Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Eligibility.
A Regional Railroad Authority is eligible for financial
assistance in purchasing a rail line if it meets all of the conditions listed
in items A to E.
A. The Regional
Railroad Authority is in compliance with the purpose set forth in Minnesota
Statutes, section
398.02.
B. Financial analysis shows that the line can
operate at a profit.
C. The costs
of purchase and necessary rehabilitation will not exceed benefits.
D. The Regional Railroad Authority has the
capability of operating the rail line or contracts with an operator acceptable
to the commissioner.
E. So long as
the purchase assistance loan remains unpaid, the Regional Railroad Authority:
(1) agrees to and does keep title to property
purchased by the Regional Railroad Authority; and
(2) does not sell, trade, convey, transfer,
or assign any portion of its interest in the property in any manner without
previous approval by the commissioner.
Subp. 2.
Financial assistance.
Financial assistance is available to a Regional Railroad
Authority for purchasing a rail line under the following conditions.
A. If the line has not been abandoned and is
to be used for continued rail service, the commissioner may provide funding for
up to 50 percent of the going concern value or the net liquidation value of the
line, whichever is less.
B. If the
line has been abandoned and is to be used for continued rail service, the
commissioner may provide funding for up to 50 percent of the net liquidation
value of the line.
C. If the line
is abandoned and is to be used for transportation purposes other than rail
service, the commissioner may provide funding for up to 50 percent of the value
of the underlying property. The value of the property will be determined
through negotiation between the Regional Railroad Authority, rail carrier, and
commissioner.
D. The percentages
shown in items A to C indicate maximum participation by the commissioner. The
actual amount of financial assistance will be determined by the availability of
funds, the viability of the proposed use, and the participation of the Regional
Railroad Authority.
Subp.
3.
Repayment requirements.
The Regional Railroad Authority is not required to repay the
funds loaned to it by the commissioner while the rail line remains in operation
and is not sold. If operations on the line cease for one year or if the
Regional Railroad Authority sells, trades, conveys, transfers, or assigns any
portion of its interest in the property, the Regional Railroad Authority shall
repay the funds loaned to it by the commissioner in accordance with terms
negotiated between the Regional Railroad Authority and the commissioner.
Statutory Authority: MS s
218.071;
219.073;
219.165;
219.17;
219.384;
222.50;
222.58;
222.63
