Issue 22: Cincinnati votes to sell its railroad
City of Cincinnati voters sold the Cincinnati Southern Railway to Norfolk Southern Corp. Tuesday night, letting go of the last municipally-owned railroad in the country,.
With 98% of precincts reporting, Issue 22 was passing with 51.6% of the vote.
The city built the 337-mile railroad to Chattanooga, Tennessee 143 years ago so the city could grow amid a railroad boom. The railroad is controlled by a five-member independent board appointed by the Cincinnati mayor.
"This is a victory for the citizens of Cincinnati," said Tom Crosson, a spokesperson for Norfolk Southern Corp. "Current and future generations will reap the benefits of new infrastructure investments, helping to create a better future for the city."
Added Brendon Cull, president of Cincinnati USA Regional Chamber, which supported the sale from the start: "Forever, we will be a city with a permanent trust that supports the parks, firehouses and basic infrastructure that make Cincinnati the type of place people want to live and where businesses want to invest and grow."
The campaign was intense over Issue 22, the ballot measure that needed voter approval for the sale to proceed. The vote "yes" campaign, funded by at least $4.2 million from Norfolk Southern, made the case the city would be on a slow path to death without money from the sale. Opponents, mostly grassroots organizations funded on a shoestring, argued it was a bad financial deal.
The Cincinnati Southern Railway has long been leased to Norfolk Southern, but in April of 2022 during negotiations to re-up the lease, Norfolk Southern offered to buy the railroad.
The current lease brings in roughly $25 million a year, which is used on city infrastructure needs.
Investment money from the $1.6 billion trust would be used to fix the city's ailing infrastructure. Board members and Cincinnati Mayor Aftab Pureval estimated the investment money would bring in twice what the lease does, saying that would be a boon to the $400 million in backlogged city projects.
City Cincinnati Manager released a $250 million, 10-million spending plan, which was praised by Cincinnati City Council members.
State law, which governed the railroad since the start, prompted lawmakers to put in several safeguards, including a provision that said the fund could not give out any money to the city if it ever dropped below 75% of its highest point.
This article originally appeared on Cincinnati Enquirer: Issue 22: City votes on selling Cincinnati Southern Railway
