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July 14, 2009

Centerville voters on Aug. 4 to decide if a portion of LOST money should be diverted to the railroad

By Michael Schaffer - Managing editor

Centerville residents will go to the voting booth Aug. 4 for a special election to decide if the remaining three and one half years of Local Option Sales Tax money originally slated to build a new aquatic center in Centerville or renovate the existing pool should be diverted to the Appanoose County Community Railroad, or APNC.

The 1 percent sales tax the city has been collecting since it was enacted in July of 2003 is being divided into four different funds: 35 percent is going to a proposed new Aquatic Center or for renovations to the current pool, 25 percent to the Drake Public Library renovations, 20 percent to the purchase of a truck for the Fire Department and 20 percent for the junior high school gymnasium.

Railroad and other officials approached the Centerville City Council two months ago and they agreed at their May 18 regular meeting to allow the issue to come before the citizens for a vote. The council at an earlier meeting suspended plans to construct or renovate the pool, which has approximately $904,000 in LOST money collected for that purpose.

If approved, approximately $700,000 would go to APNC so they can access up to $2 million in grants for needed rail and bridge infrastructure repairs.

APNC has already qualified for two, $1 million matching grants. One grant is an 80 percent with a 20 percent match and the other is a 50-50 percent grant and match ($200,000 and $500,000 needed, respectively).

Some contend the railroad is the spur for the future economic expansion of Centerville and Appanoose County. But Lee Container Facility Manager Greg Fenton said by telephone Friday the stakes go beyond Appanoose County to include seven nearby counties.

"Long-term I think that's going to help your chances of economic growth, not only for Lee Container but for the whole area," Fenton said, noting rail is the most economical and efficient form of transportation for his company. "I really think, that if you really broke it down it could be a benefit for seven counties."

Both Fenton and Jeff Burns, APNC vice president, agree the benefit to the community, importance and reason the measure should be approved is for jobs.

"From here forward, we have to do what needs to be done as a community," said Burns, who also owns Centerville Iron and Metals and uses the rail line to ship his companies products. "I mean a pool can come later, that's great, but if we don't have jobs, what good is a pool?"

Burns said the non-profit railroad has taken steps to reduce costs, like eliminating jobs and going to part-time, and it should be able to hold its own in the future.

"I don't want to have it where we keep sinking money in something and it's never going to end," Burns said. "Nobody wants to do that."

Multiple companies in Appanoose County — Lee Container, Curwood and Centerville Iron and Metals — and at least one in Monroe County — Relco — rely on the railroad to provide their companies with a form of transportation that allows them to remain competitive. When Rubbermaid closed, the railroad lost 80 percent of its revenue.

Steve McDowell, Curwood plant manager, said the railroad allows them to remain competitive in these challenging economic times.

"For us to be a strong employer here in the community, it's important we're a good profitable company," McDowell said by telephone Friday. "Access to the railroad provides us raw materials at a cost that helps us hit those profitability targets to enable to be a good employer. Without the railroad out cost of raw materials goes up substantially."

A sturdy, functioning railroad can benefit the community by attracting business, McDowell said.

"Railroad access like this is important to bring in those type of employers. To bring in employers that are going to add jobs to the community, help build up the economic foundation of the community," McDowell said. "So I think the investment in the railroad by the community is just critical for the long-term health of our community."

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