Another V&T article...

John Barnhill Feb 23, 2008

  1. John Barnhill

    John Barnhill TrainBoard Member

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    V&T: Who's paying the train fare?

    Several counties directing V&T construction have given little or nothing to the project

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    By Dave Frank
    February 21, 2008, 4:01 AM
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    An 18-mile tourist railroad that could face construction delays if it doesn't get more money has received over half its funds from Carson City but little or nothing from several other counties also directing the project.

    The nine-member Nevada Commission for the Reconstruction of the V&T Railway, which includes representatives from Carson City as well as Storey, Washoe, Lyon and Douglas counties, has about $37 million of the $55 million it needs to finish.

    Carson City has given $21 million of that, more than all other counties combined. Washoe County has given $250,000. Douglas and Lyon counties have given nothing.

    Lyon was part of the initial three-county commission formed with Storey County and Carson in 1993. Washoe and Douglas were added in 2001. County representatives have an equal vote on the commission.
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    Cathleen Allison/Nevada Appeal Granite Construction welders Randy Farmer, left, and Marty Bowyer work on the V&T Railway tunnel No. 2 Tuesday afternoon.

    Storey, which has less than a tenth of the population of Carson, added a quarter of a cent sales tax in the early 1990s that has raised $2 million.

    The state, which has three representatives, has given about $2 million. The commission has gotten about $12 million in federal grants.

    Work on the railroad running from Virginia City to Carson City could have to temporarily stop at the edge of Carson next year if the commission doesn't get more funds.

    Nevada Assemblywoman Bonnie Parnell, who cosponsored the 2001 bill that added representatives from Washoe and Douglas counties, said there is no explicit language in the bill that asks counties to contribute money.

    The assembly had hoped, however, to "create a situation where everyone who would be affected by (the project) would be encouraged to participate."

    Commission Chairman Bob Hadfield, appointed by the speaker of the assembly, said at a commission meeting this month that he was embarrassed that his home county, Lyon, had given nothing.

    "We need to start kicking ourselves somewhere to make sure we're pulling it together," added Commissioner Dwight Millard, who was appointed by the governor.

    Carson City has raised its money through an eighth-of-a-cent sales tax passed by supervisors in 2005 and a room tax implemented by the Carson City Convention and Visitors Bureau in 2002. Project supporters say the railway will bring more tourism and recognition to the city.

    Mayor Marv Teixeira, the city's representative on the commission, said he won't blame any county for not giving, but he hopes all represented on the commission will support the project.

    "If it wasn't for (Carson City), this project would have stopped," he said.

    Storey County pays its quarter-of-a-cent sales tax to the project, said John Flanagan, Storey county's representative, because residents want to promote tourism in the county. He said the 104,000-acre Tahoe Reno Industrial Center helps drive the sales tax contributions.

    Many people in Lyon County, however, don't think the project will help them, said Larry McPherson, Lyon county's commission representative, so it's difficult to convince them to tax themselves for the project.

    Lyon County, before McPherson was the commission representative, turned down the same quarter-cent sales tax that Storey approved. Carson City voters also rejected it.

    McPherson said he might try to put either a property tax or sales tax on the ballot in November, but he doesn't know if it will pass.

    "You know how people are with taxes," he said.

    Commissioners have said they will try to get another $250,000 from Washoe County, an area Teixeira said will provide many of the hotel rooms railroad visitors will use.

    Each county's residents have the right to choose whether they want to give to a project, said Ron Weisinger, director of the Northern Nevada Development Authority, but the railroad will benefit all counties represented on the commission.

    "It's all part of that grand approach of bringing tourists into the area," he said.

    This tourism, said Carson City Convention & Visitors' Bureau Director Candy Duncan, is why the project is important to the city.

    "Obviously, we're putting our money where our mouth is," she said.

    The V&T Railway, modeled after the original railroad built in 1869 to handle the Comstock mining boom, is expected to be finished in 2011.

    Workers finished about a mile and a half of track from Gold Hill to the Overman Pit in 2005 and have started on about 4.5 miles from American Flat in Storey County to Mound House in Lyon County. That section is expected to be done in August.

    Work will then start on the next 5 miles that will take the project to the edge of the city.

    After that, the commission might have to wait.
     
  2. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    It would be interesting to look at demographics for the counties committing so much less. Perhaps there's a small story there. Still...

    Boxcab E50
     
  3. JCater

    JCater TrainBoard Member

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    ah...politics, politics, politics....meanwhile a very worthwhile project may die.
     
  4. John Barnhill

    John Barnhill TrainBoard Member

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    More news...

    V&T commission OKs mayor's $10M plan

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    By Dave Frank
    March 4, 2008, 4:01 AM
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    Mayor Marv Teixeira's proposal to trade $10 million in sales taxes for 5 percent of the V&T Railway's ticket sales moved forward Monday when it was approved unanimously by a state commission.

    Teixeira now plans to put the proposal on the November ballot as a non-binding advisory question.

    "I'm not saying this is going to be an easy sell," he told the Nevada Commission for the Reconstruction of the V&T Railway, "but I sure think it's worth the effort."

    Carson City would give the commission the money through a one-eighth-of-a-cent sales tax increase in exchange for 99 years of a cut of ticket sales. The city has so far given $21 million in sales and room taxes to the project that is expected to cost $55 million and be finished in 2011.

    The 18-mile tourist railroad is under construction and will run from Virginia City to Carson City when completed. Work could be delayed next year, however, if the project doesn't get more money.

    "I don't see how we can stop now," Commissioner John Tyson said. "We've come too far and it's cost too much."

    The plan would not only recoup the money the city has invested but eventually begin to generate a profit, Teixeira said. He acknowledged this could take at least 80 years.

    "I want to build a revenue stream that will in fact stand the test of time," he said.

    Teixeira expects 200,000 riders a year will eventually ride the train, which will likely be run by a private operator. The commission has chosen Oakdale, Calif.-based Sierra Railroad Co. as the operator, but does not have a final contract.

    The mayor should have asked for a bigger cut of ticket sales, former commission member Janice Ayres said at the meeting.

    "If it (the railroad) gets built, it's from Carson City," she said, "believe me."

    But 5 percent is fair, Teixeira said, and asking for more might cause problems.

    Workers have finished about a mile and a half of track from Gold Hill to the Overman Pit. Granite Construction, the business the commission is now contracted with, has started on about 4.5 miles from American Flat in Storey County south to Mound House in Lyon County, which is expected to be done in August.

    Commissioner Larry McPherson said the plan would help finish the project, though it might not help everyone.

    "Isn't this an election year?" he said.



    • Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212.
     
  5. John Barnhill

    John Barnhill TrainBoard Member

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    more news...

    Operating option for V&T sparks controversy

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    Dave Frank
    Appeal Staff Writer
    March 6, 2008, 4:01 AM
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    The state commission in charge of building the reconstructed V&T Railway should be ready to run the railroad if a private operator backs out, some commission members say.

    But the commission is not qualified to run a train, other members say, and should focus on finishing the 18-mile railroad from Virginia City to Carson City.

    An operations committee that was created this week will work to buy railroad equipment and develop a plan for the commission to operate the train if it has to, said Commissioner John Tyson.

    "We're in the railroad business whether we like it or not as long as we have one dime of taxpayer money," he said.

    Tyson acknowledged that he himself would like the commission to manage train operations, but said the committee itself is only proposing this idea in case of an emergency.

    The commission picked Oakdale, Calif.-based Sierra Railroad from applicants in 2006 to run the train but does not have an agreement with the company.

    Commission Chairman Bob Hadfield said the commission needs the experience of a company like this to run the train and called the committee "totally inappropriate," especially when the vote was taken while three of the nine members, including him, were gone.

    The work of the commission should be to finish the railroad and raise the money to do it, he said, adding that it is far too early for a commission unqualified to run a train to think about a back-up plan where it itself would operate the train and spend public money to do so.

    Workers finished about a mile and a half of track from Gold Hill to the Overman Pit in 2005. They have started on about 4.5 miles from American Flat in Storey County to Mound House in Lyon County, which is expected to be done in August.

    The entire $55 million project is scheduled to be done in 2011.

    This is work the commission needs to finish, Commissioner and Carson City Mayor Marv Teixeira said, and the creation of the committee in light of this is "short-sighted" and "a waste of time."

    "I think we've already been down this road," he said.

    But the commission has the responsibility not to put itself in a position where "you have a railroad with nothing to run on it," said Commissioner Ron Allen.

    The commission has a $420,000 steam engine as well as five train cars that have cost about $55,000. A report last year by Sierra Railroad said it could cost between $250,000 and $300,000 per car to get them ready for use.

    The state act that created the V&T commission doesn't say that the commission can't manage operations, Commission Attorney Mike Rowe said, but "I don't think it was intended by the act to have the commission run (the train)."

    The commission should have some oversight over the company that runs the train, he said, but only relatively recently has anyone suggested the commission should for any reason manage the operations of the train.

    The plan, however, is something a committee should at least investigate, said Commissioner Larry McPherson.

    "I can't see giving a private company profits off this," he said. "It would seem they would have a stranglehold on us."



    • Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212.
     
  6. JCater

    JCater TrainBoard Member

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    This could be a news story directly out of a newspaper of the late 1800s!! I think there are a few paralells here also to the situation of the Georgetown Loop railroad...a railroad with nothing to run on it and government (in that case the State of Colorado) involvement. I tend to agree that the committee is not qualified to run a railroad...
     
  7. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    I hope someone other just politicians is on that committee. They may not be qualified to operate a RR. But having a fall back position, in case of no outside contractor, is not a bad idea either.

    Boxcab E50
     
  8. John Barnhill

    John Barnhill TrainBoard Member

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    I would think that the family who operates the existing line already would be the best bet for a fallback plan. But that is just too logical I guess.
     
  9. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    I'd hope that could be true. Is everything smoothed out, between all parties now? Or will some unhappiness be carried forward?

    Boxcab E50
     
  10. John Barnhill

    John Barnhill TrainBoard Member

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    more stuff...

    Train festival to bring V&T Railway back into public eye



    BY MATT FARLEY • mfarley@rgj.com • March 17, 2008


    As efforts to rebuild the historic V&T Railway chug slowly toward realization, local art and rail enthusiasts are preparing to greet it with a party.

    Railway Reflections, billed as "a major international railroad art exposition," will feature railroad-influenced art by 100 artists from Russia, Australia, Japan and other countries, event organizer Steven Saylor said.

    "People, including people in Carson City, may have heard about the V&T, but they don't know anything about it," he said. "Our plan was to come up with a big event to raise awareness worldwide as well as locally. We want this to be a new regional event that overlaps with Hot August Nights, the Lake Tahoe Shakespeare Festival and Artown."

    The festival will center at the Nevada State Library and Archives, with events also at the Galaxy Fandango 10 theater, Sand Harbor State Park at Lake Tahoe and Odeon Hall and Saloon in Dayton.

    In addition to an art show showcasing paintings, sculptures, photography and drawings, the festival will introduce a variety of V&T merchandise such as wine and reproductions of artists' work.

    The controversial reconstruction project, expected to cost at least
    $55 million by the time it's finished in 2011, is slated to run 18.3 miles from Virginia City to Carson City, organizers said.

    While proponents maintain that a rebuilt V & T will massively bolster local tourism and culture, detractors are concerned the initial investment will be too large to recover in a reasonable span.
    Train funding


    The debate intensified recently after Carson City Mayor Marv Teixeira announced a
    $10 million proposal that would bring the city's total contribution to the V&T to $31 million.

    "The truth is, it's not good enough to just have the railroad," said Bob Hadfield, chairman of the Nevada Commission for Reconstruction of the V&T Railway. "You need something to highlight it, and
    that's what this is."

    Though a portion of the proceeds from Railway Reflections will be donated to the V&T, Hadfield downplayed any immediate financial boost the reconstruction effort might receive. But if, as organizers are hoping, the event develops into an annual affair, it could go a long way toward making the V&T brand self-sustaining, Saylor said.

    "I don't think we'll see too much of a (monetary) benefit from it for two or three years," Hadfield said. "We're approaching it like Hot August Nights or Artown, (neither of which) really started going until several years down the road. The idea is, hopefully we'll get (Railroad Reflections) started soon enough that by the time the V&T is done, we'll have a continuing revenue source that we can reinvest in the project."

    However, publicity attracted by the event could give the V&T a shot in the arm as early as this year, Hadfield said.

    "Once we build the bridge across (U.S. 50 East) at Mound House, I know that some people who have been holding back will see that this is actually happening and we'll get some money," he said. "For now, (Railroad Reflections) is the linchpin of our public relations campaign. If we can get a lot of people engaged, who knows what might happen?"
     
  11. John Barnhill

    John Barnhill TrainBoard Member

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    the "daily" update :)

    The $10 million question

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    Amy Lisenbe/Nevada Appeal Gary Luce, senior engineer and geologist at Geocon Consultants, Inc., explains part of the inspection process for the frame work on Tunnel Two of the V&T Railway Monday afternoon.


    Dave Frank
    Appeal Staff Writer
    March 18, 2008, 4:01 AM

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    The city will likely put Mayor Marv Teixeira's $10 million advisory question on the November ballot, but some supervisors say he will have to work to convince voters it's a good idea.

    The board will vote Thursday on whether to ask voters if the city should give $10 million to the V&T Railway project through a one-eighth cent sales tax in exchange for 5 percent of the ticket sales.

    Carson City has already given $21 million to the $55 million state tourist railroad through room and sales taxes.

    Supervisor Pete Livermore said he wants to know more about the mayor's proposal before he decides if he supports it, but thinks voters should be allowed to tell the city what they think.

    Selling the idea to them, however, could be "a rough-go."

    "I don't know the sentiment of voters," he said, "but it seems pretty tough out there."

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    Photos by Amy Lisenbe/Nevada Appeal Crews work on a portion of the future V&T Railway that leads into Tunnel Two. Above, Gary Luce, senior engineer and geologist at Geocon Consultants, Inc., explains part of the inspection process for the frame work on Tunnel Two of the V&T Railway Monday afternoon.

    The slow economy makes this a "very unfortunate time" to ask for the tax increase, said Supervisor Shelly Aldean, though putting the question on the ballot for a non-binding vote doesn't hurt anything.

    But a better question would give voters options on what to use the sales tax for, she said, asking them if the city should use it for a variety of projects including the V&T, economic development and public works. It should also ask if voters don't want to raise taxes at all.

    "I'm a big supporter of the V&T," she said, "but Carson City has made a substantial investment already."

    The V&T question could also be contingent on other counties on the Nevada Commission for the Reconstruction of the V&T Railway contributing, she said. Three out of the five counties - Lyon, Douglas and Washoe - have given little or nothing to the project.

    "They're driving the train," she said, "but they're not fueling the engine."

    The commission unanimously approved the plan this month.

    The meeting will be a good place to ask more questions about the V&T project, Supervisor Robin Williamson said, especially because the expected project cost has risen millions over the past few years.

    She said she "will keep an open mind," but believes there are "many more investments that have more economic benefits as well as social benefits."

    City staff had talked about using the tax for street maintenance, though the public works department can operate without the sales tax money, said Ken Arnold, a department manager.

    The city will have to increase rates or see the economy get significantly better for the department to be able to do any new projects, such as upgrading the sewer treatment plant, he said.

    The V&T is the right place for the sales tax, Teixeira has said, because it will help pay back the money the city's spent on the train, eventually giving it a steady source of revenue.

    It is the right plan, he said Monday, and should not be modified.

    Most of the business community supports the plan, said Ronni Hannaman, director of the Carson City Chamber of Commerce, because it's a "win-win situation" that will help the city and benefit business.

    Also, most room taxes and 40 percent of sales taxes are paid by visitors, she said, so the money isn't "coming out of city coffers."

    About a mile and a half of the V&T track from Gold Hill to the Overman Pit has been finished, and workers have started on about 4.5 miles from American Flat in Storey County south to Mound House in Lyon County, which is expected to be done in August.

    The 18-mile track running from Virginia City to Carson City is scheduled to be done in 2011.

    • Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212.
     
  12. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Has there ever been any reason noted, for why those other counties are standing aside? Tax base? Economics? Other?

    Boxcab E50
     
  13. John Barnhill

    John Barnhill TrainBoard Member

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    yet more news...

    V&T question to appear on ballot



    Matt Farley March 20, 2008


    An advisory question asking Carson City voters if the city should levy an eighth-cent sales tax to help raise money for the V&T Railroad project will appear on ballots this November, the Board of Supervisors decided Thursday.

    Mayor Marv Teixeira and others working to rebuild the railroad for tourist use painted the project as a balm for the city’s recent money problems. The city has already invested about $21 million in the V&T and the new measure would aim to add $10 million more.

    “This is the only project that will drive revenue back to Carson City,” Teixeira argued. “The only question is if we’re going to take advantage of it or not.”

    Other members of the board and the community expressed concerns that the tax increase, the last the board can legally impose without getting approval from the state Legislature, could be better used elsewhere. Others noted that if voters rejected the measure, the future of the V&T could be endangered.

    In the end, though, only Supervisor Robin Williamson voted against placing the measure on the ballot.

    “Posing this question (to voters) indicates that the V&T is our No. 1 priority,” she said. “I don’t believe that’s the case.”
     

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