Landowners along a 12.2-mile abandoned Norfolk Southern rail corridor between Grimes and Des Moines may be eligible for federal compensation if their property is converted into a public trail. The law firm Lewis Rice is hosting informational sessions to assist affected property owners in understanding potential takings claims under the Fifth Amendment, which requires the government to provide just compensation when private land is acquired for public use.
Why are landowners eligible for compensation?
The potential for compensation stems from the federal process of “railbanking.” Under the National Trails System Act, the federal government allows abandoned rail corridors to be preserved for future rail use by converting them into interim recreational trails. According to the Surface Transportation Board (STB), this process prevents the legal abandonment of the corridor.
For many landowners, this creates a legal issue known as a “taking.” When a railroad originally acquired the land, many deeds granted only an “easement” for rail purposes rather than full fee-simple ownership. If the rail line is legally abandoned, that easement typically expires, and the land reverts to the adjacent property owners. By “railbanking” the corridor, the federal government effectively prevents that reversion, which the U.S. Court of Federal Claims has historically treated as a compensable taking of private property.
What are the legal implications of trail conversion?
The Iowa Natural Heritage Foundation (INHF) has moved to convert the Norfolk Southern corridor to a multi-use trail, citing community benefits and recreational connectivity. However, the legal threshold for compensation depends on the specific language in individual property deeds.
Lawyers from Lewis Rice estimate that over 230 landowners along the Grimes-to-Des Moines stretch could hold valid claims. The firm is conducting outreach to explain that landowners do not necessarily need to oppose the trail to receive compensation for the loss of their reversionary interest. The process involves filing a claim in the U.S. Court of Federal Claims, which handles inverse condemnation cases against the federal government.
How can landowners attend informational meetings?
Lewis Rice has scheduled a series of free meetings at the Revel Hotel, located at 11211 Hickman Road in Urbandale, to address property owner questions.
In-person sessions:
- June 22 at 5:30 p.m.
- June 23 at 9:00 a.m.
- June 23 at 12:00 p.m.
Virtual sessions:
- June 16 at 12:00 p.m.
- June 17 at 12:00 p.m.
Interested parties may register for virtual meetings by emailing takings@lewisrice.com.
Comparison: Railbanking vs. Traditional Abandonment
| Feature | Traditional Abandonment | Railbanking (Proposed) |
| :— | :— | :— |
| Ownership | Reverts to adjacent landowners | Retained for public trail use |
| Federal Status | Corridor ceases to exist | Corridor preserved by STB |
| Compensation | None (land returns to owner) | Possible via Fifth Amendment claim |
Property owners should consult their original land deeds to determine if their property is subject to a railroad easement, as the validity of a compensation claim often hinges on the specific historical language of the parcel’s title.