PRESS RELEASE July 9, 2009

FOR IMMEDIATE RELEASE

Contact: Donna Mooney, Senior Assistant City Attorney, 510-747-4750

Lisa Goldman, Deputy City Manager, 510-747-4700

City Claims Final Victory in ABL Lawsuit

On June 23, the California Court of Appeals upheld a decision in favor of the City

of Alameda in a lawsuit about ownership rights to Alameda Belt Line (ABL) railroad

property in Alameda. On July 7, ABL’s attorneys advised the City that it would not

appeal the decision to the California Supreme Court, thus ending a lengthy court battle

and ensuring that the City can purchase the 40-acre property for $966,207.

In celebrating the end of the court case, Mayor Beverly Johnson said, “This is a

tremendous victory for the City of Alameda and the entire Alameda community. I’m

thankful that the Court recognized the City’s rights in this matter and is ensuring that the

property is returned where it belongs.”

The court case stems from a 1924 agreement between the City of Alameda and

ABL, in which the City sold its railroad to ABL. The agreement, which was codified in a

1924 City ordinance, included language allowing the City to buy back the railroad and

its extensions at any time for the original cost ($30,000), plus the cost of any additional

investments and extensions.

In 1998, ABL stopped operating the railroad, and shortly thereafter moved to sell

its rail yard to a developer for $18 million. Thanks to the due diligence of Alameda

resident Jean Sweeney, who pored through thousands of old archived records and

found the 1924 City ordinance, the City was able to successfully argue in court that the

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rail yard in question was an “extension” of the railroad, and that the 1924 contract

protected the rights of the City to purchase the rail yard for a sum equal to the original

cost, plus the cost of any additional investments and extensions.

With ABL’s announcement that it will no longer pursue this case, the City will

purchase the land using monies from the City’s open space fund, ensuring that all

Alamedans will be able to enjoy the property.

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