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Future of CSX rail line debated

Local companies offer financial help to preserve it

WARREN — Trumbull County and CSX Transportation have six months to negotiate an agreement to turn nearly 14 miles of rail line into bike trail, but a company redeveloping the old RG Steel mill has made an offer for the line to preserve it in an industry-heavy part of the county.

Trumbull County, Newton Falls and BDM Warren Steel Holdings have all sent letters of intent to provide financial assistance to CSX for 13.9 miles of rail line, according to filings with the Surface Transportation Board.

The decision will ultimately be made by that board.

The CSX rail line travels in a semi-circle between Newton Falls and Niles, passing through Weathersfield, Howland, Warren and Warren Township.

CSX in May sought permission from the Surface Transportation Board to abandon the rail line. If the line, unused for two years according to the filing, were to be approved for abandonment, the rail would be dismantled.

But CSX on June 13 accepted a Trumbull County proposal to begin negotiations to convert the line under a public use program, Rails-to-Trails. Under the program, the county and CSX would negotiate the terms to create a “railbanked” trail. But certain features would have to be preserved, like culverts, tunnels and bridges, so the rail company could reopen the line in the future, should it choose to do so.

But, BDM Warren Steel Holdings also has an interest in the line.

The company’s attorney states in a letter the minimum amount it is offering is $741,000 for the rail, but is willing to pay more.

In a June 13 letter, attorneys for the company offered proof of $1.2 million in a bank account.

“We do not want to see that rail line go away,” said Charles J. Betters of C.J. Betters Enterprises, who heads BDM. “We don’t want to operate it, the idea is to preserve it for the right thing in the future.”

Shea MacMillan, manager of business development for the Youngstown Warren Regional Chamber told commissioners Wednesday the chamber is working with BDM as the company pursues the acquisition.

Betters said the company is still in the environmental stages of redeveloping the old RG Steel property for another industrial use. Betters bought it for $17 million in September 2012 after RG Steel declared Chapter 11 bankruptcy and closed. Since then, many structures on the property have been demolished, including the area’s last blast furnace.

The executive director of the Mahoning Valley Economic Development Corporation also sent a letter to the board asking for a six-month delay in proceedings to give them time to develop a plan. CSX objected to the request.

The letter, from Director Michael R. Conway, lists 25 businesses that could be potential shippers on the line.

The right of way “passes near several potential shippers with which CSX apparently has made no effort to develop business,” the letter states.

Newton Falls Village Council asked Law Director A. Joseph Fritz to submit a letter of interest to the board to purchase the rail.

“We want to protect our right to determine in the long term what should happen with the rail. We wouldn’t want to operate it, we would work with a corporation. Rail is important for economic development. We wanted to let them know we are willing to attempt to finance it. We can’t force them to use it, and they have the right to get fair market compensation for the value of it,” Fritz said.

Dan Polivka, Trumbull County commissioner, said over the next few months of negotiations, commissioners, the chamber and other concerned parties will have to negotiate a balance between economic development and recreational use.

“Trails are important for pedestrians and bicyclists, but it is also important for economic development to keep sites that could be developed. There are some sites along there that could bring hundreds of jobs. So we have to look at economic development, too,” Polivka said.

Businesses may choose or reject sites based on rail access, Polivka said. In warehousing and manufacturing, there is a “great benefit” to being able to unload directly from a rail line, Polivka said.

“If there are jobs that could come, we wouldn’t want to abandon it. But we have to support the trails for the beauty and access to nature for our citizens. We have to look at both aspects,” Polivka said.

The trail would help finish the last four-mile Trumbull County leg of the 79-mile Western Reserve Greenway Bike Trail.

MacMillan said the Surface Transportation Board often prefers solutions that keep rail lines operable.

“And with a 65-foot easement, I don’t see why we can’t have both,” MacMillan said.

rfox@tribtoday.com

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