The Colorado Department of Transportation closed a deal Wednesday on the historic Burnham Yard that the department says will help it address critical transportation needs for decades to come.

The 58-acre railyard near the South Platte River and Interstate 25 is one of the last remaining large parcels in central Denver.

CDOT and the Office of Economic Development and International Trade (OEDIT) agreed to pay Union Pacific Railroad $50 million for the property. The state will take possession of the railyard by the end of the month, according a news release.

“This purchase represents a down payment on a multimodal, sustainable transportation future along the Front Range,” CDOT Executive Director Shoshana Lew said. “This strategically located parcel is important for both transportation and economic development, which is why multiple agencies including CDOT and OEDIT have worked together on its purchase.”

The High Performance Transportation Enterprise, a state-owned business within CDOT that finances and manages Express Lanes, led the efforts to purchase the property beginning in 2019. However, efforts stalled due to COVID-19 and declining revenues.

Multiple efforts to obtain federal grants and loans to purchase the railyard had failed, but the deal became possible when HPTE and OEDIT partnered together, the agencies said.

“Burnham Yard is a transformational transit property for our state and can help Colorado meet our goals for making housing more affordable, commutes shorter and our air cleaner,” Gov. Jared Polis said in the release.

The state department of transportation plans to use around 17 acres of its railyard to relocate train tracks, which will allow for improvements to I-25 and Central Denver.

At the same time, this will reserve the right of way for the Front Range Passenger Rail and for an expansion of RTD light rail trains, according to the release.

“Infrastructure is vital to sustain economic development and the Burnham Yard collaboration with CDOT is an investment in Colorado’s economic prosperity,” OEDIT Executive Director Patrick Meyers said.

Burnham Yard was closed by Union Pacific in 2016 after more than 140 years of service. The yard extends from 4th Avenue to 13th Avenue, There are currently around 24 buildings on the site, currently zoned for industrial use.