V&T commission buying property near terminal site

It was an opportunity the members of the Nevada Commission for the V&T Railway could not pass up - the chance to purchase 3.6 acres of land and a building near property slated for a future V&T terminal.

According to commission legal adviser Mike Rowe, the building is a 13,000-square-foot structure with 9,400 square feet on the main floor and 3,600 square feet on the second floor that could be used for offices by the railway's eventual operator.

The building, now occupied by BWG Ltd., a company that manufactures a variety of products, according to owner Del White, is at 6343 Highway 50 East, near the Drako Way site preferred by the commissioners for a terminal at the end of the soon to be reconstructed railway.

Shaw Construction Co. owns the building but has a lease with BWG that includes an option to purchase. According to the agreement approved Friday, BWG will exercise its option and then sell the property to the commission.

The commission voted to purchase the property for $1.5 million.

"It is something we would have had to purchase anyway," said commission chairman Bob Hadfield. "The opportunity to purchase this now is of substantial advantage to the commission."

The purchase is contingent upon the appraisal coming in at or above the purchase price, an environmental report and an engineer's report, Rowe said, adding that he did not anticipate any problems.

Escrow on the deal is set to close on Feb. 6, Rowe said.

The agreement allows BWG to continue to use the site for its manufacturing plant, leasing it from the railway for $1 per year. The railway would have the option not to renew on the lease on an annual basis with a six-month notice to terminate the lease.

BWG will maintain the interior of the building and the commission will be responsible for maintaining the exterior.

Carson City still needs to acquire two parcels north of the 3.6 acres, but owns a parcel north of those along Highway 50. There are several parcels south of the 3.6 acres that the city must also acquire.

Rowe said the building could be used for a roundhouse for railroad cars or storage of ancillary V&T equipment.

Other uses would be a mechanic's bay, locker rooms for train crews and offices.

No federal money would be used to purchase the property, according to Hadfield. He said the funds would come from the Carson City bond funds.

"We would not be able to do this if we hadn't passed the sales tax," Carson City Mayor Marv Teixeira said, adding the commission had been using Storey County funds for engineering work. "I will be amazed if this thing didn't come out as a huge win."

-- Contact reporter Karen Woodmansee at kwoodmansee@nevadaappeal.com or 882-2111 ext. 351.