Grafton & Upton Railroad (G&U) Discussion

Also with interest rates rising and likely impending or already recession, we are at or past the top of the real estate market. I also imagine that any other real estate endevors Mr. Priscoli has would be slowing down so this might improve his cash flow.

For those who are following the G&U/Hopedale saga...

Ping... https://dcms-external.s3.amazonaws.com/ ... 306621.pdf
and Pong... https://dcms-external.s3.amazonaws.com/ ... 306632.pdf

Take a look at this Town of Hopedale filing with STB - especially Jon Delli Priscoli's sworn affidavit at the end! Looks like the proposed new transload yard at West St Hopedale is not feasible and the plan is withdrawn. Storm clouds loom over the G&U's continued existence, according to JDP.

Excerpts from JDP's affidavit:

2. On or about January 20, 2023, I suspended Mr. Milanoski from his role as President of the Grafton & Upton Railroad and thereafter on February 8, 2023, I terminated the employment of Mr. Milanoski and assumed the role of Chief Executive Officer of the Grafton & Upton Railroad. I am providing this affidavit in support of the motion to modify the preliminary injunction dated February 2, 2023.

4. First, the preliminary injunction is unsecured. Adherence to the terms of the current preliminary injunction will cause the Grafton and Upton Railroad to sustain substantial damages and will threaten its ability to continue operations. Financing must be secured so that capital improvements in its tracks and terminal facilities can be made, aged equipment can be replaced, and settlement of the ongoing litigation with the town of Hopedale must be explored.

7. In review of the West Street project, I have determined that Milanoski’s plan for the site was not workable since slope issues make track installation impractical. Moreover, Milanoski’s decision to clearcut trees at the West Street site is now the focus of potential wetland violation investigations by the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers.

8. I would like the railroad to reopen settlement negotiations with the Town of Hopedale and other interested parties immediately to explore resolution of all West Street disputes, which ultimately may require a transfer of some land as part of a settlement. The current injunction does not allow any settlement negotiations much less allow the transfer of some property in the West Street location to resolve the various suits.

9. The Milanoski-ordered clearcutting at the West Street site has resulted in significant attorney and expert costs accrued by the Grafton & Upton Railroad, as will the anticipated compliance orders from the EPA. Bank financing, with the security interests that normally are integral to such financing, would not be allowed under the present Order on the preliminary injunction.

10. I have received a report from RJ Corman Railroad Services of Nicholasville, Kentucky that indicates that it is imperative for safety and increased commercial operations that Grafton & Upton’s main line rails and ties be upgraded from Light Rail ASCE 85 lb. per yard to Heavy Rail 115 lb. per yard. Financing must be arranged by Grafton & Upton to finance this essential project, which is estimated to cost in excess of $10 million. The current injunction bars the acquisition of financing for this needed project. Given the many months period required for a project of this nature to ramp up, with acquisition of replacement rails and other supplies, and arrangements for needed equipment and contractor personnel, there is a pressing need to get this project started now, for both safety and expanded operational reasons.
11. The Grafton & Upton transfer facility in Hopedale, MA must have track added, and an additional storage installed. The likely costs of these upgrades, approximately $7 million, must be financed. Additionally, the Milford yard needs to have additional tracks installed to properly service the transloading needs of the existing and potential customers.
12. Two train engines need to be replaced; the lease for one is expiring and the other is presently out of service and in need of extensive repairs. There are various other pieces of equipment that need repair. The current injunction bars financing for these expenditures.

Lastly:

17. I understand why the Court would enjoin me from selling my shares in the Grafton & Upton Railroad while this dispute is pending, but the current order goes well beyond preservation of the Railroad stock ownership and actually prevents the Railroad from taking the economic steps needed to remain viable and to continue to make upgrades to the tracks, related infrastructure and equipment.

https://dcms-external.s3.amazonaws.com/ ... 306849.pdf

Yikes! This is crazy. JDP had no idea of these issues before all this happened? He never saw a map of the project? Never went to the site? I have trouble believing this.

johnpbarlow wrote:Take a look at this Town of Hopedale filing with STB - especially Jon Delli Priscoli's sworn affidavit at the end! Looks like the proposed new transload yard at West St Hopedale is not feasible and the plan is withdrawn. Storm clouds loom over the G&U's continued existence, according to JDP.

While I somehow doubt that this’ll cause the G&U to cease existing (stormclouds and all that, though I imagine it’s hard to run a railroad when you’re blocked by a court order), this is ridiculous. How does this go unnoticed for such a long time by JDP?

That land will now make a nice solar farm

Am I understanding this correctly, John had no idea his CEO, designed a transload yard and had the land clearcut in preparation for construction and he wasn't aware of it!? Good grief!

A lot of well written information concerning the issues surrounding the dispute regarding the land.

In the end, however, the only time "Eminent Domain" is filed is when the filing party DOES NOT own the property they are seeking. Hopedale tipped it's hand with that move which cannot be undone.

Kudos to the G&U for still desiring to come to the negotiating table to work out some sort of deal with Hopedale. That is what a good neighbor does.

Hopefully Hopedale will come around by deciding to join the G&U on the high road.

Delli Priscoli holds his ground v. Town of Hopedale and describes a more workable plan B for developing the West St Parcel (that Hopedale wants to take via eminent domain) into a smaller, less complicated transload facility than was originally envisioned (eg, no switchback sidings).
https://dcms-external.s3.amazonaws.com/ ... 306919.pdf

Bumping thread with recent STB decision re: Town of Hopedale v. G&U's new transload facility. Looks like the STB has decided in G&U's favor re: the development of a new transload facility on its West St property in Hopedale. And Hopedale's attempted land-taking of the property is pre-empted. Excerpt: "...the Board finds that the record supports a finding that GURR is in the process of constructing facilities to be used for “transportation by rail carrier.” The Board and the courts have held that state or local permitting or preclearance requirements, including environmental and land use permitting requirements, of such facilities are categorically preempted...."

https://dcms-external.s3.amazonaws.com/ ... /51770.pdf

I love it when the STB gets feisty:

The Town and the Commission—of their own accord—set into motion the events that have necessitated the Board’s involvement while the state property litigation remains ongoing.

tl;dr: By not waiting for the MA court decision and instead trying to take the land by eminent domain, the town essentially forced the STB to be involved. STB decided that holding the docket in abeyance would cause irreparable harm to G&U, so it was compelled to rule and has ruled that the G&U plans to use the land for rail and rail-related activities, and therefore, the town is preempted from restricting that use or taking the land.

Preempted for now. If state courts determine Ch 61 violation, the RR could still lose the land. This will take years more.

And in the meantime, the railroad will continue to develop the land they own and once it's up and running it will be protected under the STB's authority, which will negate the Chapter 61 violation anyways. There's a reason the town tried to take the land, they know Chapter 61 is moot if the railroad gets their facility up and running before the case goes to trial. Of course, that's assuming Chapter 61 was violated which the railroad claims was not.

Been pretty quiet on this thread lately. Is the G&U still humming along as usual?

Looks like the 1751 is finally back in service with new paint. Interesting thay they ditched the yellow for orange, but I'm not complaining as it looks sharp! I'm hoping these colors will follow to the MP15's in the near future....

https://www.railpictures.net/photo/855457/