City tries again to get million-dollar loan from state for V&T project

Virginia & Truckee Railway project boosters want the state to make the multimillion dollar jump on the money train - a leap that has already been taken by cities and counties.

Carson City Mayor Marv Teixeira said Monday that the $40 million project will benefit the state immensely, so the state should help pay for it.

"Carson City has put in about $20 million and (Sen. Harry) Reid got $11 million in federal funds and the state is going to be the benefactor," he said.

Rail officials are intent on seeing the 18-mile V&T railway fully funded and carrying cash-heavy tourists between Carson City and Virginia City by 2010.

When all the grants, tax levies and contributions are counted, rail officials anticipate they'll need about $8 million more to acquire all the right-of-way and the increasing rail construction costs.

When the 2007 Legislature rolls around, they'll be having their hands out.

The $8 million loan request is the most expensive item on Carson City's list of bill requests and it's for the most important tourism project in the region, Teixeira said. Sen. Mark Amodei, R-Carson City, plans to carry it. He could not be reached for comment.

"It's not guaranteeing anything, but that's our centerpiece," Teixeira said.

City lobbyist Mary Walker said the railway would pay back the state loan by ticket sales once the V&T is running.

"This is the final money that is needed to finish the V&T project," Walker said.

Carson City supervisors will review the city's list of potential legislation at Thursday's meeting.

It's not that the Nevada Commission for the Reconstruction of the V&T Railway hasn't asked for money from the state in the past. In the early 1990s, the Legislature granted $5 million to the project.

They backtracked in a tough budget year when Carson City was unable to provide the fiscal match. It had no steam, the mayor said. He was mayor at the time and also sits on the V&T Railway board.

Last year the Legislature politicked away the request, Teixeira said, but then in the last minute managed to work through a much smaller than expected grant of $500,000. He said it stalled in committee because of political divisions, not for lack of support.

Sen. Amodei is expected to submit the bill to the Legislative Counsel Bureau before Sept. 1 or mid-December.

• Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.