Adirondack Scenic Railroad Position Statement for Consideration Remsen Lake Placid Travel Corridor. December 2014

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1 Adirondack Scenic Railroad Position Statement for Consideration Remsen Lake Placid Travel Corridor December 2014

2 Our Position The 1996 Unit Management Plan fairly explored the future and best use of the travel asset now being debated. It is our position that the conclusion of that study was then, and remains now, the correct conclusion. Substantial talent and resource was brought to the process during that exploration and, wisely, the determination was made that an asset such as this should not be discarded as excess, but rather developed along with trail enhancements. Absent a vigorous, focused, and intellectually myopic objection from influential parties in the Tri-Lakes area, this debate would not exist. Furthermore, had the resources been available at the State level at that time, and in subsequent years, the original recommendations of the UMP would have been performed and we would not be in search of a new and politically charged outcome. Accordingly, we remain strongly opposed to any deviation from the currently governing UMP and look to the State to accomplish what was originally set out as guidance for the corridor. Consideration of the possibilities, both culturally and economically, of the directives of the UMP and in similar consideration of the costs and impacts, it is highly likely that executing the conclusion of the 96 UMP will yield the greatest benefit to the greatest number of people living and visiting the Adirondack Region.

3 Accessibility The rail line has the unique ability to safely and predictably transport any individual without exception into the wilderness The rail operation as it currently exists along with trail usage throughout the region enjoys participants from all sectors of the population. In no circumstance does any one use favor a particular class of user nor do any of the offerings either present or proposed by ARPS unfairly discriminate by age, physical condition, economic status, or any other qualifier one might choose to assign to the general public. The rail line has the unique ability to safely and predictably transport any individual without exception into the wilderness and return them having experienced a State owned asset that would otherwise be impossible to enjoy. As an educational tool, access to the corridor and all it contains will be an impossibility without deliberately and arbitrarily deciding that very restrictive use trumps the taxpayers of New York and those who visit from other states and the world. Conversion of the corridor to a trail suitable for hiking and biking implicitly creates exclusivity and would likely eliminate 90% of its potential users from the heart of the Adirondacks. The ASR routinely carries passengers from all states of the Union and from foreign countries many, if not most, of whom would otherwise never experience the remote and beautiful joy the region has to offer. Opening up the corridor with the proposed upgrades to the track would serve to expand public participation and bring credit to New York State for having the foresight to complete the mission that was outlined by the 1996 UMP. Redefining the current use and the UMP to a restrictive and narrow focus defeats the role of government and penalizes those whose interests would otherwise lead them to the region. No other means of transport provides the safety, economy, and environmentally friendly service as does rail; the demand for such service can only grow substantially with enhanced opportunities. An affirmative measure of this is the nearly 1.4 million passengers that we have carried to date.

4 Our Sustainability The ASR has spent the past 5 years aggressively reinventing itself through marketing and financial management. The ASR has spent the past 5 years aggressively reinventing itself through marketing and financial management. From a position of perilous and unsustainable debt, the organization has nearly eliminated all borrowings and has a payable list which is current; both down from multiple 6 figure levels. While there is little joy in admitting to careless spending by past boards, the governance of the railroad has been professionalized as a business and has exercised considerable discipline in arriving at this financial destination. Not surprisingly, past audits have been guarded by the writers as we worked our way through the challenges. Our position now is stronger by far than at any point in the 23 year history of the ARPS, and we look forward to making meaningful investments in our operation. Critics of the ARPS have been clever in choosing this topic as a weakness. We are a 501(c)3 not-for-profit, and do not have a deep pocket to fund an extravagant budget as do some. Thankfully, few groups are organized around a negative purpose such as our critics. Our concentration and financial goal has been the pursuit of the positive mission, as it was stated and chartered in 1992, not the funding of an aggressive battle with no visible stakeholder position in payroll, equipment, economic impact, or community involvement.

5 Preservation The Adirondack Scenic Railroad is a functioning and utilitarian piece of our past which allows for an incredibly authentic historic and cultural experience. The ARPS exists because its membership and founders understood the significance of preserving not only the history, but also the physical assets which predate the current operation and which had a nearly singular hand in the building of the Adirondack Park. The realization of ARPS efforts are evidenced daily in its ability to transport passengers and expose them to the historic narrative provided on the train. This is particularly important as it is reflected in the corridor and all its appurtenant structures, including the rails and ties, being listed on both the State and National Historic Registers. Aside from the honor that such recognition bestows, its implications are equally as important. Properties listed on the Register and certain federal laws provide degrees of protection which weigh the value of history in the face of development or careless destruction. Such is the seriousness with which forward thinking legislation deems necessary to uphold the history of the nation and its past. For projects under government jurisdiction or administration on land, or in this case, historic districts which are deemed historically significant, State Historic Preservation Office (SHPO) requires an archaeological survey, including shovel test pits at a maximum of every 15 meters for the length of the 119-mile corridor. More in depth surveys, excavation, and mitigation are required when, inevitably in this case, historically significant artifacts are encountered. This process is costly, time consuming and can possibly mandate altered construction plans or even yield a determination that the scope of work is not feasible. The Adirondack Scenic Railroad is a functioning and utilitarian piece of our past which allows for an incredibly authentic historic and cultural experience. The cost of either proposal is not trivial more to remove the rails and convert to an adequate trail than to restore the much longer out-of-service track to a useful condition providing full corridor capability. The fact that the full 60 miles of rail restoration can be done for a lesser amount than the shorter trail conversion from Tupper Lake to Lake Placid is telling. Much has been made of the numbers by all parties to the debate. However, having recently restored 6 miles from Carter Station to Big Moose, a stretch in poorer condition than much of the balance of the corridor, we know with some accuracy what the costs are likely to be. At the conclusion of that job, $199,833 had been spent per mile and although tie prices have risen since that time, the delta between then and now does not appear to be huge. This begs the question: why anyone would consider removing existing infrastructure which can only become more valuable in the future and spend more to do it? Be reminded that rehabilitation of the track is a project which is shovel-ready and will require no permitting or cultural resource management. THE INVESTMENT... the full 60 miles of rail restoration can be done for a lesser amount than the shorter trail from Tupper Lake to Lake Placid

6 ECONOMIC IMPACT ARPS, with an estimated 190,936 passengers, could increase annual revenues to over $5.7 million. The Adirondack Scenic Railroad is a full-fledged local business, one that attracts visitors, rather than a passive visitor site that has no regular operating budget. Economic impacts are not limited to estimates of visitors and what they may spend, but also determined by business expenditures that keep the operation going. While indirect and visitor economic impacts have to be estimated, the actual operating budget of the railroad is known and it directly ripples through the local economies. An attraction that has an operating budget will have more economic impacts than a passive attraction, even with identical visitation numbers. Stone Consulting 2012 Economic Impact Analysis Please note: Economic impact determined using RIMS II methodology with figures and calculations provided by Stone Consulting and Essex County Leisure Visitor Survey 2013.

7 ECONOMIC IMPACT The graph above illustrates the estimated operating budget for the Adirondack Scenic Railroad in the first and second year of operations. The operating budget of a restored rail line would increase to $5.6 million, creating an impact of $11 million when using proper multipliers. Job creation would result in another $7.2 million of impact along with another estimated $7.0 million in indirect visitor activities of people drawn to the area to ride the railroad. The total estimated economic impact is over $32 million, doubling the investment in rail rehabilitation by the second year of full corridor operations, while providing numerous intangible benefits such as offering access for people with disabilities and providing a tangible means of historic preservation and education. Total economic impact of an expanded rail operation, taking into consideration job creation, indirect economic impact and direct economic impact, the Adirondack Scenic Railroad will yield a $32 million economic impact in the first year of full line operations. The investment in track rehabilitation would be paid doubly by the second year of full line operations.

8 ENVIRONMENT What a terrific notion; travel from New York or Boston or Chicago by train and step across the platform to begin the adventure through the mountains to the Tri-Lakes area. Environmental considerations are significant to this conversation. Rail transport is friendly to the environment, an accepted fact. Pressure on existing roadways is, at times, excessive and makes for congestion during peak travel periods. One only need visit Lake George, Saranac/Placid, Old Forge and many other locales and the concept is easily understood that increased exploitation of the railroad is indicated. Using State ridership estimates and others, reconnecting the North with the South and its main line service in Utica from all points could easily serve to divert capacity away from petroleum-based car and truck traffic to passenger trains.. ARTA has maintained that as a population center, Utica is a non-player, that people will not park their cars there having driven a distance just to board the train. This conveniently side-steps the fact that passengers coming from anywhere in the east will have easy access to the Adirondack Region from Union Station via the ASR. What a terrific notion; travel from New York or Boston or Chicago by train and step across the platform to begin the adventure through the mountains to the Tri-Lakes area. The ASR receives many inquiries, perhaps the most common of all questions at ticketing, when through service will begin? Then there is the question of carbon footprint, ATV damage, and uncontrolled access to sensitive areas. This wildcard presents an untenable possibility and one which cannot be controlled. Train access to remote trails, on the other hand, comes with the ability to control overuse; easily accomplished with a cooperative effort by ASR/ DOT/DEC officials.

9 OUTSIDE INVESTMENT Rail Explorers, Inc. is an example of an interactive program which engages both rail utilization and the benefits of the outdoors. Completion of the full corridor will lend itself to activities unimagined in the Park. While this may or may not be such an activity, Rail Explorers, Inc. is an example of an interactive program which engages both rail utilization and the benefits of the outdoors. Representatives from this organization have spoken with us on several occasions and have had an introduction to DOT personnel. They appear to be well-organized, have a unique business model which causes revenue to be shared with the community, the railroad, and several other possible entities. Attached is a sampling of their thinking along with an image of the pedal rail bike. Please note: no assumptions have been made in ARPS pro-formas nor has the ARPS included any financial data in our impact estimates. Whether this has merit is anyone s guess, but it is this type of activity that could set New York State apart as an innovative steward of its resources combining existing assets with entertainment.

10 The win-win scenario: The independent group TRAC (Trails with Rails Action Committee) has invested considerable time creating well documented plans as well as engineering drawings which indicate that both a rail and trail approach is realistic. This, in fact, is what the 1996 UMP had promoted as the best and highest use for the corridor. The work of TRAC is remarkably complete and should be reviewed in earnest as a way to please many, if not all of the voices in this debate. Such an approach should satisfy all but the most determined who don t wish for trail as an end-game at all, but whose goal is to extinguish the railroad. The words side-by-side when speaking of trails and the corridor unfairly stresses the need that it all be tidy; packaged neatly like an urban walking path. That need not be the case as the TRAC has outlined and in a very interesting fashion much as the 1996 UMP had envisioned a mixed use travel corridor. TRAILS & RAILS The work of TRAC is remarkably complete and should be reviewed in earnest as a way to please many, if not all of the voices in this debate.

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12 PHOTO GALLERY