City votes to support Huron Central deal (10:11 p.m. update)

Sault Ste. Marie City Council has tonight voted to support a tentative deal under which the Huron Central Railway will continue operating for one year while a deal is struck to ensure a long-term solution for the ailing line.

Councillors voted tonight to authorize spending up to $250,000 of economic development funds to implement short-term actions to save the Huron Central line.

Genesee & Wyoming Inc., Huron Central's parent company, indicated earlier this year that it intended to cease operations between Sault Ste. Marie and McKerrow this coming Saturday, and from Sudbury to Espanola on October 31.

The Huron Central tracks and right of way are owned by CP Rail, which has indicated it will seek permission to abandon the line if no operator can be found.

The tentative agreement announced today is conditional on ratification from the railway's board and higher levels of government.

Councillors were told tonight that at least $3 million in capital repairs must be done to ensure safe operations over the next year, and another $33 million in improvements are needed as part of a long-term solution.

A resolution passed by City Council tonight calls for the City to provide as much as $3 million until expected federal and provincial contributions are finalized.

The $33 million needed for major inmprovements will be sought under the economic stimulus infrastructure programs.

Joe Fratesi, the City's chief administrative officer, expressed optimism tonight that the needed infrastructure cash will be approved.