Vancouver to buy Arbutus Corridor from CP Rail for $55M

The City of Vancouver has reached an agreement with Canadian Pacific Railwaythat will transform a contentious stretch of oldrail corridor into a publicgreenway.

Under the deal, the city willpay$55 million to purchasethe land on the railway route, which extendsfor nine kilometres from False Creek near Downtown Vancouver to Marpoleon the city's south side.

The deal brings to an end a long-running dispute over the future of the unused rail corridor, which runs through pricey residential neighbourhoods on the west side of thecity.

• Arbutus Corridor: Vancouver tries new tactic in battle with CP

CP Rail has owned the land for more than a century, but it hasn't run trains on it for about 15 years. Vancouver hadpreviously offered to buy the land, but the two sides could never agree on a price.

At one point, CP argued that the land was worth $400 million, a figure the city disputed. However, Robertson said both sides were determined to solve the dispute. An independentappraiser helped arrive at a price for the land that both sides felt was fair.

"I think both parties had a change of heart," the mayor told a news conference.

Greenway will draw tourists: mayor

Robertson described the agreement as a once-in-a-lifetime opportunity, saying the planned greenway designed forcyclists and walkerswill enhance Vancouver's international reputation as a tourist destination.

"Thanks to this landmark agreement, the city will be able to transform the area into an outstandinggreenwayand connect neighbourhoods from False Creek toMarpole," Robertson told a news conference Monday.

The mayor was joined by Keith Creel, presidentand chief operating officer of CP Railway Ltd.

During the height of the dispute, CPwarned residents it would use the vacant tracks for train traffic again, and tore down a number of community gardens.

The mayor noted the routeis still viewed as a transportation corridorwhich could, in the future, carry light passenger rail, alongside the greenway.

In the near future, the city will seek public inputon the how the greenwaywilllook. It's estimated the greenwaywill cost between between $25 and$35 million, Robertson said.