County releases funding for railroad restoration
NORWICH – Work to restore the defunct Utica Main Line from Greene to Sherburne may be one step closer to fruition, thanks in part to action taken by Chenango County officials last week to release its share of funds for the project.
On Thursday, Commerce Chenango President and CEO Steve Craig appeared before the members of the Chenango County Finance Committee to update local officials on the railroad revitalization project and request that the county disburse the local share for the project. While committee members that agreed funds should be released to the CCIDA on an “as needed” basis, Craig requested $24,494 for a detailed engineering report, which the agency aims to have underway by the end of the winter season.
Preliminary reports of damage to the Utica Main Line were gathered prior to major flooding events that caused further damage to the railroad in the northern parts of the county last summer. Estimates of the entire project currently near $5.9 million based on those early reports, said Craig. But new estimates are likely to alter the scope of the project.
A resolution passed by the Chenango County Board of Supervisors in 2012 stipulates the Chenango County Development Agency (CCIDA), the developmental arm of Commerce Chenango, will receive up to $200,000 local share for the project, though the CCIDA currently estimates the county’s share may range lower, between $150,000 and $180,000.
“We are definitely hoping to see construction to the line in 2014,” Craig said, adding his hopes of having the engineering report completed as early as May.
County officials also agreed last week to draw funds from a Planning and Development account to foot its share of the project. The account was created by a Housing and Urban Development (HUD) grant received by the county in 1994. According to Director of Planning Donna Jones, that account consists of grant and loan funds that create a revolving account.
“Money we use for the project will all come from that account,” Jones said. She explained that HUD requires grant funding be used to spur local economic development through efforts that create jobs and promote business.
“I think this project does that,” she added. “The railroad will be a great asset for the county because it will help local businesses that want to use the rail and I think that will help create jobs.”
Recent action taken in the railroad revitalization project is just one of many steps that have occurred over the last year. In June, 2013, The CCIDA accepted a $4.7 million grant from the Federal Economic Development Administration to cover 80 percent the estimated cost of the project. EDA funding supplements a separate $772,722 grant awarded to the CCIDA in 2011 from the New York State Department of Transportation (DOT).
Remaining costs of the project will be footed by private and local entities: $58,755 from the CCIDA; $112,500 from the Development Chenango Corporation; $150,000 from the Chenango County government; and $85,825 from New York Susquehanna and Western Railway Corporation (NYS&W), proprietor and operator of the Utica Main Line.
But Craig said in spite of secured funding to move forward, there’s also a chance the project could be thwarted by the forthcoming engineering report. He pointed out that damage caused by severe flooding in June and July is not included in preliminary estimates. “If it turns out that work to be done is way out of line with what we planned, then the (CCIDA) has a tough decision to make,” he said.
Should necessary repairs to the line far exceed the estimated $5.9 million benchmark, then the project might not go any further than the engineering report, said Craig. The 80 percent funding commitment from the EDA would then be used toward cost of the engineering report, and the county government would have its $200,000 commitment returned.
The DOT grant, on the other hand, is contingent on the entire project being completed, said Craig. If the railroad is not fully restored, the county loses that funding and the CCIDA would front costs of engineering without state support.
“If it turns out that we can’t do what we want to do, then our first option is to do less,” said Craig, citing the CCIDA’s initial goal to restore the line to a point where trains could run faster through the county. However, that would require more rail ties to be replaced, he said, and that would add to the overall costs.
Last summer, the CCIDA renewed a 10-year PILOT agreement with NYS&W. The CCIDA currently holds title to the line through that agreement and NYS&W is required to maintain the Utica Main Line upon completion of the project.
On Thursday, Commerce Chenango President and CEO Steve Craig appeared before the members of the Chenango County Finance Committee to update local officials on the railroad revitalization project and request that the county disburse the local share for the project. While committee members that agreed funds should be released to the CCIDA on an “as needed” basis, Craig requested $24,494 for a detailed engineering report, which the agency aims to have underway by the end of the winter season.
Preliminary reports of damage to the Utica Main Line were gathered prior to major flooding events that caused further damage to the railroad in the northern parts of the county last summer. Estimates of the entire project currently near $5.9 million based on those early reports, said Craig. But new estimates are likely to alter the scope of the project.
A resolution passed by the Chenango County Board of Supervisors in 2012 stipulates the Chenango County Development Agency (CCIDA), the developmental arm of Commerce Chenango, will receive up to $200,000 local share for the project, though the CCIDA currently estimates the county’s share may range lower, between $150,000 and $180,000.
“We are definitely hoping to see construction to the line in 2014,” Craig said, adding his hopes of having the engineering report completed as early as May.
County officials also agreed last week to draw funds from a Planning and Development account to foot its share of the project. The account was created by a Housing and Urban Development (HUD) grant received by the county in 1994. According to Director of Planning Donna Jones, that account consists of grant and loan funds that create a revolving account.
“Money we use for the project will all come from that account,” Jones said. She explained that HUD requires grant funding be used to spur local economic development through efforts that create jobs and promote business.
“I think this project does that,” she added. “The railroad will be a great asset for the county because it will help local businesses that want to use the rail and I think that will help create jobs.”
Recent action taken in the railroad revitalization project is just one of many steps that have occurred over the last year. In June, 2013, The CCIDA accepted a $4.7 million grant from the Federal Economic Development Administration to cover 80 percent the estimated cost of the project. EDA funding supplements a separate $772,722 grant awarded to the CCIDA in 2011 from the New York State Department of Transportation (DOT).
Remaining costs of the project will be footed by private and local entities: $58,755 from the CCIDA; $112,500 from the Development Chenango Corporation; $150,000 from the Chenango County government; and $85,825 from New York Susquehanna and Western Railway Corporation (NYS&W), proprietor and operator of the Utica Main Line.
But Craig said in spite of secured funding to move forward, there’s also a chance the project could be thwarted by the forthcoming engineering report. He pointed out that damage caused by severe flooding in June and July is not included in preliminary estimates. “If it turns out that work to be done is way out of line with what we planned, then the (CCIDA) has a tough decision to make,” he said.
Should necessary repairs to the line far exceed the estimated $5.9 million benchmark, then the project might not go any further than the engineering report, said Craig. The 80 percent funding commitment from the EDA would then be used toward cost of the engineering report, and the county government would have its $200,000 commitment returned.
The DOT grant, on the other hand, is contingent on the entire project being completed, said Craig. If the railroad is not fully restored, the county loses that funding and the CCIDA would front costs of engineering without state support.
“If it turns out that we can’t do what we want to do, then our first option is to do less,” said Craig, citing the CCIDA’s initial goal to restore the line to a point where trains could run faster through the county. However, that would require more rail ties to be replaced, he said, and that would add to the overall costs.
Last summer, the CCIDA renewed a 10-year PILOT agreement with NYS&W. The CCIDA currently holds title to the line through that agreement and NYS&W is required to maintain the Utica Main Line upon completion of the project.
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