Consideration of the alternatives has been part of the public discussions ever since abandonment of the Penn Central line was projected. At a minimum, any realistic alternative for this property must be:

These criteria may be used to evaluate proposed alternatives for the right-of-way.

This would mean that current harmful problems, such as motorized use and lack of policing, would continue indefinitely, with no statue solution to management of the right-of-way. While it would be legal and affordable to ignore Penn Central's offer to sell, this is probably not practical since the corporation does intend to sell.

The utility companies have already stated that they have no interest in acquiring this corridor, so there appears to be no private party willing to purchase the entire property.

Penn Central indicates that they do not intend to market in small pieces, but could possibly sell mile-long segments to interested private parties. Some of these segments may be of interest to commercial abutters in Rochester, provided they can afford the high prices assigned to these parcels. A small number of residential abutters may be interested in annexing the right-of-way for their own use, provided that they are able to pay the purchase price and added property taxes, and are willing to manage a lengthy segment of the corridor.

The possibility of commercial purchasers in Rochester would be consistent with the proposed trailway plan, which would exclude most of this high-priced property from public acquisition. However, haphazard disposal of segments elsewhere along the corridor would in effect destroy the possibility of ever providing the public benefits of a trailway. Further, much of the right-of-way would still remain a "no-man's land," without a management solution and with continuation of the problems of today.

Penn Central has indicated a determination to prevent this, and to protect its interest in what the corporation views as a valuable property. The corporation is likely to periodically remove any barriers that may have been erected, so as to prevent claims of adverse possession. Experience across the country suggests that acquisition by adverse possession simply will not happen.

This alternative would provide for stable public management of the right-of-way, in place of continuation of current problems, with an added public benefit from the opportunity for trailway use. With the expectation of 50% state funding, public acquisition now may be affordable. The establishment of an intergovernmental Trailways Commission in 1981 provides a practical means to carry out ownership and management by a single entity. The concerns of adjacent owners can be addressed through communication with the Commission and responsive design and management of the trailway.

II. CURRENT TRAILWAY PROPOSAL

The proposal is to acquire approximately 10.5 miles of abandoned Penn Central Railroad right-of-way, to be managed as a safe trail for non-motorized use. This right-of-way runs from the south boundary of the Village of Lake Orion through Orion, Oakland and Avon Townships and the City of Rochester, to the Shelby Township line at Yates Cider Mill. The proposal excludes a one-mile portion of the railroad corridor within Rochester, where purchase costs are higher and city streets provide an alternate connecting route.

The right-of-way is generally 100 feet wide, with a good gravel base and a gentle grade; the tracks and ties have been removed. Sixteen bridges remain; they appear sound but they have not been studied structurally. The corridor comprises approximately 125 acres. In addition to street connections in Rochester and Lake Orion, the corridor is crossed at eight

Points by township or county roads. There are existing driveway and utility easements which will all continue in effect regardless of the ownership of the right-of-way.

The area along the right-of-way varies from rolling fields and woodlands to low marshlands, and abounds in native wildlife. Development along the corridor is mainly low density residential. Paint Creek, a trout stream managed by the DNR, meanders throughout, as welt as the Clinton River in the southern portion. Points of recreational interest along the corridor include: Bald Mountain State Recreation Area, the Paint Creek and Goodison Cider Mills, Oakland Township Park, Dinosaur Hill Nature Preserve, Rochester Municipal Park, Yates Cider Mill and the Rochester-Utica State Recreation Area.

The proposed trail when completed will provide a linear corridor for bicyclists, hikers and joggers, horseback riders and cross country skiers. Improvement of the gravel base to make a surface for a pathway will probably be required, using pavement or crushed limestone dust this work would likely be phased over a period of a few years.

Barriers to exclude motor vehicles will be a priority. Authorized users who do not live adjacent win have access at the road crossings, through proper design of the barriers. Fences or hedges where needed for privacy will also be a priority. Planking and safe railings will need to be added to the bridges, and safety signs would be necessary at several points. Beyond -these basic improvements, any further developments would depend upon local needs and budgets.

The four local governments of Rochester City and Avon, Oakland and Orion Townships have voted to form a Trailways Commission, as permitted by state law. This Commission would be a single entity, which would own, develop, operate and maintain the trail for the benefit of the four member units and their residents. Each member unit of government has appointed two Commissioners; at least one Commissioner from each unit is a local elected official. The voting procedures of the Commission give veto power to each member unit.

In its deliberations on whether to conclude a purchase and proceed with the trail, the Commission will be seeking and using the advice and input of residents in the four member communities. The Trailways Commission has started negotiations with Penn Central Corporation to determine whether an acceptable purchase arrangement can be obtained.

The Trailways Commission has no power to levy taxes, and it has no operational budget beyond minimal costs for meetings. The Commission can only spend local money if it has been granted the funds by the member units. The Commission must prepare a project budget for any expenditures it wishes to make, including staff and legal work, and must submit this budget for approval and funding by the member units.

Consequently, the four local governments have final authority over the ability of the Trailways Commission to spend any money to carry out a purchase or undertake development of a trail. The local governmental bodies, like the Trailways Commission, will be seeking advice and input from their residents. While the elected officials have the final responsibility for decision-making, their concern must always be the present and future welfare of the public.

The Michigan Land Trust Fund Board, which has recommended 50% state funding for acquisition of this right-of-way, has indicated that any future recreational trail must be owned, developed, operated and maintained by a single local entity; this function can be fulfilled by the Trailways Commission. The Land Trust Fund Board also has indicated a strong directive for a reverter provision so that, in the unlikely event that the Trailways Commission should ever be dissolved, the property would be transferred to the ownership of Oakland County. County agreement to this provision will be sought in the near future.

The value of a property as unusual as a railroad right-of-way is difficult to determine. Factors affecting value are the usability of the property, the number of potential purchasers, and the sale price of comparable nearby properties.

The proposed trailway corridor is owned by Penn Central Corporation, an investment company which took over the abandoned lines after the bankruptcy proceedings of Penn Central Railroad. Penn Central Corporation as well as the local tax assessors have arrived at relatively high market value estimates for the 10.5 miles of right-of-way under consideration, in the vicinity of $800,000. These appraisals are based upon value for continued use as a transportation corridor. However, a 1981 appraisal by the Michigan Department of Transportation, based upon liquidation value of an abandoned corridor, gives a market value close to $300,000 or even considerably less.

Over the years, local interest has centered on obtaining state or federal funding assistance, but without success until late 1981. In December of 1981 the Michigan Land Trust Fund Board responded to a local grant application by voting to recommend 50% state funding for acquisition of the 10.5 mile Paint Creek Valley corridor for a recreational trail.

The Michigan Land Trust Fund is administered by the Department of Natural Resources (DNR) to buy recreational land throughout the state. The money is the state income from leases and royalties on oil and gas wells operating in state forests and other state lands. This year's list of 21 recommended Land Trust Fund purchases, of which our project is fourth from the top, must be approved by the State Legislature before money is actually released. The Paint Creek Valley trail project would therefore not be expected to receive state funds until late in 1982. Meanwhile, Penn Central Corporation expresses an urgent desire to sell the right-of-way, for which they have no use and on which they must pay over $30,000 annually in local property taxes.

The local matching funds for 50% of the cost of acquisition would be provided by each member unit, but only if the local government votes to make the expenditure. No commitment of local funds has been made by any member unit at this time. If and when local funds are sought for purchase, it is expected that the amount requested from each member unit would reflect that community's proportion of the total value of the right-of-way.

The Trailways Commission has no power to levy taxes. The governments of the member units would have differing options for providing acquisition funding. The Oakland Township Park Commission would expect to pay Oakland Township's portion of the costs by using the income from the voter-approved park millage already in effect in the township. Other member units might consider using Revenue Sharing funds or setting aside money in their General Fund budgets. In no case could a new millage to cover trailway costs be levied without prior voter approval.

The liability of a governmental agency operating a trailway is handled in the same way as for any other public park. The agreement forming the Trailways Commission requires that public liability insurance must be provided.

The agency which provides municipal insurance for Oakland and Avon Townships has reviewed the Trail ways Commission Agreement, at the request of the Oakland Township Park Commission. They state that "...the Township' present Comprehensive General Liability policy will respond in the event of a liability suit." (Letter dated December 29, 1981.)

Further, the agency says that the insurance premiums charged to their municipal clients would not be increased by the addition of the proposed type of trail to the municipal properties. As of 1979, the insurance ratings for governmental bodies were changed. Prior to that time, any additional municipal park acreage meant additional insurance premiums; now, only certain kinds of added facilities would cause increased premiums.

(Telephone conversations on December 8, 1981 and February 2, 1982.)