APPALACHIAN REGIONAL COMMISSION AREA …

1 APPALACHIAN REGIONAL COMMISSION area development PROGRAM NEW YORK STATE - SOUTHERN TIER CENTRAL REGION PREAPPLICATION - FY2012 Project Name B&H Railroad Bridge Timber Deck Replacement Sponsor Name Steuben County Industrial development agency Address 7234 Route 54 North, 393, Bath, New York 14813 contact Person James C. Johnson, Executive Director (Name and Title) Phone (607) 776-3316 Fax (607) 776-5039 E-Mail Project Location/Service area Bath to Cohocton, Steuben County, New York Short Description of Project Replacement of railroad bridge timber decks along with associated structural and masonry bridge repairs on four(4) railroad bridges on the B&H Rail Corp. main line track between - All proposed railroad bridge work to be performed along railroad right-of-way currently owned by the Steuben County Industrial development agency to permit unrestricted movement of freight cars weighing 286,000 Ibs.

2 Through this rail corridor. Amount of ARC Funds Requested $150,000 Total Project Cost $300,000 Basic Federal or State Administering agency (if any; contact LDD): Type of Project: (Identify the reference number only) ARC Goal: ARC General Goal 3 NYS Strategy: NYS Strategy 3 .5 CERTIFICATION The project sponsor certifies that the information contained in this initial application is correct. It is understood that any significant changes prior to funding appro va/ may affect funding priority and that ARC funds are to be considered the last dollars spent on a given project and subject to adjustment in the event of u~_ 6/30/11 ~~ (Date) / (Signature) James C. Johnson, Executive Director (Name and Title) SECTION 3 : PROJECT NARRATIVE 1.)Goals & Strategies a) ARC Goal and Objective The proposed project addresses ARC General Goal 3: Develop and Improve Appalachia's Infrastructure to Make the Region Economically Competitive and ARC Strategic Objective : Promote The development Of An Intermodal Transportation Network.

3 B) ARC State Strategy The proposed project also addresses NYS Strategy : Support the development of intermodal transportation systems with fast, efficient, and dependable access to worldwide suppliers and markets. 2.) Purpose, Description, & Rationale a) Problems or Issues The Steuben County Industrial development agency and the B&H Rail Corp. have worked in close partnership over the years to secure a safe and effective rail service for Steuben County businesses. The proposed project will continue to insure reliable rail service delivering products such as natural gas, chemicals, fertilizers, and farm supplies to customers. b) Main Purpose of the Project The main purpose of the project is to insure that present and future rail customers in the Upper Cohocton Valley have unrestricted access to the North American rail network by maintaining railroad capability of handling rail cars with a gross weight of286,000 Ibs.

4 This capability allows Steuben County industrial rail users to realize efficiencies of scale in their operations and thereby retain rail-dependent jobs. c) Major Project Activities See attached letter from West Branch Engineering to Victoria A. Ehlen, STC, dated 6/30/11, outlining scope of work description, responsibilities, and project schedule. d) Most Beneficial Approach The proposed project as outlined in the attached letter from West Branch Engineering to Victoria Ehlen, STC, dated 6/30/ 11, incorporates the most beneficial approach to maximizing the impact of ARC Grant funds and B&H Rail Corp. matching funds in the upgrade of Steuben County rail infrastructure through the use of experienced and efficient railroad force account personnel in the procurement and installation of materials and services for the proposed railroad bridge timber deck replacements.

5 B&H Rail Corp. force account personnel are daily involved in the efficient maintenance and upgrade of all railroad bridges on the Steuben County Industrial development agency railroad right-of-way in compliance with Federal Railroad Administration requirements. e) Progress to Date Progress to date associated with the proposed project includes preliminary engineering inspections of the four( 4) railroad bridges to identify an initial project approach, scope of work, and estimate of cost. t) Local Demand Attached letter of support from Crop Production Services to James C. Johnson, Steuben County Industrial development agency , dated 6/22111, illustrates strong support for the project from a key stakeholder. g) Documentation See documents attached.

6 3.) Relation to Other LocaJJRegional Activities a) Community or Economic development Plans In conjunction with Strategic Priority #2 of the 2011-2013 Steuben County Economic development Plan, the proposed project addresses the need to enhance Steuben County's economic infrastructure, with an emphasis on existing population centers, to support the expansion of existing businesses and new business development . b) Past and Future Activities The proposed project is part of a coordinated effort between the Steuben County Industrial development agency (SCIDA), as sponsoring agency , and B&H Rail Corp., as designated operator, to secure ARC Grant funding assistance in upgrading SCIDA-owned railroad right-of-way between Bath and Wayland, to comply with New York State Department of Transportation and Federal Railroad Administration regulations for handling rail cars with a gross weight of 286,000 lbs.

7 Previous ARC Grant funding committed to this effort includes the ARC Grant - FY2009, B&H Railroad Infrastructure Upgrading project between - , completed in 2010, and the recently approved ARC Grant -FY20ll, B&H Railroad Crosstie Replacement - Phase n project between - c) Participating Organizations selDA and B&H Rail Corp. have coordinated with USDA - Rural development which has acted as Basic Administering agency for the implementation ofboth ARC approved projects. d) Private Sector Involvement B&H Rail Corp. and its parent company, the Livonia, Avon & Lakeville Railroad, have been an integral part of the planning and implementation of all efforts to upgrade SelDA-owned railroad right-of-way to enhance Steuben County's economic infrastructure.

8 4.) Geographic area a) Service area The proposed project service area is along B&H Rail Corp. operating railroad limits between Painted Post and Wayland, in Steuben County. b) ARC Distressed Areas The proposed project is located completely within Steuben County, which has an ARC designated "Transitional" ranking, and has no impact on ARC's designated distressed areas and does not meet income or distressed criteria of any other sources of funding. c) Maps Attached map #19 shows project service area between Avoca and Wayland, , Steuben County. Attached map #30 shows project service area between Painted Post and Avoca, , Steuben County. 5.) Benefits and Performance Measures a) Outputs and Outcomes Output Measures: Number of Participants - 6 Product of Strategic Planning Initiatives - 2011-2013 Steuben County Economic development Plan Access Roads - Currently in Existence Outcome Measures: Number of Jobs Created-Number of New Businesses Started-Number of Jobs Retained in Local Industries That Are Rail Dependent - 500 b) Letters Documenting Jobs c) Other Project Benefits The proposed project, in addition to helping retain jobs in local industries that are rail dependent, also provides full access to the North American rail network for industries such as beverage production and manufacturing while improving REGIONAL safety with minimizing heavy truck traffic on area roadways.

9 6.) agency Capacity, Staff &Consultant Qualifications, and Procurement Procedures a) Applicant's Capacity The Steuben County Industrial development agency has extensive experience in undertaking projects designed to enhance Steuben County's economic infrastructure including ARC approved rail upgrade projects and efforts to support the expansion of existing businesses and new business development as evidenced by SCIDA recent progress in coordination of developer initiatives regarding the SelDA-owned 100 acre shovel-ready industrial park. b) Qualifications of Key Individuals c) Qualifications of Consultants See attached resume of Paul M. Burakowski, , West Branch Engineering 7.) Funding Need and Sustainability a) Matching Fund Sources Funding sources for this project include: ARC - cash ftmds of $150,000 pending ARC and NYSDOS approval.

10 B&H Rail Corp. - matching funds of cash and in-kind services of $150,000 with current commitment b) Need for ARC Funding ARC funding is needed at this time to supplement B&H Rail Corp, capital resources which are insufficient to complete the project. Applications for NYSDOT funding assistance for this project submitted by B&H Rail Corp. have not progressed through the approval process due to New York State budget constraints. c) Sustainability B&H Rail Corp., as the designated operator of the SCIDA-owned railroad right-of-way, has sustained itself as a profitable rail business since approximately 1996 when it took over rail operations under an operating agreement with the Steuben County Industrial development agency . d) Phased development Effort As noted in Section , previous ARC Grant funding committed to this effort includes the ARC Grant - FY2009, B&H Railroad Infrastructure Upgrading project between - , completed in 2010, and the recently approved ARC Grant - FY20 11, B&H Railroad Crosstie Replacement - Phase II project between - MP30 In conjunction with the above mentioned ARC projects, the proposed B&H Railroad Bridge Timber Deck Replacement project is part of a phased development effort to upgrade SelDA-owned railroad right-of-way between Bath and Wayland to permit unrestricted movement of rail freight cars weighing 286,000 lbs.