Counting pennies on Nickel Plate

Photo provided

“The numbers are wrong.” That is what Hoosier Heritage Port Authority (HHPA) board member Glen Schwartz told The Reporter when talking about the cost of repairing the Nickel Plate Rail.

“The railroad was shut down last year due to safety violations that would cost $5 million to fix. Wrong. All this is absolutely wrong. We want to make it right,” Schwartz said. “The $5 million is misinformation. The actual cost was $3.7 million.”

He backed up his statement with the official report prepared by Jannotti Rail Consulting, Inc. for HHPA.

The report states, “The total Order of Magnitude – Estimate of Probable Costs for the two phased HHPA Class Two Track Rehabilitation Plan is $3,715,000.”

There are three portions of a project at the end of the line in Tipton which would increase the cost to $5 million, but in Jannotti’s report, the estimate of probable costs includes $1,065,000 from Noblesville to the fairgrounds and $2,650,000 from Tipton to Noblesville. Those two phases total $3.7 million.

According to Schwartz, even that number is too high.

He explained that Jannotti is based in Russell, Penn. Thus, the contractor costs included in the estimate are based on East Coast contractor pricing. He told The Reporter that each rail tie needing replacement would cost $150 with East Coast contractors, but only $75-$110 for local contractors to do the same work.

“That [$3.7 million] gets you from Tipton [to the fairgrounds], but a lot of that doesn’t need to be done nor do we want it to get done,” Schwartz said. “That was taking out the turnouts.”

A turnout is a switch with a short section of track used for maintenance. Turnouts allow pulling off the main track with equipment and getting back on the track once the work is done. The option for removing several turnouts was included in the Janotti report price.

Other people have different ideas about the future of the Nickel Plate.

Fishers and Noblesville are talking about converting the Nickel Plate Rail to a walking and biking trail. In a statement to The Reporter, City of Noblesville Communications Manager Robert Herrington said, “The estimated cost to convert 9.2 miles from rail to trail from 96th Street to Pleasant Street is approximately $9.3 million, assuming standard crossings at intersections.”

A bridge over 146th Street to connect Fishers and Noblesville would be an additional expense that is not part of the $9.3 million estimate.

“There are various funding sources [including federal programs] that are available to offset the city costs and we are looking into these to help pay for the Nickel Plate trail construction,” according to Herrington.

One reason for the trail option is to create economic development in the longer term.

“We anticipate the Nickel Plate Trail will contribute to increased residential and commercial development in Fishers and Noblesville,” Herrington stated. “A study by the IU Public Policy Institute on the economic impact of the Indianapolis Cultural Trail shows that property values within 500 feet (approximately one block) of the trail have increased 148% from 2008 to 2014. In Carmel, the Monon Trail has become a magnet for $1 billion dollars in investment.”

The Nickel Plate trail project’s initial costs would create a taxpayer liability.

“The cost of maintenance for the trail once it is constructed would initially be relatively low,” Herrington told The Reporter. The City of Noblesville estimates its annual trail maintenance costs at approximately $100,000.

“Compared to the ongoing maintenance and operating expenses of a rail operation, the trail would be significantly cheaper,” Herrington stated.

However, according to Schwartz, for several years the Indiana Transportation Museum paid for maintenance and operating expenses on the Nickel Plate in lieu of rent.

Meanwhile, the Midland Trace railroad bed has been converted to a walking trail from Gray Road through Westfield. Herrington said, “The City of Noblesville will break ground on its portion of the Midland Trace starting in early April to begin construction from Gray Road to Hazel Dell.”

Although Midland Trace is essentially underway, Nickel Plate plans in Noblesville are still not certain.

Deputy Mayor Steve Cooke told The Reporter, “We’re very excited about the opportunity to have two major trails intersecting in Old Town with the Nickel Plate. However, we need to make sure we honor our current commitments to the Midland, Little Chicago Road and Levee trails as well as the Riverwalk before we can begin work on the Nickel Plate.”