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November 16, 2006;A final decision by the state trial court has been
issued in favor of the City of Alameda in its dispute with the Alameda
Belt Line railroad over ownership of property sold in the 1920s. In
August the court issued a tentative decision ordering ABL to sell the
railroad back to the City. Judge Jon Tigar's final statement and order,
signed yesterday and written after the court invited the parties to make
additional arguments, bolsters the City's position. The order clarifies
that the railroad must sell all the property the City described in its
papers filed with the Court. The land includes a large rail yard, in
addition to several smaller parcels.
"I'm delighted that the Judge
issued a final decision in the City's favor," said Mayor Beverly
Johnson. "It has always been the City's position that the rights of
Alameda should be honored. The belt line is an important asset and the
City has already identified and allocated th"e money to purchase this
property now."
Like the language of the initial decision, the judge has
ordered the Alameda Belt Line to sell the railroad to the City for
$966,027. The final decision explains in more detail that the rail yard
is an "extension" which falls into language of the contract allowing the
City to buy back the railroad and "extensions" for $30,000 plus the cost
of any additional "investments" and "extensions." Witnesses for both the
railroad and the City agreed the rail yard was an extension, the
decision notes. And, evidence from the regulatory agency at the time the
contract was executed supports the conclusion, the judge wrote.
The Court rejected the railroad's argument that, because the railroad
"no longer exists," the contract cannot be enforced. "It is true that
the railroad is not currently operational, but the court cannot say that
the railroad doesn't exist," Judge Tigar stated. The judge also
concluded that future, current or past use is irrelevant to resolving
this dispute. Much of the language of the initial 24-page decision was
unchanged.
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