Ely council approves settlement transferring additional railroad responsibilities to City and NNRY Foundation amid public concern

Mayor Nathan Robertson announced the Ely City Council approved a Settlement Agreement and Mutual Release among the City of Ely, the Nevada Northern Railway Foundation (NNRF) and state lands and museums officials on April 9, 2026, following extended public comment and council discussion.

The 4–1 vote came after residents and stakeholders urged the council to table the matter until the City had firmer cost estimates. Councilwoman Melody Van Camp cast the lone dissent.

Why it matters: The settlement moves responsibilities for additional railroad properties and restoration plans into the hands of local entities and the Foundation, a shift that speakers warned could carry undetermined long-term costs for the City and taxpayers.

Public concerns: Several residents who spoke during the public-comment period said the agreement lacked fixed cost figures and raised fiscal and liability questions. "It's like buying a house and saying, 'I want to buy this house, but you're not going to tell me how much it is until we sign the papers,'" resident Dale Derbidge told the council. Commenter Mike Coster urged the council to reject or table the deal, saying "the City will likely win this litigation on the merits, so I think there's very little incentive to settle where the City gets nothing more than a favorable outcome the court will give them." Resident Marty Westland expressed similar concerns about undefined liabilities and the possible loss of $50,000 in armory rent.

Foundation and legal responses: Nevada Northern Railway Foundation President Mark Bassett told the council the Foundation has a long fundraising record and has "raised and invested over $45 million in the Railroad," and described planned restoration work. Foundation and city counsel Paul J. Anderson, who participated in settlement negotiations, said the City has not paid legal costs related to this case: "The City has not contributed a dime to the prosecution or defense of the claims that are raised in this case; that has all been paid to our law firm by the Foundation," Anderson said.

Terms and next steps: During the meeting, counsel explained one settlement term asks the City and Foundation to adopt certain restoration plans within two years to avoid potential bond repayments tied to earlier State planning. Council discussion also noted outstanding questions about future insurance and maintenance costs for the properties, which Treasurer Janette Trask said have not been quantified.

Outcome: Council member Terrill Trask moved to approve the agreement; the motion passed 4–1 with Councilwoman Van Camp voting no. The Council record indicates the parties will proceed under the settlement terms and coordinate implementation details in follow-up work.

What’s next: Council members and Foundation representatives discussed the potential need to clarify insurance and maintenance cost responsibilities as implementation proceeds; no additional vote on the settlement terms was scheduled during the meeting.