NYGL Dundee Spur Status - 2009-present

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Re: NYGL Dundee Spur Status - 2009-present

Postby Sid Farkus » Wed May 16, 2018 5:24 pm

That E8 and RS-3 are certainly worth saving. The E8 was operational not too long ago, but needs work since it could not run on its own when brought to Spencer, NC. That Alco in Passaic though is just a cab. LIRR converted it to a power pack.
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Re: NYGL Dundee Spur Status - 2009-present

Postby DogBert » Sat May 26, 2018 10:42 pm

This explains a few things and adds color to this situation:
https://www.stb.gov/filings/all.nsf/ba7 ... 245700.pdf

NYGL is attempting to fight the sale/abandonment. I'm no lawyer so I can't comment on their chances here. My guess here is they finally found a customer and started moving cars despite (or in spite) of the tax situation. I'm assuming the new 'owners' cut the track to stop more rail activity.

Clearly some mistakes were made for the IRS to seize the property. A tax burden of $70,000 shouldn't have lead to this, especially not with some assets laying around worth easily that much in sale or scrap value. No one ever wants to see stuff scrapped, but in Passaic alone there's two passenger cars, two cabooses, the FA, two GPs, two boxcars... not counting the port jervis collection.

If the real estate developers win, what does that mean for the equipment on property? Does a locomotive have the equivalent of a 'title' that would be needed to dispose of it?
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Re: NYGL Dundee Spur Status - 2009-present

Postby blockline4180 » Tue May 29, 2018 11:26 am

DogBert wrote:This explains a few things and adds color to this situation:
https://www.stb.gov/filings/all.nsf/ba7 ... 245700.pdf

NYGL is attempting to fight the sale/abandonment. I'm no lawyer so I can't comment on their chances here. My guess here is they finally found a customer and started moving cars despite (or in spite) of the tax situation. I'm assuming the new 'owners' cut the track to stop more rail activity.

Clearly some mistakes were made for the IRS to seize the property. A tax burden of $70,000 shouldn't have lead to this, especially not with some assets laying around worth easily that much in sale or scrap value. No one ever wants to see stuff scrapped, but in Passaic alone there's two passenger cars, two cabooses, the FA, two GPs, two boxcars... not counting the port jervis collection.

If the real estate developers win, what does that mean for the equipment on property? Does a locomotive have the equivalent of a 'title' that would be needed to dispose of it?


Well, with Wilson stating that there has been recent freight moved this past year ( I believe he said they delivered 8 cars and one waiting due to severed track) then I don't know how STB will allow PSPs request for abandonment to go through... Stranger things have happened, but for now I think the evidence is on the NYGL side.
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Re: NYGL Dundee Spur Status - 2009-present

Postby pateljones » Mon Jul 02, 2018 12:21 pm

Any idea about the identity of the large customer that went out of business, that is mentioned in the filing. And what active rail customers are left along the line?
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Re: NYGL Dundee Spur Status - 2009-present

Postby DogBert » Tue Jul 03, 2018 7:31 am

pateljones wrote:Any idea about the identity of the large customer that went out of business, that is mentioned in the filing. And what active rail customers are left along the line?



The C&D company that was transloading scrap metal in their yard.

The current customer is (if I recall right) attempting to unload plastic pellets at the same yard.
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Re: NYGL Dundee Spur Status - 2009-present

Postby DogBert » Sun Nov 11, 2018 2:05 pm

Checking back in on this...

Looks like STB ruled the new property owner can't file for exemption back in July.

No idea what this means for NYGL, other than further stalling development plans. is it even possible for the IRS to reverse their property auction if NYGL (or a buyer) paid off the tax bill? Looks like the new property developers have changed lawyers though.

For what it's worth, it's STB docket number: FD_36187_0
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