyman Brothers Construction Inc. of Sparks, Nev., to begin work by early March. The project is expected to be finished by November. The 17,700-square-foot, two-story depot is on Tulare Street across from City Hall. The depot was built in 1899 and was last used as a passenger terminal in 1966.

Amtrak will use about 5,400 square feet of the bottom floor of the restored depot as a passenger rail stop. That's nearly twice as much space as Amtrak uses in the freight office next door. The city plans to enter into a 20-year lease agreement with Amtrak to provide passenger rail service at the restored depot.

The city has been planning to renovate the building as a new railroad passenger station since the 1990s.

The city has more than $6 million for the restoration project. Much of the money comes from state grants, including $4.9 million created in legislation by former Sen. Jim Costa.

Last July, the city purchased the California-mission-style building from Burlington Northern and Santa Fe Railway Co.

The city put the project out to bid in December but received only two bids.

The architect for the project estimated construction cost at $4.5 million. The low bid, however, was for $5.5 million.

City staff said the bids suggest low interest by contractors. Staff members also said construction costs were higher because the city must use the Costa grant by Sept. 30, leaving less time to do the work.

City staff came up with the plan to borrow money for the shortfall and commit lease payments for upstairs office space toward repaying the loan.

Staff members estimate the city could lease 12,300 square feet for at least $1 a square foot and raise $147,600 a year.

The council voted 6-1 Tuesday to award the contract and accept the financing plan. Council Member Brian Calhoun voted against it, saying there was a lack of information.

Council Member Cynthia Sterling said she supported the project because the depot is a historic landmark. She also praised city staff for coming up with a plan to finance the shortfall.

"The downtown, as we all know, is up and on the move," Sterling said. "I don't think we'll have any problems leasing the space."

The reporter can be reached at jmdavis@fresnobee.com or 441-6171.