Amtrak ’s takeover of Union Station’s commercial areas took effect today after an appeals court denied a request to postpone the transition pending appeal.
In 2022, Amtrak launched an eminent domain lawsuit to gain full control of the terminal from Union Station Investco.
In April, U.S. District Court Judge Amit Mehta ruled in favor of transferring Union Station’s commercial leasehold interest to Amtrak.
Although Mehtra had previously declined to halt the transfer during the appeal, he delayed the takeover from July 15 to July 29 to allow the appeals court time to weigh in.
Union Station stakeholders are planning an $8.8 billion modernization project that is expected to take 13 years.
“We look forward to implementing a plan to improve the historic station for travelers, visitors, and the community,” Amtrak said in a statement after the appeals court’s ruling.
In Amtrak’s vision, passengers will enjoy new seating areas, upgraded restrooms, and realigned boarding gates instead of waiting in tight, crowded corridors.
Amtrak had previously argued it couldn’t pursue these improvements because it lacked full control of the property, as it only subleased the terminal’s back end.
The company only owned the station’s platforms and railroad tracks, while USI, which is operated by real estate investment management company Rexmark, was the primary leaseholder of the terminal.
In June, House Oversight Committee Chairman James Comer (R-KY) launched an investigation into Amtrak’s “heavy-handed tactics ... to assert control over Washington, D.C. ’s, Union Station.”
For now, day-to-day operations will remain unchanged.
However, Amtrak’s President Roger Harris said the company plans to redesign the terminal to move vacant commercial spaces and focus more on adding customer service stations, restrooms, and seating areas.
At a congressional hearing last month, Amtrak CEO Stephen Gardner argued it would focus on enhancing both retail and rider amenities.
“We believe very much in a successful venture that will drive both commercial revenue so we can reinvest in the facility and also the kind of amenities people want in our train station,” Gardner said.
“They want the bookstores. They want to be able to go to the cafe. They want a restaurant, and we want to serve the neighborhood well,” he added.
On the other hand, Michael Rebibo, founder and managing principal at Rexmark, has argued that Amtrak’s takeover could reverse his company's efforts to attract retail and food businesses to the station.
Legal battles are not over yet. Last month, USI filed an appeal to regain control of the terminal.
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Even though the judge granted Amtrak authority to manage the station, the companies still need to agree on a fair price.
Amtrak proposed a $250 million valuation in its lawsuit, but USI argued that this estimate was filed during a low point in transportation , which artificially deflated the property’s value. It countered with a $730 million valuation.
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