New owners say tourist train idea viable

The idea of a passenger train between Rapid City and Deadwood remains
alive despite legal and financial problems that have plagued the
proposal for more than a decade, according to the president of a
company that plans to operate the service.

Black Hills Transportation recently acquired the assets of Dunrail
Inc., which had ties to actor Kevin Costner's abandoned Dunbar Resort
proposal. Costner, however, remains a major investor.

The company would operate the passenger train on behalf of the
Northern Hills Railroad Authority, which was created in 1994. The idea
of a passenger train was first proposed in 1992.

Ralph Justen, president of Black Hills Transportation, said plans for
a tourist train have not faded away.

He envisions a $22.5 million project that could offer a tourist train
and passenger service between several cities in the Black Hills.
According to the proposal, riders would be able to board a 1950s
streamliner in Rapid City, Piedmont, Sturgis or Whitewood and travel
Deadwood.

In addition, vintage steam- and diesel-powered trains will carry
tourists between Sturgis, Whitewood and Deadwood, he said.

"This thing has potential to be a real economic juggernaut for the
region," said Justen.

As many as nine round trips a day are planned, and Justen said as many
as 400,000 riders a year could be riding the train line, called the
Deadwood, Black Hills and Western Railroad.

To make the train service work, however, the company needs to lay new
track between Deadwood and Whitewood, a route that Chicago & North
Western Railway Co. operated until the early 1960s. And landowners
along the proposed route are already speaking out.

Charles Brown of rural Whitewood owns the property near a 600-foot
tunnel along the proposed route. He said he waited 11 years for
railroad developers or the railroad authority to make a serious
financial offer to acquire right of way. Finally, he filed suit
against the Northern Hills Rail Authority to force the issue, he said.

"This is a land grab," Brown told reporters after the meeting.

Justen said he and other company officials would meet soon with
landowners to resolve some of the disputes.

Discussion at the meeting also centered on Black Hills
Transportation's long-term plans for running trains on existing track
owned by Dakota, Minnesota & Eastern Railroad.

Justen said he has been talking to DM&E about running train-bus tour
packages to destinations such as Hot Springs, Wall and Belle Fourche.

To pay for it, Justen said state and federal funds could be tapped as
well as municipal bonds and private investment from Costner and
others.

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