Atlanta leaders on edge as Norfolk Southern merger could cost Midtown HQ

A proposed railroad megamerger is poised to cost Atlanta one of its largest public company headquarters, placing city leaders on alert.

Norfolk Southern announced Tuesday it reached an $85 billion acquisition agreement with Union Pacific. If approved by federal regulators, it would create the country’s first transcontinental railroad company and would consolidate office operations in Omaha, Nebraska, the current headquarters of Union Pacific.

Norfolk Southern opened its Midtown headquarters in 2021 as part of one of the city’s largest — and most complicated — incentive deals that also involved the $5 billion redevelopment of downtown’s Gulch. The potential downsizing to come has neighborhood stakeholders holding their breath.

“We know that in the business world, change is part of the journey,” said Kevin Green, Midtown Alliance president and CEO. “While the future isn’t fully clear yet, we’ll be keeping a close eye on what’s next while staying focused on things we can control.”

Katie Kirkpatrick, president and CEO of the Metro Atlanta Chamber, added that Norfolk Southern’s roots run deeper than its headquarters. The company had thousands of Atlanta employees before 2021.

“We continue to closely monitor developments, and we understand that Atlanta will remain a core location for the company’s future, particularly in the areas of technology, operations and innovation,” Kirkpatrick said, referencing a statement the two railroads released when announcing the merger deal.

Mayor Andre Dickens also noted the companies’ assurance that Atlanta will remain core to the combined business.

Norfolk Southern received state and city incentives to relocate from Virginia.

Invest Atlanta, the city’s economic development arm, provided a roughly $24 million property tax break. The deal also hinged on developer CIM Group buying property Norfolk Southern owned in the Gulch as part of its planned Centennial Yards project — which the city and the state of Georgia supported with a $1.8 billion incentive package.

Norfolk Southern invested $575 million in a 22-story office tower at 650 W. Peachtree St. NE, becoming a pillar of the area’s corporate community. The company’s website touts its philanthropic partnerships with Georgia Tech, Atlanta Fire Rescue, Atlanta Community Food Bank and Junior Achievement. The four either declined to comment or did not immediately respond Tuesday.

Green added that Norfolk Southern’s presence is seen as much as its felt, pointing to artwork and a shipping container stage at the North Avenue MARTA station financed through one of the railroad’s programs.

Credit: Courtesy Midtown Alliance

This is a rendering of an art and beautification initiative at the North Avenue MARTA station in Midtown, a project financially backed by Norfolk Southern.