11 December 2002

In their meeting on 05 December, the Ely City Council voted unanimously to change a city ordinance and raise the motel room tax rate.

Two-percent of the room tax will now be allotted to the White Pine Historical Railroad Foundation (dba NNRy Museum). The new room tax rate will become effective on 25 December 2002.

The NNRy Museum will receive one dollar for every fifty dollars spent by visitors lodging in Ely. The much-needed funds should have a positive impact on stabilizing the Museum's operation.

01 November 2002

At the Oct. 24 meeting of the White Pine County Commission the commissioners unanimously approved the increase. The additional revenue raised is to go to the White Pine Historical Railroad Foundation.

Mark Bassett of the White Pine Historical Railroad Foundation said the increased funding is needed for the maintenance of the railroad rolling stock and buildings. Bassett pointed out that the majority of the tourists who ride the trains come to Ely from significant distances, and for that reason they must spend a night here. "Our intent is to fill motel rooms and restaurant tables. This benefits the railroad and the community," he added.

He said the railroad has carried more than 7,000 passengers so far this year. That was echoed by Commissioner Kevin Kirkeby, who said it was a 5-percent increase over last year. "Most tourist-related business has fallen off significantly since 9-11, and this has posted an increase," he said. "I think that's great."

The Ely City Council already had agreed to the increase through a resolution. But an actual ordinance is required by law for the increase. The board approved the first reading of an ordinance to raise the tax. The second reading of the ordinance and a public hearing must yet be scheduled before the city council can join the county commission in agreeing to the increase.

27 September 2002

The future of Ely may depend upon the city getting control of the Nevada Northern Railway right of way from McGill to Shafter in Elko County. And Mayor Bob Miller says that's a real possibility before the end of the year.

Miller talked to the Ely Times at the Jailhouse Coffee Shop on Thursday afternoon about the plan to purchase the remaining tracks from Los Angeles.

"We need it out of L.A.'s hands and into local control," he said as he sipped at his decaf coffee and snubbed out his low-tar cigarette.

Miller wasn't nervous. To the contrary.

"I'm an optimist," he said. But he admitted the clock is ticking.

What's ticking is the Los Angeles Department of Water & Power no longer has a need for the rail line and right of way. The utility bought the right of way, the Nevada Northern Railway yard and shops, and all the NNRy rolling stock in 1987 from Kennecott Minerals. It quickly transferred ownership of the rail yards, engines and cars and right of way from Keystone Junction to McGill to the City of Ely -- the birth of the Nevada Northern Railway Museum and Ghost Train of Old Ely.

But it kept the right of way north of McGill to the mainline junction in Elko County for its proposed White Pine Power Project. The WPPP was to be located near Cherry Creek. A consortium of utilities, led by LAWP, planned to build a coal-fired power plant there and L.A. needed the rail line to bring in fuel for the project. The plan eventually was scrapped in 1997.

In mid 1997, BHP leased the right of way to haul copper concentrates to its super smelter in San Manuel, Ariz. But BHP shut down the Robinson Project in 1999 and the right of way has been dormant since then.

The right of way has been the lifeline for White Pine County since the railway came to Ely in 1906. Its value for the future is hard to calculate.

PG&E Energy, Duke Energy and even Kennecott are again interested in the concept of building a power plant in Steptoe Valley, which would depend on the rail line. The oil industry in northern Nye County has expressed interest in using the NNRy to haul its products if the line is in use. And future business development in the area also might make use of a rail freight service.

But the right of way has a more immediate value to Los Angeles. It's estimated the scrap value of the tracks is near $1.6 million. Miller notes if the tracks are scrapped, they'll never be replaced. And Ely's and White Pine's hopes for the future would disappear with the steel rails into the scrapper's cauldron.

The mayor's optimism is based on discussions with Los Angeles about purchasing the right of way. Although the scrap value is $1.6 million, Miller said Los Angeles would be willing to sell it to the city for $700,000.

That's the first step -- coming up with the $700,000 and buying the right of way.

But to use the right of way would require a greater investment. The city and Economic Diversification Council estimate the total cost at near $2.5 million. And even more would be needed for trains to run from Ely to the northern-most mainline connection.

The city-EDC plan calls for $700,000 to buy the rail line. About $1.3 million would be needed to upgrade the rail bed to Class 1 standards from Shafter to Cherry Creek.

Covering the environmental liability for the work project would require a $200,000 bond. And getting the permits, new equipment and setting up the administrative and legal framework would run another $300,000.

That $2.5 million would secure the right of way and set up the coal delivery system for a power project near Cherry Creek, but doesn't include the cost of renovating the rails from Ely to the power plant site. That would come later. But it's a start.

Here's where the city and EDC hope the money will come from:

There's a request to the U.S. Economic Development Agency for $1,210,000. Paperwork has been filed for USDA to provide a $40,000 grant. The city has applied for a $250,000 CDBG grant. And Mt. Wheeler Power is seeking a no-interest loan for the city for $160,000, with the power co-op committed to provide another $150,000 on its own.

Another $190,000 would be provided by in-kind services and the city plans to seek $500,000 from the Legislature. Miller said that's one deadline that can't be budged.

The Legislature meets next February and the city must have ownership of the right of way by then. He said he believed the $500,000 can be justified to Carson City because of the potential economic benefit. Even with the state's budget crisis, he said he believes the Legislature will see the wisdom in providing the money.

To get the federal money, the city must come up with $500,000 in matching, non-federal funds.

Potential income from an operating railway is leveraging some of the money requests. The city paid for a feasibility study and business plan for the NNRy, drafted by R.L. Banks & Associates of Washington, D.C. Banks said it believed the existent customer base in White Pine for a rail freight service and the Nye County oil industry would provide enough revenue to both operate and maintain the railroad.

There's also added tourism potential. If there could be special steam train excursions to Cherry Creek, entertainment and historical interpretive programs could be added to the longer trips.

But he admitted that hardly any of the funding being sought is guaranteed. That's why he continues to also seek funding in the private sector.

Miller stubbed out his last cigarette and drained the dregs of his decaf. He threw a buck on the table for the waitress.

"I'll do whatever I have to," he said.

"We're going to do it," he added with unwavering confidence. But like he said, he is an optimist.

Reprinted with permission from the Ely Times Online News.

22 August 2002

Mt. Wheeler Power has given the City of Ely a $200,000 bargaining incentive in its negotiations for the Northern Nevada Railroad right of way running north of McGill Junction to Shafter in Elko County.

On July 16, the Mt. Wheeler Power Board of Directors voted to move forward with an USDA rural development funding application for the eventual buyer of the NNRy northern section of railroad.

The funding, dependent upon approval from USDA, consists of an interest-free loan for $160,000 and a $40,000 grant.

"Our board decided to donate co-op time and labor towards this incentive effort due to the potential of economic development that local control of this railroad could provide for our member-owners and community," said Gary Perea, Mt. Wheeler Power president.

Contrary to previous reports, Mt. Wheeler Power will not be taking any part in purchasing or operating the railroad. The co-op's only involvement is in assisting with the USDA rural development funding applications and follow-up.

The northern portion of the track connects the Nevada Northern Railroad to the main east-west railroad owned by Union Pacific that runs through West Wendover.

The north-south route was established in 1906 to allow the concentrates from the Robinson mining district to be moved to available markets.

Los Angeles Department of Water & Power, the current owner of the northern track, purchased the railroad in 1987 to accommodate plans for a future power generating facility in the area which did not materialize.

But the idea of a power plant has resurrected. However, locating one in the Steptoe Valley near the site of the original White Pine Power Project, or closer to Ely, would be dependent on the rail line to bring in coal.

Reprinted with permission from the Ely Times Online News.

31 July 2002

Mt. Wheeler Power, Inc. directors earlier this month gave the go-ahead for the co-op to seek a loan to purchase the Nevada Northern Railway right-of way.

Kevin Robison, marketing director for the co-op, said the co-op is seeking $200,000 from the USDA -- $160,000 as an interest-free loan and $40,000 as a grant.

The loan would be made through the Rural Economic Development Loan and Grant Program.

Reprinted with permission from the Ely Times Online News.

31 July 2002

Despite objections from local hotel and motel owners, the White Pine County Commissioners unanimously gave their support for a proposed 2 percent room tax increase to subsidize the financially troubled White Pine Historical Railroad Foundation.

The proposed increase, which already has the support of the Ely City Council and awaits a public hearing, would generate about $105,000 a year in additional revenue for the foundation.

George Chachas, representing the hotel and motel business in Ely, said owners are against raising the tax from 8 percent to 10 percent because it puts the burden of supporting the railroad foundation on one industry.

"We're saying no. We'll share the burden with the rest of the city, but we're not taking it on alone," he said.

Another motel owner said restaurants should help out, too, since they benefit from tourism as much as hotels. She said when tourists check in, one of the first things they ask is where should they eat.

Chachas also criticized the railroad foundation for its lack of accountability.

"They have failed to reveal revenue from the Winter Olympics," he said. "Did they in fact make money, or did they lose money? They haven't said."

He said the railroad needs to do a better job of promoting the tourist attraction to increase ridership. He also questioned what the foundation was doing with its assets such as the old Bank of America building and the White Pine Trailer Park.

Scott Hase, chairman of the railroad foundation, said the room tax increase is needed to offset $125,000 a year in lost income from a freight contract when the mine closed.

He said ridership is up 29 percent from last year and revenue is up 30 percent to 40 percent.

Commissioner Kevin Kirkeby asked where the riders are coming from, and Hase said mostly from Las Vegas and outside the county.

Commission Chairman David Provost said he understands the concerns of the hotel and motel operators.

"However, I don't see this as a tax on them. The costs are passed on tourists who use the rooms," he said.

In a related action, the commission voted 4-1 with Cheryl Noriega dissenting on a proposed 1 percent room tax increase to pay for a new swimming pool, the location of which has yet to be determined, and a one-quarter percent increase in sales tax to pay for the operation and maintenance of the pool.

Noriega supported the sales tax increase, but said there were grants and other ways to raise the estimated $1 million to build the pool.

26 May 2002

The Department of Transportation, Surface Transportation Board reports (24 May 2002) that BHP Nevada Railroad Company filed a notice to discontinue service over 146 miles of railroad between milepost 0.0 in Cobre and milepost 146.1 at Keystone. It will become effective on 25 June 2002, unless stayed pending reconsideration. [STB Docket No. AB-598X]

26 May 2002

The Nevada State Railroad Museum in Carson City is featuring an exhibit by fine-art photographer Gordon Osmundson of Oakland, California through 29 September 2002. Some 58 of his black-and-white photographs will be featured, with subjects ranging from trains to railroad equipment and industrial machinery. The photos were shot over the past 30-years, with almost one-third taken at the Nevada Northern Railway in Ely.

Source: Andy Bourelle, Reno Gazette-Journal, 23 May 2002

By Kent Harper -- Ely Times Editor

13 May 2002

Hopes for a power plant to be located in White Pine County could be shattered if there's no way to bring fuel to the proposed coal-fired project. The Los Angeles Department of Water & Power knew that back in the 1980s when it bought the right of way for the Nevada Northern Railway. LADWP was a partner in the now-defunct White Pine Power Project. When the Robinson Project was resurrected by Magma Nevada and copper mining started again, LADWP contracted with an operator to run its railroad. The Northern Nevada Railroad was short-lived, however, and reduced power demand and other power sources eventually led LADWP to end the White Pine Power Project. The railroad line has set unused. But that may work to the benefit of the City of Ely.

Mayor Bob Miller said the city may be able to wrest control of the right of way for LADWP. Miller said the giant utility had shown an interest in selling the right of way to the city for as little as $750,000. But with new interest growing for a power plant in White Pine County, the Los Angeles-based power company hasn't taken any action. The city may be able to force action, however.

City Attorney Michael Wymer was absent from Thursday's city council meeting, but White Pine County District Attorney and former city attorney Richard Sears filled in. Sears said the city may be able to petition the Surface Transportation Board to gain control of the rail line.

The Nevada Northern Railway is a viable railroad. It was connected to the main, transcontinental rail line at Cobre in Elko County. But since the Northern Nevada Railroad stopped operating and BHP took up the responsibility of shipping its concentrates by rail, the LADWP's railroad has been abandoned. Sears said that abandonment negatively effects the NNRy. The Surface Transportation Board has the authority to force LADWP to seek an active operator.

But if there's a transfer of ownership -- such as to the City of Ely -- fair market value would have to be paid. Setting that value could prove tricky. The salvage value of the rails would be in the millions of dollars, Sears said, but it wouldn't be feasible to do. If you can't salvage it, it has no salvage value, he noted.

Miller said the city will continue to look at any and all ways of securing the railroad connection.

In related action, the council accepted the resignations of Kevin Robinson and Dan Cornutt from the Nevada Northern Railway Management Board.

The council appointed their replacements and re-appointed the remainder of the board for the following terms:
     John Gianoli, four years
     Mark Bassett, three years
     Scott Hase and Steve Leigh, two years
     and Julie Spear, one year.

The council also discussed establishing a special railroad district and a management board. Miller said the board would be composed of two representatives appointed by the city and two by the county. The railroad operator would also appoint a member. Miller said no action was required by the council yet.

John E. Rimmasch, Chief Mechanical Officer of the Heber Valley Railroad, has written an article entitled "Behind the Scenes of the 2002 Winter Games". It's well worth a click of your mouse for an excellent read at John Craft's SteamCentral web site.

And two additional articles about steam at the Olympic games —
•    June 2002 issue of Trains: "A railroading steam team for the Winter Olympics".
•    June 2002 issue of Railfan & Railroad: "The Iron Horses Stole the Show".

Training days for the 2002 season are April 27 & 28. This training is mandatory for all volunteers who plan to be crewmembers in 2002. The chief mechanical officer Lance Hunt and interim director Scott Lindsay will conduct this training; classroom work on Saturday and a special train on Sunday.

Items to be covered at the training session include the rulebook, operations, hand signals, radio communications and all around railroad safety--the Nevada Northern way of doing things.

There are 113 scheduled trains for the 2002 season (not including charters and engine rentals), the most ambitious schedule that the railroad has had for years. Crewmember positions are open to all members of the Nevada Northern Railway Museum. It does not matter whether you can volunteer for only one weekend during the season or more; your help is welcomed and needed!. But everyone starts with the training.

The traditional volunteer season opening potluck dinner will be held Saturday evening, April 27, at 5:30 p.m. in the depot. Please bring your favorite dish for an evening of fellowship.

Contact Sharon Tilley, Foundation Secretary or Evva Schaefer, Financial Officer by email, telephone, fax, or snail mail to inform them of your plans to participate in the training session.

HEBER CITY, Utah (AP) - Ely's Engine 93 is wowing the crowds at the Winter Olympics.

The 90-ton, 93-year-old steam engine, its coal tender and two passenger cars are in Heber City, southeast of Salt Lake City, where they are part of the 2002 Winter Games Steam Team in partnership with the Heber Creeper tourist railroad.

"They are carrying hundreds of people. They are immensely popular," Scott Lindsay, interim executive director of the Nevada Northern Railway Museum, said by phone Monday from Utah.

The trains are carrying Olympic spectators five miles from Heber City to Soldier Hollow, the site of the biathlon and cross country skiing events. They also will be used for special charter excursions.

After three days of operation, Lindsay said ticket sales were in the hundreds daily. Moreover, the trains are attracting attention from the television morning shows and CNN, as well as foreign journalists. It's touted as the first time steam power has been used to transport Olympic spectators.

On the Net:
Nevada Northern Railway Museum
Heber Valley Railroad

—Story from the Associated Press

Triple-Headed Steam Action

Heber Valley Railroad UP No. 618, Nevada Northern No. 93 & Great Western No. 75 in action with the Olympic Torch Relay on 07 Feb 2002 between Soldier Hollow and Heber, Utah.

Beverly Cornutt photograph courtesy of the Nevada Northern Railway Museum.

Engine 93 (above, left & middle), its tender (above right) and passenger coach 07 Ely (left) are prepared at East Ely, NV for their truck caravan to Heber City, UT and the 2002 Olympic Games. Photographed 22 Jan 2002.

Nevada Northern Railway Museum photos; used with permission.