Iowa
Iowa Northern Railway deal warrants heightened scrutiny
Quaker Oats plant in Cedar Rapids, photographed by David Harmantas (Shutterstock).
Scott Syroka is a former Johnston city council member.
Attorneys for Canadian Pacific Kansas City submitted a 59-page filing to the U.S. Surface Transportation Board on February 26 regarding the proposed acquisition of Iowa Northern Railway by Canadian National.
The Canadian Pacific Kansas City filing highlights the proposed deal’s “national importance” and cites “competitive concerns of significant magnitude” in calling for the Surface Transportation Board to classify Canadian National’s takeover attempt of Iowa Northern as a “Significant” transaction rather than the “Minor” transaction status that Canadian National has sought.
The distinction matters because “Minor” transactions aren’t subject to the same regulatory requirements as “Significant” transactions—meaning the public would have less access to information and less time to review the deal.
Canadian Pacific Kansas City made clear in its filing that it remains neutral for now on whether the Surface Transportation Board should approve or reject the acquisition. But it is calling for the “Significant” transaction classification “so that the Board and interested members of the public can undertake a more deliberate and thorough exploration of the competitive and other issues the Transaction raises.”
I wrote about some of those potential issues back in December. This week’s filing goes further in building a case in favor of classifying the transaction as “Significant.”
NATIONAL IMPORTANCE
The filing highlights the national significance of Iowa Northern’s service area, explaining that “The area served by Iowa Northern is of critical importance to U.S. agriculture. Cedar Rapids ranks as ‘[t]he largest corn-processing city in the world,’ hosting manufacturing plants for many familiar names, including General Mills, Quaker Oats, Cargill and Archer Daniels Midland. The Quaker Oats plant at Cedar Rapids is the largest cereal mill in the world.”
Beyond that, it underscores the importance of “efficient and competitive rail transportation” in shippers’ ability to transport “commodities like corn, soybeans and oats to processing facilities,” as well as transport “processed commodities like [dried distillers grains] DDGs, soybean oil, ethanol, and biofuels to market.”
ANTICOMPETITIVE CONCERNS
The filing notes that Canadian National and Iowa Northern are currently head-to-head competitors. For that reason, their merger would result in a “clear loss of competition” for local and international shippers alike, such as in the case of Canadian oats that are transported to Quaker Oats’ Cedar Rapids mill.
That loss of competition “would allow CN to drive up IANR’s rates (or reduce its services levels), knowing that doing so would risk nothing.” The filing continues, “All viable routes to Cedar Rapids from Canada would be controlled by CN in the future, whereas today IANR is fully independent of CN.”
The filing states, “The competitive ‘status quo’ will not be maintained. Shipper competitive options will be reduced everywhere that both CN and Iowa Northern have access, and more broadly Iowa Northern will be removed as an independent competitive force across the entire east-central Iowa region that it and CN both serve.”
DUBIOUS BENEFITS
In response to Canadian National’s claims that its proposed acquisition would yield win-win-win benefits for all stakeholders, the Canadian Pacific Kansas City filing states, “There is in fact substantial reason to be skeptical of the magnitude of the benefits CN identifies…”
For example, the filing calls into question the accuracy of the modeling Canadian National used to claim the deal would result in nearly 15,000 trucks being removed from highways.
Canadian Pacific Kansas City also argues that Iowa Northern is already meeting its shippers’ needs and does not need Canadian National to continue to do so. “In CPKC’s experience, Iowa Northern already provides quality service (and provides extra services) on an economical basis,” the filing reads. “It is not clear how CN could provide the same shipper amenities at lower cost to create rail-to-rail diversions.”
CANADIAN NATIONAL’S PR AND LOBBYING EFFORTS
There are signs that Canadian National may be getting nervous over the increased scrutiny. Recently, the company’s Public and Government Affairs team has invested significant resources in public relations and lobbying efforts regarding the deal. Canadian National has gone so far as to produce a podcast episode about the deal, lobbied local and state elected officials, launched a microsite touting the purported benefits of acquiring Iowa Northern, and bought an unknown amount of digital ads on sites like Google to promote the deal.
The microsite and digital ads avoid words like “merger,” which can often contain negative associations with reductions in quality and service, inflated pricing, and monopolization. Instead, they use more neutral words to describe the transaction, such as “combination.”
It all adds up to a significant effort to push through a transaction that Canadian National wants the Surface Transportation Board to classify as “Minor.”
COMPANY’S LOBBYING YIELDS SOME SUCCESS
To date, the following individuals or entities have sent letters to the Surface Transportation Board in support of Canadian National’s acquisition of Iowa Northern:
- Iowa State Senators Waylon Brown and Tim Kraayenbrink
- Cedar Rapids Mayor Tiffany O’Donnell
- Waterloo Mayor Quentin Hart
- Cedar Falls Mayor Danny Laudick
- Butler County Supervisors Greg Barnett, Wayne Dralle, and Rusty Eddy
- Cedar Rapids Metro Economic Alliance
- Iowa Area Development Group
- Iowa Association of Business and Industry
- Sukup Manufacturing Co.
- Hawkeye Community College, Kirkwood Community College, North Iowa Area Community College
- the SMART-TD union
These letters can be viewed within the application Canadian National filed with the Surface Transportation Board on January 30, 2024.
Alternatively, you can access Canadian National’s application and other documents related to the proposed deal by visiting the Surface Transportation Board’s website. Start here > confirm “Search For” field is set to “Dockets” > enter Docket Number “FD” and “36744” > this will display the various docket results > click on the “FD_36744” hyperlink under Docket Number > you will now be able to see a list of the filings and decisions submitted in regards to this deal, accessible as hyperlinked PDFs in the Attachment column.
FULL STEAM AHEAD FOR CANADIAN NATIONAL INVESTORS
As Canadian National chugs forward with its attempt to acquire Iowa Northern, it’s full steam ahead in terms of rewarding Wall Street investors. In its year-end earnings results released in January, the company announced a 7 percent dividend increase to shareholders as well as plans to buy back nearly USD $3 billion in stock per the latest currency conversion rate.
Canadian National did not mention any plans to pay back recent taxpayer dollars intended for short line railroads that were invested in Iowa Northern if the acquisition attempt is successful. Since 2021 alone, the U.S. Department of Transportation has awarded at least $13.9 million to Iowa Northern, including an education and training grant to improve safety on short lines across the country and a grant to fund rail improvements specifically in rural areas.
Canadian National also disclosed for the first time it had spent USD $230 million (including transaction costs) on its Iowa Northern acquisition attempt to date.
Following a years-long legal saga, the Iowa Supreme Court recently upheld a decision to evict Short’s Burger and Shine from its South Clinton Street building.
The May 22 decision, delivered by Chief Justice Susan Christensen, agreed with the Johnson County District Court’s decision to evict the downtown burger restaurant after finding that it did not notify the building’s owner — a trust operated by Midwest One Bank — of its intent to extend the lease.
The decision concludes one part of the Short’s legal saga. The now-closed restaurant is also in litigation for a discrimination and retaliation lawsuit Short’s owner, Kevin Perez filed in 2024 against Midwest One Bank, the trust of late building owner Haywood Belle, Belle’s widow, a bank employee, and the City of Iowa City
Iowa City’s Short’s Burgers and Shine closed in 2024
Short’s closed in early 2024 after the court determined Perez hadn’t renewed the business’s lease on time.
Short’s opened at 18 S. Clinton Street in 2008 with the goal of honoring the legacy and story of former building owner H.D. Short, who shined shoes for 50 years, beginning in 1920. The original ownership group included Perez, Dan Ouverson, and former Hawkeye and NFL player Nate Kaeding, who now runs the Gold Cap Hospitality ownership group.
Eviction proceedings started when Short’s temporarily closed in April 2022 “to fix poor building conditions” without notifying Midwest One Bank, the executor of Belle’s trust.
The closure breached a part of the lease agreement that said the restaurant would default on its lease if it “failed to engage” in normal business for more than 15 consecutive business days, the court found. The renovations also violated a provision that forbade structural changes or improvements without prior written approval.
Midwest One Bank sent notice on May 10, 2022, that Short’s would default on its lease if it did not reopen for regular business and cease renovations within 10 days, according to court documents. Shorts responded, claiming it could not reopen for business until renovations were complete because the gas could not be turned back on until repairs were finished.
Midwest One Bank “terminated” the lease and started eviction proceedings in May 2022. Shorts was allowed to continue operating and occupying the building while the case was litigated.
Midwest One Bank filed two eviction claims and delivered notice that Short’s needed to vacate the building by the end of the lease on April 30. Short’s did not vacate, and Midwest One Bank pursued a third eviction claim, accusing the owners of failing to provide notice of renewal.
Short’s argued that because they continued renovations, disputed eviction, and secured insurance, it was evidence of their intent to renew.
The restaurant owners also argued that pending eviction proceedings prevented them from renewal. The court argued that Short’s simply did not declare intent to renew for “whatever reason.”
“Mere forgetfulness does not entitle a party to equitable relief,” the decision reads.
Liam Halawith covers Johnson County local government and public safety for the Press-Citizen. Reach him by email at lhalawith@registermedia.com. Follow him on X at @liam_halawith.
WEST DES MOINES, Iowa (IOWA CAPITAL DISPATCH) – An Iowa nursing home worker fired after being accused of repeatedly neglecting residents’ needs is entitled to unemployment benefits, a judge has ruled.
State records indicate certified nurse aide Abigail Kromah worked for Pine Acres Rehabilitation and Care Center in West Des Moines from May 2024 through December 2025, when she was fired. She subsequently applied for unemployment benefits, which led to a recent hearing before an administrative law judge.
The hearing records indicate Kromah testified that when she was fired on Dec. 19, 2025, the employer informed her that the discharge was due to “numerous resident complaints” regarding the care she had been providing.
According to the judge’s findings in the case, Kromah had received multiple disciplinary warnings related to resident care. In August 2024, she allegedly received verbal and written warnings for failing to answer residents’ call-lights in a timely manner, failing to properly assist residents with their personal care, and for complaining about the residents in common areas of the workplace.
Her employer testified Kromah was also given warnings for refusing work instructions from the nursing staff, and for telling a resident who needed to be toileted to go the bathroom in their briefs.
In August 2025, it was alleged that Kromah failed to check on a resident throughout the entire night. During that shift, a nurse had neglected to unclamp a feeding tube, which caused the tube to leak. When another nurse checked on the resident at 5 a.m., the resident was “drenched in feeding solution from head to toe,” according to the judge’s findings.
‘I can’t live this way… She’s horrible.’
Days later, the home alleged, a resident of the facility entered the hallway in his wheelchair at about 6 a.m., loudly complaining, “I can’t do this anymore,” and, “I can’t live this way.” The man allegedly refused to go back to his room, explaining that Kromah was there and “she’s horrible.”
The man reportedly stated had had switched on his call-light to have his urinal emptied, but Kromah never came to assist him, which meant the urinal overflowed and spilled on him. When Kromah eventually came to the room, the man allegedly said, she changed him into dry clothing but did not clean him.
The home alleged Kromah was given additional warnings in October 2025 for reportedly failing to answer residents’ call lights and failing to complete her rounds every two hours. One resident of the home had allegedly became so frustrated by the lack of response to his call-light that he contacted the police on one occasion, according to the judge’s findings.
State inspection reports indicate Pine Acres Rehabilitation and Care Center was cited for insufficient staff in January 2026, with one resident complaining the issue with call-lights had been a longstanding problem. According to the inspectors, the man said that on one occasion, he couldn’t get help to clear his airway and was afraid he was going to die unless he managed to clear it himself, which he did.
In ruling that Kromah was entitled to jobless benefits, Administrative Law Judge Michael Lunn noted that while she had clearly been warned about deficiencies in resident care, she appeared to have been fired for a separate issue — attendance — for which she had received no such warnings.
A discharge for misconduct cannot be based on past acts such as the resident-care issues, Lunn ruled, but must instead be based on a current act. With no current act of disqualifying misconduct, Lunn stated, Kromah was entitled to collect unemployment benefits.
Iowa Capital Dispatch was unable to locate Kromah to seek comment for this article.
Copyright 2026 IOWA CAPITAL DISPATCH. All rights reserved.
CEDAR RAPIDS, Iowa (KCRG) – With some schools already on summer break, programs are helping make sure Iowa kids don’t go hungry.
The state’s Seamless Summer Option program provides free meals to children and teens 18 and younger during summer break.
Those meals are served at schools, parks and community centers. Children are served on first come, first served basis.
You can find a full list of those on the USDA’s Summer Meal Finder.
This year, the state has returned to the federal SUN Bucks program.
Eligible families can get up to $120 per child. That is then divided up to $40 a month to help pay for healthy food purchases.
The Des Moines Area Religious Council told KCRG after the state announced its return to the program that area businesses, as well as those in need, would benefit.
“Those dollars are going to go back into local grocery stores. It’s an investment in our community. When we look at feeding programs like SNAP, we know that it has that multiplier effect every time a dollar is spent, you’re getting more out of it,” said Blake Wiladsen, the council’s communication manager.
The state will regulate the program similarly to the state’s SNAP program. Things like candy, soda, vitamins, minerals, pre-made foods, and juice made with less than 50% fruit or vegetables cannot be purchased with Iowa SUN Bucks.
Copyright 2026 KCRG. All rights reserved.
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