Port receives rail line valuations

DAYTON – The Port of Columbia Board of Commissioners held its December meeting on December 18, 2024, at 5 p.m. Commissioners Seth Bryan, Johnny Watts, Mike Spring, and Executive Director Jennie Dickinson were at the port's conference room.

The meeting began with a public comment period where county residents, including local farmers, questioned selling the port's railroad and right-of-way. Concerns included the possible adverse effects on grain transport should the Snake River dams be removed.

A county resident asked what motivated the idea of a sale, saying it was evident that the board was serious since they spent 40k for an appraisal. He wondered if the port's executive director had recommended the sale. He asked if the commissioners had an agenda to sabotage the port.

Bryan said the rail operator had approached the port several years ago about a sale. Since then, the port has been looking into it. He said the board had not made a decision; however, he gave a long list of why he thought it should be sold to operator. He also said he was approached by many people in the county who want them to sell the property.

Gerry Kaiser, who spoke at the last meeting, asked the commissioners to pass a resolution directing the port staff to seek and apply for Federal transportation grants.

There was a general agreement that an operational railroad was necessary for the county. Still, there was also concern about the impact a sale would have on the long-term sustainability of the rail line.

Spring said he also wants an operational railroad, and would love to see tourist trains come through, but it costs money. He said there are grants available, but he knows the operator did not apply for grants until he was asked. Spring felt the operator was trying to devalue it to get the best price.

Spring said the port could operate the railroad for profit; other ports do. He is afraid it could be dismantled if they sell the line.

After public comment, the commissioners handled administrative items and heard from Dickinson that the port received a $1.69 million grant to improve the crossing at Bowles Junction and Highway 124. She reminded the board that the port has been awarded many grants to improve the rail line. She said improving it to a passenger line would be cost-prohibitive, and she doesn't see that happening anytime soon. Dickinson wanted to ensure that the board knew that nothing was keeping the line from making money or being operational at this time.

Dickinson introduced representatives from R.L Banks & Associates, Inc. and Gary R. Anglemyer and Associates, LLC, who assessed the rail line for the port.

Charles Banks and Keith Bruno from R.L Banks Associates discussed the assessment of the rail line, and Gary Anglemyer presented his firm's evaluation of the real estate underlying the railroad.

Keith Bruno from RLBA said they broke the project into three tasks:

Task 1: Net liquidation value (NVL) of the track assets informed by a site inspection

Value after removing the track = $2.9 million

Value keeping the track in place = $5.3 million

Task 2: Appraisal of the real estate underlying the track assets.

Net Liquidation Value – Real estate liquidated as non-rail use, based on Surface Transportation Board guidelines = $2.5 million

Corridor Value – Real estate sold as intact corridor for continued rail use = $8.4 milliion

Task 3: Preliminary rail feasibility analysis of the line in its current state.

The comprehensive presentation is included in the December port meeting's recording and is available at portofcolumbia.org.

In her update on the Mainstem Malt/Grain Cluster, Dickinson said equipment was in the purchasing process. She asked the board to sign a letter of support for the project to assist Mainstem Malt in obtaining a bridge loan as they wait for funds from an approved grant.

Dickinson reported the results of the federal audit showed no deficiencies.

In public comment, Dave Harvey, owner of Red Band Cellars, said after looking into property records along the Touchet River for possible fishing access, he discovered that Watts owned property adjacent to the railroad right-of-way. He said he did not mean to imply any impropriety but felt Watts should abstain from voting on the issue since it would open the port to potential lawsuits.

The meeting adjourned just after 7 p.m. The next port meeting is scheduled for 5 p.m. on January 8, 2025, in the conference room and on Zoom.