Langel remains "hopeful" for stimulus dollars on rail project

The spur will serve IML Container Iowa's new facility and Le Mars Public Storage.

City Administrator Scott Langel said he "remains hopeful" the spur track extension work and related spur and drainage projects can be done with federal stimulus dollars applied for earlier by the city.

Word on the application is expected to be forthcoming on or near May 5, he said.

The Le Mars funding application is "one of 20-plus" to be received at this time by the Iowa Department of Transportation, responsible for distributing the federal stimulus, Langel said. The local "shovel ready" project should put the city in good standing to receive dollars, he added.

Le Mars' stimulus request includes $700,000 for the current year for the city's portion of the rail spur and $300,000 for the project within the next one to two years.

Also included was $250,000 for unloading and loading rail up to Le Mars Public Storage, $350,000 for rail to IML Container and $200,000 for possible additional rail should Nor-Am Cold Storage locate in the industrial park area, Langel said.

Langel's comments came after council members, following a public hearing, adopted the project plans and specifications of what was once a projected $1.5 million project now reduced to $665,700.

Langel said bid invitations for the rail extension have already been sent to 12 rail contractors in the midwest region, including two responsible for earlier IML Container projects.

An additional $10,000 maximum was also approved for a supplement spur with Antioch International, Inc., Omaha, for redesign and engineering costs for the city's lead track segment of the project.

While acknowledging that Tuesday's council action may be "getting the cart ahead of the horse" in moving head on the project with a scheduled April 30 bid letting on the project, Langel also emphasized the need to keep the process moving to be ready to begin work.

Council members accepted a revised IML Container assistance request for work seen essential for the project near their facility. The changes included the eliminating a retaining wall which would have cost $202,000.

The changes, including the city and IML Container lowering of areas of the spur area and corresponding earth work taken on as a city responsibility, reduced the city's project cost to approximately $20,000, Langel said. IML is responsible for an estimated $41,000 in improvements needed to meet rail requirements.

A Le Mars Public Storage drainage improvement request Langel described as also "closely linked" to these projects and adjacent to the rail spur near the plant also received council go-ahead Tuesday.

Le Mars Public Storage will be responsible for installation of a concrete flume and storm sewer extension at its Plant No. 2 and pipe connection, installation of straw bales (to lessen drainage problems) and materials cost of embankment work near Plant No. 3.

The city, meanwhile, will provide additional storm sewers near both plants and furnish additional bales.

The city has also agreed to advance $12,700 tax rebates to the company on completion of its responsibilities and to forgive a remaining $4,300 in earth work expenses for the project.