By Michael Howell
The Ravalli County Commissioners last Thursday gave the Ravalli County Economic Development Authority (RCEDA) authorization to spend up to $5,000 on work related to a pre-application and application for a TIGER grant to fund improvements to the rail line stretching from Polson to Hamilton.
The Transportation Investment Generating Economic Recovery, or TIGER Discretionary Grant program, provides a unique opportunity for the U.S. Department of Transportation to invest in road, rail, transit and port projects that promise to achieve critical national objectives. Congress dedicated $1.5 billion for TIGER I, $600 million for TIGER II, and $526.944 million for the FY 2011 round of TIGER grants to fund projects that have a significant impact on the nation, a region or a metropolitan area. The TIGER funding process is highly competitive, however.
RCEDA Director Julie Foster told the commissioners that since May, when a flood event washed out a culvert on the Lee Metcalf National Wildlife Refuge, Montana Rail Link (MRL) had placed an embargo on the line, suspending service. MRL was reluctant to do the repair work because the Bitterroot Spur Line was currently running at a loss estimated to be about $212,000 annually.
Foster said that shippers using the rail line had come together and worked out a commitment with the railroad that would provide a break even arrangement for the coming year.
In the meantime, she said some grant money has become available through the TIGER grant program that could fund a $2 to $3 million project to repair the Bitterroot and Polson lines. She said that the grants were very competitive and last year only 46 out of 846 applications were funded, only seven of those in the same range of cost. She said a 20 percent match was required which could total $400,000 to $600,000.
Foster said that MRL has indicated it cannot provide the match because of the continuing liability of maintenance for a line that is not producing a profit.
“With no match, there is no hope of getting this grant,” said Foster. She went on to say that MRL had indicated that because the grant was so competitive the company was hesitant to even expend the cost and effort of amassing the information and material necessary to make the application.
Commissioner Greg Chilcott said that it sounded out of character for MRL to not to want to help the community. He said it made sense to move forward with the pre-application and that the county should foot the bill for the work of putting the grant application together.
Commissioner Chair Matt Kanenwisher said that MRL will either help or they won’t, but that the real question for the commission was whether they considered rail service to the valley important or not.
“The short answer,” he said, “is that it’s really important.” He advocated moving ahead and then looking for partners in the matching funds requirement as the process moved forward.
Chilcott concurred, saying that Lake and Missoula Counties also had a stake and that some municipalities did as well.
During public comment Don Matlock noted that once a rail line closes down it does not open back up. He said the Bitterroot Line had economic as well as historic value. He said it was the last operating spur line in the state.
Rick O’Brien, executive director of the Bitterroot Chamber of Commerce, reminded the commissioners of the Chamber’s 2008 Tracks in the Bitterroot campaign to promote the tourism and recreational potential of the railroad.
“This is not about tourism and recreation,” he said, “this is about a death fight to keep this regional asset alive.”
Some of the shippers dependent upon the rail service also spoke in favor of pursuing the application.
Mike Flieger of Lakeland Feed noted that the shippers along the line have been investing a lot in their rail operations. He said that between Selway Corporation and Lakeland Feeds, the two companies have sunk about a quarter of a million dollars in improvements at their rail sites. He, too, noted that once a rail line is closed it doesn’t reopen.
Scott Kurfman of Pfau Feeds said that he bought a business based on dependable shipping sites and they were crucial to his business remaining competitive on a regional market level.
Julie King, Supervisor of the Bitterroot National Forest, said that a viable timber operation was dependent upon economical transportation. She said that the national forest was continuing to offer timber for sales and was ready work with the railroad in any way possible.
Dan Huls, representing Mountain West Co-op, the Cenex dealers, as well as Energy Partners, told the commissioners that the shippers were working hard to put together a program of use that would at least allow the railroad to break even. He said that his company has committed to 30 carloads a year of propane and fertilizer to make that happen. He encouraged the commissioners to do whatever they could to help.
Kurt Geldeman, a forester for DNRC, said that what he picked up from conference meetings was that when the economy picks up again it will happen in a big way and will work for those who are ready to take advantage of it.
Lee Foss, a real estate broker, said that the key to keeping the railroad was the timber industry. He said until the forest can be opened up to more harvest that the railroad would have a tough haul.
Victoria Howell, board member of the Stevensville Main Street Association, said that two of the shippers were members of her organization, Selway Corporation and Mountain West Co-op.
“These businesses give an awful lot to our community and we want to advocate for them,” said Howell. She expressed support for moving forward with the grant application.
The commissioners voted unanimously to authorize up to $5,000 in expenses in pursuit of the pre-application and application process. The pre-application deadline is February 20 and the full application must be submitted by March 19.