Sixth, I am very extremely skeptical about the $2 million the EBTPA claims to have already raised, as mentioned in
April 25, 2013 NRHS press release National Railway Historical Society Announces Top Eight Endangered U.S. Railroad Landmarks [PRWEB]
Back on June 8, 2012, I posted the following to the EBT list under the subject line "2/24/2012 Press Release on PA Rep Fleck's website":
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Here's the
link to a 2/24/2012 Press Release titled "East Broad Top Railroad to Receive $2 Million State Grant to Fund Improvement Project, Says Fleck" that is still posted on State Representative Mike Fleck's website.
That release says that the railroad:
(1) obtained a $2 million grant from the State Transportation Commission in 2012, and
(2) received $1 million from the "Capital Budget/Transportation Assistance Program" in 2011.
Unfortunately, the phrases "to receive", "received" and "been approved to receive this substantial state grant" do not mean what you guys think those phrases mean. Both of the grants appear to be *matching* grants, per my reading of the grant program regulations that are posted online.
In other words, if the EBT had $3 million to spend on its track, then it could get the state to kick in $3 million more.
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To me, it appears that the NRHS thinks that the $2 million grant can be applied towards Mr K's purchase price. I think the NRHS is incorrect.
My reading of the grant requirements leads me to this conclusion: If the EBTPA were to raise $10 million, then the EBTPA could first buy the railroad for $8 million, then use its remaining $2 million to match the state's $2 million grant.
That $4 million ($2 million from EBTPA, $2 million from the state of Pennsylvania) could then be used *solely* to rehabilitate track for provide standard-gauge freight service. That sounds good, but the grant program also says that if insufficient freight is shipped over the rehabilitated track, then the railroad is required to pay back the grant to the state.
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Chris Webster
Personal Website Last Updated in 1996
Here is the 2/24/2012 Press Release, in case it disappears from the Representative's website:
Quote
Press Release, as posted on PA State Representative Mike Fleck's Website
East Broad Top Railroad to Receive $2 Million State Grant to Fund Improvement Project, Says Fleck
2/24/2012
HARRISBURG – A major improvement project to enhance the operation of the East Broad Top Railroad (EBT) will move forward with the help of a $2 million state grant, Rep. Mike Fleck (R-Huntingdon/Blair/Mifflin) announced today. The grant was approved Thursday by the State Transportation Commission as part of a $23 million state investment in 16 freight-rail improvement projects across the Commonwealth.
“I am pleased and excited that the EBT Railroad has been approved to receive this substantial state grant,” said Fleck. “For the last several years, many people have worked very hard on this project and it is gratifying to slowly, but surely, see everything come together.”
The grants are distributed through the Capital Budget/Transportation Assistance Program and leverage $10 million in local investments. Authorized by the General Assembly, the grants are administered by PennDOT’s Bureau of Rail Freight, Ports and Waterways.
The $2 million state EBT grant will go toward the acquisition of land and right-of-way, rehabilitation of existing track, construction of new track and construction of a transload facility in phase one of a project to extend the historic rail line from Rockhill to Mt. Union.
Last year, EBT received a $1 million grant through the state’s Redevelopment Assistance Capital Project program (RACP). The grant was awarded by former Gov. Ed Rendell in 2010 and then reviewed and released by Gov. Tom Corbett.
“The revitalization of the East Broad Top line into the Mount Union Industrial park will create jobs and spur economic growth in the southern end of Huntingdon County,” said Fleck. “It is also a major investment in local tourism, which is the county’s second largest industry. I continue to be a strong supporter of the EBT project because of its great economic potential for the entire region.”
The East Broad Top Railroad Preservation Association has been the railroad’s general manager since 2009. The nonprofit organization is working to acquire the railroad and reactivate all 33 miles of its original main line. The EBT Railroad is the last functioning narrow gauge railroad east of the Mississippi River and has been classified as a national historic treasure.
For more information on Fleck and his legislative priorities visit RepFleck.com or
Facebook.com/RepFleck.
State Representative Mike Fleck
81st District, Pennsylvania House of Representatives
Media Contact: Andy Briggs
abriggs@pahousegop.com
717.260.6474
