BNSF Railway is chugging along with its plans to construct a sprawling intermodal complex in the northwest Valley.
It’ll do so, however, with Maricopa County’s help instead of Surprise’s, a move that caught some city leaders off guard this week.
The city had cleared the way for the railroad giant to annex and rezone its 3,508-acre property for the project in early 2023, when Surprise leaders approved a general plan amendment that designated the land as employment rather than residential.
“I wasn’t necessarily anticipating this,” Vice Mayor Nick Haney said, noting that while projects are generally “dynamic” and can change, he expected the annexation and zoning process initiated last year to proceed as planned.
The company had purchased the property from the Arizona State Land Department for $49.11 million through an auction in 2022. The land, adjacent to an additional 720-acre parcel the railroad company has owned since 2004, is generally located near U.S. 60 and 219th Avenue, about 20 miles northwest of Surprise City Hall.
BNSF changes its plans for Surprise general plan amendment, annexation
BNSF runs one of the largest freight railroad networks in the country, with first-quarter total revenues of $5.7 billion and 32,500 miles of track in 28 U.S. states and three Canadian provinces. The freight giant wants to use the site for its intermodal transportation facility and industrial buildings.
The plans include leasable sites for customers seeking direct, rail-served locations. The intermodal facility will allow transfer of cargo from trucks to trains to be moved throughout the Valley and greater region.
The northern reaches of the Valley are experiencing exponential growth, driven in part by Taiwan Semiconductor Manufacturing Co.’s $65 billion plant in north Phoenix. Many of TSMC’s supplier have chosen sites that are rail-served, providing easy transportation from Pinal County and other parts of the region to TSMC’s facility.
At the time of the city’s general plan amendment, the proposal drew heavy criticism from people who lived near the site, a rural area by the county’s unincorporated community of Wittman.
Despite the opposition to the request, Surprise council members said that having oversight of the development would be preferable to the county. It would allow the city to maintain some level of control and input into the process.
At the time, a representative from BNSF said the company planned to pursue the project through the county if the city opted not to move forward with the general plan amendment and annexation.
More than a year since the city upheld its side of the plan, the company has switched tracks slightly for the far northwest Valley development, abandoning the attempt to get the land annexed into Surprise.
“BNSF and its development partner determined that proceeding in the county is the most sensible approach for the project,” Lena Kent, director of public affairs for BNSF, said in an email. “Nevertheless, given the regional importance of the project, BNSF fully expects to continue working with Surprise and other stakeholders on the project development.”
On May 31, Susan Demmitt, an attorney with Gammage and Burnham in Phoenix, filed a zoning change application and comprehensive plan amendment case with Maricopa County, seeking to rezone the site from rural residential to heavy industrial uses.
Kent said BNSF hopes to begin construction on the project in late 2025, with initial operations expected to begin in 2028. According to county documents, the first hearing for the project is planned for July 2.
A portion of the project, called the Logistics Center, will include about 1,131 acres of land at the southernmost part of the site. The center will offer customizable sites to suit customer needs and will be big enough to accommodate about 18 million square feet of leasable space, according to Kent.
However, the total size of the project and number of jobs created will depend on the businesses that locate in the center.
“As BNSF and the industries it serves adapt to shifting marketplace needs, evolving supply chains, and significant technological advancements, BNSF has identified a need for additional rail capacity in the Phoenix metro area,” Kent stated. “BNSF has committed to developing an integrated network that supports BNSF’s rail operations while offering industries the option to co-locate their business operations with BNSF for significant cost savings, increased efficiency, and less environmental impact.”
BNSF is working to expand capacity in areas where population, goods consumption and development are growing fastest, Kent said.
Surprise officials still keen to work with neighbor BNSF
After learning of the company’s route adjustment, Surprise officials acknowledged that BNSF always had two routes to take when advancing its project: work with the city or with the county.
“Obviously things change with (BNSF) going with the county,” Haney said this week, adding, “We all understand the importance of economic development and growth, but the community’s interests aren’t diminished in doing so.”
Though “saddened” by BNSF’s decision, as the city wanted to have input over the project to address resident concerns, Councilmember Aly Cline said Surprise supports businesses. That includes any decisions they make that are “best for them.’’
“We’ll still be economic partners, we’ll be neighbors,” said Cline, a mayoral candidate in Surprise’s July 30 elections. “We’re good neighbors with those in Wittmann … and Waddell. So, the fact that this is not in Surprise, doesn’t mean we won’t still be good neighbors.”
Echoing Cline, Councilmember Jack Hastings noted that while the city “wanted to have a seat at the table,” the project will still benefit Surprise regardless of whether it’s completed with the county or the city.
“It’s going to create jobs for Surprise residents, so I want to see it go through,” he said. “I’d prefer to have a seat at the table … but I’d rather they go through the county rather than not go through it all.”
When asked what the company’s decision will mean for Surprise in terms of any input or oversight on the project, a city spokesperson noted that neighboring cities are included in the county’s comment and review process.
Surprise, though, loses its control in the zoning process and can’t impose any local requirements, the city leaders said. That means they’ll need to maintain their relationships with the county, state and BNSF so Surprise residents’ concerns are heard.
“At the end of the day if they’re going to work with the county, its reinforced my commitment to be an advocate for the residents,” Haney said. The project is “still going to be an impact to our residents, there’s no denying that fact.”
One of the chief concerns for Haney and residents is traffic and how delivery trucks traveling in and out of the proposed facility will affect the U.S. 60, an already congested stretch of road in Surprise.
“It benefits both their facility and the residents to have a solution to that issue,” Haney said.
Shawn Raymundo covers the West Valley cities of Glendale, Peoria and Surprise. Reach him at sraymundo@gannett.com or follow him on X @ShawnzyTsunami.
Corina Vanek covers development for the Arizona Republic. Reach her at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.
This article originally appeared on Arizona Republic: BNSF will work with Maricopa County instead of Surprise on complex
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