North Creek to Tahawus Rail Line Up for Auction
A bankruptcy trustee plans to auction off the 30-mile rail line between North Creek and Tahawus in early March, an action seemingly at odds with the state’s efforts to reclaim the corridor and convert it to a recreational trail.
However, cyclists who would like to see a rail trail created still have some reason for hope.
The trustee, William A. Brandt Jr., is selling the assets of the Saratoga & North Creek Railway to pay debts owed by the railroad, which ceased operations in 2018.
As a condition of the sale, Brandt is requiring the purchaser to commit to keep the tracks in place so the line could carry freight.
Late last year, Brandt rejected a $1.5 million offer from the Open Space Institute because the nonprofit’s aim was to remove the tracks for a recreational corridor. Among other things, he contends that the Surface Transportation Board, which regulates railroads, would not approve the sale.
Instead, Brandt received a $700,000 “stalking horse bid” from Revolution Rail, which operates a rail-bike touring business on a small part of the line. However, if other interested parties submit bids higher than $750,000 by February 23, Brandt will auction off the rail line on March 3.
Despite Brandt’s rejection of its first offer, OSI may submit a bid. “OSI believes that a possible outcome exists that will result in greater year-round recreational options along the line, expanded local economic activity, and the long-term protection of the park's natural resources. That being said, OSI is actively considering a bid that goes well beyond the existing stalking horse offer,” OSI spokesperson Eileen Larabee emailed BikeADK.
The state Department of Environmental Conservation objected to Brandt’s insistence on keeping the tracks, but on January 13, a U.S. Bankruptcy Court judge in Denver approved Brandt’s plan. The ruling was not appealed, according to the court.
DEC refused to comment on the auction, citing pending litigation.
DEC has asked the Surface Transportation Board to declare the rail line abandoned. If the department wins that case, the tracks could be removed in favor of a recreational trail. The nature of the trail would be determined at a later date, but presumably it could be used by mountain bikers. If the corridor were surfaced to accommodate road or gravel bikes, cyclists could link this rail trail with the 34-mile rail trail between Lake Placid and Tupper Lake. Construction of the latter is to begin this year.
The Tahawus rail line actually begins in Saratoga Springs. If the entire corridor were converted to a trail, it would extend 90 miles and provide cyclists a safe and scenic way to reach the interior of the Adirondack Park. Click here to see our column in last month’s Gearzette on the potential for such a trail.
Brandt had asked the STB to dismiss DEC’s petition and to expedite its decision. On January 11, the board denied his request. “As mentioned above, the Board’s obligation in an abandonment proceeding is to balance the need for rail service with other interests. As this matter has been in abeyance for nearly two years at the Trustee’s request, an expedited decision is not now warranted. The Trustee’s pleading does not provide any new evidence about the need for common carrier freight service over the Line,” the board wrote.
The federal government created the rail line in World War II to ship ilmenite from an iron mine in Tahawus. Titanium, a metal used in aircraft and ships, was extracted from the ilmenite to aid the war effort. Brandt argues that titanium ore might again be mined in Tahawus and, if so, the rail line would be needed to transport it.
About half of the 30-mile line lies within the forever-wild Forest Preserve owned by New York State. The federal government had agreed to return the lands to the state after the war but instead extended its easement over the corridor until 2052. It later sold the easement to National Lead. The easement is now owned by Saratoga & North Creek Railway.
The rail line has not been used to carry freight since the 1980s. Saratoga & North Creek tried and failed to make it profitable. DEC contends that the line has no viable future and that the public would be better served by a recreational trail.
The only two businesses that might use the line are Mitchell Stone Products in Tahawus and Barton Mines in North Creek. Mitchell Stone sells waste rock from the closed iron and ilmenite mine for use in road construction and other projects. Barton Mines produces garnet used in industrial applications.
The town of Newcomb, where Tahawus is located, opposes the abandonment of the rail line. So does Essex County, which includes Newcomb.
The Adirondack Council supports DEC’s petition. “We are seeking adverse abandonment of the railroad by its defunct current owner and operator, so that the fate of the pathway can be returned to the real stakeholders, the citizens of New York,” said Willie Janeway, the council’s executive director. “Only the Surface Transportation Board can make that determination. It is unclear what effect a sale to a new owner might have on the STB's decision. We will continue to seek a resolution in which wilderness, wildlife, and clean water are protected, and where North Creek and Tahawus benefit.”