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City gets the slip on stimulus dollars

Wednesday, May 13, 2009
A rail extension in Le Mars' industrial park won't be paid for with federal stimulus dollars.

Tuesday, an announcement from Governor Chet Culver's office listed the recipients of a total of $5 million in rail transportation projects in Iowa.

Le Mars' rail spur project didn't make the list.

The $773,582 project, already bid to a contractor, will be paid for instead by Tax Increment Financing (TIF) dollars, at least initially.

"Ultimately, our first choice would be to pay for the project with money from lot sales in Killeas and Le Mars industrial parks," said City Administrator Scott Langel.

The cost not covered by land sale revenue will be paid for with TIF dollars, he said.

When complete -- an estimated finish date is Aug. 15 -- the rail spur will serve at least three firms in the industrial park: IML Container Iowa, Nor-Am Cold Storage and Le Mars Public Storage.

The contractor on the project, with the lowest bid out of 11 contractors, is Ameritrack Railroad Contractors, of Frankfort, Ind.

"We got very competitive bids," Langel said.

He plans to follow up with his contact at the Iowa Department of Transportation as to how Le Mars ranked among the others applying for stimulus dollars.

According to Langel, 33 Iowa communities applied for a piece of the $5 million of federal stimulus money available for Iowa rail projects. A total of $48 million was requested.

The dollars were awarded to the following projects:

Clinton Regional Development Corporation will receive $2 million to build rail access into an industrial park, and add passing track that facilitates switching. This will help the community attract rail transportation-dependent industries to the area.

The City of Keokuk will receive $235,800 to update electrical components on the 1913 Mississippi River bridge that serves the city. This will help improve the reliability of rail traffic, and increase efficiency by allowing more trains to utilize the bridge.

Iowa Interstate Railroad Intermodal Facility in Council Bluffs will receive $2 million to upgrade and improve efficiency. Improvements include a drainage system, paving and track rehabilitation to enhance customer service and serve additional markets.

D & W Railroad will receive $764,200 to upgrade up to nine railroad bridges between Dewar and Oelwein, enhancing safety and allowing for increased weight capacity.


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I don't think that the stimulus money was ever ear marked for something of this nature. Why can't some of the businesses that will use this pay for this instead of the poor taxpayer? I feel this City has done enough for incoming business people, it's time they do something for the average taxpayer.

-- Posted by happydays on Wed, May 13, 2009, at 7:46 PM

Actually, the needs of Le Mars perfectly matched the purpose of the $5,000,000.00 for Iowa Rail Projects as evidenced by Clinton, Iowa's receipt of 40% of the money for "rail access into an industrial park..." This is the exact use for which Le Mars applied. We are simply in the wrong part of the state. As citizens of Le Mars, we need to all call Gov. Culver and remind him that we are part of Iowa as well.

-- Posted by FoodForThought on Wed, May 13, 2009, at 8:31 PM

If that be the case that Culver doesn't care about northwest Iowa then where are our representatives. They should be going to bat for us unless there are some other reason we didn't get this money. Before we look outward to place blame we should look at ourselves for some faults. Could be past dealings with the state have left them with a bad taste in their mouths. Give it some thought.

-- Posted by happydays on Thu, May 14, 2009, at 7:09 AM


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