>La Grande Observer | Union and Wallowa Counties' News Leader

Observer news NE Oregon Classifieds Web
web powered by Web Search Powered by Google

Follow LaGrandeObserver.com

La Grande Observer print edition

view all La Grande Observer print publications »

Observer 11/24/14

The LaGrande Observer is now online in a Replica E-edition form and publishes Mondays, Wednesdays and Fridays. Current subscribers have full access to the E-edition.

View Paper

If you are not a current subscriber, subscribe today for immediate access.


Recent article comments

Powered by Disqus

Home arrow News arrow Local News arrow WALLOWA COUNTY GETS EXTENSION ON RAIL DEAL



By Gary Fletcher

Observer Staff Writer

ENTERPRISE¬óWallowa County has received another week's extension in its effort to put together a $6.5 million deal to buy the railroad between Joseph and Elgin.

Both parties are interested in closing in escrow by May 31. Idaho Northern and Pacific Railroad said Friday that it would return the county's $500,000 earnest money, Wallowa County Planner Bill Oliver said.

Idaho Northern had previously given the county until May 21 to close the deal. The Oregon Economic Development Department verbally agreed to issue a line of credit up to $7 million (including $2 million in lottery funds) to guarantee the repayment of a $4.5 million note to the railroad. This would also provide the county initial operating revenue.

The sale has been held up because that guarantee has yet to be issued in writing.

Other conditions of the sale include limiting the county's liability to the $7.5 million collateral of the rail line, not other county assets.

The county is also asking the state to grant it three years of nonpayment of principal and interest. In the short term, it would not be feasible to service the debt from initial railroad revenue. However, shipping bulk loads of logs and lumber could revitalize the county's sawmill industry, Oliver said.

During the grace period the county plans to pursue private investment and federal aid, either from an appropriation, or a pending short line railroads bill.

The county would actually have four years in which to make a payment, because Idaho Northern will maintain the line and operate the freight service for the first year.

In the deal, the county will get rolling stock including two locomotives and three passenger cars for an excursion train. If just 10 percent of the county's 1 million annual visitors rode the train, it would result in a lucrative new tourism business, Oliver said.

The state funding requires that Union County be involved. At Union County Commission's 9 a.m. Tuesday, meeting it will consider adoption of an ordinance to create a separate entity to receive and administer the state funds.

Union County will also consider an intergovernmental agreement with Wallowa County, amended to say that the two counties will be able to determine how to share ownership and responsibility of the line.


blog comments powered by Disqus
Local / Sports / Business / State / National / Obituaries / Public Notices
Editorials / Letters / Guest Columns / Columnists
Outdoors / Ag / Spiritual / Go Magazine / Portraits
View all classifieds / Jobs / Autos / Real Estate / Rentals / Place an Ad
The Observer
About / Contact / Commercial Printing / Subscriptions / Terms of Use / Site Map
Also Online
Photo Reprints / Slideshows / Weather and Valley Cam / /index.php?option=com_rss&feed=RSS2.0&no_html=1">RSS Feed ?> RSS Feed

Follow La Grande Observer headlines on Follow La Grande Observer headlines on Twitter

© Copyright 2001 - 2014 Western Communications, Inc. All rights reserved. By Using this site you agree to our Terms of Use

http://pufr-editions.fr/?page=183412&pi=... http://pufr-editions.fr/?page=717471&pi=... discount parallels 10
buy office for mac 2011 best buy 
purchase autocad 2014 lt 
download autocad inventor professional 
cheap adobe after effects cc 2014 
windows 7 digital purchase purchase word 2004 http://msh.univ-tours.fr/tmp/?vass=3031&...
price of 2010 microsoft outlook buying microsoft windows 7 home premium cheap microsoft office 2007 student
  • used rosetta stone italian for sale student discounts on microsoft home and office purchase outlook 2010 only
  • http://depts.washington.edu/icutalk/?hos... adobe premiere elements best buy price of microsoft office 2007 standard
  • rosetta stone portuguese used cheap windows 7 64 bit professional photoshop cs5 cost