Cincinnati Southern Railway sale: What's happening this week
Voters decided to sell the Cincinnati Southern Railway on Tuesday night to Norfolk Southern Corp. for $1.6 billion. So what now?
Expect things to move quickly. Norfolk Southern Corp., the buyer, hopes to close by March, according to correspondence between it and the city.
Tom Crosson, Norfolk Southern spokesperson, said in an email the railroad will now "work with the city to finalize the sale, which we expect to close in Q1 of 2024."
The Cincinnati Southern Railway Board is set to meet Tuesday. Board members had said they would select a money manager for the trust, but there's no final decision that has to be made yet. Sixteen companies submitted bids to run the fund.
The money manager has to be in place before Norfolk Southern pays the city.
Railway board president pledges 'responsible, diversified' management
Paul Muething, president of the Cincinnati Southern Railway board, said the board will now focus on securing the services of a financial advisor, as outlined in Ohio law. The goal, he said, is to "ensure the responsible, diversified and professional management of this new financial asset."
Earnings, he pledged, will be used as outlined in Ohio law − for existing infrastructure improvements and the growth of the fund principal.
Once the fund is created and earning money, the railroad board will decide how much money to give the city each year.
From there, city leaders would decide how the money would be spent, although state law requires it to be spent on infrastructure. Railroad board members have said the money given to the city could be as much, if not more, twice as much as the $25 million lease amount.
The first spending would come in the city's 2025 fiscal year capital budget. The budget is due June 30, 2024, to start July 1, 2024.
Pureval set to pick or reappoint two board members
Members of the five-member railroad board are selected by the mayor. Terms of two of the members, Mark Mallory and Paul Muething, expired last month. It's unclear if Pureval will reappoint the same members or seek out new members who have experience with money management since the board will have to continue to oversee the money manager.
Citizens should not see any difference in how the railroad operates. Railroads are governed by the federal government and the city never had a say about how many trains would operate on the tracks, who would run them or what they would carry.
If you go:
What: Cincinnati Southern Railway Board of Trustees
Where: Walnut Hills Branch of the Cincinnati and Hamilton County Public Library, 2533 Kemper Lane
When: Tuesday at 3 p.m.
This article originally appeared on Cincinnati Enquirer: Issue 22: What happens now to the Cincinnati Southern Railway?
