Pertinent news from this webpage: http://www.cgwoelwein.com/index.html

"Unfortunately, we must move on to some bad news. The Union Pacific Railroad has let the contract for the demolition of the shops building, running repair, and other buildings they own in Oelwein. They commissioned Joe Trnka to prepare a historic narrative for the Oelwein Shops. He has done a very good job. If, when, how, or where it may be available to the public is not yet known, but once we find out, we will advise our members, and it will be on this site as well. With the loss of the buildings, there is even more reason for our museum to continue its mission to preserve Oelwein's unique railroad history."

Why on earth didn't the UP donate these buildings to the Hub City Heritage Railroad museum? What would it have cost them?

It would have cost them the value of the vacant land, less the cost to document the site, tear down the buildings, including the demolition permits.

With a 17% effective tax rate, the costs above would have to had exceeded 83% of the value of the land... If the "value" of the buildings were included in the donations value, then the tax benefits would rise above the 17%.

Simply, it was more cost effective to tear down the buildings, and sell the land.

Randy

I suspect one of the issues here is the enviromental clean up. If UP gives the shops away, 50 years from now some government agency can call them up and tell them they have to clean up the site. The railroads are going through a lot of this right now. To protect themselves they will probably remove the buildings and than have a contractor remove all hazardous material and contaminated soil. Then get some government agency to buy off on the clean up work. Then they can sell the property and be done with it, hopefully forever.

As David Johnston noted, environmental clean-up is an issue, but it doesn't always have to come at the expense of demolishing structures. This was the case in Martinsburg, W.Va. when the old roundhouse and shops there (dating from 1866-1872) were purchased by the Berkeley County Roundhouse Authority. Environmental clean-up was part of the deal (paid for by CSX), and the facility is in a very slow process of restoration.

The difference is having people involved who care, and who are influential enough to have some weight. In the case at Martinsburg, a lot of people were anxious to keep this old facility, and it didn't hurt that part of the leadership to save the roundhouse was a lawyer who is also on retainer for CSX.

That's a combination you don't see everywhere.