ALAMOSA, Colo. — Denver-based short line operator OmniTRAX has signed an agreement in principle to purchase the bankrupt San Luis & Rio Grande Railroad, Colorado’s Valley Courier newspaper reports.
Bankruptcy trustee William Brandt told the newspaper that a letter of intent has been signed but negotiations are continuing to purchase the former Iowa Pacific Holdings property, which has been in bankruptcy for three years.
The newspaper reports OmniTRAX, which operates two dozen railroads in the U.S. and Canada, has offered $5.75 million, almost $4 million of which would be needed to address back taxes owed to the state and in the five counties where the San Luis & Rio Grande operates.
The 154-mile San Luis & Rio Grande operates on a former Denver & Rio Grande Western route from a connection with the Union Pacific in Walsenburg, Colo., to Alamosa via La Veta Pass, continuing from Alamosa on branches to Antonito and South Fork, Colo. It operated passenger excursions from 2006 until 2019.
It’s “Antonito”.
NOT “Antonio.”