[Federal Register Volume 81, Number 83 (Friday, April 29, 2016)]
[Notices]
[Pages 25751-25752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10091]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36023]


Seneca County Industrial Development Agency--Lease Exemption--
Finger Lakes Railway Corp.

    Seneca County Industrial Development Agency (Agency), a noncarrier, 
has filed a verified notice under 49 CFR 1150.31 to lease from Finger 
Lakes Railway Corp. (FGLK), a Class III rail carrier, approximately 
26.44 miles of railroad located in New York as follows: (1) Auburn 
Secondary, between milepost 37.56 at the Seneca/Cayuga County line and 
milepost 50.50 at or near Geneva, a distance of 12.94 miles; and (2) 
Geneva Running Track, between milepost 342.80 at the Ontario/Seneca 
County line and milepost 329.30 at or near Kendaia, a distance of 13.50 
miles.\1\
---------------------------------------------------------------------------

    \1\ The Agency and FGLK jointly filed one notice for three 
related transactions under 49 CFR 1150.31 and 1150.41, one in this 
docket, one in Docket No. FD 36022, and one in Docket No. FD 36024, 
as described further below. A separate notice will be published for 
each exemption.
---------------------------------------------------------------------------

    According to the Agency, the lease of the rail lines is part of a 
series of proposed transactions that will allow FGLK to continue to pay 
a negotiated ``payment in lieu of taxes'' (PILOT) while maintaining the 
benefits of being exempt from local and state taxes. The Agency states 
that FGLK originally acquired the rail lines in 1995 and transferred 
title to the Agency and then leased back the rail lines for purposes of 
the PILOT arrangement. The Agency states that to extend and restructure 
the PILOT arrangement, it will first transfer title to the rail lines 
to FGLK.\2\ Then the Agency will lease the rail lines from FGLK--the 
transaction at issue in this docket. Lastly, FGLK will sublease the 
rail lines back from the Agency to continue operations, including all 
common carrier service and maintenance of the tracks.\3\
---------------------------------------------------------------------------

    \2\ FGLK filed a verified notice of exemption to acquire the 
rail lines in Finger Lakes Railway--Acquisition & Operation 
Exemption--Seneca County Industrial Development Agency, Docket No. 
FD 36022.
    \3\ FGLK filed a verified notice of exemption to sublease the 
rail lines in Finger Lakes Railway--Sublease & Operation Exemption--
Seneca County Industrial Development Agency, Docket No. FD 36024.
---------------------------------------------------------------------------

    The Agency states that it will not hold itself out to provide any 
rail service, and is not acquiring any of the common carrier 
obligations with respect to the rail lines.\4\ Under the terms of the 
lease from FGLK to the Agency and the amended and restated lease from 
the Agency to FGLK, the Agency maintains that FGLK will continue to be 
the sole provider of railroad services and will have the rights 
necessary to operate the railroad services. The Agency states that it 
is not leasing or acquiring any of the common carrier obligations with 
respect to the rail lines. The Agency further states that it will be 
precluded from interfering materially with FGLK's common carrier 
obligation.
---------------------------------------------------------------------------

    \4\ A motion to dismiss the notice of exemption on grounds that 
the transaction does not require authorization from the Board was 
concurrently filed with this notice of exemption. The motion to 
dismiss will be addressed in a subsequent Board decision.
---------------------------------------------------------------------------

    The Agency certifies that it will not operate over the rail lines 
and that the transaction will not result in the creation of a Class I 
or Class II carrier.

[[Page 25752]]

The Agency further states that FGLK is a Class III carrier.
    The Agency states that the parties intend to consummate the 
transaction no sooner than May 13, 2016, the effective date of the 
exemption (30 days after the verified notice was filed), and only after 
the Board has ruled on the motion to dismiss.
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to revoke the exemption 
under 49 U.S.C. 10502(d) may be filed at any time. The filing of a 
petition to revoke will not automatically stay the effectiveness of the 
exemption. Petitions to stay must be filed no later than May 6, 2016 
(at least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36023, must be filed with the Surface Transportation Board, 395 
E Street SW., Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on Eric M. Hocky, Clark Hill PLC, 2005 Market 
Street, Suite 1000, Philadelphia, PA 19103.
    According to the Agency, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: April 26, 2016.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2016-10091 Filed 4-28-16; 8:45 am]
 BILLING CODE 4915-01-P