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Piles are growing at the city's old railyard.

Inside the long-abandoned Southern Pacific railroad shops, there are piles of metal, wood, debris and contaminated junk. Up on roofs, white-suited, specially trained abatement workers are pulling up roofing material and roofing adhesive containing asbestos. Outside one of the shops lies a makeshift salvage yard.

Georgia developer Thomas Enterprises and a contractor, Allied Environmental of Placerville, are three months into a $5 million cleanup of the historic "Central Shops," which will form the centerpiece of a 244-acre mixed-used district dubbed the Railyards.

The developers envision the shops as the cultural heart of a district that will include the future a regional transportation center and retail, office and residential use. The centerpiece will be an open-air market and adjacent plaza. There also has been talk of a $500 million arena/entertainment center, a performing arts center and even a new $500 million county courthouse.

During a tour of the shops Tuesday, Railyards Development Director Richard Rich said workers are setting aside everything connected to Sacramento's railroad history to be recycled and used in the district.

"We want to save every single piece of this," Rich said as he pointed to old metal lockers and train parts inside the former Paint Shop. "Part of our job is to retell the story of the railyards as we rebuild this and bring it back."

Very little remains from the 1930s or earlier, when the shops were the center of the locomotive industry on the West Coast and that industry drove the city, he said. For more railyard photos, go here. 

The railroad company took most items of value long ago. Then, squatters and vandals carried off everything they could.

Still, workers have already dug up tons of gnarled, rusted iron during soil remediation. Rich said he would like to hire an artist to create a large sculpture from the salvaged iron. The sculpture would go in the future Market Plaza.

"That's a dream at this point," Rich said. "I don't know where we'd find the money."

Hundreds of heavy locomotive drive wheels and axles were found on the site, which lies next to the Sacramento Valley Station train depot. California State Parks gathered up most of them, and two drive wheels left with the developers may become sculptures. Thomas Enterprises is talking with the parks department about placing drive wheel sculptures at intersections throughout the district.

"I would like every single intersection that we do to have some calling card of rail history there," Rich said.

Central Pacific established the Sacramento railyard during the steam locomotive era. The company, which later became Southern Pacific, built the first shop in 1868 — before Sacramento gained fame as the western start of the first transcontinental railroad with the driving of the last spike on May 10, 1869.

In the 1930s, Southern Pacific slowly began abandoning the railyards. Rail traffic was down because of the Depression.

The company set up maintenance shops for newer diesel locomotives in more rural areas as Sacramento grew, and the shops began falling into disrepair. The shops officially closed in 1999, four years after Union Pacific bought Southern Pacific.

Now, eight Central Shops — seven brick and one metal — are all that remain of what was once at least 243 buildings. The developers are giving the metal Boiler Shop and the Erecting Shop, the largest and grandest, to state parks for its future Railroad Technology Museum. State parks will handle abatement of those.

The buildings' exteriors will be preserved following the Secretary of the Interior's guidelines for rehabbing historic buildings. Abatement work, Phase 1 of shop restoration, is expected to be completed by March.

On Tuesday, 50 workers worked on various abatement projects including removing the badly peeling lead-based interior paint, junk contaminated with heavy metals and polychlorinated biphenyl or PCB, and asbestos sheetrock, floor tiles and pipe insulation. They're also removing extensive graffiti.

"Our job now is to clean these buildings so we can start to do the major work on the renovation," Rich said.

British Environmental Resources Management is providing construction management. The company initially was hired by Southern Pacific and has done all cleanup at the site for 20 years.

"Our primary challenge was to make sure we could abide by California environmental laws to take toxics out but not damage these historic buildings," Rich said. "It's something we have to watch very carefully."

Workers can't remove all the lead-based paint without damaging historic interior bricks. So remaining paint will be encapsulated in new paint, in a process created by the city's environmental office, he said.

The Railyards are the country's largest infill project. Most of the six shops are expected to be filled by restaurants, clubs, retail shops and small museums. Organizations have expressed interest in setting up museums for model railroads, carousels and blacksmithing in the 3,800-square-foot Blacksmith Shop.

The 56,000-square-foot Paint Shop will house an open-air market with Central Valley products including produce, cheese, wine, meat and fish -- similar to San Francisco's Ferry Building. It will be near the extended 5th Street.

An open space next to it, once a turntable that moved locomotives and train cars to the Paint Shop, will be turned into Market Plaza. Plans call for landscaping, water features, public art and a small outdoor performance area.

"That plaza is going to be the cultural living room of this region," Rich said.

On the other side of the plaza, clubs, restaurants and shops are expected to open in the Planing Mill, Car Shop and Machine Shop, where locomotives, passenger cars and flat cars once were built. The first building constructed on the site was a machine shop in 1868. Upper floors could contain art lofts and archive space.

Small shops and restaurants could go into the "Tower of Jewels," a three-story brick craphouse built in 1878. The plaster facade is peeling off the brick building, so the mortar on that and the rest of the brick buildings will be repointed.

The shops are expected to be ready for tenants in two or three years. The city has committed to building a 2,000-space parking garage east of the market. The garage will serve the regional transportation center and the Central Shops, said Suheil Totah, Thomas Enterprises vice president.

The county is considering the site for a new courthouse, said Totah, adding that Thomas Enterprises likes the idea of the city building an arena there as well.

Rich said he expects all electrical cables at the site will be underground. He said he hopes to use a line of old above-ground electrical poles to hold a 30-foot-high, 300-foot-long lighted landmark "Sacramento Railyards" sign.

That's just one of the efforts to preserve as much as possible. Restoring the historic buildings that once played such a large role in Sacramento is the key, Totah and Rich said.

"It would actually be cheaper to knock them down and rebuild them. But there's an ambiance you can't get with a new building," Rich said. "So they're priceless in that way."

Photos by Eric Whalen. Suzanne Hurt is a staff reporter for The Sacramento Press.