The passenger flight-of-fancy was all Gov. Patrick's thing. The line buy was probably going to happen anyway because of intervention required on the Berkshire Scenic eviction from operating on the tracks, and the horrible safety violations that HRRC was covering up re: deteriorated track conditions. The acute problem up there was that HRRC was divided into multiple shell companies. Coltsville Terminal was the shell company that had the property ownership on the MA part of the Berkshire Line. The Danbury Terminal shell company is the actual operating railroad, but instead of running on self-owned tracks it had a trackage rights agreement with the Coltsville Terminal shell to obfuscate responsibilities. And Maybrook Properties is the property owner in CT on the New Milford-Danbury privately owned section of the Berkshire + the entirety of the Maybrook Line in CT, similarly set up with Danbury Terminal operating on trackage rights. In essence, HRRC was a tenant railroad of...HRRC and HRRC. But each HRRC was a *slightly* different HRRC with plausible deniability of what its other multiple personalities were doing. Yep...nothing shady at all about that.
The shell companies put up a completely opaque front that let HRRC conceal a lot of its activities and negligence from oversight by playing "one hand doesn't know what the other is doing" games. Danbury Terminal could be absolved of blame for the derailments on Coltsville Terminal-owned track, and Coltsville Terminal could bully Berkshire Scenic on trumped-up "safety violations" charges while legally washing its hands of Danbury Terminal's safety violations. It also made HRRC completely untrustworthy for grant awards, such as the infamous "disappearing rail" incident where CDOT donated them some spare salvage rail and it vanished (suspected to have been sneaked across the state line to patch some of Coltsville Terminal's derailment spots). And the structure enabled what has been long-suspected (but never proven) about the company's end-game motives: have the executives loot the company by running the railroad into the ground, then cash out the property holdings for their scrap value when they file for abandonment. That almost happened on the Maybrook until P&W made its adverse abandonment claim and threats to sue make HRRC back off.
This was getting untenable and quickly to the point where outside intervention was needed. The BSRM dispute was MassDOT's trigger. What buying the line--even at an unfavorable overpay--did was liquidate the Coltsville Terminal shell company in its entirety. It may still exist on-paper, but it is now dormant and has $0 in assets. The only active HRRC division in Massachusetts now is Danbury Terminal, the operating railroad itself. And Danbury Terminal's trackage rights are now on public property with public oversight, instead of trackage rights on another opaque HRRC shell. It closes nearly all loopholes for shady dealings and concealment of oversight in MA. That is the be-all/end-all stabilization move. The railroad can still be just as bad an operational laughingstock as before..and just as hard to get rid of with how well-entrenched they are. But they have nowhere to hide it with all oversight made public. Harsh light makes the roaches scatter, and MassDOT's liability and anxiety level are a lot lower being able to control that.
Next domino that has to fall is CDOT making its Godfather move to liquidate Maybrook Properties to likewise box HRRC in to just the Danbury Terminal operating arm and the same harsh light of public oversight. It'll probably have to be a similarly stiff overpay, but the benefits of nipping it in the bud and closing all shady-business loopholes are much the same as MassDOT's move to KO Coltsville Terminal. CDOT does have more luxury to wait it out until HRRC gets more desperate for cash, because there's no hostage-taking HRRC can make like the BSRM situation in MA. They already played that hand on the Maybrook and lost when much bigger P&W pulled out its big guns. CDOT can also recoup some of its overpay by getting P&W better-entrenched on the Maybrook (possibly even brokering sale of the local rights from HRRC), since that's P&W's preferred route to Danbury and the company actually wants the full control as a growth and risk mitigation investment. May take a few more years of Maybrook Properties malingering, but eventually the time will come and the price point will move into the range CDOT is comfortable paying...then it's go-time for them to make their buy. Could even be coming in a few years, as Walk Bridge reconstruction on the New Haven Line puts some urgency on P&W having a reliable Maybrook route for its Danbury local so they never have to run that train through the chaotic bridge construction zone.