Federal grant money could save rail line

The High Springs City Commission has formally confirmed that it is 100 percent behind an ongoing effort to save the local rail line, and in turn help to refortify the local business of a national company.

                During an Aug. 12 meeting, High Springs commissioners unanimously approved the adoption of a resolution stating their support for a decision to apply for TIGER II grant funds to pay for repairs needed to keep 14 miles of rail line running through the city open and operational.

                The decision to apply for the grant money came about through the joint efforts of the Council for Economic Outreach at the Gainesville Area Chamber of Commerce, the Alachua County Board of Commissioners, High Springs City Commission and Prime Conduit; a national corporation with a facility in the city.

                A problem arose when several months ago, Prime Conduit announced its intention to select one out of four of its locations to house a new piece of manufacturing equipment that would allow the company to adapt its production to a more profitable need in the current market.

                The Council for Economic Outreach orchestrated an agreement between Prime Conduit and the city of High Springs to set up a Qualified Tax Incentive program, which in a nutshell, gives the company a tax break in return for guaranteed new jobs, should it bring the new equipment to High Springs.

                From the start, the company conveyed its intentions of choosing this city, but there was one very big problem that no tax break of any type or amount could make up for.

                The Florida Northern Railroad, the company that owns and operates the local rail line, notified Prime Conduit that the line was scheduled to be shut down because it was not generating enough revenue for the company to afford the repairs and upkeep it needed.

                This rail line is Prime Conduit’s primary mode of shipping, and if the rail was leaving, Prime Conduit would not be expanding in High Springs.

                With the rail company open to possible solutions, the Council for Economic Outreach has been working to find funds to fix the rail and subsequently ensure Prime Conduit’s local expansion.

                David Ramsey, the council’s senior director of economic development, said, “This is the solution to keeping the rail line open,” referring to the TIGER II grant. “And that’s the way the application has been crafted,” he added.

                Short for “Transportation investment generating economic recovery,” the TIGER II is a federal department of transportation grant awarded on a competitive need basis. The minimum cost for a project to qualify it for these funds is usually $10 million.

                In the initial consideration of this option for saving the rail, this requirement presented a potential problem. But Ramsey explained the council looked at ways to bundle this project with others to then qualify, and ultimately it was determined that the application for funding for the rail would be packaged with the Florida Department of Transportation’s bulk application.

                However, Ramsey pointed out, because the rail project is considered to be in rural area, the $10 million minimum can be waived, which means that although this application is being submitted with the bigger DOT one, it will be considered on its own and could be approved independent of the rest of the bundle. 

                The entire application will be finalized and submitted in its entirety on Friday, and Ramsey said he expects to hear back September 15 at the absolute earliest. But more likely, he said, there should be some news by the end of September.

                Meanwhile, Prime Conduit is waiting for the verdict on the rail in order to make the official decision on where its new equipment will be shipped.