Kellar Branch Saga Postscript: Why conversion is a bad idea

Now that you’ve read the background of the Kellar Branch dispute, let’s summarize why converting the Kellar Branch to a recreational trail is a bad idea.

1. Conversion would harm an existing business by eliminating competitive rail access to Pioneer Park.

Right now, the Kellar Branch has access to eight railroads via neutral access with the Tazewell & Peoria Railroad (TZPR) line. Those eight railroads are: Burlington-Northern Santa Fe (BNSF), Canadian National (CN), Illinois & Midland, Iowa Interstate, Keokuk Junction, Norfolk Southern, TP&W and Union Pacific. If they take out the Kellar Branch between downtown and Pioneer Park and rely solely on the spur from the west, there will only be access to one rail line: Union Pacific (UP). That means competition is eliminated and tarriffs go up. That hurts Carver Lumber, and, in fact, it could put them out of business.

Carver’s lumber is shipped via CN and BNSF; getting these shipments via the western spur means that CN delivers them to the TZPR, UP picks them up there and drops them off on the western spur, then CIRY takes them down the spur to Carver. Via the Kellar Branch, UP’s involvement would be eliminated. Adding UP into the mix means slower delivery times and more expense. Carver is already experiencing this since Central Illinois Railroad Company (CIRY) has refused to perfom their common carrier obligation to continue serving Carver over the Kellar Branch. Soon, they may not even have service from the west, as CIRY is not making any profit delivering Carver’s shipments and will likely petition the STB to discontinue service on the western spur before long.

2. Conversion would eliminate the City’s ability to attract rail-served businesses to Pioneer Park and Growth Cell Two.

Contrary to the Journal Star’s belief that “the key to lowering rates is getting more rail customers in Pioneer Industrial Park, to make it more cost-effective for big fish UP,” monopoly power doesn’t work that way. For example, every resident in Peoria is captive to AmerenCILCO, but that doesn’t seem to be lowering their rates, does it? Few if any rail-served businesses are going to want to locate in that area of town knowing they will be a captive shipper to UP — especially not when they can easily go to Pekin or Rochelle and get competitive rail access.

That hurts Peoria, because it means lower-paying service-sector businesses likely will be built in Growth Cell Two instead. Worse, it will probably just be businesses relocating within Peoria like Menards will be doing soon a little north of Pioneer Park. Higher-paying industry jobs attract new residents to Peoria, which means more well-paid people on the tax rolls; no one will move here to work at Wal-Mart, even if we do have a beautiful trail.

3. Conversion would eliminate any future light-rail transit possibilities.

Some believe that Peoria could use light rail transit right now. Even if you don’t agree, there’s ample evidence that the city could use light rail transit in the future as the city continues to expand and grow in population. To put light rail in from scratch would be extremely expensive in land acquisition and construction costs, but to use an existing rail corridor through the heart of town would only take some upgrading of the rails and crossings. The environmentally-conscious among us (like the Recreational Trail Advocates, Sierra Club, and Park District) should certainly be able to see the benefits of light rail mass transit and its positive effect on the environment.

4. Conversion would result in lost revenue for the City.

If the city were to sell the Kellar Branch, it could get at least $565,000 for it — the standing offer from Pioneer Railcorp. If the city were to lease the Kellar Branch to a rail operator, it would have a steady, long-term revenue stream. If the city were to lease the Kellar Branch to the Park District for 99 years at $1 per year, the city would get $99 in rent and the salvage costs of the rails and ties (roughly $200,000). For a city that is so cash-strapped that it’s having trouble keeping its fire stations staffed and enough police on the streets, it’s foolish to throw away the revenue it could receive from keeping the rail on this line.

Furthermore, not being able to attract light industry, manufacturing, or warehouse/distributing tenants to the Pioneer Park or Growth Cell Two area (see #2 above) could mean a tremendous loss of private investment in Peoria. One need look no further than Davenport, Iowa, for an example of what kinds of tenants can slip away when you don’t have rail service; the Quad City Times reported on August 2, 2005:

Among the lost opportunities was a $21 million distribution center for Ferguson Enterprises, a plumbing and heating supply distributor, that had the Davenport industrial park on its final list. But the project went to Waterloo, Iowa, last year because the Eastern Iowa Industrial Park did not have rail service.

As a result, Davenport is building a $4.66 million rail extension to their industrial park. Peoria, on the other hand, already has a rail line with tremendous advantages — the aforementioned neutral access to eight line-haul carriers. If Peoria were able to attract a distribution center like Ferguson Enterprises, that would be $21 million in private development for Pioneer Park/Growth Cell Two. Would you rather have that and the jobs that come with it or a trail built with $4 million of your tax money redistributed to the park district?

5. Eliminating the rails is completely unnecessary.

The Park District and Journal Star act as if making the Kellar Branch corridor a dedicated linear park through town is absolutely imperative. They say it’s necessary to connect the Rock Island Trail with the Pimiteoui Trail, making one continuous trail from Toulon to Morton. In reality, there are other options. One option is to share the corridor as much as possible. If certain sections are impassible, they can detour the trail onto or adjacent to a nearby street. If the Park District would have done this in the first place, the trail would be done by now. Alternatively, the park district could just as easily run the northern part of the trail east along Detweiller Rd., through Detweiller Park, then south along the riverfront to connect with the Pimiteoui. Even if the trails were never connected at all, Peorians would still have 9,000 acreas of park land in which to play frisbee, walk their dogs, picnic, and exercise. Life would go on.

As for claims that trails raise property values and increase tourism, those claims have never been quantified. A market study indicating how much increased economic activity the City would see if this trail were built has never been done. In the absense of that, it would appear the City is buying a pig in a poke.

The bottom line is, there’s nothing wrong with a recreational trail per se, but if it comes at the expense of jobs and economic growth, the price is too high.

7 thoughts on “Kellar Branch Saga Postscript: Why conversion is a bad idea”

  1. I still think that if we can get joggers and bicyclists to pull the freight up and down the trail, everything would work out just fine.

  2. The trail people don;t want to hear the facts. Their minds are made up.

    Oh, and when it comes to people using the trail, it’s dozens not thousands. What a poor return on investment.

  3. Again, the crazy liberal Pollyanna chick who posts hereby declares complete agreement with Prego AND Vonster. It seems crazy to me that trail devotees don’t WANT both.
    And this is my point to them – with global warming looming, why would we want to eliminate the possibility for light rail? Keep the tracks and one way to get gas guzzling/greenhouse gas producing cars is that much closer to reality. Rip up the rails and it would take decades to reestablish a line.
    CJ, I believe you have cited trails in other cities where, when there is a restrictive geographical impasse that does not allow room for the rail/trail combo, then diversion to nearby streets is possible.
    And say that to get around these difficult areas where both things won’t fit requires the city to negotiate and easement or purchase a bit of land – that would be one hell of a lot cheaper than establishing a whole new rail line elsewhere when we do want a centralized rail line, instead of stuff that skirts the majority of the population.

  4. CJ–

    Howdy! I’m a long-time lurker, first-time commenter. I just wanted to give you props for your reporting on this subject. Wow.

    I was never quite clear exactly what the issues were with this–thank you for your in-depth reporting.

    Keep it up!

  5. Another great read. Now that I’m reelected, I’ll try to get the counties position relayed to the city. This commuity is getting enough circuses and exercise. What we need are business paying at least a liveable wage and these business need to move merchandise in the most ecdonomic fashion.

  6. Vonster, regarding your remark about rails being an efficient mode of transportation it so happens that you can move one ton of freight four hundred miles for one gallon of fuel. Now is that not efficient? What these trail people don’t realize is the value of the freight line in less gas house emissions and the fact that the cheaper the freight coming in and going out the less they are paying in the stores for the products they buy that came in so cheaply on trains. Everybody benefits. Cheaper products and less emissions in the area.

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