Officials say the freight company will pay nearly half a million dollars, according to an agreement approved on Feb. 10 by the city council.
The $481,715 is meant to cover repairing damaged city property, incident response costs, traffic control, environmental testing and more.
Twelve railroad cars derailed after a train hit a bridge over Tempe Town Lake, causing it to collapse and sparking a massive fire.
Several cars carrying hazardous materials overturned, leaking chemicals into the area.
The bridge has since been replaced, and it cost Union Pacific $11 million to make the repairs.
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