Colorado Historical Society's FY 2015-2016 Capital Construction Request for the Georgetown Loop

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PROJECT DESCRIPTION / SCOPE OF WORK

The Colorado Historical Society (History Colorado) is requesting a combination of state funds and cash funds spending authority for the third phase of a four-phase project to purchase additional rolling stock (locomotives) and make repairs to the existing rolling stock at the Georgetown Loop Railroad. The project will increase the reliability of the railroad's operations in order to promote local tourism, increase annual ridership, and maintain a positive business reputation in the community and the state. This year's request for Phase III makes improvements to six locomotives. Phase IV will continue repairs on other locomotives and purchase additional rolling stock, as needed. Phases I and II funded the rebuilding and refurbishing of three diesel engines, performed a repair survey on a steam locomotive, repaired three locomotives, and purchased a salvaged locomotive to refurbish.

Specifically, this year's request makes the following improvements:

Locomotive 9 (steam engine): performs routine inspection and makes boiler repairs and valve replacements ($55,000);

Locomotive 21 (diesel engine): repairs prime mover to address excess smoke ($15,000);

Locomotive 60 (diesel engine): machines wheel sets and begins total refurbishment ($40,000);

Locomotive 111 (steam engine): performs routine inspection and repairs the boiler, adjusts the running gear, and gauges and evaluates tender tires ($50,000);

Locomotive 1203 (diesel engine): rebuilds one traction motor, machines wheel sets, and modifies the sanding system ($60,000); and

Locomotive 1934 (diesel engine): continues refurbishment and conversion of standard gauge diesel locomotive to narrow gauge diesel locomotive ($180,000).

PROJECT JUSTIFICATION

An inadequately sized and poorly maintained fleet can lead to operational disruptions that may close the railroad. According to History Colorado, disruption in railroad service has a negative impact on the local economy, and unreliability creates a decline in railroad visitation and business reputation. History Colorado explains that the railroad currently operates only one steam locomotive and one diesel locomotive that is adequately sized for the needed pulling capacity. Ideally, a railroad the size of the Georgetown Loop should operate a fleet of three diesel locomotives and three steam locomotives of appropriate size and pulling capacity, says History Colorado. [emphasis added] Additionally, there is a limited inventory of historic narrow gauge locomotives available for purchase worldwide, and History Colorado says the project provides dedicated funds so it can be proactive in acquiring historic rolling stock.

The Georgetown Loop Railroad is the second-most visited of the Colorado Historical Society sites, behind the History Colorado Center. The well-known property attracts tourists nationally and internationally. The railroad teaches visitors about mountain railroading and the state's mining heritage. According to the Clear Creek Economic Development Corporation, tourism is the second largest industry in Clear Creek County, and the Georgetown Loop Railroad is the anchor of the local tourist economy. The Georgetown Board of Selectmen say that 325 businesses in the area rely on the draw of the railroad for summer business and that when the railroad is not operational due to maintenance issues, local businesses measure a 20 percent decrease in sales. [emphasis added Additionally, the Georgetown Board of Selectmen explain that the railroad employs 55 seasonal workers and 15 year-round employees.

If the project is unfunded, History Colorado says it will run the risk of future equipment failure, which results in shutdowns. Every day the railroad is closed creates a domino effect that negatively impacts revenue generation, the railroad's ability to employ winter workers to perform maintenance on its rolling stock, and the largest tourist economy in Clear Creek.

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2. Please provide the most recent data available regarding ridership and revenue for the loop railroad.

For the 2014 season through December 8th we are up 3.26% in ridership and are even in revenue versus 2013. Specifically, we have carried 95,735 passengers and received $2,469,858.36 in revenue thus far. We still have three more busy weeks of operation for the 2014 season. We have suffered greatly from the I-70 Twin Tunnel construction and this has negatively impacted both our ridership and our revenue the past two seasons as guests have had a difficult time getting to us due to the up to 3 hour long traffic jams coming from Denver.