SALE OF THE ALAMEDA MUNICIPAL RAILROAD IN 1924
In 1924 the city announced it would accept bids from more than one railroad in order to open up the markets to greater distribution possibilities. Southern Pacific was very powerful in Alameda, and when the city accepted offers from Santa Fe and Western Rail Companies, Southern Pacific objected and took everyone to court — and lost.
As a result, the Beltline Company was created, and it became the holding company for the Santa Fe and Western Railroads. They were authorized $500,000 of common capital stock for land acquisition, contruction and betterments. The city then sold the Alameda Municipal Railroad to the Beltline for $30,000.
The contract was signed by all the parties including the City Attorney, and the terms were the subject of an ordinance. This contract was incorporated by reference into the deed and recorded in 1927. There was a discussion in the newspaper about including a time limit and interest, but that was never put in the agreement.
In 1999 the Beltline put the 22-acre parcel up for sale and the local neighboods became concerned about what would replace the railyard. It was during this time of meetings and discussion that research turned up the contract between the City of Alameda and the Beltline.
While the city and the Beltline have been in court over the 1924 contract, the Alameda Open Space Committee put a measure on the ballot that, if passed, would direct the city to rezone the property to open space.
The City is concerned about this measure passing because of the current legal complications and, more importantly, because of the cost of purchasing the land and maintaining it.
To address these concerns, the Open Space Initiative is exploring sources of funding, and would welcome help from the community at large in identifying additional funding.
