Loading...
HomeMy WebLinkAboutresolution.council.088A-98 1"". A RESOLUTION OF THE CITY COUNCIL OF ASPEN. COLORADO. SUPPORTING THE ROARING FORK RAILROAD HOLDING AUTHORITY'S REOUEST BEFORE THE SURFACE TRANSPORTATION BOARD TO RAILBANK THE ASPEN BRANCH OF THE DENVER AND RIO GRANDE WESTERN RAILROAD RIGHT-OF- WAY AND OPPOSING THE OFFER OF FINANCIAL ASSISTANCE SUBMITTED BY MR. KULMER AND MR. SCHUMACHER Resolution # 98 - 'b<Dh. RECITALS 1. The Roaring Fork Railroad Holding Authority (hereinafter "RFRHA") was created on December 31, 1994, through an Intergovernmental Agreement between Pitkin County, Eagle County, Garfield County, the City of Glenwood Springs, the City of Aspen, The Town of Carbondale, the Town of Basalt, and the Town of Snowmass Village. The purpose of forming RFRHA was to purchase, manage and plan for the transportation and recreational use of the Aspen Branch of the Denver & Rio Grande Western Railroad Right-of-way (hereinafter the "Property"). I"" ~ 2. On June 26,1997, the member governments ofRFRHA amended and restated the Intergovernmental Agreement as follows: a. Member government participation was modified to exclude Garfield County as a voting, funding entity for management and planning of the Property. However, Garfield County did retain voting status on the approval ofthe Comprehensive Plan for the Property. b. The Colorado Department of Transportation, Great Outdoors Colorado, and the Pitkin County Open Space and Trails Board were added as non-voting entities that did not participate in the funding of the management and planning of the Property. c. The underlying purpose ofRFRHA was modified to state that: i. the purchase of the Property will satisfy the mutual, immediate goal of the participating entities to retain the Property for the good of the general public use; ii. the primary use of the Property under the future Comprehensive Plan will be as a public transportation corridor; and iii. secondary uses of the Property can include recreational opportunities and access to adjacent public lands, provided that these secondary uses do not preclude the primary use as a public transportation corridor. o 3. On June 30, 1997, RFRHA purchased the property from Southern Pacific Transportation Company. 4. On June 30, 1998, RFRHA submitted a request to the Surface Transportation Board (hereinafter "STB") to railbank the Property. Rai1banking is a federal process (16 U.S.C., sub-section 247(d)) under which a owner of a railroad can temporarily abandon its common carrier obligations while retaining its other ownership rights and obligations. When railbanked, the right-of-way may be used for a trail corridor until such a time as the owner decides to reutilize the right-of- way for railroad purposes. Railbanking is also consistent with operating passenger excursion railroads, or with freight rail use under a "modified certificate" by a third party operator. 5. On October 16, 1998, the STB granted RFRHA's request to railbank the Property, but provided for a 10-day period for private parties to make Offers of Financial Assistance (hereinafter "OF A") to purchase the Property for operation as an active railroad. ~ 6. On October 26, 1998, a notice of intent to file an OF A was submitted to the STB from the Crystal, Roaring Fork, Colorado Railroad & Minerals LLC, of Carbondale, Colorado. An OF A was submitted from Mr. Morris H. Kulmer and Mr. Kern W. Schumacher of Salt Lake City, Utah. 7. On October 30, 1998, RFRHA filed with the STB a Motion to Dismiss the OFA from the Crystal, Roaring Fork, Colorado Railroad & Minerals, LLC, as it did not comply with the proper procedures regarding submittal of an OF A under the railbanking statutes. On the same day, the STB granted RFRHA's motion to dismiss. 8. On November 5, 1998, RFRHA filed with the STB a Motion to Dismiss the OF A by Kulmer/Schumacher. , NOW, THEREFORE BE IT RESOLVED by the City Council of Aspen, Colorado that: o 1. It hereby supports and endorses RFRHA's request to rai1bank the Property until such a time that the Property can once again be used for passenger and/or freight purposes, and; 0. 2. It hereby supports and endorses RFRHA's Motion to Dismiss the KulmerlSchumacher OF A for the following reasons: o a. The OFA constitutes an abuse of the railbanking process, as Messrs. Kulmer and Schumacher are the president and chairman, respectively, and apparent owners of A&K Railroad Materials Company, a well-known, nation-wide rail salvage company. A&K, through affiliated or commonly owned entities, has a track record of abandoning and salvaging rail lines that it purportedly acquires to operate. Messrs. Kulmer and Schumacher have refused to make available a business plan for operation ofRFRHA's railroad. A&Ks interest in RFRHA's property is more consistent with salvage than with continuing the Property as an active railroad. b. Contrary to Messrs. Kulmer and Schumacher's unknown but suspect private intentions, which in any case run counter to the desired public use of the Property, RFRHA intends to continue to hold the Property as a public community asset and to pursue the reintroduction of passenger and freight service on the railroad once railbanking is approved. Evidence of these intentions are as follows: i. RFRHA is currently involved in and has fmanced an open and fair planning process to determine the ultimate best and highest public use of the Property; ii. The local governments have lobbied successfully to include the potential construction and rehabilitation of a rail system in the Roaring Fork Valley within the federal legislation known as the Transportation Efficiency Act for the Twenty-first Century (hereinafter "TEA-2l"), approved by the President on June 9, 1998. $85 Million has been allocated to this project under the TEA-2l legislation; iii. RFRHA continues to actively pursue the non-subsidized reintroduction of rail freight services on the Property. Actions to date include issuance of a Request for Proposals for the services of a private freight operator, negotiation of a letter of intent with the winning proposer to develop a contract for freight services under a "modified certificate", and presentation of a public freight rail workshop with industry experts to explore the opportunities and costs of potential freight operations on the Property. 0. APPROVED AND ADOPTED ON THE 23~ DAY OF nO\lCv>'1 kr 1998. , f'"', ('"'\. ~ , ATTEST: ~,J~-z APPROVED AS TO FORM: ~~~ RECOMMENDED FOR ADOPTION: New! , Executive Director, RFRHA ASPEN CITY COUNCIL ASPEN, COLORADO Date: 1/ /z3 /qt / I MANAGER APPROVAL