The Sacramento Metro Chamber today celebrates the awarding of $20 million in funds by the California Transportation Commission for the city of Sacramento’s project to straighten railroad tracks at the Sacramento Valley Station.

The Metro Chamber supported the realignment proposal and had testified before the CTC in February on behalf of the project. The California Transportation Commission selected the track relocation for the matching funds following a highly competitive review process. The money will come from Proposition 1B transportation bonds approved by voters in November 2006.

“This funding award is a sterling example of what agencies can do when they cooperate on projects that have a lasting, regional impact,” said Matt Mahood, Metro Chamber president & CEO. “The mayor, city council, Metropolitan Transportation Commission and the Sacramento Area Council of Governments—along with the Metro Chamber—joined forces, and this is the excellent result of that kind of leadership.”

Moving the tracks 500 feet north will improve freight and passenger service, improve air quality, reduce congestion and better integrate a new transit station into the proposed UP Railyards infill project.

“A substantial side benefit will accrue by stimulating redevelopment in one of the largest infill sites in the entire country,” Mahood added. “The UP Railyards project is consistent with our region’s awarding-winning Blueprint regional growth strategy.”

The CTC funding will help secure federal matching money—some $19.6 million. A request for those federal funds was a priority item on the Metro Chamber’s just-concluded Capitol-to-Capitol Trip to Washington, D.C. The city’s track relocation project has already been recognized by Congress as one of the first nine projects in the nation to be considered for federal rail relocation funding.

The estimated total for the project is estimated at $45-50 million. The city will fund the first $40 million, with the remainder to be split between the city and Railyards developers Thomas Enterprises. The city will also contribute Measure A Sales tax. Construction is expected to get underway in early 2010, with completion by the end of 2010.