Sunday, March 23, 1997 | 11:59 a.m.
Davis said Friday that he was shocked by the unexpected demand. Reno City Manager Charles McNeely suggested Thursday that the railroad pay the lion's share of the $182 million cost to lower the tracks.
"The $35 million we've already pledged goes way beyond any legal or community obligation we have to Reno," Davis said.
"The city told us it would work with us, not against us. We're not going to bid up this offer. Union Pacific does not have additional funds for this project."
The railroad has been at odds with the city since a merger between Union Pacific and Southern Pacific railroads was approved last summer.
City officials say increased rail traffic resulting from the merger will create gridlock and public safety hazards as traffic is tied up at downtown railroad crossings.
Union Pacific has projected that Reno rail traffic would jump from 14 to 25 trains a day in five years.
Davis has said the railroad is willing to contribute $35 million toward the venture, but city, state and federal governments would have to come up with the rest.
Davis said Friday that he still wants the city to work with the railroad on the project.
If the city fails to do so, he said, the collapse of the private-public partnership could "eliminate forever" any chance of improving the downtown traffic situation.
Reno City Councilman Tom Herndon said the city never agreed to the $35 million pledged by the railroad. That would leave nearly $150 million for government to come up with.
"It isn't going to happen," he said, adding the Surface Transportation Board could order the railroad to pick up the entire bill.
Herndon noted the railroad has projected its net profits at $600 million a year.
"Those are the figures they first gave us," he said. "I don't have a great deal of sympathy for their position on the money."
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