Cortland County I-D-A Approves New Lease Agreement With Rail Company
The Cortland County Industrial Development Agency has approved a new lease agreement with local railroad Company NYS&W. The lease covers the rail road tracks that run through Cortland County.
There is over 30 miles of railroad track in Cortland County and over 255 acres of rail related property. The assessed value of the tracks and property is $1.4 million dollars, with an annual taxable value of just over $52 thousand dollars.
Since 1982 NYS&W has paid $500 dollars a year as part of a payment in lieu of tax agreement with the I-D-A, Yesterday the County I-D-A Board unanimously approved a new 10 year lease on the tracks and property.
Under the terms of the new agreement, the rail company will pay $1500 a year for the next decade.
The agreement also calls for a 35-year lease on the rail siding that runs into the Noss Park industrial site in Cortland where the Rail Company plans to build a $1 million dollar freight to rail facility.
NYS&W President Nathan Fenno says the tax break allows the company to continue investing in Cortland County, through new facilities like the one in Cortland, as well as upgrading and maintaining rail infrastructure.
Fenno says his company is working to develop another transload facility in Preble.
The company’s biggest customer is Suit Kote, which ships many of their raw materials via rail.
The new lease includes a provision that calls on the railroad to pay an additional fee to the I-D-A if the number of rail cars on the line exceeds 7 thousand a year, last year there were just over 6 thousand.
It also requires that the rail company stop charging municipalities utility fees for any utilities cross the tracks.