Lebanon debates spending $200K annually on railroad

Should the city of Lebanon continue to spend $200,000 in taxpayers money annually for the upkeep of a railroad used exclusively by one private business?

The question is facing city council as its contract with Lebanon Mason and Monroe (LM&M) Railroad is set to expire at the end of the year.

Since 2009, the city has spent approximately $200,000 per year on upkeep for the five miles of track it owns and storing away money for more costly bridge repairs that are expected to be incurred within the next decade, said city manager Pat Clements. Since 2008, the city has spent $1.11 million on repairs and saving for future needs of the track.

The city nearly closed the railroad track at the end of 2009 after receiving an inspection report that said two of the bridges were in dire need of repair. After a tense series of negotiations with LM&M, the sole user of the track, the city reached an agreement to fix the track in exchange for LM&M paying $5,250 each year as well as a 50 cent per rider tax. The agreement is set to expire at the end of this year.

According to records released by the city based on the per rider fee, LM&M sold 24,618 tickets in 2010 and 19,241 tickets in 2011.

“Even if ridership is down, it is still bringing 19,000 plus people to the community,” said Councilman Matt Rodriguez. “We are already losing the racetrack. I’d hate to see another pillar of the community disappear. We let this go and it will hurt a lot of businesses.”

Rodriguez argued that funding the railroad was no different than funding one of the city’s parks, which he felt presented far less return on investment to the city than the railroad.

“I want to keep the train in Lebanon,” said councilwoman Charleen Mehaffie Floick. “It may not pay for itself, but when people think of Lebanon, they think of the train. All the downtown businesses benefit from it.”

Councilman Mark Messer questioned if the money could be spent in a better way.

“I think we need to explore what our vision of downtown for the future is,” Messer said. “The city holds three festivals that bring in a lot more people and cost us a lot less.”

Mayor Amy Brewer said she had difficulty with spending so much money on one business directly.

“I agree with the importance of the train to the community, but I struggle with government subsidizing a private enterprise, especially when it’s $200,000 a year,” said Mayor Amy Brewer.

Several downtown business leaders spoke on the importance of the train to their business.

“When the train’s not here, we really feel it,” said Ted Kossouji, owner of the Golden Turtle Chocolate Factory. “That train is our Kings Island.”

“I really believe businesses would start to die off without the train,” said Joy Kossouji. “It will hurt a lot of people in this town if we lose it.”

Clements noted the $200,000 spent on the track could instead be used for the city’s drastically underfunded road repairs, with that much money able to resurface .08 centerline miles of road.

Brian Collins, the owner of LM&M’s parent company, Cincinnati Railway, could not be reached for comment.

Council said they would hold a hearing on the matter at their Sept. 17 meeting and invited the public to come speak further on the matter at that time.

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