(The following story by Aaron Applegate and Deirdre Fernandes appeared on The Virginian-Pilot website on January 24, 2009.)
VIRGINIA BEACH, Va. — The price to buy the old Norfolk Southern rail line for a possible light-rail project could reach $40 million.
A state budget amendment proposed by Virginia Beach Sen. Kenneth Stolle and made public Thursday offers the clearest picture so far of what Norfolk Southern wants for the 10.6-mile line. The rail line bisects the city, roughly parallel to Interstate 264.
Stolle requested $15 million in state mass-transit funds to help buy the land. That would be added to $10 million the City Council agreed last week to spend on it, $10 million set aside by the state two years ago and $5 million in utility easement payments.
“What we’re trying to do is get the state to commit, in the future, revenues,” Stolle said. “Not right now, but in the future. Whether it’s likely or not, I’m not 100 percent sure.”
Norfolk Southern officials would not say if the deal hinged on Stolle securing the $15 million. The state faces a $2.9 billion budget shortfall.
An appraisal by the railroad last year valued the Beach right of way at $50 million. Company officials have said they want fair market value.
“The bottom line is the property is worth a lot,” Mayor Will Sessoms said. “It’s something that has to be acquired.”
The cost of the line in Virginia Beach would amount to $3.8 million a mile, compared with the $1.5 million a mile Norfolk is paying. That’s because it runs through more valuable property in the Beach, Sessoms said.
“I hope he’s successful,” Sessoms said of Stolle’s amendment.