Call it the letter read 'round the Red Line. Last week, a letter from executives of Norfolk Southern Railroad to North Carolina Deputy Secretary of Transit Paul Morris — printed by the Charlotte Business Journal — outlined the railroad's initial position on the proposed $452 million Red Line Regional Rail Project following the first meeting between both parties.

The letter, which expresses myriad concerns Norfolk Southern executives have on the plan that would turn the old "O" Line spur that it owns and operates into a hybrid commuter/freight rail, went viral this week, and town officials have begun weighing in on exactly what it all means, some suggesting that the state has been wasting time and money on a project the railroad seems to have no intention of allowing on its line.

"Utterly unbelievable!," says Cornelius Commissioner Dave Gilroy, who also sits on the town's Rail Task Force, which has begun its due diligence work on the Red Line proposal on behalf of the town. "The Iredell County (commission) chairman's description of all this as cockamamie, insane and a fairy tale are proven even more accurate. NCDOT should be utterly ashamed for this waste of time and money. We need to widen I-77 and seriously plan and develop a 21st-century rapid bus transit system."

The letter, written on Jan. 16, followed a meeting between Norfolk Southern executives John Edwards and Durwood Laughinghouse and Morris, and listed a number of concerns the railroad has with the project. Under a now-expired agreement with the Charlotte Area Transit System (CATS), the railroad had agreed to allow a commuter rail line to be built from downtown Charlotte to southern Mooresville, and charge CATS a $22 million licensing fee for that use.

But the plan proved non-viable as a public investment-only project, and Morris had told the Rail Task Force and others reviewing the proposal that negotiations with Norfolk Southern on this latest Red Line plan would have to start from scratch, and only after the draft construction/finance plan was prepared for review. That plan was completed in mid-December and has begun being reviewed by all nine agencies that would, per the proposal, participate in a joint powers authority (JPA) that would oversee and govern the 25-mile, Phase I project.

Earlier this month, Morris told the Cornelius Rail Task Force that Norfolk Southern, like other railroads, is intensely private and eschews publicity. He later told the Citizen that Norfolk Southern executives were concerned that they had been portrayed by some media outlets as being in favor of the project when they had not yet been officially briefed on its details.

The letter reflected the railroad's concern.

"Current publicity and discussions indicate that Norfolk Southern has agreed to endorse, or otherwise has consented to the proposed Red Line project, which is simply not the case," Edwards wrote.

Tuesday night, Morris commented, "While they (Norfolk Southern) have appreciated our statements on their position, I can tell you they feel strongly that the media has misrepresented their position on the project."

Former Cornelius Commissioner Jim Bensman, who also served on the Lake Norman Transportation Commission and was an active participant in studies regarding the Red Line, wrote in his e-mail newsletter Tuesday that, as reported by the Business Journal, the state had also received an earlier letter sent by the railroad and had not shared with local officials concerns expressed at that time.

"For a very long time, I have been asking members of the Red Line Task Force, NCDOT, the mayors, etc., why they were waiting to talk to Norfolk Southern," wrote Bensman. "As reported in the Charlotte Business Journal, Paul Morris of NCDOT was aware of issues that NS had based on (an earlier) letter sent to him on Dec. 19, 2011. None of this was disclosed to any of the municipalities as far as I know."

Morris had told town officials that it was his job to bring Norfolk Southern to the table concurrently with the due diligence work being done by each of the towns and both counties that would participate in the project, as well as that of the North Carolina Department of Transportation. He and consultants to the state and other proponents have admitted that this isn't the typical sequence of events for a public infrastructure project, but the compressed timeframe — 180 days from draft proposal to final unanimous adoption of the corridor plan — necessitates the unconventional approach.

In his letter to Morris, Norfolk Southern's Edwards wrote, "I need to reiterate what I said at that meeting at this time, Norfolk Southern has not determined that its concerns regarding the proposed Red Line project can be resolved. Our meeting on January 11 was the first substantive discussion with Norfolk Southern since the project 'died in late 2008,' as you so aptly put it. ...

"As I explained in our meeting, Norfolk Southern is concerned that the proposed

Red Line project may now be fundamentally incompatible with Norfolk Southern's potential future use of the line and our ability to grow our business in North Carolina.

Among the major concerns are the following, each of which were touched upon in our meeting:"

This followed the previous comment about undue publicity regarding the railroad, and continued, "There has been a significant change in the use of the North Carolina mainline between Charlotte and Raleigh that may require the O Line to be used as an alternative through freight route."

The letter continues: "That second phase would extend the Red Line from Mooresville to Statesville over a partially abandoned portion of the O Line right of way. As you may know, there has been significant development on that right of way which could make the reacquisition and use of that line very expensive. As a result, I had thought your reference to a second phase involved the use of the Norfolk Southern L Line between Mooresville and Barber Junction and the Norfolk Southern S Line to reach Statesville. Although neither of these alternatives are the subject of discussions with Norfolk Southern at this time, I want you to know that Norfolk Southern would have significant concerns regarding a proposal to use either alternative."

That has Bensman wondering if the process isn't putting the caboose too far ahead of the engine. "Shouldn't further evaluation of this project stop until these questions are answered? And the proponents attacked the Iredell County Board for questioning the project?"

For his part, Morris said Tuesday that he takes the railroad's questions and concerns very seriously, but added that he isn't surprised. He told the Cornelius Rail Task Force he would be starting from the beginning with Norfolk Southern, and it will be one of the biggest obstacles he and the state's consultants face.

"In our view, the letter is consistent with other statements at an initial stage of discussions with a railroad," said Morris. "We are very sensitive to and share their concerns, and take them quite seriously. All must remember, the O Line is Norfolk Southern's railroad and, as such, any future allowance they may grant to operate passenger service on it will be solely at their discretion."

He added local officials shouldn't take the letter as a rejection of the proposal, but rather the opening salvo of what is certain to be a tough negotiation. At the end of his letter, Edwards left the door open for continued consideration of the project.

"As we delve deeper into the proposal, I am sure that Norfolk Southern will have additional thoughts and questions. I do not want to leave you with the idea that the above represents a comprehensive list of concerns, or that this is a negotiation about payments to Norfolk Southern.

"Our issues with the Red Line project are fundamental, and the specific concerns were only the ones that we had an opportunity to discuss in the short time we had. You have promised to send to me additional materials for Norfolk Southern review, and I look forward to receiving them. As we discussed, I do not know if the proposed Red Line project is feasible on Norfolk Southern right-of-way, but together we can explore that question."

Morris said he sees the letter's last paragraph as an opening, rather than a closing, door.

"We have a good working relationship with (Norfolk Southern)," Morris said, "and I look forward to holding ongoing discussions wherein we are confident opportunities exist to satisfactorily address and resolve concerns so as to keep the project on its course toward implementation."