Commission approves $23,687.50 repair of Cermax rail spur; commission says maintenance investment justified by property taxes paid

The Anderson Redevelopment Commission voted unanimously on Sept. 9 to approve repairs to the Cermax rail spur, contracting Annex Railroad Contracting LLC for the work and authorizing payment of $23,687.50.

City staff told commissioners the repair will replace about 70 track feet and related materials. Staff said the redevelopment commission has spent $61,134 on maintenance for the spur since it became operational in early 2015 and that adding the current invoice would bring total maintenance to $84,821.50.

Staff described Cermax as a heavy user of the spur and noted the company paid “a little over $5 million” in property taxes during the same period, a factor cited by commissioners in supporting continued maintenance of the spur the commission owns.

Annex Railroad Contracting LLC — described in the meeting as a local short-line firm connected to the Brown family — submitted the low acceptable price after the commission said larger contractors were booked and not taking small jobs. Staff said CSX inspections create time-sensitive repair windows: CSX will issue a list of deficiencies and a timeline for corrections before allowing cars on spurs.

One commissioner asked whether the work should be put out to bid; staff replied that at the reported dollar amount the commission has the authority to contract directly. A motion to approve the contract and payment carried 5-0.

Commission staff said the commission would consider options if Cermax asked to assume ownership of the spur in the future, but staff did not expect that to occur.