I have heard that the RD26 is for sale...
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Developer expresses interest in railroad
By Amy A. Thompson, Clarion News writer
PAINT TWP. – A private railroad company official says his company was and still is interested in the Knox & Kane Railroad but has been hindered by red tape from the parties involved.
The private developer, the company’s spokesperson said, does not want to be publicly identified yet in case some sort of arrangement can be established with the owner of the line.
According to the developer’s spokesperson, his company had several meetings with the Clarion County Economic Development Corp. about the poor conditions of the track. The company was “led to believe that the CCEDC was trying to gain control of the railroad,” the spokesperson said.
“(The developer) in e-mails and repeated phone calls to the CCEDC even stated that we were willing to help rebuild the tracks but we are not in a position to purchase the railroad and rebuild the line totally themselves,” the developer said in an e-mail to the Clarion News.
The developer’s spokesperson said the estimated cost to rebuild the line was only from one company, which the developer believes belongs to a friend of the owner, but the developer submitted the names of other companies which rebuild railroads.
Clarion County Economic Development Corp. Executive Director Brad Ehrhart said Harvey Stone, physical engineer with Stone Consulting of Warren, estimated the repairs for the CCEDC. Ehrhart could not confirm whether Stone is friends with Knox & Kane Railroad owner Sloane Cornell but could confirm they know each other.
In addition, Ehrhart said the state Department of Transportation recommended Stone make estimates on value and damage.
Clarion County Commissioner David Cyphert said conservative estimates for fixing the line were at least $20 million.
“They (the developer) had access to ties and rails but were held up in the movement of the materials to the K&K property due to the CCEDC not being able to come to some sort of agreement with the current owner of the railroad,” the developer’s spokesperson said.
The agreement to which the developer’s spokesperson is referring was a possible sale of the railroad. The owner of the railroad, Sloane Cornell, was offering to sell the railroad for $4 million but came down in price to $3.5 million.
That asking price didn’t sit well with private developers because they estimated the value of the railroad to be no more than $500,000, developer’s spokesperson said.
Ehrhart said the Knox & Kane Railroad does have a large scrap metal value because railroad steel is a better quality than regular steel which drives up the value.
Ehrhart said he could not give an estimate on the value of the railroad because it is a private entity.
In addition to red tape with Cornell, the interested developer said calls also were made to Harrisburg to no avail. According to the developer, “(we) were referred back to the CCEDC” each time it made contact with lawmakers.
“There was a lot of talk but no action,” the developer’s spokesperson said.
The developer also asserts it had access to one grant and possibly other grants to rebuild the line but one of the grants required the state or the Public Utility Commission to be the owner of the line and the developer to be its sole operator.
The developer’s spokesperson said the PUC was interested in saving the line but not interested in operating it and was likely to turn it over to the developer.
In order for the PUC to obtain the railroad an agreement would have to be reached with Cornell.
But Ehrhart said even if Cornell gave the railroad away, there is still the issue of the railroad’s state of repair. The line was “losing box cars, damaging product,” Ehrhart said.
The timeline to make the necessary repairs was estimated to be two years, Ehrhart added.
Ehrhart said the future of the Knox & Kane Railroad is a question of economics.
“It has to be run like a business,” Ehrhart said. “The railroad’s got to be making you money.”
Ehrhart added the only business which would use the railroad is Clarion Boards Inc. Clarion Boards stopped using the line because the rail cars were derailing. Clarion Boards has been hauling its products by truck to the DuBois Reload Center , another rail line for the last several months.
The developer, however, believes if the railroad were repaired Clarion Boards would return as a customer of the line.
“Clarion Boards had stated to the developer that they were very much interested in the developer taking control of the railroad in hopes of getting timely and reliable service,” the developer’s spokesperson said.
In addition, the developer’s spokesperson said another lumber outfit in Marienville also is interested in the revitalization of the line.
“Personally, someone dropped the ball again. It seemed to be all talk and no action. There were more e-mails and phone calls made and all that ever came of it was ‘We are working on it,’” the developer’s spokesperson said.
“It’s off the radar,” Ehrhart said of reviving the railroad. “It’s a terrible asset to lose for the community.”
However, Ehrhart said if there is anything the CCEDC can do to help the developer, it is willing to do so. Ehrhart added the first step for the developer is to contact Cornell.
Also this article
Developer expresses interest in railroad
By Amy A. Thompson, Clarion News writer
PAINT TWP. – A private railroad company official says his company was and still is interested in the Knox & Kane Railroad but has been hindered by red tape from the parties involved.
The private developer, the company’s spokesperson said, does not want to be publicly identified yet in case some sort of arrangement can be established with the owner of the line.
According to the developer’s spokesperson, his company had several meetings with the Clarion County Economic Development Corp. about the poor conditions of the track. The company was “led to believe that the CCEDC was trying to gain control of the railroad,” the spokesperson said.
“(The developer) in e-mails and repeated phone calls to the CCEDC even stated that we were willing to help rebuild the tracks but we are not in a position to purchase the railroad and rebuild the line totally themselves,” the developer said in an e-mail to the Clarion News.
The developer’s spokesperson said the estimated cost to rebuild the line was only from one company, which the developer believes belongs to a friend of the owner, but the developer submitted the names of other companies which rebuild railroads.
Clarion County Economic Development Corp. Executive Director Brad Ehrhart said Harvey Stone, physical engineer with Stone Consulting of Warren, estimated the repairs for the CCEDC. Ehrhart could not confirm whether Stone is friends with Knox & Kane Railroad owner Sloane Cornell but could confirm they know each other.
In addition, Ehrhart said the state Department of Transportation recommended Stone make estimates on value and damage.
Clarion County Commissioner David Cyphert said conservative estimates for fixing the line were at least $20 million.
“They (the developer) had access to ties and rails but were held up in the movement of the materials to the K&K property due to the CCEDC not being able to come to some sort of agreement with the current owner of the railroad,” the developer’s spokesperson said.
The agreement to which the developer’s spokesperson is referring was a possible sale of the railroad. The owner of the railroad, Sloane Cornell, was offering to sell the railroad for $4 million but came down in price to $3.5 million.
That asking price didn’t sit well with private developers because they estimated the value of the railroad to be no more than $500,000, developer’s spokesperson said.
Ehrhart said the Knox & Kane Railroad does have a large scrap metal value because railroad steel is a better quality than regular steel which drives up the value.
Ehrhart said he could not give an estimate on the value of the railroad because it is a private entity.
In addition to red tape with Cornell, the interested developer said calls also were made to Harrisburg to no avail. According to the developer, “(we) were referred back to the CCEDC” each time it made contact with lawmakers.
“There was a lot of talk but no action,” the developer’s spokesperson said.
The developer also asserts it had access to one grant and possibly other grants to rebuild the line but one of the grants required the state or the Public Utility Commission to be the owner of the line and the developer to be its sole operator.
The developer’s spokesperson said the PUC was interested in saving the line but not interested in operating it and was likely to turn it over to the developer.
In order for the PUC to obtain the railroad an agreement would have to be reached with Cornell.
But Ehrhart said even if Cornell gave the railroad away, there is still the issue of the railroad’s state of repair. The line was “losing box cars, damaging product,” Ehrhart said.
The timeline to make the necessary repairs was estimated to be two years, Ehrhart added.
Ehrhart said the future of the Knox & Kane Railroad is a question of economics.
“It has to be run like a business,” Ehrhart said. “The railroad’s got to be making you money.”
Ehrhart added the only business which would use the railroad is Clarion Boards Inc. Clarion Boards stopped using the line because the rail cars were derailing. Clarion Boards has been hauling its products by truck to the DuBois Reload Center , another rail line for the last several months.
The developer, however, believes if the railroad were repaired Clarion Boards would return as a customer of the line.
“Clarion Boards had stated to the developer that they were very much interested in the developer taking control of the railroad in hopes of getting timely and reliable service,” the developer’s spokesperson said.
In addition, the developer’s spokesperson said another lumber outfit in Marienville also is interested in the revitalization of the line.
“Personally, someone dropped the ball again. It seemed to be all talk and no action. There were more e-mails and phone calls made and all that ever came of it was ‘We are working on it,’” the developer’s spokesperson said.
“It’s off the radar,” Ehrhart said of reviving the railroad. “It’s a terrible asset to lose for the community.”
However, Ehrhart said if there is anything the CCEDC can do to help the developer, it is willing to do so. Ehrhart added the first step for the developer is to contact Cornell.
