Honesdale, PA -
Lackawaxen-Honesdale Shippers Association recently announced that Ideal Steel Supply Corp of New York City plans to bring a distribution facility to Palmyra Business Park in White Mills, PA. The project is expected to create 65 direct jobs within three years of the facility opening, and provide much needed freight revenue to the Stourbridge Railroad, helping to ensure that the Stourbridge Line passenger excursions will continue.
Ideal Steel Supply Corp. of New York City proposes to locate a steel unloading and distribution facility on an 18.6-acre property owned by the Lackawaxen-Honesdale Shippers Association, Inc. and situated in Palymra Township, Wayne County.
Ideal Steel Supply Corp. is a steel distribution company that imports already manufactured steel products by railcar lightly, fabricates it into other products through a combination of cutting, welding and similar processes, and then distributes these fabricated products directly to contractors, consumers and other distribution facilities owned by the company. It involves no steel production per se, no foundry-related activities, no environmental emissions and no other heavy-duty processing. What is planned for Palmyra Township is chiefly a transloading and distribution operation.
Ideal Steel proposes to lease-purchase a facility that will be built by the Lackawaxen-Honesdale Shippers Association. It will include a substantial new siding over which a building of up to 200,000 square feet will be constructed for purposes of accommodating the transloading and distribution operation, which will largely consist of the loading, storing, fabricating and reloading of products from elsewhere. The building will be located, in part, on lands of the railroad and also, in part, on lands that are part of the 18.6-acre Palmyra Business Park. The Association will be constructing the building as an integral aspect of its own railroad operations, so as to facilitate the delivery, transloading, and distribution of steel products received by rail.
The Association is a non-profit 501(c)(6) corporation dedicated to preserving rail service to Wayne and Pike Counties as a foundation for economic development. It owns the physical facilities associated with the railroad, including the land and track. It is also (as of January 1, 2006) the owner of the Stourbridge Railroad Company, which provides for the operation and maintenance of the railroad on a fee-for-service basis. Both freight and passenger excursion services are provided under an arrangement with the Wayne County Chamber of Commerce, which owns the locomotive.
The Association acquired the Palmyra Township tract for purposes of industrial development by rail-using industries. Known as Palmyra Business Park, it is part of a Keystone Opportunity Expansion Zone (KOEZ), which provides tax incentives to encourage such development. Wayne County, the Wallenpaupack Area School District, and Palymra Township have all supported this designation. The property is also zoned industrial by Palmyra Township. Development of the site for rail-using industry is critical to the survival of the railroad, the passenger excursion program, and long-term job creation. There is no economic basis for continuing the railroad or the excursions without a significant rail customer on the line.
The law with respect to constructing such facility is found under the auspices of the United States Transportation Board (STB). It essentially provides that rail operations are regulated by the STB as interstate commerce. While local and state standards may apply with respect to certain aspects of an operation or facility, permits for such entities are not required, as the permitting process would necessarily interfere with railroad economic operations, which is not allowed under STB rules. Therefore, because in the case of Ideal Steel, the party building the facility is, in fact, the railroad itself, no local permits will be sought. Notwithstanding the law, the Association will conform to all reasonable regulations of the Township or others that do not interfere with railroad operations.
Lackawaxen-Honesdale Shippers Association has purchased the Stourbridge Railroad.
On Jan. 1, 2006 the Lackawaxen-Honesdale Shippers Association took ownership of the Stourbridge Railroad from Northshore Railroad. Prior to Jan. 1, the Association owned the physical assets of the railroad - the land and the tracks - and relied on a contract for its operation. The Association will now own the railroad in its entirety.
What is the importance of this project to the Stourbridge Line Rail Excursions?
For over two decades, the Stourbridge Line Rail Excursion has been the modern manifestation of Wayne County's heritage, luring tourist from near and far to the “birthplace of the American Railroad”. Hundreds of thousands have enjoyed the rail excursions over the years, having a significant impact on Wayne County's tourism industry. However, without a freight customer, the Chamber must pay a user fee to keep the railroad operational and the excursions running. The past three years, the Chamber has had to rely on State and Federal grants to pay these fees, a stopgap measure with no long-term guarantees. Although the recently enacted County Room Tax will provide some funds, without a significant freight customer sharing the operational costs, there is no economic basis for continuing the railroad or the excursions.
Salient facts regarding passenger excursion and economic impact:
