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(erielack) Latest Southern Tier Happenings



02/07/2007

RR LOOKS TO MAKE ALLEGANY OPERATIONS HUB

By RICK MILLER ,  Olean Times Herald

The Western New York & Pennsylvania

Railroad is proposing to expand its operations in

New York and Pennsylvania, and making the

Norfolk Southern rail yard in Allegany its hub of

operations.

Railroad president William Burt, who outlined

initial plans last month to the Southern Tier

Extension Railroad Authority, plans to meet

again with authority members on Monday.

Besides taking over operation of the former

Conrail rail yard in the town of Allegany, the

Western New York & Pennsylvania Railroad

plans to lease the north-south rail line running

from Machias Junction to Driftwood, Pa.

Mr. Burt also told members of the Southern Tier Extension Rail 

Authority Western New York & Pennsylvania Railroad will ask for

 an extension of its tax abatement in New York on the east-west line that

runs from Meadville, Pa., to Hornell. It will also seek tax abatement on

 the line from Machias Junction south to the Pennsylvania state line.

"I'm fairly excited about Olean becoming the hub of our operations," 

Mr. Burt told the Olean Times Herald on Tuesday.

Mr. Burt said a shortline railroad like the Western New York & 

Pennsylvania is better able to provide services to small and large 

shippers along the rail lines in question than a larger railroad with 

many more needs for its resources.

"We want to make rail service stronger" in the region, Mr. Burt said.

 He said many companies have been retained, expanded or plan to 

expand because the railroad is available. "Being locally based and managed,

we're in a position to develop local freight in ways a larger, distant railroad 

can't." The Olean to Machias Junction section currently has no business on

 it, but has two sidings in the Franklinville area. In Olean, the only customer 

on the north-south rail route is Dahl-Tile Co. There are also customers along

 the route in Port Allegany, Pa.

It will be up to the shortline railroad to develop the opportunities that are out

 there, Mr. Burt said. He said the railroad will ask the Southern Tier Rail 

Extension Authority to provide the same tax abatement on the north-south

 line as was given for the east-west rail line. That currently amounts to about 

$489,000 a year for municipalities from Machias to Portville, including the

 city of Olean. The tax abatement program on the east-west line was to end 

in 2011, when full town, school and county taxes were to be paid.

However, because of the railroad's need for additional rehabilitation, the 

Western New York & Pennsylvania will ask the Southern Tier Extension 

Rail Authority to delay payment in lieu of taxes

(PILOT) payments due in the last three years of the agreement.

Mr. Burt asked the authority to extend the agreement on the east-west

 line to 2017, during which time, the tax abatement would continue. 

Graduated PILOT payments to municipalities would be due in 2015, 2016

and 2017 instead of 2009, 2010 and 2011, when municipalities in 

Cattaraugus, Allegany and Chautauqua counties would have shared an

 estimated $250,000.

On the north-south line, which is entirely within Cattaraugus County,

 Mr. Burt proposed PILOT payments to begin in 2015. Until then, the

 railroad would receive full tax abatement, about $489,000 a year.

Ronald R. Dukarm  ELHS #532  ELHTS #66
rdukarm_@_adelphia.net

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