A federal judge ruled that Amtrak acted in its legal authority when it took control of the commercial leasehold of Washington Union Station by eminent domain in 2022.
In an opinion released last Wednesday and first reported yesterday by the Washington Business Journal, U.S. District Judge Amit Mehta said Amtrak had “met its burden of proof to exercise its ‘quick take’ authority” following the failure of Amtrak to reach negotiations to acquire the lease from Union Station Invesco. The lease the company had for Union Station’s commercial space, from the nonprofit Union Station Redevelopment Corporation, was supposed to last until 2084. Negotiations fizzled out after the two parties failed to agree on an appropriate price. Amtrak had offered Union Station Invesco $250 million, which was far below the company’s appraisal of $730 million.
“We thank the U.S. District Court for its decision to grant Amtrak possession of the Washington Union Station leasehold, pending the judge’s approval of a transition plan,” Amtrak CEO Stephen Gardner said in a statement. “We look forward to being able to accelerate improvements to the historic station for travelers, visitors, and the community.”
Mehta said the move for Amtrak to take control of Union Station was “necessary for intercity rail transportation.” Amtrak said it needed total control of the property in order to advance expansion plans and increase safety. According to a 2022 filing, Amtrak controlled only 13.4% of the station.
Amtrak now has “legal title” over the lease after giving $250 million in “just compensation” to Union Station Invesco. However, Amtrak can’t take immediate possession of the Union Station sublease until both parties present a transition plan for the station’s operations and management. They have until May 1 to submit a status report addressing the conditions of the property transfer and compensation.
Rexmark, which is a real estate investment management company overseeing the company holding a lease with the station, told the Washington Examiner it is “carefully studying the decision and considering next steps.”
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“The court has recognized that this is an unprecedented case with novel issues of law. The fate of the ownership of the historic portion of WUS has the attention of all three branches of the Federal government,” Rexmark added.
Amtrak’s takeover of Union Station comes as the station is set to undergo a $10 billion redevelopment plan over the next two decades.
