Assembly committee opens hearing on AB32 to study future of Virginia & Truckee Railway commission

The Assembly Committee on Growth and Infrastructure opened a hearing on Assembly Bill 32 in Carson City, where Carson City and Story County officials asked the Legislature to direct an interim study of the Nevada Commission for the Reconstruction of the Virginia & Truckee (V&T) Railway to determine whether to reorganize the commission, improve its finances or terminate it and address disposition of assets.

The study matters to local taxpayers and state historic‑tourism policy because Carson City and Story County have shouldered most of the commission’s costs, bond payments and operating subsidies and now say they cannot sustain the current financial commitment alone.

Cameron Gresch, government affairs liaison for Carson City, introduced the presenters: Mayor Lori Bagwell of Carson City and Story County Commissioner Clay Mitchell. Bagwell recounted Carson City contributions to the V&T reconstruction, saying the city implemented a 2% room tax in 2002 and issued a $4,150,000 bond to cover capital costs; the city later issued a $15,000,000 bond to reconstruct rail and operate the project. Bagwell told the committee that Carson City’s bond will finish repaying in December 2025 and that the city has also levied a one‑eighth cent sales tax to support the railroad. She said the city has no dedicated staff assigned to the commission and questioned continuing local subsidy given other infrastructure priorities.

Mitchell summarized Story County’s financial contributions and arrangements. He said Story County levied a quarter‑cent countywide sales tax in 1995 for construction and later asked voters in 2010 to extend a sales‑tax funding mechanism for 30 years; he said the commission also receives $250,000 a year from Story County for operations under a 2020 interlocal agreement. Mitchell said the commission had received federal grants, including roughly $2.7 million in federal grants and about $800,000 in Economic Development Administration funds for reconstruction, and that the Nevada Commission on Tourism provided about $600,000. He said the V&T commenced operation around 2008–2009.

The presenters said structural issues hamper the commission’s long‑term viability: the commission owns a steam locomotive (engine No. 18) but lacks rolling stock and storage; it contracts out most operational functions; it has no dedicated state employee; and the current operator is aging and has not detailed a succession plan. Bagwell said, “I don't know that we have the appetite to continue to do that,” referring to continuing to ask Carson City taxpayers to subsidize the railroad.

Clay Mitchell told the committee that, with subsidies, the operation finished last year about $140,000 “in the black”; without the subsidy, he said, the operation would have lost about $150,000. Former commission chair Dwight Maard and Thomas Gray of the Virginia & Truckee Railroad Company (the long‑time operator) spoke in support of studying options and said the railroad is a valuable historic and regional attraction. Gray, who identified himself as the aging operator mentioned during the hearing, asked to be consulted and said the Polar Express and event trains help subsidize regular season service; he said his company charges the commission about $12 per rider for Polar Express events.

AB32, as presented, would direct the joint interim standing committee on growth and infrastructure to conduct a study during the 2025–26 interim focused on three issues: reorganizing the commission or modifying its duties or powers, improving the commission’s long‑term financial viability, or terminating the commission and addressing asset disposition. The presenters told the Assembly members they seek state guidance because local governments can no longer prioritize continued subsidy amid other infrastructure needs.

Committee members asked about prior outreach. Mitchell and Bagwell said they had approached the State Railroad Museum and other state tourism entities, which told them they lacked capacity to absorb the V&T; they also said they had discussed potential private operators and federal funding opportunities. The presenters said the commission can budget funds and that Carson City and Story County staff would assist the interim study as needed.

No committee vote was taken on AB32 at the hearing; the committee closed the hearing after receiving oral testimony and indicated written submissions could be provided to committee staff.