A lawsuit filed by Great Smoky Mountains Railroad against the town of Dillsboro had nothing to do with the train ceasing operations in town but made the decision to leave easier, the railroad’s general manager told this newspaper on Wednesday.

The train would have left anyway because it was an economic decision to consolidate the train’s operation in Bryson City, GSMRR General Manager and Vice President Kim Albritton said.

But she said if the town of Dillsboro and the railroad had a better relationship, the train might have given more notice to the town and merchants of the train’s leaving.

“We could have talked to the town and explained the reason why,” Albritton said. “The town would have known sooner.”

She said that because of the lawsuit there was “no communication” between the town and the railroad.

If merchants had known about the train’s plans to leave sooner, they could have decided on store inventory orders better, Albritton said.

She said the train gave a 14-day notice.

Bradley’s General Store owner David Gates said he wishes the train would have notified him earlier that it was leaving so he would not have ordered as much inventory for the upcoming months.

“It is very disrespectful to the stores that supported the train,” Gates said. “I recommend that no one ride it. They’re a big corporation and don’t care.”

Because the relationship between the town and the railroad had deteriorated, it was not “difficult for us to make the decision (to leave Dillsboro) mid-year,” Albritton said.

The railroad, which was a tourist attraction that took riders on a scenic tour, ceased operating Aug. 8 after 20 years. Town merchants and officials are concerned what effect the train’s absence will have on Dillsboro’s economic future. The train brought in an estimated 60,000 people a year.

Lawsuit pending

A lawsuit filed by GSMRR against the town and Parker Paving of Sylva in 2007 charges that Dillsboro is responsible for damage that occurred to the train in August 2004.

The lawsuit charges that when the roadway was resurfaced in the train’s right of way at the Younge Street crossing, it led to one of the train’s cars scraping the street. The town and Parker Paving deny the allegations, and a hearing to grant the town summary judgment on the matter is scheduled for Sept. 2 at the Jackson County Courthouse.

The lawsuit states that the incident caused $42,000 in damage to the train car and resulted in $51,000 in lost revenue while the car was out of service.

Settlement?

Albritton said the railroad sent Dillsboro Town Manager Herb Nolan a letter about a month ago offering to settle the lawsuit for about $25,000, but the town did not take it.

“I don’t feel they are negotiating at all,” Albritton said.

Nolan refused to comment on the lawsuit.

The mayor and town aldermen say they were not involved in negotiations to settle the lawsuit because the lawyer for the town’s insurance company handled the matter.

Had the town’s aldermen, mayor and manager taken a more active role in attempting to settle the lawsuit, would it have been resolved?

Alderman Jim Cabe doesn’t think so, saying the town does not want to settle the lawsuit because he doesn’t believe it is at fault.

“If I kicked you in the nuts, would you expect me to pay you for it?” Cabe asked.

A mediation meeting in May between the town and the railroad to attempt to settle the lawsuit resulted in an impasse. Dillsboro Mayor Jean Hartbarger said she was not at the meeting but that the attorney for the insurance company, Cathryn Little of Raleigh, and Nolan represented the town.

Little refused to comment on pending litigation.

Hartbarger said the town gets its insurance through the North Carolina League of Municipalities.

Alderman Bud Smith also said he did not take part in negotiations concerning the lawsuit, saying it “was left in the lawyer’s hands. That’s what we pay insurance for.”

Smith said the train did not leave because of the lawsuit but because it was “poorly managed and not making money.”

Asked how she felt about Smith saying the train was poorly managed, Albritton said, “I think that’s terrible for him to say.”

The railroad’s attorney John Hunter of Asheville said the town never made a “meaningful offer” to settle the lawsuit.

“We are very disappointed this hasn’t settled,” Hunter said. “The railroad desires to settle the matter.”

Albritton said the railroad and town needed to be “good neighbors” and resolve the lawsuit and “come to middle ground.”

Alderman John Faulk said he did not take part in settlement negotiations, but he said Hartbarger and Nolan kept the aldermen informed about the matter.

“I’m sure they (Hartbarger and Nolan) did what they thought was right,” Faulk said, adding, “I don’t want to speculate on what could have been done differently.”

Alderman James Cochran could not be reached for comment.

Plans made long ago

Albritton said the company that owns the railroad, American Heritage Railroad of Durango, Colo., announced in 2002 that it would consolidate its operation in Bryson City to operate more effectively.

The original plan was to consolidate once a new car shop facility (a building where train cars are worked on) in Bryson City was complete. Construction of the car shop has not started because the train is awaiting approval of a $3 million loan from the federal Railroad Rehabilitation and Improvement Financing program, Albritton said.

She said the railroad did not wait until the car shop was complete to move operations to Bryson City like was originally planned, because “operational costs are forcing us to do it earlier than we would like.”

Twenty-two railroad employees lost their jobs, and eight were offered transfers to Bryson City, Albritton said.

Looking down the line

President of the Dillsboro Merchants Association Teresa Dowd said her organization is responding to the train’s leaving by planning events to bring people to town.

She said Front Street Friday, which will feature a farmer’s market, baked goods, crafts and live music, will begin this Friday and run every Friday though the second weekend in December.

Also, she said the association plans to continue to advertise Dillsboro.

However, Gates of Bradley’s General Store said it is difficult to replace the advertising the railroad did for the town.

Dowd also said a vintage car rally that was taking place once a month will now take place every week. And she said a sidewalk sale Aug. 30-Sept. 1 has been scheduled to draw people to Dillsboro.

Some Dillsboro merchants say the train’s leaving won’t hurt them, while others say it will.

Country Traditions owner Janet Chinners said the train riders did not shop at her store. Dillsboro offers much more than the train including fishing, rafting, restaurants, shopping, bed and breakfasts, and festivals, she said.

Also there is the future Appalachian Women’s Museum at the Monteith House and the Green Energy Park.

Brenda Anders of Dogwood Crafters said the craft co-op has been operating for 32 years.

“Dillsboro was here before the train,” Anders asserted. “It’s sad it left, but it’s not going to be the undoing of Dillsboro.”

Rob Sharp, an employee at Sandy’s Sampler next to the former train depot, said he has noticed a decline in business since the train left.

“So far this week I’ve taken in $100,” he said on Friday.

Sue Stafford, owner of the Cheddar Box, also said her business is down.

“People who say it’s (train’s leaving) not going to hurt them are crazy,” Stafford said. “We’re going to stay as long as we can afford to stay.”

If the town and train had a better relationship the train would probably still be in Dillsboro, Stafford said.

“There’s always been trouble between them,” Stafford said.

Valerie Simpson, owner of Cross Stitch, said she is moving her business to Bryson City after Labor Day.

“Things all year have been slow,” she said, adding that the train’s leaving town was the “last straw.”

“Hopefully Dillsboro makes it, and we can come back,” Simpson said.