Development authority asks Hampshire County for up to $2.4 million match to pursue $18 million rail grant

JT, director of the county development authority, asked the Hampshire County Commission on Tuesday to review a resolution backing a Consolidated Rail Infrastructure and Safety Initiative (CRISI) grant application that would add yard storage, a shop building and a dedicated transload spur to the Romney industrial park.

"We are about a $2,400,000 shortfall," JT said, summarizing the funding gap for the roughly $18.05 million project estimate. He said the grant has a required 20% local match and that the development authority had secured a $1 million commitment in cash and in-kind support from the West Virginia Department of Transportation.

The authority’s proposal would create multiple tracks into the industrial park, provide a dedicated track so the Potomac Eagle tourist train would not need to clear the mainline for freight operations, and build a shop facility for train maintenance. JT said that the design also anticipates potential customers in Hampshire, Hardy and Grant counties and that the project could add an estimated $20 million asset to the county’s tax base over time.

Asked how the county would be protected if the sale tied to the match failed, JT read a provision of the proposed resolution emphasizing protections: "No county funds shall be dispersed unless the grant is awarded...the county has lawfully sold or disposed of the Hampshire Center...and the county and the development authority have executed a written funding and public benefit protection agreement approved by your council." He said the county would not release funds until grant awards and necessary sale and budgetary steps were finalized.

Commissioners pressed on practical matters: current freight use is limited, with about a dozen unit trains a year serving poultry operations, JT said, but he and county staff argued that a transload spur and added capacity could attract new business and long-term freight customers. Commissioners also asked about inflation contingencies and whether applying and receiving the grant without a completed sale would harm future applications; JT and staff said the application process and subsequent refinements are common and would not be expected to preclude future attempts.

JT said the application deadline is June 22 and asked commissioners to consider a special meeting to review the resolution and any commitment. The commission tentatively scheduled a special meeting for 9 a.m. Monday to allow further consideration.

Why it matters: The project aims to reduce operational conflicts on the South Branch Valley Railroad, support local employers that could use rail service and add infrastructure that proponents say can spur long-term economic development. The county’s potential financial exposure — roughly the $2.4 million shortfall described by the development authority — was the central concern for commissioners.

Next steps: Commissioners asked staff to review the resolution language and legal protections and agreed to meet in a special session to consider a formal vote on the county’s involvement.