Since the closing of Catalyst Paper Mill in 2012, Snowflake officials have been working to save the Apache Railway, a short line that runs about 30 miles from Snowflake to Holbrook that has been in operation for more than 90 years.
They feel that the railway is vital to the town’s economic future, and were able to work with Hackman Capital Partners, LLC when the firm purchased the paper mill to purchase the railway. Snowflake had a year to secure a loan to purchase the railway.
It has been over a year and many obstacles have been overcome, but the town is still working to secure funding.
The railroad has gone from eight employees when Catalyst closed to 21 and is continuing to expand the workforce, which currently supports PFFJ, Inc., the Biomass plant that is located on what was Catalyst property and a saw mill.
There is now a threat that operation of the railway will not continue. A special meeting was held June 2 by the Navajo County Board of Supervisors, which approved a resolution in continued support of the operation of the railway based in Snowflake.
The Snowflake Town Council met in executive session June 23 to discuss the Apache Railway and consider possible action.
Mayor Tom Poscharsky summed up the executive session by moving to authorize Town Manager Brian Richards and himself to work with the town’s bankruptcy counsel to support the United States Department of Agriculture loan needed to take the railroad out of bankruptcy court. The motion passed unanimously.
Poscharsky noted that the loan paperwork was handed in two weeks ago. “Everything appears to be working favorably to get that loan, and this motion is to join with the foundation and ask the bankruptcy court to approve the loan, which means the Hackman Group would get their proceeds and the stock would go to Colorado Water Conservation.”
