Gov. Jared Polis and Union Pacific Railroad President Beth Whited signed a 25-year lease agreement for passenger rail access through the Moffat Tunnel Monday, providing a route for regular train service from Denver to the mountains.
“We're embarking on a new era of partnership. Union Pacific will continue to facilitate the commerce needs of Colorado and the West and the country while expanding passenger rail service to get Coloradans and visitors where we want to go,” Polis said. “Saving time and money, reducing congestion and reducing pollution.”
The parties previously signed a Memorandum of Understanding on the Moffat Tunnel last November. Polis and Whited applauded both sides for coming to an agreement within four months.
“We came together in a spirit of collaboration. There were some wrestling matches involved in that and late nights on both sides,” Whited said. “But, we did find common ground that will benefit everyone, and we're very excited to benefit the Colorado businesses to rely upon us to transport their goods and really the greater United States economy.“
The 6.2-mile-long Moffat tunnel was built through the Continental Divide 100 years ago. It was created to provide an important east-to-west connection from Denver to the West Coast. The new agreement replaces Union Pacific’s original 99-year lease, which expired on May 1.
State and Union Pacific officials consider the Moffat Tunnel public-private partnership as one of the first and most successful in Colorado history.
“This is really the way that states need to think about their position in the global marketplace,” Whited said. “And so, we're very thrilled to have had such an effective partnership with the state of Colorado in this regard.”
The Mountain Passenger Rail is expected to begin operations next year. It will provide year-round service between Denver and Granby, with plans to eventually connect Craig and Steamboat Springs. Polis said requests for proposals will go out next month.
“We're very excited about that work as well. But we will recognize some of the benefits of this next year with the daily Denver to Granby year-round service,” Polis said. “We've seen, of course, the amazing success of the Winter Park ski train. We know that there's also vast potential for summer access to Rocky Mountain National Park from the west, and many other benefits for tourists and for Colorado Front Range residents who want to access the mountains.”
The pact signed Monday also completed a previous agreement for the state to take over a railroad easement in Denver’s Burnham Yard. CDOT announced plans to buy rights to the Burnham Yard East Line for $19.4 million earlier this year. The state plans to remove the freight track easement that runs from just south of Colfax Avenue, through the eastern edge of Burnham Yard, and down to approximately West 4th Avenue.
Polis said the elimination of the three railroad crossings would allow for full utilization of the property and improved safety.
“While of course Coloradans have lived and we do live in and around trains where there are active freight routes, it still divides us because at the very least there's delays while trains go by. But it also is sometimes difficult and can lead to decreased access,” Polis said.
In a separate deal, the state had purchased the 60-acre Burnham Yard in 2021 for $50 million with plans for new RTD light rail tracks, a Front Range rail passenger line, and accommodations for an I-25 expansion.
But, a study found that the state doesn’t need most of the land and is preparing to sell the property.
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