Railway Preservation News

Strasburg to Repair, Use LIRR G5s 39; Fundraising Announced
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Author:  bigjim4life [ Sun Mar 24, 2013 11:30 pm ]
Post subject:  Re: Strasburg to Repair, Use LIRR G5s 39; Fundraising Announ

So if I'm reading the agreement right, the RMLI doesn't "have" to raise all of the money this year...if it takes them two years or three years to raise the $900,000 - $1 million, then the 15 year lease period would start at that point. The whole agreement is not contingent on them raising the money THIS YEAR. Am I right in reading that?

Author:  R. Hahn [ Mon Mar 25, 2013 7:25 am ]
Post subject:  Re: Strasburg to Repair, Use LIRR G5s 39; Fundraising Announ

That appears to be the case, but a 5% increase in cost has been added to each additional year. If it takes until 2014 it will cost RMLI $945,000. If it takes until 2027 it will cost RMLI $1,781,938.

These increases have been added to both the RMLI side as well as the SRR side so my assumption is that this is to offset inflation and is not to be viewed as a penalty. Either way, it is a strong incentive to RMLI to raise the funds quickly.

Author:  n2qhvRMLI [ Tue Mar 26, 2013 11:25 am ]
Post subject:  Re: Strasburg to Repair, Use LIRR G5s 39; Fundraising Announ

Good morning bigjim and R. Hahn!

Yes, you are both correct, each year the goal for RMLI fundraising and Strasburg's sponsorship rises by 3.5% to adjust for inflation - it is NOT A PENALTY, just the reality of our economy. These figures are firm for the term of the agreement, fifteen years. As you see by the language, if #39 is not restored within the term of the agreement there is a re-opener for future Trustees and Directors to negotiate an extension.

This language demonstrates our combined resolve to get this project done and show that both parties are in agreement for the "long haul."

That said, we do plan to obtain our goal for fundraising in the first year or two of the agreement. bigjim, your suggestion is well taken, there will be more website promotion of fundraising for #39 as we move forward.

Thank you for your interest and support,

PS, of note: the forty-eight year lease BEGINS FOLLOWING completion of the restoration, not before. Strasburg will operate the locomotive fully for forty-eight years. (The lease gets signed at that time when RMLI presents Strasburgg with the Museum's share of the restoration costs.)

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