Canadian Pacific and the city of Vancouver, British Columbia, have agreed to terms for the railroad's sale of the Arbutus Corridor to the city for $55 million.
CP has been talking with city officials for many years about the corridor's future, said CP President and Chief Operating Officer Keith Creel in a press release.
The new landmark agreement will enable the city to create a transportation corridor and greenway while providing a fair return to CP and its shareholders, he added.
The agreement also allows CP to share in future proceeds on the eventual development or sale of corridor parcels.
"CP has been an important part of Vancouver for 130 years, and while balancing the needs of industry against the desires of municipalities is not always easy, today's agreement demonstrates that by working productively together we can accomplish great things to the benefit of all," Creel said.