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Wednesday, 09 November 2011 21:29

Railroad wants money, county wants assurances

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Jackson County is nowhere close to cementing a deal with the Great Smoky Mountains Railroad — one that would offer financial incentives in exchange for basing a steam engine tourist train in Dillsboro.

“It is far from a done deal,” said County Manager Chuck Wooten.

The county and the train have yet to agree on key factors.

The heart of the matter is a restored 1913 steam engine and passenger cars the railroad would like to put in service. But there’s a problem. The train is in Maine, and moving it here would cost $430,000, the railroad’s owner Al Harper estimates.

Harper wants the county to chip in half the cost of moving the train, as well as help secure an outside grant to build a turntable and a standing commitment to help with advertising costs.

Discussions have been informal and intermittent since last winter. The deal is primarily being brokered by a Dillsboro business owner and town board member, David Gates, who is acting as a de facto intermediary between Harper and county officials.

Gates recently drew up a draft contract and passed it around to the various parties. Harper lives out of state, but came to town for the train festival in Bryson City in late September. Gates took him a copy — and Harper promptly signed it.

The draft is not a version the county would endorse right now, however, and Wooten was flummoxed as to why Harper would have signed it prematurely.

There’s a key component missing, from the county’s perspective. Jackson County wants a written guarantee the steam engine would be based in Dillsboro for at least five years — not Bryson City, where the rest of its trains depart from.

“We want it to originate in Dillsboro, turn around in Bryson City and run back to Dillsboro,” Wooten said.

Shops would benefit more if people boarded and disembarked in Dillsboro, rather than merely rolling into town for a 90-minute layover before loading back up and heading out.

The trip from Bryson City to Dillsboro and back lasts four hours total, including the layover. Tickets start at $49 for adults and $29 for children age 2 to 12.

Dillsboro was once the main depot for the train, but the headquarters were moved to Bryson City in 2005. Then in 2008, the train yanked service to Dillsboro completely before partially restoring it the following year.

“When the train left, they lost a lot of traffic,” Wooten said of Dillsboro merchants.

County leaders are skittish that could happen again and want an assurance built into the contract. To pass muster with the county, the contract would have to require the train to keep the steam engine based in Dillsboro for five years. If it is moved elsewhere, the railroad would have to pay back a portion of the county’s grant, Wooten said.

Ideally, the train would promise to run a certain number of trips — such as two a day during summer and fall, and once a day during winter. But the county can’t expect the railroad to make such a commitment not knowing what the demand will be.

The draft contract circulated by Dillsboro stipulated that operations of the steam engine would be based in Dillsboro. But it also stated that “only the Great Smoky Mountains Railroad will have complete authority as it relates to all scheduling and operations of the train set originating out of Dillsboro.”

Such a disclaimer could make enforcement difficult if the railroad ever broke the promise.

Wooten also said if a deal was ever agreed on, the county would shy away from writing a check directly to the railroad. Instead, the county would want an invoice from the company involved in moving the steam engine and would pay it directly.

 

Turntable

A must-have for the train to bring a steam engine to Dillsboro is a turntable, a piece of track that can be spun around to get the engine pointed back the right way when it reaches the end of the line.

The train apparently can’t afford the $200,000 to build one. The tiny town of Dillsboro can’t either. But the town will apply for a grant to cover the cost. A lot is riding on the outcome of that grant.

“No turntable, no steam engine,” Wooten said. “That would be a deal killer.”

The train currently runs on diesel engines. When the engine reaches the end of the line on excursions, it goes in reverse until it gets back to the depot in Bryson City.

Steam engines can’t go in reverse for long distances, however, making the turntable critical. The steam engine would run from Dillsboro to Bryson City, so another turntable would have to be installed there.

A turntable in Bryson City has been discussed for years. In 2005, the train got a $7.5 million low-interest loan from the Federal Railroad Administration, in part to construct turntables in Bryson City and Dillsboro. “How many years ago was that and where is the turntable?” asked Hanneke Ware, an inn owner in Jackson County who doesn’t think the county should give the railroad a grant. Wooten said the train apparently purchased the turntables but never installed them.

A portion of that loan was also for repairs to the track. But the majority was used to restructure existing debt that had a higher interest rate.

That existing debt and federal loan is one reason the railroad wants grants — not more loans — to move the steam engine and for the turntable. Wooten was told by the railroad that it lacked the collateral to take on additional debt right now.

The train has also asked for money for advertising from the Jackson County Travel and Tourism Authority — tapping into the  pot of money raised from a tax on overnight lodging in the county. The train initially asked for $150,000 a year, but has since revised the request to an unspecified amount of advertising on the train’s behalf, specifically for marketing the steam engine service from Dillsboro.

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