Auditors to Tacoma; Stop lending money to railroad
Tuesday, April 17, 2012
TACOMA, Wash. (AP) -- State auditors are warning the City of Tacoma to stop lending money to a city-owned railroad because the railroad may never be able to repay a $6.25 million loan from the city's general fund.
The News Tribune (http://is.gd/ixtFnx ) reports the city responded to the auditor's report, which was released Monday, saying they have plans to get the money back.
Tacoma officials say they are negotiating an agreement with Sound Transit for use of part of the line. They expect the proceeds from that arrangement, along with money from a new business on the line, will help the debt be repaid.
The loan is due for repayment in December 2017.
The railroad was once considered as home to the "Train to the Mountain." But it has been a financial drain for a long time.
Information from: The News Tribune, http://www.thenewstribune.com