At that time, however, the Keihan Keishin Line ran above-ground between Misasagi and Sanjo Keihan along the planned route, and the issue of competition arose. As a result of negotiations, Kyoto City and Keihan Electric Railway agreed to establish a Third Sector (public-private partnership) company to obtain a Type-3 railroad business permit and control the tracks, while the City of Kyoto would obtain a Type-2 railroad business permit and operate the trains on that section. Thus the Kyoto Rapid Railway Corporation was born. Founded in 1986, then-mayor Masahiko Imagawa assumed duties as its president. Kyoto Rapid Railway constructed the subway through the Japan Railway Construction Group, and along with the Keihan Keishin Line's incorporation, the above-ground section was set to be eliminated.