NORWICH – Can’t live with it? Can’t live without it? The New York Susquehanna & Western railroad has shifted itself and Chenango County – with the help of a controversial land agreement and late June flooding – into an awkward position between a power line and a hard place.
The future of economic development in Chenango County has come into question on two conflicting fronts with one common denominator: the NYS&W. The juxtaposition was created by an agreement the rail company made with New York Regional Interconnect Inc., a power line developer, followed by the abandonment of rail service from Chenango Forks to Sherburne due to flood damage incurred in June, which has yet to be repaired. Now it appears, after intense public backlash over the pending power line, and the need for rail service to develop future industrial projects, that there isn’t a clear distinction regarding what role the NYS&W will play. Will it be a harbinger of good or bad will, or both?
“The fact that the railroad has been vilified seems unreasonable,” said NYS&W Attorney Nathan Fenno. “We’re not investors in the power line or anything.” Since it was announced in March that the part of the power line – if approved – would be built on NYS&W right of ways, the railroad has lost a tax free agreement to operate in Oneida County and been taken to state Supreme Court by the City of Utica and Village of Sherburne. Fenno contends the agreement was made with NYRI to avoid having the land be taken later by eminent domain.
The attorney also said the company has not made a decision about when or if the railroad will be re-opened in Chenango County. “We are in the business of running trains,” he said. “That will certainly be our hope and intent when making a final decision and we’ll have to see how things shake out.”
According to Chenango County Chamber of Commerce President and IDA Executive Director Dave Hall, the distinction between the railroad and the power line should be clear.
“The power line and the railroad are two separate issues,” said Hall. “The county needs the railroads. As we look at the alternative fuels industries – those industries are heavily dependent on rail traffic. If we can attract those types of industries to the county, the railroad is key.”
Despite the negative response publicly and financially, railroad officials say they will not back out from the agreement in place with the power line company.
“When people enter into a contract agreement they can’t just avoid it because of changed circumstances,” said NYS&W spokesman Thomas O’Neil. “It’s pretty common in the business world to have these option type agreements.”
When asked if the tax free agreement provided by the IDA in this county (similar to the one recently rejected for renewal in Oneida County) could be taken away from the railroad for dealing with NYRI, Hall said the agreement would be intact for six more years. “We have a valid agreement until 2012,” Hall said, adding that the rail company does have legal options for easing away certain portions of its land. “There are provisions in the lease where the railroad could declare part of their land as excess to their needs.”
Chenango IDA Attorney James Downey clarified that the Oneida County IDA did not break its contract, it simply decided not to renew the agreement that had been up for approval since 2002. Downey explained that there was no power line proposal on the table when the Chenango IDA renewed its deal four years ago.
“It sounds like they (NYS&W) screwed up and didn’t approach Oneida County in 2002,” said IDA President and Bainbridge Town Supervisor Hugh Kearney. “It’s too bad they didn’t screw up with us.”
NYRI is proposing to construct a 200-mile long electricity transmission line from Oneida to Orange County, in an effort to alleviate energy constraints downstate. The company’s Article VII power line approval application was revoked by the New York state Public Service Commission in July due to several deficiencies. NYRI has not yet submitted the required corrections to that application.