Ely approves leading $99 million rail grant effort, authorizes $13,800 toward application fee

The Ely City Council voted 4–1 on Sept. 25 to have the city serve as the lead applicant on a revised Consolidated Rail Infrastructure & Safety Improvements (CRISI) grant application aimed at reopening the Nevada Northern Railway for commercial and historic operations, and to pay $13,800 — half of the consultant fee — from the city’s litigation budget.

NNRY Foundation President Mark Bassett told the council the foundation applied for the CRISI grant in May 2024 seeking $98,971,874 with a proposed match of $34,773,902 and that the Federal Railroad Administration praised the application as “one of the most compelling grants they had received” but asked for a larger environmental review. Bassett said rising tariffs and material costs require the application to be updated and that the foundation plans to work with FMW Engineering to revise and resubmit the proposal.

Why it matters: Bassett said reopening the rail could lower freight costs for local industry, provide an inbound supply route for propane and mill materials, and create economic opportunities tied to the railroad’s adjacent developable land. He told the council the project could support longer mine life and new commercial activity, and cited a pledged match of $7.5 million from White Pine Precious Metals.

Council debate focused on who would pay up-front application costs and whether the city has the cash flow and staff capacity to manage being lead agency. City Treasurer Janette Trask noted the city budgeted $20,000 for railroad legal fees and that $13,800 remained, warning that using those funds for the grant would reduce the budget available for litigation. Councilman Terrill Trask said he viewed the $13,800 as a modest investment relative to the potential economic return; Councilwoman Melody Van Camp opposed the allocation.

The motion to approve the City of Ely as lead agency on the CRISI grant and to pay FMW Solutions $13,800 from the litigation budget was moved by Councilman Terrill Trask and seconded by Councilman Dennis Perea; the motion passed 4–1 with Councilwoman Van Camp voting nay. Mayor Nathan Robertson had recused himself from chairing this agenda item and Mayor Pro Tempore Jerri Lynn Williams-Harper presided over the discussion.

Public comment before the vote included criticism of the Nevada Northern Railway Foundation’s transparency. Resident George Chachas urged the council to deny the payment and alleged the foundation was not operating under Nevada’s Open Meeting Law and had nepotism concerns; he said council members serving as foundation directors should abstain from related votes.

What happens next: Council’s approval authorizes staff to act as lead applicant on the revised CRISI submission and to contract with FMW Engineering to update the application. Bassett said the foundation would continue to seek additional matching funds and that, if necessary, the foundation would look for alternative funding if the city declined further financial support. The council’s action does not approve project construction; the FRA’s environmental review and any future grant award would determine next steps.