Wisconsin short line rehab hits snag

Funding has fallen through on a $15-million project to rebuild an abandoned freight-rail line from Plymouth to Sheboygan Falls, Wis., and Sheboygan County officials now are working to secure federal dollars to get the stalled plan moving again, the Sheboygan Press reports. The project, which proponents say will spur new development along the approximately 15-mile rail corridor, looked like a done deal last fall after the state agreed to pitch in $12 million toward the effort.

The remaining $3 million
was to come from the City of Plymouth, which planned to recoup its investment
by charging a $10 fee to the railroad’s operator, the Wisconsin & Southern
Railroad, for each rail car traveling through the city.

But Plymouth Mayor Don
Pohlman said that Wisconsin & Southern has backed out of the fee agreement
because it would have hurt the railroad’s ability to finance other projects.

"The agreement in
principle became our worst enemy," Pohlman said. "So now, we’re
regrouping from another direction."

The new direction means
having the county apply for a $15-million federal stimulus grant. If those
funds are secured, the state could use its $12 million elsewhere and the
required local match would drop from $3 million to a much more palatable
$600,000, according to Pohlman. The application process already has started at
the county.

The Plymouth Common Council
is expected to vote on a resolution July 27 in support of the county’s funding
application. Other communities that stand to benefit from a rebuilt rail will
be asked to do the same.

If the federal funds don’t
come through, Plymouth will be back to square one in using state money and
attempting to raise the $3 million still needed to get the project off the
ground. Pohlman said the city would likely ask other Sheboygan County
municipalities and companies to pitch in, as going it alone is no longer an
option for Plymouth.

That, of course, assumes
the state’s $12 million still will be available, which is something County
Board Chairman Mike Vandersteen said is not guaranteed.

"The longer the county
waits to implement the program the greater the likelihood that the state will
shift that money to something else," Vandersteen said. "We don’t know
how long they’ll hold it."

The state made its $12
million commitment in September 2009 after paying $1 million to acquire the
rail line from Union Pacific several months before. The rail spur connects to a
north-south route that could be used to ship goods all over the country. The
project has been billed as a major economic development tool for Sheboygan
County, as established businesses have said an east-west rail line would help
them reduce shipping costs. Bemis Manufacturing and Richardson Industries in
Sheboygan Falls are among them. Kohler Co. is also said to have interest.

In addition, Pohlman and
other rail proponents have said that several companies have expressed interest
in moving or expanding here if rail service is expanded. However, one of those
companies, AMworx LLC – which had been operating out of a rented facility in
Sheboygan Falls and was considering building a plant on 120 acres in the
Plymouth business park that would have created up to 600 jobs – has since shut
down.

The AMworx closure only has
added fuel to the fire for the rail project’s critics, who feel the project has
been too speculative and should come with signed commitments from interested
businesses to assure the city is making a sound investment. Opponents also feel
Pohlman has kept the community in the dark on the project.

Ald. Ron Lade said that he
wasn’t even aware the project was stalled, or that the county was now involved
in securing funding for it.

"We haven’t been told
what’s going on," Lade said, referring to the council. "We know
nothing."

Pohlman said he was simply
waiting to put together a "Plan B" before going to the council.