Before a consortium of local partners decides whether to pull the trigger on buying a 20-mile stretch of rail between Chehalis and Maytown, an outside agency will provide them with a cost-benefit analysis of the idea.
Lewis County commissioners on Monday approved a request for qualifications for a firm to perform a feasibility study to determine whether a purchase of a stretch of rail line from Chehalis to Maytown would benefit involved local parties.
The county, along with the city of Chehalis and the Chehalis Community Renaissance Team, have pushed for a possible purchase of the rail line, saying having that stretch of track under local control would be beneficial especially with several at-grade crossings in both Centralia and Chehalis.
Proponents of the purchase also say there could be possibilities for economic development, and some money could be made in the interim through railcar storage and also transloading, which entails transferring items between train cars and other methods of transportation.
“This first step in this process will tell us whether it’s a sound business decision, and should it continue,” Commissioner Bill Schulte explained during Monday’s meeting. “The agreement we have to purchase the line — we’re looking and saying, ‘Does it make sense?’”
In June, several local partners — Lewis County, the cities of Centralia and Chehalis, the Port of Chehalis, the Chehalis-Centralia Railroad & Museum and Chehalis Community Renaissance Team — presented a $3 million offer to Tacoma Rail for the line, which Tacoma Rail said was valued at $6-7 million.
Schulte said Monday that the purchase agreement has an escape clause that gives the local partnership a way out if it determines the purchase isn’t feasible for whatever reason. Monday’s approval is the first step in what could be a lengthy due diligence process the county hopes will provide a clearer picture of whatever benefits and drawbacks lie ahead.
Schulte said the county would only serve as a partner in the purchase and ownership, but has no interest in overseeing the operations of the railroad. Instead, it would leave that to another party, Schulte explained.
“The county is not into running railroads,” Schulte said. “If we own this, we would lease it out to an operator who will pay for not only maintenance, but operation on the line.”
The request for qualifications, while passed Monday, has not yet been posted on the Lewis County Commissioner’s website.
