City of Round Rock, Union Pacific settle rights of way dispute

Railroad crossing in Round Rock.

ROUND ROCK, Texas (KXAN) — The city of Round Rock and Union Pacific have reached an agreement on the disputed rights of way along McNeil Road inside Round Rock city limits.

Union Pacific leased the rights of way along McNeil Road to the city for 25 years for $2,500, but when that lease expired in 2012 they asked for $4.9 million for another 25-year lease.

The new agreement awards the rights of way for the disputed road, along with three others, to the city of Round Rock for $1.6 million. The property now includes the McNeil Road right of way east and west of Interstate 35, Bellview Avenue right of way, railroad right of way adjacent to Chisholm Valley Park, some Burnet Street right of way, and a tract of land located at the corner of Burnet Street and Bagdad currently used by Union Pacific for maintenance equipment.

That plot of land previously used for storage is next to a property the city bought from Builders Gypsum Supply in 2013, Round Rock officials will redevelop it as a part of the city’s revitalization efforts. The land next to Chisholm Valley Park will provide the city with permanent access to a water storage tank.

Union Pacific Railroad has also agreed to drop the lawsuit, donate $10,000 to a memorial of the 1927 Baylor bus crash and expedite review and approval of quiet zones Round Rock has pursued for more than five years. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

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