RIO GRANDE COUNTY — During the last two Rio Grande Board of County Commissioners, several discussions surrounding the San Luis and Rio Grande Railroad (SLRG) which led to the signing of a memorandum of understanding (MOU) last Wednesday, Oct. 5.

It has been determined that North Central Railcorp has made a bid on the bankrupt line and has intentions of keeping it intact and running if they win the bid.

The SLRG has been a topic of discussion for the past several years ever since the line’s previous owner went into bankruptcy. Property taxes owed to the six counties of the San Luis Valley and Huerfano County just on the other side of La Veta Pass have not been paid and is part of the reason why Rio Grande County Commissioners have taken the lead on not only trying to get the money reimbursed as part of the deal through the bankruptcy court but to also find a way to salvage the line.

Many businesses throughout the Valley rely on the railroad for commerce. The tourism portion of the line has been a driving economic force in Alamosa County for many years and will not be able to continue unless a resolution can be found and a bidder awarded throughout the US Bankruptcy Court.

Over the last two years, bidders have come and gone and the need to save the line became more and more apparent as gas prices skyrocketed and inflation hit rural communities. The SLRG reportedly brings in an estimated $4 million in revenue per year to the Valley.

The MOU states, “If the North Central Railcorp, Inc. (NCR) is the successful bidder for the assets of the San Luis and Rio Grande Railroad, which is currently in Chapter 11 Bankruptcy case No. 19-18905-TBM, in the United States Bankruptcy Court for the District of Colorado, will out of the cash portion of its offer tendered to the trustee pay 60% of the total taxes due, including any amounts remaining from 2011 and 2012.”

According to the bio from NCR, “North Central Railcorp, Inc. was incorporated in April of 2018 as a “C” corporation in the State of New Mexico as a short line railroad holding company. It is management’s goal to acquire short line freight railroads, terminal railroad operations, rail to truck transload facilities and industrial switching opportunities primarily located in the Midwest, Central States and Rocky Mountain region of the United States.”

The company is one of two bidders that are looking to purchase the line and the MOU with the county states that should NCR be the successful bidder, the company would not only maintain the line, keep it open for commerce but they will also work to pay the back property taxes owed to the six counties and Huerfano County.

As of the meeting on Wednesday, Oct. 5, NCR received letters of support from all counties including Rio Grande which may help in the bid for purchase through the bankruptcy court. A final decision will be made in coming weeks and will be announced as soon as it is released.