After $12 Million, MDOT Stops Leasing Rail Cars It Never Used
It's been a point of contention -- MDOT securing rail cars it hoped to use in the future, by leasing them from Great Lakes Central Railroad in Owosso. The problem is, the state began leasing the cars six years ago and hasn't used them once, and a new projection of the timeline for the completion of the line they intended to use them on, says it will be another three years, according to WLNS-TV.
So, $12 million in lease payments and renovations (they are old cars) later, and the state has stopped paying. However, the amended deal allows the state to use them if and when the line gets completed. The amended deal also allows the state to recoup what it has spent -- IF the cars sell for $900k a piece. But, industry experts say that is extremely unlikely.
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