BNSF closes on deal to sell rail yard to Sioux Falls for $27 million

BNSF Railway Co. and Sioux Falls, S.D., yesterday closed on the city's purchase of a downtown rail yard, city officials announced.

In late July, the city reached an agreement to purchase the rail yard from BNSF for $27.3 million using federal funds.

The purchase agreement removes the majority of the rail yard in the city's downtown and provides more than 10 acres for redevelopment. City officials expect to begin developing the plot in 2018.

For its part, BNSF will retain two mainline tracks through the downtown area.

The city will take full possession of the property in two years, once the railroad completes construction of new siding tracks.