The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, July 4, 1996                TAG: 9607040594
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 
                                            LENGTH:   56 lines

NORFOLK SOUTHERN OFFERS HELP WITH LIGHT-RAIL LINE RAIL ATTACHES CONDITIONS, WHICH IT SAYS ARE NOT INSURMOUNTABLE, TO ITS COMMITMENT.

Norfolk Southern Corp. has committed to working toward making its rail corridor available for the proposed light-rail system linking Norfolk and Virginia Beach.

Norfolk Southern made the commitment - with strings attached - in a June 21 letter to Virginia Beach City Manager James K. Spore, whose office released the letter Wednesday.

Among the conditions is a fair, but yet-unestablished, price for the line.

``Norfolk Southern will actively work with the city of Virginia Beach, the city of Norfolk and (Tidewater Regional Transit) to make the Virginia Beach line available for a light-rail system,'' wrote Jim McClellan, the railroad's vice president of strategic planning.

The Virginia Beach City Council delayed endorsing further study of the proposed system at its June 11 meeting, partly because Norfolk Southern felt it hadn't been consulted enough in the planning. Spore wrote the Norfolk-based railroad asking for it to clarify its position.

Virginia Beach is to take up the light-rail question at its Tuesday meeting. Light rail has been endorsed by the Norfolk City Council.

The Tidewater Transportation District Commission chose light rail as the best solution for Hampton Roads' ever-growing transportation needs.

The proposed 18-mile light-rail line has an estimated cost of $376 million. It would parallel Interstate 264 and Route 44 between downtown Norfolk and the Virginia Beach Oceanfront using Norfolk Southern's freight rail corridor.

In the letter to Spore, McClellan outlined three ``important conditions'' to Norfolk Southern's cooperation on light rail.

Those conditions are:

A fair price for the line;

Norfolk Southern freight customers on the line must be satisfied with how their service would change;

The operator of the light rail must assume responsibility for liability.

``None of these issues is unique to this transaction,'' McClellan wrote. ``(Norfolk Southern) and other public agencies have resolved them in other transfers and I am certain we can do the same in this case.''

The letter reassured Spore that Norfolk Southern was willing to work with TRT and the cities on light rail, but it also raised questions, Spore said.

``We've gone back to TRT and asked them for some more information,'' he said.

TRT received Spore's request Wednesday, said Jayne Whitney, TRT's program management manager. She doesn't expect TRT will be able to respond to the city manager until after the Virginia Beach City Council's July 9 meeting.

TRT is meeting with Norfolk Southern next week to discuss some of the issues, Whitney said.

Part of the problem may be that the initial light-rail study didn't address such issues as safety, Norfolk Southern's existing freight customers and the potential impact of future economic development dependent on freight rail in Virginia Beach, Spore said. by CNB