NORWICH – The Chenango County IDA announced that it has secured the additional funds needed to match a $4.7 million grant they hope to receive from the U.S. Economic Development Administration. The grant would fund the rehabilitation of the Utica Main Line Railroad that runs through the county and has been out of service since the 2006 flood and was further damaged by Tropical Storm Lee in 2011.
The CCIDA made this announcement after the Chenango County Board of Supervisors’ meeting Tuesday morning, where the board adopted a resolution agreeing to commit up to $200,000 toward the project.
The CCIDA held several meetings with local agencies over the last couple of months to secure the funds needed to meet the EDA’s local match requirements (approximately $1.2 million of a $5.8 million project). The CCIDA agreed this month to commit up to $75,000 of its own funds and Development Chenango Corporation agreed to commit up to $150,000 toward the project. With the New York State Department of Transportation’s award of $772,422 received last year to fund part of the rail project, and the new funding commitments from local agencies, the CCIDA has secured all funds needed to meet EDA requirements.
CCIDA Executive Director Steve Craig said much progress has been made during the year. “It is inspiring to see local agencies work together to save such a vital piece economic development infrastructure in Chenango County,” he said.
While saving the railroad looks promising, there is still a long road ahead. Funding for the project is contingent upon forging a long-term operations and maintenance agreement with a viable rail operator. The New York Susquehanna & Western Railroad, operators of the Utica Main Line, have not made any public announcement that they intend to sell the entire 85-mile length of railroad. Company officials were unavailable for comment this morning. However, Economic Development Director Jennifer Tavares said it was the IDA’s understanding from conversations that they would be open to transferring ownership.
Craig said “several” viable short line railroad enterprises have expressed an interest in purchasing the line.
The CCIDA holds title to the line through a PILOT agreement with NYS&W which is due to expire in late February. The hope is, according to Craig, that once a new operator agrees to purchase the line, engineering work would begin in February with repair work to begin in the spring. He said the $5 million project would create 187 construction jobs, approximately 15 of which would ultimately be permanent direct or indirect jobs related to the operations of the railroad.
County supervisors stressed yesterday that the funds wouldn’t be committed until after contracting with a new operator that would maintain the entire line from Chenango Forks to Utica.
Board of Supervisors Chairman Lawrence Wilcox supported the board’s resolution to proceed with the funding. “The issue is that this is a long-term investment ... we aren’t necessarily going to see a return on our investment for many years, but if we let this (rebuilding opportunity) go, the railroad would be scrapped.”
New Berlin Supervisor Ross Iannello requested the numbers of potential users anticipated for the line. Previous studies have indicated agricultural and local manufacturing end users in addition to suppliers to the natural gas drilling industry should it take off in New York, said Tavares.
Tavares said the NYS&W Railroad would ultimately make the decision on new operator, but the CCIDA “would work closely with them to encourage them to market it to build businesses along the line that would use it.”
“We would help NYS&W along to shepherd this project and transfer the assets to a new operator,” said Craig.
City of Norwich Supervisor Robert Jeffrey said the railroad was “critical to the growth of the county and the City of Norwich.”
For more information about the rehabilitation of the Utica Main Line Railroad or to learn more about the CCIDA, contact Jennifer Tavares at 334-5532.