City Of Seattle, App/cross-resp V. Ballard Terminal Railroad Co. L.l.c., Resp/cross-app

Court of Appeals of Washington·Decided May 16, 2022·No. 82377-9·Published

Opinion

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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

THE CITY OF SEATTLE,

No. 82377-9-I

Appellant/Cross-Respondent, DIVISION ONE

v.

BALLARD TERMINAL RAILROAD PUBLISHED OPINION COMPANY., L.L.C.

Respondent/Cross-Appellant.

SMITH, A.C.J. — This appeal concerns the City of Seattle’s efforts to construct the missing link, a 1.4-mile gap in the Ballard area of the Burke-Gilman Trail. Seattle sued the Ballard Terminal Railroad Company (BTRC) to require it to relocate a portion of its tracks to enable the trail’s construction. Seattle claims BTRC is required to do so under both the 1997 operating agreement between the parties and the franchise ordinance issued by Seattle shortly thereafter, and appeals the superior court’s summary judgment rulings that (1) the provision of the franchise ordinance that requires BTRC to relocate its tracks is preempted by the federal Interstate Commerce Commission Termination Act of 1995 (ICCTA), 49 U.S.C. §§ 10101-16106, and (2) the operating agreement does not require BTRC to move its tracks in the missing link area. BTRC cross-appeals, contending that the court erred by denying its claim for damages and attorney fees under Washington’s anti-SLAPP1 statute, RCW 4.25.510. Because the 1 Strategic Lawsuit Against Public Participation.

No. 82377-9-I/2

franchise ordinance is a federally-preempted local regulation regarding the route and construction of a railroad, the operating agreement only required BTRC to relocate its tracks to cooperate with the construction of the trail outside the missing link area, and Seattle’s suit is not the type of action addressed by the anti-SLAPP statute, we affirm on all counts.

FACTS

The Burke-Gilman Trail is a regional bicycle and pedestrian trail that runs from Golden Gardens Park in Seattle to the Sammamish River Trail in Bothell, except for the missing link at issue here—a gap between the Hiram M. Chittenden Locks (Ballard Locks) and 11th Avenue NW in the Ballard neighborhood of Seattle. Seattle opened the first portions of the Burke-Gilman Trail in 1978 on a portion of abandoned rail line it had acquired from the Burlington Northern Railroad Company. In 1988, Burlington Northern and Seattle signed a “Joint Statement of Principles” expressing their shared long-term goal to establish a “continuous and permanent linear corridor along selected railroad rights-of-way to complete the Burke-Gilman Trail and other urban trails” while also continuing to support rail-served business along these rights of way. Burlington Northern continued to abandon portions of its rail lines and Seattle continued to convert these portions into trails.

In the late 1990s, Burlington Northern announced its intent to abandon the Ballard Line, a 2.6-mile railroad line serving shippers in Ballard. In 1996, the

No. 82377-9-I/3

Seattle City Council adopted Resolution 29474,2 endorsing a preferred plan for the development of the Burke-Gilman Trail in the area of the Ballard line, with the preferred route traveling along the railroad from 8th Avenue NW to 11th Avenue NW, leaving the tracks and continuing up 11th Avenue NW to NW Leary Way and NW Market Street, and then returning to the line west of the Ballard Locks.

Meanwhile, some of the shippers who had been served by the Ballard Line formed the Ballard Terminal Railroad Company (BTRC). BTRC entered negotiations with Seattle with the goal of preserving rail service even as Seattle pursued acquiring the corridor to develop the final portions of the Burke-Gilman Trail.

On September 14, 1997, as a result of these negotiations, BTRC and Sea Lion Railroad (SLR), a non-profit acting as Seattle’s proxy, entered into the operating agreement. The operating agreement described its purpose as preserving the Ballard Line “intact for rail use, trail use, and other compatible public purposes.” It explained the parties’ plan for SLR to seek authorization from the Surface Transportation Board (STB) to railbank3 the line, for SLR to transfer the underlying real estate and assign the operating agreement to Seattle, and for BTRC to then seek authorization from the STB to continue operating the railroad.

2 http://clerk.seattle.gov/~archives/Resolutions/Resn_29474.pdf

[https://perma.cc/NYR5-UTFJ].

3 “Railbanking” permits an owner of a railroad to convert the line into a

recreational trail while preserving the right of way for future possible reactivation of rail service. See 16 U.S.C. § 1247(d).

No. 82377-9-I/4

The operating agreement provided that the parties “agree that the trail . . .

and railroad shall be constructed within the areas indicated in Exhibit D in all portions of the premises which are not in street right of way.” Exhibit D showed a map of the planned trail and line, corresponding to the route Seattle endorsed in Resolution 29474. The portion of the premises which is in street right-of-way is the stretch between 11th Avenue NW and the Locks, which today is the missing link of the Burke-Gilman Trail.

The operating agreement also gave Seattle “the right to require [BTRC] to relocate its track in order to accommodate trail construction in accordance with this Agreement; provided, however that a continuous track on the premises shall be provided unless [BTRC] consents otherwise” and required BTRC to “promptly move its track at [Seattle’s] written request to accommodate the construction of

No. 82377-9-I/5

trail facilities.” Furthermore, it provided that Seattle would “undertake[ ] to provide [BTRC] with 120 days notice, and a subsequent opportunity to consult, prior to [Seattle’s] presentation of a request for initial authorization or financing for an extension of the Burke-Gilman Trail in the area between 11th Avenue [NW] and the Locks within the premises.”

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