At issue during negotiations was who would pay for cleanup of contaminated ground at the site.
The city has been unwilling to make any deal without knowing exactly what's in the ground, and CSX has been unwilling to conduct tests that would show the extent of underground contamination.
"We're not going to be subject to a multimillion-dollar cleanup," Bruchey said. "That wouldn't be fair to the taxpayers of Hagerstown."
City Administrator Bruce Zimmerman said Thursday that the only information CSX has given the city dates back nine years, and consists of a report by an environmental assessment team hired by CSX.
"We know from their report that there are trace levels of heavy metals such as chromium, lead and arsenic on the land," he said. "We don't know what is underground."
Rob Gould, CSX spokesman, and Stephen Thienel, CSX regional vice president for state relations, said Wednesday that the city's offer to take over about 5 acres required CSX to agree to an easement to provide access to the 5 acres.
CSX officials rejected the offer because the easement would have decreased the value of the property and lessened its appeal for development, they said in a telephone interview.
Gould said there's a chance an opportunity could arise to save the roundhouse, but he said CSX is proceeding with asbestos removal in preparation for demolition.
Hagerstown Roundhouse Museum President Bob Tracey said he still hopes to persuade a private organization or developer to assume legal responsibility for the land.
"We're not going to say it's over 'til it's over. If we lose this, we lose a very vital part of tourism and economic development," he said Wednesday.
The roundhouse is part of the largest railroad complex remaining from the steam era and the turntable is the second-longest in the world at about 115 feet, according to museum officials.
Demolition of 13 buildings and two pits on site is scheduled to begin as early as Monday, Zimmerman said.
Asbestos removal on remaining buildings, including the roundhouse, will begin soon. Zimmerman said the city must make sure all asbestos is removed before it issues permits to demolish the remaining buildings.