City of Jersey City v. Consolidated Rail Corp.

741 F. Supp. 2d 131, 2010 U.S. Dist. LEXIS 102218, 2010 WL 3833037
CourtDistrict Court, District of Columbia
DecidedSeptember 28, 2010
DocketCivil Action No.: 09-1900
StatusPublished
Cited by3 cases

This text of 741 F. Supp. 2d 131 (City of Jersey City v. Consolidated Rail Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Jersey City v. Consolidated Rail Corp., 741 F. Supp. 2d 131, 2010 U.S. Dist. LEXIS 102218, 2010 WL 3833037 (D.D.C. 2010).

Opinion

MEMORANDUM OPINION

Denying the Plaintiffs’ Motion for Summary Judgment; Granting the Defendants’ Cross-Motion for Summary Judgment

RICARDO M. URBINA, District Judge.

I. INTRODUCTION

The plaintiffs in this action are the municipality of Jersey City, New Jersey and two nonprofit organizations, the Rails to Trails Conservancy (“the RTC”) and the Pennsylvania Railroad Harismus Stem Embankment Preservation Coalition (“the Coalition”). The plaintiffs initiated this action against the Consolidated Rail Corporation (“Conrail”), which has purportedly sold a portion of abandoned rail property located in Jersey City to a consortium of real estate developers (“the LLCs”), who have intervened as defendants in this action. The plaintiffs assert that Conrail was and is required to obtain approval from the Surface Transportation Board (“the STB”) before abandoning the subject property and selling it to the LLCs, who plan to develop the property for non-rail uses.

The matter is now before the court on the parties’ cross-motions for summary judgment. The plaintiffs contend that the property at issue constitutes a “line of railroad” falling within the STB’s abandonment jurisdiction. The defendants maintain that the subject property is a “spur” or “side track” over which the STB does not have jurisdiction. Furthermore, the defendants assert that the plaintiffs lack standing to prosecute this action. Because the plaintiffs have not supplied sufficient evidence of imminent injury to their concrete interests, the court concludes that the plaintiffs have not demonstrated that they have standing. Accordingly, the court denies the plaintiffs’ motion for summary judgment and grants the defendants’ cross-motion for summary judgment.

II. BACKGROUND

A. The Statutory Framework

Beginning in the late 1960s, “[a] rail transportation crisis seriously threatening the national welfare was precipitated when eight major railroads in the northeast and midwest region of the country entered reorganization proceedings under ... the Bankruptcy Act.” Blanchette v. Conn. Gen. Ins. Corps., 419 U.S. 102, 108, 95 S.Ct. 335, 42 L.Ed.2d 320 (1974). “Congress concluded that solution of the crisis required reorganization of the railroads, stripped of excess facilities, into a single, viable system operated by a private, for-profit corporation.” Id. at 109, 95 S.Ct. 335.

To implement this solution, Congress enacted the Regional Rail Reorganization Act of 1973 (“the Rail Act”), 45 U.S.C. §§ 701 et seq. Id. The Rail Act created a government corporation, the United States Railway Association (“the USRA”), tasked with creating a Final System Plan (“FSP”) for restructuring the railroads. 45 U.S.C. § 716(a)(1). The FSP, published by the USRA in July 1975, designated certain “rail lines” and “connecting spur and stor *134 age tracks” held by the railroads in reorganization for transfer to a newly-formed private corporation, Conrail. Consol. Rail Corp. v. Surface Transp. Bd., 571 F.3d 13, 15 (D.C.Cir.2009).

The Rail Act also called for the creation of a Special Court, which would have exclusive jurisdiction over disputes relating to the FSP. 45 U.S.C. § 719. Following Congress’s approval of the FSP, the Special Court issued conveyance orders, directing the trustee of each railroad in reorganization to convey all right, title and interest in the designated rail properties to Conrail. Id. § 743(b)(1). The Special Court was given “original and exclusive jurisdiction ... [over] any action, whether filed by any interested person or initiated by the special court itself, to interpret, alter, amend, modify, or implement any of the orders entered by such court pursuant to section 743(b).” 1 Id. § 719(e)(2).

B. The Property At Issue

Among the rail property that the USRA designated for transfer to Conrail was the “Harismus Branch,” a property that the FSP described as running from “Milepost 1” in Jersey City to “Milepost 7” in Harrison, New Jersey. Defs.’ Cross-Mot. for Summ. J. & Opp’n to Pis.’ Mot. for Summ. J. (“Defs.’ Cross-Mot.”) at 6; Decl. of Victor Hand (“Hand Decl.”), Ex. A at 272; see also Pis.’ Mot. for Summ. J. (“Pis.’ Mot.”) at 1. The Harismus Branch encompasses the Sixth Street Embankment (“the Embankment”), a series of elevated structures made of earth-filled stone retaining walls connected by bridges and spanning 1.3 miles near the Jersey City waterfront. Pis.’ Mot. at 2 & Ex. E (Aff. of John Curley (“Curley Aff.”)) 2 ¶2. Constructed in the early 1900s, the Embankment is listed on the New Jersey Register of Historic Places and lies between two National Historic Districts. Id. ¶ 3.

Conrail acquired the Harismus Branch in March 1976 pursuant to a conveyance order of the Special Court. Pis.’ Mot. at 2. Conrail states that by the mid-1980s, it had sold off nearly ninety percent of the Harismus Branch in a half dozen different transactions to several developers, including the Jersey City Redevelopment Agency (“JCRA”). 3 Conrail’s Cross-Mot. at 9 & Decl. of Robert Ryan (“Ryan Decl.”) 4 ¶¶ 6-7.

By the 1990s, all that remained of the Harismus Branch properties was the Embankment. Ryan Decl. ¶ 7. Conrail states that it first negotiated to sell the Embankment to Jersey City, id. ¶ 7, and that in 1999, it was in active negotiations with the JCRA for the sale of the property, id. ¶ 32. Those negotiations ceased when, over Jersey City’s objection, a group of citizens successfully petitioned to have the Embankment listed on the State Register of Historic Places. Id. ¶ 33. This designation precluded Jersey City from implementing its development plans. Id.

In December 2001 and October 2002, Conrail distributed bid solicitation packages to parties they believed to be poten *135 tially interested in acquiring the Embankment. Id. The JCRA was one of the recipients of these bid solicitation packages and transmitted Conrail’s October 2002 request for bids to Jersey City’s Department of Housing, Economic Development and Commerce. Id. ¶ 34. Neither the JCRA nor Jersey City submitted a bid for the property. Id. Indeed, the only bid for the property came from a group of LLCs interested in developing the property for private uses. Id. ¶ 36.

In January 2003, the City Council of Jersey City enacted an ordinance designating the Embankment as an “historic landmark” under municipal law.

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741 F. Supp. 2d 131, 2010 U.S. Dist. LEXIS 102218, 2010 WL 3833037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-jersey-city-v-consolidated-rail-corp-dcd-2010.