Amtrak Wants Quick Judgment To Seize D.C.’s Union Station

WASHINGTON -- Amtrak is pressing a federal judge for a quick ruling on its claim that eminent domain rights should allow the passenger railroad to seize control of Washington, D.C.’s Union Station.

Without a multi-billion revitalization, Union Station will continue to fall into an even more costly state of disrepair, Amtrak attorneys argued in court last week.

Amtrak is locked in a dispute with Union Station Investco, a private company that controls leasing rights to the nation’s second biggest intercity passenger rail hub.

Amtrak says Investco owners are trying to save money by refusing to make the costly repairs and upgrades the station needs. The result is a rise in renter vacancies and a decrease in rail passengers, the railroad says.

Amtrak owns the platform and railroad tracks. Investo owns the leasing rights to dozens of retail establishments in the station. They include clothing stores, restaurants and a drugstore.

Amtrak offered to purchase the leasing rights for $250 million but Investco officials declined. Negotiations during 10 meetings failed to reach agreement on a purchase price, leading Amtrak to sue in U.S. District Court for the District of Columbia.

Amtrak wants to add seating and signage in the station, increase security surveillance and expand customer service. It calls other upgrades it plans – such as a concourse expansion and tunnel improvement – critical to maintaining adequate service along the Northeast Corridor.

Amtrak is owned by the federal government but in 1985 Congress turned over much of the operation of Union Station to private operators to improve efficiency and relieve the tax burden. Investco, a subcontractor, has struggled financially recently.

Its attorneys argue that Amtrak needs congressional authorization or action by the U.S. Department of Transportation to modify the contract that gives Investco the leasing rights.

Federal law grants Amtrak eminent domain rights to acquire interests in property for its intercity passenger rail operations. Investco says Amtrak has not met the standard required by federal law to invoke eminent domain.

For more information, contact The Legal Forum (www.legal-forum.net) at email: [email protected] or phone: 202-479-7240.