Predictions for Kellar Branch dispute

 

Pioneer Industrial Railway (PIRY), the City of Peoria, and Central Illinois Railway (CIRY) have come to an agreement — which I believe is the proverbial “calm before the storm.”  A letter dated September 8, 2005, from Pioneer’s general counsel to the Surface Transportation Board states:
Pioneer Industrial Railway Co. (“PIRY”) received Central Illinois Railroad Company’s Reply to Petition to Reopen for Immediate Modification or Clarification, today. PIRY is willing to accept the assurances of CIRY that “the Municipalities will not remove that segment until CIRY’s authority over that segment has been discontinued in an effective Board decision,” and the “CIRY has informed the Municipalities that CIRY will initiate proceedings for discontinuance of its rail service over that segment.” Based upon those representations, PIRY respectfully requests that its Petition be held in abeyance, pending the State Court proceedings referenced therein (LaSalle County Illinois Circuit Court No. 05-L-146) and CIRY’s anticipated abandonment filing.
Basically, PIRY had asked the STB to clarify that the Kellar Branch was not to be torn out until (a) CIRY had filed for and been approved to abandon the line, and (b) Pioneer’s court case against the city was decided in favor of the city.  The city responded that it had no intention of tearing out the tracks at least until CIRY received STB permission to abandon the line.  That seemed to satisfy Pioneer for the time being.
Most likely scenario, in my opinion:  CIRY will apply for abandonment under an “individual exemption,” telling the STB that no shipper in Pioneer Park will be affected because they will continue to receive service over the new UP spur from the west.  Furthermore, no complaint is likely to be filed by Carver Lumber; they have maintained neutrality throughout these proceedings. 
However, PIRY will most likely contest the abandonment and try to force a sale of the Kellar Branch line.  According to the STB, “To encourage continued service, Congress and the STB have adopted procedures that make it possible to force the sale or subsidy of lines slated for abandonment.”  If PIRY takes this course and prevails, the city would have to sell the rail line to Pioneer under terms imposed by the STB.
Whether or not Pioneer succeeds, the Park District’s plan to convert the Kellar Branch to a trail will be further delayed.  One wonders why they don’t just choose an alternative corridor and be done with it.  Wouldn’t it be just as easy to get a grant to run the trail east along Detweiller Drive, through Detweiller Park, then south along the riverfront to hook up with the Pimiteoui Trail?  They could undoubtedly get it done much quicker than through the Kellar Branch corridor.  Is their primary goal to connect the trail or win the fight with Pioneer? 
There’s no doubt that selling the branch to Pioneer would be most advantageous for the city.  The city would be free from the liability for the tracks and have a nice influx of cash (Pioneer has offered $565,000 for the line not too long ago).  That money could be used to help pay for the failed water buyout costs, or any number of underfunded city programs.  Plus, instead of being so adversarial to Pioneer, it could work with them to bring new light industry to Growth Cell Two.  Now that would be a “win-win.”  More business for Pioneer to serve, and more good-paying jobs for Peorians. 
I know I’ve said it before, but it bears repeating:  trails don’t bring new residents to Peoria; good jobs and good schools bring new residents to Peoria.  Parks projects are important, but who’s going to be around to enjoy them if we don’t improve the jobs and school situation here?

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