The International Port of Coos Bay has until 2PM today to file an answer about the purchase of the Coos Bay Rail Line. The Port has many options in front of them including today’s decision with the Surface Transportation Board. If the Port turns down the purchase, Central Oregon & Pacific Railroad can move forward on the approved abandonment of the line. The Port has expressed their concerns on the purchase price and filed last week for a price reconsideration. It is expected the STB will make a decision today on last weeks filing by the Port. The final purchase price could be $ 16.6 or 16.5 million dollars.
The International Port of Coos Bay has accepted the Surface Transportation Boards set price to purchase the Coos Bay Rail Line. The Port beat the 2PM deadline and filed their decision to proceed just before 1PM. Right now the price tag remains at $16.6million dollars and the Port in its filing reserves the right to a judicial appeal or a price reconsideration. The Port now has until February 18th , 2009 to close the deal with RailAmerica and Central Oregon & Pacific Railroad on the purchase.
From KQEN Radio- Roseburg, OR Port of Coos Bay The International Port of Coos Bay has filed a Petition for Reconsideration for the Coos Bay Rail Line. In yesterdays filing with the Surface Transportation Board in Washington, D.C., The Port explains the Board made an error by not including the bridge removal and tunnel closure costs as a negative value. The Port says in its filing, had the STB included the negative value, the sales price on the line should about 8-million dollars instead of the 16.6 million dollar price tag. The STB is expected to review the Ports reconsideration application within the next 60 days.
Maybe I'm reading this wrong - sounds to me like the Port is playing games. They bought the Line, but subject to right to request "reconsideration" of the purchase price of $16.6. Okay - our post #19 on 11/26 seems to say that the Port found an error in price calculation of "...$20-thousand..." and asked for a STB adjustment in price. No problem - pocket change. But now (just now?), the Port is asking that the price be cut in half from $16.6M to about $8M account the cost of bridge removal and tunnel closure? Does that mean that, if STB refuses further reconsideration of price, then the Port has the right to withdraw its offer to buy the Line? Would the next step be "abandonment?" I can see why parties are getting "cranky." Scott
It sounds to me like the Port is more than willing to pay the $16.6 Million, but they're trying to haggle it down with the government. As long as they'll still pay the $16 mil, then I say more power to them.
The Port is playing games and stalling because they don't have the money lined up. They already asked for an extension because they couldn't get the federal funding lined up until after the first of the year, now with the economy really in the tank, it's going to be even harder to get anything, so they're playing the "please reconsider" card to see if they can draw the process out. The question is whether the STB will play. They only had ~$8 million in hand when this all started and there had been several efforts on the national level to get the additional $8 million projected, but I've not heard anything on them actually getting anything. BTW, the STB already ruled that the removal of the bridges and tunnels was not applicable when they said that the repair of the tunnels would not be credited.
CORP NEWS: The Central Oregon & Pacific Railroad filed its reply to the International Port of Coos Bay’s Petition for reconsideration with the Surface Transportation Board. The filing came in late yesterday afternoon in response to the Port’s price reconsideration in an attempt to reduce the 16.6 million dollar price tag on the Coos Bay Branch Line. The STB came up with the 16 million dollar figure based on the scrap value of the rail line that runs 111 miles from Eugene to North Bend. CORP has challenged the petition and has asked the STB to reject the Ports request for a lower price. Even without the price challenge the Port still must complete the 16.6 million dollar purchase by February 18th. If the Port can not come up with the money to buy the line by the closing date, CORP has received the STB's approval to abandon the line. That means that CORP if they want start removing the rail and scrap the line on February 19th .
