Commission approves $700,000 state infrastructure bank loan to Heber Valley Railroad Authority

The Utah Transportation Commission approved a $700,000 State Infrastructure Bank loan to the Heber Valley Railroad Authority to repair a retaining wall at Deer Creek Reservoir.

Mark Nelson, executive director of the Heber Valley Railroad, told commissioners the authority had sought legislative funding but did not secure it during the recent session and that the railroad has previously invested in right-of-way improvements. "When we became aware of this retaining wall failure, we approached the Bureau of Reclamation first... when we didn't succeed, we started looking at all other options, including requesting that from the legislature," Nelson said.

Staff presented financial details and an amortization chart showing a 15-year term with an interest rate of about 3.86% (3.36% base plus 0.5% term additive under SIB guidelines as of the application date). UDOT staff noted the SIB balance and supporting materials, including letters of support from Heber City and Midway.

Commissioners expressed support for preserving the tourist railroad and for prompt action given visible erosion in provided photos. A commission motion to approve the SIB loan passed by voice vote.

The UDOT record shows staff rated the application 5 out of 6 and included repayment and contingency plans; staff said the railroad expects to pursue a legislative appropriation next year but can repay the loan within 15 years if that appropriation does not materialize.