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City Prevails in Alameda Belt Line Case
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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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