Stewartstown RR might be declared "abandoned"

Alexander D. Mitchell IV · **Posted:** Tue Nov 02, 2010 9:36 am

http://www.ydr.com/premium/ci_16487299? ... =254200545

The "war" between the estate and the RR intensifies...........

Quote:

The estate of the historic railroad's former president -- George M. Hart -- has been trying to collect a $350,000 debt since April 2008. Now, the estate is preparing a petition to have the 7.4-mile railroad declared abandoned, which would it allow it to foreclose on the private company, said estate attorney Jim Gillotti.

The railroad company has offered a five-year payment plan, Gillotti said, but the plan was "very back-loaded."

"We just can't keep the estate open five years," Gillotti said. "Mr. Hart's been dead two-and-a-half years. The will directs the executor to collect the debt so that's what (executor John) Willaver's going to do."

Members of the railroad company board could not be reached for comment.

The board and an associated nonprofit, Friends of Stewartstown Railroad, had previously launched a capital campaign to pay the debt and re-open the 125-year-old line for tourist runs, but it is not known how much money has been raised.

Under federal law, the estate could not simply force the company to sell off its assets through foreclosure on the lien board members signed in 2006. Because railroads are considered an asset, they must first be officially declared abandoned.

Before the end of the year, the estate plans to ask the federal Surface Transportation Board to declare the line abandoned, Gillotti said. The estate has hired an attorney specifically to work on the petition.

Under STB rules, a creditor can make such a request. The railroad would then have 20 days to file a response. The three-person board must rule on the request within 110 days of the initial filing.

The railroad has not operated since 2004.

Gillotti expects the petition and possible foreclosure proceedings to last well into 2011.

"Of course, all of this could be stopped at anytime if Stewartstown comes up with something that's acceptable," he said.

Ray Reter · **Posted:** Tue Nov 02, 2010 10:07 pm

The Friends of the Stewartstown Railroad, Inc., continues its fundraising efforts to help preserve the railroad. (See their website: http://www.stewartstownrailroad.comfor more information.)The management of the Stewartstown Railroad Company is also continuing its efforts in searching for funding in a very difficult economic environment. Meanwhile, the heir to the Hart Estate, Bucks County Historical Society (a.k.a., The Mercer Museum) in Doylestown, PA, has not shown much interest in granting the railroad a five-year period in which to raise funds to retire the lien.

ebtrr · **Posted:** Wed Nov 03, 2010 9:24 am

At this point is the Stewardstown anywhere close to operations? It sounds like some work has been done on the line. If they could at least get some operations going it would make the abandonment request less likely to be approved by the STB.

Stationary Steam · **Posted:** Wed Nov 03, 2010 9:44 am

It doesn't look good for Stewartstown. Their August newsletter states they have raised $4,500 toward the $500,000 needed. Of course that half mil just satisfies the debts but provides not one red cent toward rehabilitation of the railroad. Lets get real. There is NO way that the Stewartstown Railroad will be able to raise that kind of money, and it appears that the estate has no interest in giving them the time in which to do it. I think they see that even a backloaded five year plan has a questionable chance of succeeding.

So with complete destruction of the railroad a distinct possibility, what about a compromise solution? Agree to abandon and liquidate the western half of the railroad, but leave a couple of miles at the eastern end including the wye, enginehouse and depot. Use that money to satisfy the debts. What is left can still become a wonderful tourist railroad/museum and would be small enough to be within their reach of rehabilitating.

Yes I know that some may want to take the all or nothing approach, but isn't saving a portion of the line better than watching it all disappear? And yes it will disappear very soon.

sbhunterca · **Joined:** Sun Aug 22, 2004 7:58 am **Posts:** 728

What is a reasonable salvage value for this line? Is the remaining equipment and relatively short length of light rail and OTM really worth half a million dollars?

Are there environmental considerations such as tie disposal, right of way grading, bridge pier removal, brownfield remediation, etc that would overwhelm the benefit the estate would gain by foreclosing on the railroad?

Just a thought.

Steve Hunter
Cardinal, Ontario

CPR4000 · **Joined:** Thu Jun 11, 2009 11:07 pm **Posts:** 150

The Mercer Museum is in the middle of a major expansion project right now, which might explain why the historical society is so eager to get its money.

Walt Lankenau

sbhunterca · **Joined:** Sun Aug 22, 2004 7:58 am **Posts:** 728

Here is the Mercer Museum's web site:

http://www.mercermuseum.org/

From what I've read about Mr. Mercer and his museum, it would seem to me he must be rolling over in his grave because of what they are doing to the Stewartstown Railroad. I suspect if he were alive, he'd be buying it himself as a valued historical site.

Somehow, I doubt they are operating in a manner he would approve of. They boast of their varied, multidisciplinary look at history... maybe they should preserve what they are determined to destroy. The railroad could greatly benefit from their fundraising expertise.

Steve Hunter
Cardinal, Ontario

Ray Reter · **Posted:** Wed Nov 03, 2010 5:27 pm

Stationary Steam wrote:

It doesn't look good for Stewartstown. Their August newsletter states they have raised $4,500 toward the $500,000 needed. Of course that half mil just satisfies the debts but provides not one red cent toward rehabilitation of the railroad. . .

Clarification: The $500,000 goal of the Friends does include a modest amount for rehabilitation. But, it's the $352,000 Hart Estate lien that is the most urgent at this point. Donations continue to come in, but at a slow pace undoubtedly due to the current state of the economy. Many people who would like to donate simply can't.

Work has been done on the right-of-way, and other properties, over the past couple of years since Mr. Hart's passing. It's interesting to note that Mr. Hart would not let volunteers work on the right-of-way, or the other properties, in the last three or four years of his life.

This past Sunday afternoon (Halloween) the railroad ran "speeder" trips over the first two miles of track out of Stewartstown and had to turn away some prospective riders due to a lack of capacity as nightfall was approaching. Although only the first two miles of track were used for the general public trips, the entire line is passable and, in fact, on both Saturday and Sunday morning a local NARCOA group made trips over the entire 7.4 miles.

dinwitty · **Joined:** Wed Oct 22, 2008 8:18 pm **Posts:** 2226

if you can keep it operable, I doubt it will get declared abandoned, there is more value to operate it than to rip it out to settle a debt. Of course this scenario is familiar with the Likes of the North Shore and so on, when you lose it, it is far tougher to restore it. The alternative is to declare the debt moot.

Once the land grabbers mooch in, forget it.

Ray Reter · **Posted:** Mon Nov 08, 2010 11:04 pm

The Friends of the Stewartstown Railroad have started a petition drive to ask the Bucks County Historical Society to reconsider their position against accepting a five-year promissory note from the Stewartstown Railroad Company as payment for the debt owed by the railroad to the Hart Estate. The petition form has been uploaded on the Friends website http://www.stewartstownrailroad.com so interested parties can printout a copy and have their friends, relatives, and associates sign the petition. We ask that completed petitions be mailed to the Friends at the address indicated on the website so we can tally the number of signatures before delivering the petitions to the BCHS.
Thank you for your support!

Alexander D. Mitchell IV · **Posted:** Mon Nov 08, 2010 11:57 pm

sbhunterca wrote:

What is a reasonable salvage value for this line? Is the remaining equipment and relatively short length of light rail and OTM really worth half a million dollars?

Are there environmental considerations such as tie disposal, right of way grading, bridge pier removal, brownfield remediation, etc that would overwhelm the benefit the estate would gain by foreclosing on the railroad?

Regrettably, there is something more important than the salvage value at stake: The Stewartstown is laid with light 60-pound or so rail, the likes of which is next to impossible to find anymore.

I am aware of more than one railroad restoration project, narrow-gauge, that could dearly use the opportunity to salvage and reuse this rail. Of course, everyone reading this that isn't in the Mercer Museum or the Bucks County Historical Society wants to see the Stewartstown remain intact, but should the worst occur I would pray that saner heads will prevent cutting up of this light rail.

As for the other value, I regret that southern York County, Pa. has become a "bedroom community" for Baltimore workers that want to avoid Maryland taxation and other Maryland issues. Indeed, encroachment of new development has spoiled sections of the railroad's previous rural charm. The increase in local real estate value in the past two decades, even after the burst of the real estate "bubble," is probably staggering, and if the opportunity arose to sell off the real estate, there may be a handsome proceeds for the beneficiaries..........

Alexander D. Mitchell IV · **Posted:** Tue Nov 09, 2010 1:26 pm

Here's a dumb, "back of the envelope" (or Microsoft Calculator) calculation:

Assuming a scrap value of $250/ton and that all the rail is usable, and that spikes, fishplates, and tie plates help cover removal costs, the 60-pound rail on the line is worth about $180,000 (not adding in sidings, etc.). Real estate: speculative. They probably own the station/wye property and the enginehouse property; I don't know whether the rest of the ROW is owned or easements. The station was in dire need of rehabilitation last time I was in town. The locos and rolling stock? Scrap value unless someone's desperate--trucking them out will be a pain.

If they own the ROW, they could sell off the connection to the outside world and retreat to half of the line or so, maybe there would be hope of some survival.

Has there been ANY speculation about preserving the right-of-way intact as a rail-trail extension of the trail from York to New Freedom and into Maryland? That would probably involved the county.......

M.J. Kershner · **Posted:** Tue Nov 09, 2010 3:39 pm

Realize they are not in ownership of the 4 coaches on the property.. Like the cars in Thorpe, they were George's personal property. Unlike the cars in Thorpe, the coaches in Stewartstown still belong to the Estate.

MJK

Mike Stillwell · **Posted:** Tue Nov 09, 2010 3:46 pm

Wonder what kind of storage charges the estate has wracked up in the time those coaches have been stored there? (wink, wink).

Mike Stillwell
Buena Vista, VA.

Ray Reter · **Posted:** Tue Nov 09, 2010 4:58 pm

Some answers to some of the above questions:
Yes, there has been considerable talk in the community about acquiring the right-of-way for use as a rail trail. This had been mainly encouraged by local real estate sales people prior to the real estate crash as a way of making it even easier to sell building lots in the area. Enthusiasm ebbed a bit when it was pointed out that taxpayers would need to pay for building and maintaining the rail trail (paving, parking lots, ADA rest rooms, security, etc.). Also, acquiring the necessary adjacent lands (the ROW is very narrow in spots) would be expensive.

While residential and retail development in the area has marred some of the landscapes visible from the train, more than half of the 7.4 miles of ROW is still very attractive.

It is my understanding that there have been a few bids placed on the four Estate-owned coaches on the property. The Estate has decided to delay choosing a winning bidder until after the lien situation is settled. And, yes, the Stewartstown Railroad Company did bill the estate for storage charges for the coaches since Mr. Hart's passing. (As an aside, Mr. Hart used his ownership of the coaches to influence board decisions.)

The ROW is a mixture of easements and outright ownership. A study is underway to identify the status of the various ROW segments. (Records lost in a courthouse fire in the early 1900s has made this like researching one's family tree.)

To those of us who are close to the situation, it has been like living in a soap opera!