The City of Vancouver has agreed to purchase the nine-kilometer rail route from Canadian Pacific Railway for $55 million, according to a statement from CP.
Canadian Pacific Railway Limited will sell its Arbutus Corridor to the City of Vancouver for $55 million, according to a statement from the company.
The Arbutus Corridor is a nine-kilometer railway route that runs from False Creek near downtown Vancouver to Marpole on the city’s south side. According to a report from CBC News British Columbia, CP has owned the land for more 100 years, but hasn’t used it for around 15 years.
Vancouver had previously offered to buy the rail corridor, but the two sides could never agree on a price, with CP arguing the land was worth as much as $400 million.
“I think both parties had a change of heart,” Vancouver Mayor Gregor Robertson told a press conference announcing the purchase.
“Thanks to this landmark agreement, the city will be able to transform the area into an outstanding greenway and connect neighborhoods from False Creek to Marpole,” he said.
Terms of the agreement also allow CP to share in future proceeds on the eventual development and/or sale of certain parcels of the corridor.
“For many years now, CP has been involved in conversations with the City about the future of the Arbutus corridor,” CP President and COO Keith Creel said of the deal. “We are pleased that today’s landmark agreement allows the City to create a transportation corridor and greenway while providing a fair return to CP and our shareholders.”
“CP has been an important part of Vancouver for 130 years, and while balancing the needs of industry against the desires of municipalities is not always easy, today’s agreement demonstrates that by working productively together we can accomplish great things to the benefit of all,” he added.
CP to sell Arbutus Corridor to Vancouver
