Ordinance would authorize Mountain Division Railroad line of credit

City Council are scheduled Dec. 4 to hear the first reading of an ordinance that would authorize an interest bearing internal note in the amount of $5.9 million, not to exceed $6.25 million, to the Public Works Mountain Division Railroad (4120) to be repaid over 10 years. The funding is needed for continued operations of the Mountain Division Railroad through June 30, 2008. The Operating Agreement between the Public Works Department and Tacoma Rail will be extended through Sept. 30, 2008 by separate action. The extended Operating Agreement will include provisions for the evaluation of the results of the feasibility study for the train to the mountain, as well as an agreement to complete a transfer of the Mountain Division Railroad to Tacoma Rail by June 30, 2008 upon approval of the Public Utility Board and City Council.