Group hopes to name private operator by Feb. 23 deadline

A group from Cherokee and Anderson Counties met with the Texas Parks and Wildlife Commission last week in support of the Texas State Railroad.

An operator for the Texas State Railroad is expected to be located by Feb. 23, the commission was told. A special committee, the Texas State Railroad Operating Authority, headed by Steve Presley of Palestine, will decide which proposal to recommend as the operator. Three operators have expressed interest and another is expected to visit the railroad on Feb. 5.

Those who have expressed interest include the American Heritage Railways, which operates the Durango & Silverton Railroad and the Great Smoky Mountain Railroad.

The agency was created with an inter-local agreement between the cities of Rusk and Palestine and will provide information to the Legislature about how the railroad could operate with a private entity running it. The Legislature will make the final decision concerning the train's operation.

Currently the train is scheduled to cease operations at the end of August.

Texas Parks and Wildlife has requested additional funding for state parks in the 2008-09 budget. More than $85 million is being sought from the general fund each year to operate state parks. However, the request does not include the Battleship Texas and The Texas State Railroad. TPWD has asked that the Battleship Texas be given $16.1 million and the Texas State Railroad, $11.8 million.

Walt Dabney, state parks director, explained to the TPWD Commission last week that "the railroad is the largest and most complex unit of the state parks system. You are aware that we have been struggling over the last number of years to keep the train running. We've kind of come to the end of the road."

The impact on Cherokee and Anderson counties shows expenditures totaling $5.9 million. However, sales for the railroad total $8.1 million. There is also another $5.4 million in income to local residents and 157 jobs.

The economic impact of the railroad to the state is estimated at $892,000 in direct expenditures; $1.2 million in sales; $778,000 in income to Texas residents. There were more than 54,600 guests at the railroad last year.

A private operator is expected to bring more tourists to the area, Mr. Presley said. "Probably they will triple or quadruple the ridership at the railroad and double the employment in the area."

The group told Mr. Parker and the commission that they are in favor of keeping as many assets as possible in the hands of the public. These state facilities will be leased to the private entities over a period of six to eight years. Assets would be turned over to the private operator during the six to eight year period. They would earn the assets as they met the group's performance goals.

Rolling stock will not leave the railroad, except on a temporary basis.

The state will be asked to contribute $11.6 million to the private operator. Of that money, most will be used to make repairs to the railroad. Mr. Presley said the railroad needs $30-$40 million in repairs and improvements.

"No one will get money without it having been justified or spent under the contract. The contract is going to be open and visible and ready for anybody to examine before the Legislature even votes" Mr. Presley said.