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Camanche won't take money, as railroads seek deals over merger
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alert top story


CAMANCHE WON'T TAKE MONEY, AS RAILROADS SEEK DEALS OVER MERGER

 * Sarah Watson
 * Aug 23, 2022
 * Aug 23, 2022 Updated Aug 24, 2022
 * 0

1 of 3

Surveyors work next to Canadian Pacific Rail trains that are parked on the train
tracks on May 23, 2012, in Toronto. Train traffic in the Quad-Cities is expected
to increase with Canadian Pacific’s pending acquisition of Kansas City Southern.

 * Nathan Denette, The Canadian Press via AP, File



The Canadian Pacific Railway tracks are seen behind Cody Road businesses in
LeClaire Tuesday. LeClaire is considering a $750,000 offer from Canadian Pacific
to upgrade its intersections and not oppose the railway's merger with Kansas
City Southern.

 * NIKOS FRAZIER



Construction workers walk along the tracks as an excavator moves dirt along the
Canadian Pacific Railway Tuesday in LeClaire.

 * NIKOS FRAZIER


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Sarah Watson

At least one small Mississippi River city has decided to rebuff a cash offer
from two railroad companies hoping to merge.

The city of Camanche, population 4,570 at the 2020 census, turned down a
$200,000 offer from Canadian Pacific, which is asking for federal regulatory
approval to merge with Kansas City Southern.

Larger cities have accepted agreements with Canadian Pacific to be paid if the
merger is approved at the federal level to mitigate the effects of expected
added train traffic — namely Davenport ($10 million), Bettendorf ($3 million),
and Muscatine ($3 million). Most recently, another riverfront town, LeClaire,
population 4,700, is considering a $750,000 offer from Canadian Pacific to
upgrade its intersections.



Camanche's refusal points to the helplessness of smaller communities along the
route. Where large communities have been able to leverage relatively large
payouts from the railroad, smaller communities feel railroaded. 


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More than 50 people turned out to a public meeting in Camanche to applaud the
city for planning to reject the deal, and many residents encouraged them to
forge a coalition with other small cities to urge the federal regulatory board
not to approve the deal.



At least 50 people attended a public hearing at Camanche City Hall to cheer on
the river town's city council for rebuffing Canadian Pacific's offer of $200,000
in exchange for not commenting on the company's proposed merger that's expected
to increase train traffic along the Iowa Mississippi River.

Camanche, which has seven rail-street intersections in a largely residential
area, was offered just $200,000 to mitigate the impacts of added train traffic. 

City Administrator Andrew Kida said the offer wouldn't come close to covering
the costs the upgrades would require. The agreement also would've closed two of
Camanche's intersections and barred town officials from commenting on the merger
to the Surface Transportation Board, the federal regulatory authority that will
ultimately make the final decision on the merger.





Kida said Camanche estimated quiet zones — intersection improvements that would
make it so trains wouldn't have to blow their horns — to cost $1.1 million. 



"For $200,000, we don't object to the merger? Absolutely not worth it," Kida
said.

Camanche received an offer from Canadian Pacific as long as the city closed rail
road intersections such as this one at 7th Avenue. The rail company offered
$200,000 — $100,000 for each of two intersections closed. Camanche plans to
rebuff that offer, saying it's not enough to establish quiet zones in a
community with seven crossings. 

"If Camanche has a derailment, they could block all seven crossings," Kida
continued. "We have 1,200 residents that would only be able to get out by the
river." 

Kida said the council plans to consider a resolution of opposition to the merger
at its next meeting. He said Camanche had countered Canadian Pacific's offer
with an ask numbering into the millions, but rail road representatives said they
wouldn't move from their original offer.





"This is very much about mitigating the issues that they are going to create in
our community," Kida said. "If they're willing to help mitigate those issues
then there shouldn't be a reason to oppose the merger. However, they're not
offering much of anything."

At the public hearing, Camanche resident David Maze said he has epilepsy, and as
he ages, the risk of having a major seizure increases. He told council members
he worried a rail road blockage, even for a few minutes, could delay life-saving
care. 



"Should I have a seizure while a railroad car is going through town, an
ambulance will be of no use to me whatsoever," Maze said.



The metropolitan cities in Scott County have taken the railroad deals, County
Supervisors plan to pen a letter opposing the merger. 



In Washington, roughly 70 miles west of the Quad-Cities with a population of
about 7,300, the railroad runs through the heart of downtown.

City Administrator Deanna McCusker said Canadian Pacific had approached the city
earlier this year and offered financial help if they closed four or five of the
city's nine crossings. 



"We said, 'No, we can't do that,'" McCusker said, and talks didn't continue
after that, she said.

The council plans to discuss a resolution of opposition at its next meeting. 



"We're very concerned about safety. If there's a derailment, the train goes very
close to our downtown, close to residential neighborhoods," McCusker said. "It
would be catastrophic."



Meanwhile, LeClaire, a city of similar size to Camanche, will vote at its next
meeting on a $750,000 offer from Canadian Pacific to upgrade its intersections,
many of which are close to downtown businesses and riverfront homes. 

Canadian Pacific also agreed to fund a third-party study from HDR Inc., an 
engineering company to analyze the improvements needed. City Administrator
Dennis Bockenstedt said the city hoped to have the study in hand before the
vote, but that Canadian Pacific was still committed to funding it to completion.

"Are we excited about the merger? No," Bockenstedt said. "Are we excited there
will be more trains? No, but we can mitigate the effects of it, and with the
money from Canadian Pacific and grants we hope we can make all those
intersections safer than they are today."





In 2020, a train derailed on the LeClaire riverfront. No one was injured and no
chemicals were released into the Mississippi River, according to investigators
at the time.  Bockenstedt said there is always concern another incident could
happen again, but that they are hoping funds will go toward improvements to the
tracks to prevent another derailment, assuming the merger is approved.

"It's one of those things that are really out of our control, and we're really
trying to maximize what we can get for the city in this situation," Bockenstedt
said.


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 * Washington
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 * Mississippi River
 * Clinton
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 * Railroad
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 * Dennis Bockenstedt
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Surveyors work next to Canadian Pacific Rail trains that are parked on the train
tracks on May 23, 2012, in Toronto. Train traffic in the Quad-Cities is expected
to increase with Canadian Pacific’s pending acquisition of Kansas City Southern.

 * Nathan Denette, The Canadian Press via AP, File

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The Canadian Pacific Railway tracks are seen behind Cody Road businesses in
LeClaire Tuesday. LeClaire is considering a $750,000 offer from Canadian Pacific
to upgrade its intersections and not oppose the railway's merger with Kansas
City Southern.

 * NIKOS FRAZIER

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Construction workers walk along the tracks as an excavator moves dirt along the
Canadian Pacific Railway Tuesday in LeClaire.

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At least 50 people attended a public hearing at Camanche City Hall to cheer on
the river town's city council for rebuffing Canadian Pacific's offer of $200,000
in exchange for not commenting on the company's proposed merger that's expected
to increase train traffic along the Iowa Mississippi River.


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Camanche received an offer from Canadian Pacific as long as the city closed rail
road intersections such as this one at 7th Avenue. The rail company offered
$200,000 — $100,000 for each of two intersections closed. Camanche plans to
rebuff that offer, saying it's not enough to establish quiet zones in a
community with seven crossings. 


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