Wednesday, August 19, 2015

Intermodal Chairman Tells Engineer, Must Get Work Completed

Kevin Phillips
During a meeting devoted primarily to getting to know the new owner operator of the local shortline railroad, Intermodal Chairman John Lipton told the organization's consulting engineer more than once during the meeting that the construction work being done on the intermodal site, must be completed very soon in order not to risk the loss of federal Delta Regional Authority grant money.  Funds from several grant sources are being used to pay for the work along with matching funds that have to date come from Monticello, Warren and Drew and Bradley Counties.  At this time the Authority has a bank note in the amount of $508,732.18 owed to Commercial Bank of Monticello.  The financial report showed the two cities and two counties owing a total of $703, 271.50 as of August 19th.
Ryan Atkins

After several minutes of discussion, the authority board voted to draw down all Delta funds as soon as possible to cover the future cost of retainage.  There was a general discussion as to what construction is left to complete.  The board was informed there is about $33,000.00 remaining in the DRA fund and around $280,000.00 of EDA money left in the grant.  There will be a balance left for the Intermodal Authority to pay when all work is completed.

After the meeting, SRC visited briefly with Monticello Mayor Zack Tucker and Drew County Judge Robert Akin about how much the two entities have budgeted to the intermodal.  The Mayor indicated Monticello has not budgeted any for this year but has funds available to help pay.  Judge Akin stated Drew County has $40,000.00 budgeted for this year.  From past interviews SRC has learned that the City of Warren budgeted $30,000.00 for 2015 and will pay that amount.  Bradley County has stated they have no funds available but are willing to help with inkind work on the site.  It should be noted that cities and counties can only budget one year at a time unless they issue bonds or borrow money and there are limits on financing.

A resolution was presented to the family of the late Sandra Brown who had served on the Intermodal Board for several years.  She was a dedicated and hard working member who attended each meeting and actively participated in the boards efforts.

Near the beginning of the meeting, Chairman Lipton introduced Dr. Robert Smalling as a newly appointed board member.  He was appointed by Mayor Martin and confirmed by the Warren City Council to represent the City of Warren on the Authority.  Each governmental entity has three appointees serving on the Intermodal Board.

Most of the meeting was spent with the board listening to representatives of Genesee & Wyoming the owner and operator of the shortline railroad that services Warren and areas of southeast Arkansas.  Kevin Phillips and Ryan Atkins spoke on behalf of the company.  They introduced the railroad to those present and offered their support for economic development in the area.  Board members were allowed to ask questions.  Dr. Smalling asked if speed was being enhanced as a result of improvements being made to the lines in our area.  Mr. Atkins responded that the speed has been as low as 5mph due to track conditions and may be improved to as much as 20mph.  He said that may seem slow but the increase makes a lot of difference.

According to Mr. Phillips Genesee & Wyoming was formed in 1899 and operates 120 shortline railroads in 41 states.  Each line is part of a region and all decisions are made by the regional and local management.  The company stresses safety. Mr. Phillips told the board that the company would keep in touch with industry in the region and will work with the intermodal authority. 

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