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(erielack) Latest Southern Tier Happenings
- Subject: (erielack) Latest Southern Tier Happenings
- From: "ronald" <rdukarm_@_adelphia.net>
- Date: Sat, 10 Feb 2007 12:08:52 -0500
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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