TSR debate heard by Senate committee
No vote taken on Sen. Nichols bill to privatize the Texas State Railroad;
BY TERRIE GONZALEZ MANAGING EDITOR

AUSTIN - The Senate Committee on Natural Resources did not have enough members present to vote on a bill which would pave the way to privatize the Texas State Railroad. The committee hearing, slated for 2 p.m., had a full agenda Tuesday, and testimony scheduled for 2 p.m. did not occur until 6 p.m., close to the Cherokeean Herald's press deadline.

The House Committee was slated to begin hearing testimony on the same topic at 9 p.m. Tuesday night.

During the Senate hearing, local community leaders drew a line in the dirt and chose their sides, both for and against turning the Texas State Railroad over to a private operator.

SB 1659 was explained by its author, state Sen. Robert Nichols (RJacksonville) who said that a substitute bill was being offered to the committee, which removes the rail authority's ability to have bonding authority.

Texas Agriculture Commissioner Todd Staples, who served as Cherokee

County's senator prior to seeking statewide office, waited more than three hours for an invitation to testify in support of Sen. Nichols' bill.

"I have 12 years of legislative service and have worked for the Texas State Railroad."

He explained that all state parks have operating losses, and this bill is an attempt to reduce the losses.

"Texas is young and has only a few assets. The Texas State Railroad is one of these."

Commissioner Staples recapped the chronological events of the financial strain that the park has been under.

"I have never been more proud of the local people working to save this asset using a publicprivate concept," he said.

Following Sen. Nichols, Steve Presley, chairman of the TSR Operating Agency, explained the terms of the contract.

"We are seeking a one-time capital infusion of $12 million. It's already been discussed, and is in contrast to $45 million. During a long process, we selected American Heritage Railway. We feel they are the premier operator in the country. They operate the train in Durango, Colo, and the Smoky Mountain Railroad in South Carolina."

He cited paid ridership of 200,000 at AHR's other locations, and predicted that ridership would double or triple in the first five years.

"We live in a poor rural area with few economic opportunities," he said. "We're not asking for a handout. We're asking the state to invest this money."

American Heritage Railway CEO Allen Harper also addressed the committee, and said he is on a mission to preserve history. "I want to make it so interesting that people will pay a fair price. History is the roadmap to the future."

Speaking against the proposed legislation was Dr. Michael Banks, who is president of Save Texas Parks. "I am opposed to SB 1659 (HB 3113) and the creation of a rail authority.

"This would mean the transfer of a $130 million asset which now belongs to the people of Texas, to an out-of-state company over eight years along with $12 million cash, now. The $12 million is an attachment to HB 1 by Rep. Byron Cook, and would come from general revenue, but is contingent upon passage of this bill."

He cited e-mail correspondence between himself and Texas Parks & Wildlife Department Executive Director Bob Cook, where Mr. Cook said that necessary improvements could be made for $7.6 million over a two-year period and that he and the staff would "very much like to continue operating the Texas State Railroad."

Direrctor Cook, speaking to the Cherokeean Herald just prior to the public hearing and testimony, said he was surprised to see this legislation regarding the Texas State Railroad end up in the State Capital.

"We (TPWD) are willing to sit down and discuss someone else operating a park at any time," he said, indicating that legislative action is not required.

Retired State District Judge Max Bennett of Weatherford also spoke against the bill, and cited what he called "fatal flaws" in the way the bill and contract are drafted.

"The caption header does not describe the bill," he said. He said the bill was also drafted at a time when public sentiment was not in full support of state parks. "The fact is, public sentiment has changed, and the public is in full support of funding the parks system."

He said he objected to giving American Heritage Railways a 12 1/2 percent interest in the train every year until they "own it lock, stock and barrel."

Mary Decker, a member of Save Texas Parks and Friends of the Texas State Railroad, asked the committee why the Texas State Railroad is being held to a higher standard than roadside parks, which aren't expected to bring in money.

"With proper financial promotion, we can do this job," she said.

Public testimony was quickly heard from a group of Palestine leaders, who all support the public-private agreement, including Brian Malone, Palestine Economic Development Coordinator.

Final speaker was Dr. Carolyn Salter, mayor of Palestine, who angrily accused Dr. Banks of misrepresenting petitions that his group has collected.

She read the petition's preamble, and said that Dr. Banks had hijacked the petition from Palestine, and that the petition does not address the Texas State Railroad at all.

"The only money in the (state) budget is for a static display. The state would put it on life support until it is terminated. No one in my city, my county, has said anything other than what we have suggested. There is no groundswell of support for Mr. Banks in my county."

Dr. Banks told the Cherokeean Herald after the meeting that the petition calls for better funding for all state parks, which includes the TSR. He said that he became involved with a petition drive that started in Palestine, and he offered to take Palestine's petitions and include in a data base.

He also said that Mayor Salter is "just wrong" when she said that TPWD only has money in the budget for a static display. LAR requests are pending that would keep the railroad funded by TPWD.

Sen. Nichols said after the hearing that he is glad this part is over. "I feel like they (the committee) will pass this," he said.

The committee will likely put the bill to a vote in one or two weeks.