(rshsdepot) Denver, CO

["Jim Dent" <james.dent_@_itochu.com>]

-From the Denver Post...

Union Station pledge gets OK

By Jeffrey Leib
Denver Post Staff Writer

Thursday, July 19, 2001 - RTD's plan to acquire Denver's Union Station got
back on track Wednesday night when one of the transit agency's partners in
the purchase backed off on a request for discounted office space in the
train station when it's renovated.

That partner, the Denver Regional Council of Governments, had pledged to
contribute $20 million in federal money for RTD's purchase of Union
Station - about a third of the total price.

But the regional council wanted its future rent payments reduced in
proportion to the group's efforts at guiding transportation planning for the
Denver region.

The council of governments, known as DRCOG, voted unanimously Wednesday
night to commit $20 million to the Union Station purchase without any
guarantee that the council will be able to move into the redeveloped train
terminal and pay either market-rate or discounted rent.

On Tuesday, the Federal Transit Administration said DRCOG was creating "an
organizational conflict of interest" by making its contribution of federal
funds "a bargaining point for its own financial interests."

The agreement reached Wednesday with RTD said DRCOG will have the
opportunity to lease office space if it's developed at Union Station, but
instead of offering discounts, the pact merely says the new owners will try
to develop "possible cost savings" on office space.

"We're extremely pleased we were able to come to an agreement," said RTD
general manager Cal Marsella.

RTD has until Tuesday to complete its Union Station purchase or walk away
-From the deal without paying any penalties.

The city of Denver also is teaming with RTD and DRCOG, contributing $10
million of the station's purchase price.

The historic train station now is owned by the Union Pacific Railroad, land
developer Trillium Corp. and realty investor Pat Broe.

RTD officials had said they wanted to resolve the dispute over DRCOG's $20
million contribution before completing the purchase.

"I'm happy it's resolved; we were always onboard," said DRCOG executive
director Bill Vidal, about Wednesday's settlement. "I'm at a loss on why we
were pictured as obstructionist."

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