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March 13, 2008
Railport hopes for big impact
By MARIANNE KOBAK - Business Editor
ELKO - If all the right pieces fall in place, the Northeastern Nevada Regional Railport could have a $67 million economic impact on Elko County.
The impact could begin in the first year of operations if the industrial park portion of the railport attracts at least six companies, said Elaine Barkdull Spencer, executive director of Elko County Economic Diversification Authority. The railport is scheduled to be operational by January.
Barkdull Spencer said she used the state's numbers for businesses that could be attracted to the site to determine the economic impact to the county. The figures include capital investments, property taxes, sales and use taxes, payroll taxes and benefits.
Pacific Steel and Recycling was the first company to purchase land at the railport. It will create 14 jobs and contribute $13 million in capital - not counting the rail spur - to the project, said Barkdull Spencer.
The economic impact Pacific Steel will have on the county in its first year of operation may be $3,188,000, she said.
A $2.5 million trucking company could create 60 jobs and have an economic impact of $9 million, said Barkdull Spencer. A small, $7 million manufacturing company could generate 25 jobs and impact the county $4,445,000 in the first year, she said.
“If we could put six companies in the front portion (150 acres) of the railport we could bring in $16,740,000 to the county,” said Barkdull Spencer.
The central portion of the project, 280 acres by the river, could bring in bigger businesses that could generate 300 to 2,000 jobs, she said.
“We know it will sell,” she said. “Two companies were looking at it and wanted all of it.”
A combination of the front and central portions have the potential to economically impact the county about $67 million in the first year.
“We know these businesses will be here for decades and this park will be here for decades,” said Barkdull Spencer. “It also will diversify the local economic base. ... We are attracting non-mining industries. This railport has put Elko County on the map.”
Despite this hopeful future, the county still faces a financial shortfall of $4.8 to $8.5 million with the railport budget.
“We have a large amount of contingency,” said Elko Assistant County Manager Cash Minor. “The question will be how much will be used.”
Minor said the county has estimated it will sell all the railport land for a total of $1.4 million.
Some of the contingency money may not be needed if the county is approved for the 2,000 acre feet of water rights it applied for, said Randy Brown, of county zoning and planning.
“So the $500,000 for (additional) water rights might not be necessary?” asked Elko County Commissioner Charlie Myers.
“Correct,” Brown replied.
The county also will request the Nevada Department of Transportation turn over the main road to county control, Myers said. He said NDOT will overlay the road to keep it intact, but the county wants to overlay the road to a higher standard for industrial traffic.
The county's next step in the project is a pre-bid conference in April and a request for proposals for construction of the railport.
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