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March 4, 2004Grant to finance railway extensionByRecord-Eagle staff writer GAYLORD - Lake State Railway plans to extend its tracks more than two miles to a local iron and metal plant with the help of $1.9 million in state grants and other assistance. The Michigan Economic Development Corp. has awarded Bagley Township a $225,000 community development block grant for the project in Otsego County. The railroad company, based in East Tawas, also has applied for $1.7 million in economic development and loan assistance funds from the Michigan Department of Transportation. Lake State trains run from Bay City to just north of Gaylord along Old 27. The company plans to build a spur to the east to A & L Iron and Metal on Milbocker Road. "Gaylord has a customer and it also puts us next to the city's new 120-acre industrial park," said Will Gamble, vice president of operations for Lake State Railway. "This is good for everybody." The park has not yet been developed and will be marketed this year by the city. The railroad expansion is being done in conjunction with the planned construction of a new $4.5 million shredder facility at A & L. The company collects, processes and transports scrap waste metal from regional stamping plants and independent haulers for use by foundries in northern Michigan, Chicago and Detroit. Other area customers for the rail company include Georgia-Pacific, Northern Energy, Hager Lumber and Webb Chemical. The A & L project is expected to create 25 new jobs. It currently employs 86 people at plants in Gaylord, Ishpeming and Kinross, said Jeff Ratcliffe, economic development coordinator for the Otsego County Economic Alliance. The state funds will be used to pay for easements, engineering, road crossings and construction of the railway, Ratcliffe said.
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