More than two months after denying that the Brownsville Rio Grande International Railroad and the Brownsville Navigation District were involved in negotiations with the Colorado-based Broe Group to handle the operations, the port commissioners have approved the deal and more.
In an agenda item passed last Wednesday during a special meeting, the commissioners agreed to allow Port CEO and Director Eddie Campirano to advertise for a possible franchise with that very group.
Port administrator Debbie Duke and BRG director Norma Torres both initially denied that the BRG commissioners or the BND board were in any negotiations with OmniTrax, the Patrick Broe-owned railroad.
The port commissioners authorized Campirano to advertise in the Brownsville Herald to give the public notice of the pending agreement to grant the Broe Group a franchise to not only opertae the railroad but also to establish a industrial park there.
The Broe Group operates a diverse multibillion-dollar portfolio that spans the length of the U.S. and Canada and ranges from office buildings to oil and gas wells to a shipping port on Hudson Bay. The Broe Group's involvement in rail began in 1986 when it purchased a portfolio of real estate assets from the bankrupt estate of a large industrial company, including a railroad in Northern Colorado that became Great Western Railway. Many more railroad acquisitions followed, and The Broe Group now owns one of the largest privately held railroad companies in North America, called OmniTRAX.
OmniTrax runs the largest privately held short-line railroad system in North America, with 17 rail lines and 2,000 miles of track.
If the board approves the franchise, Broe's OmniTrax Inc. would take over the BRG's 45 miles throughout the Brownsville Navigation District and 5 miles into the city of Brownsville itself. The railroad was established as a separate entity from the Port of Brownsville in 1984 and claims to provide the port and its customers with affordable, direct access to two Class 1 railroads — Union-Pacific and Burlington Northern — and an intermediate connection via U.P. to Kansas City Southern De Mexico routes across the Rio Grande.The BRG has six yards and more than 1,000 cars on hand. It boasts of being "armed with an array of services to offer shippers anywhere in the United States. Steel, scrap metal, agricultural and food products and other bulk materials have always been major commodities for the BRG, but chemical shipments have skyrocketed in recent years."
The BRG board consists of five trustees who were initially appointed by the commissioners of the BND 1984. Vacancies on the Board since then have been filled by appointment by the board of trustees of the railroad, in short, a self-appointed board.
The current members are like a list of the usual suspects: Dr. Martin Garcia is the chairman, Grady Deaton is vice-chair, IBC President Fred W. Rusteberg is a trustee, BND commissioner John Reed is a trustee, and building contractor Terry Ray is also a trustee.
The BRG is a short line railroad, organized for the purpose of providing exclusive common carrier rail transportation to all facilities located within the Brownsville Navigation District of Cameron County, Texas.
It operates on behalf of the Brownsville Navigation District, but under separate management and control from the District. All traffic is being interchanged with the Union Pacific Railroad Company (“UP”) at its Olmito yard.
Interchange with Burlington Northern Santa Fe Railroad Company (“BNSF”) is accomplished via a haulage agreement between UP and BNSF where UP hauls BNSF traffic from Houston to Brownsville and interchanged with the Railroad. Interchange with the Mexican Railroad carrier “KCSM” is done via an intermediate switch with UP at the Brownsville and International Matamoros Bridge.The board of trustees establishes policies, rules and rates and approves all contractual obligations of the railroad.According to most media reports, Broe demands that all his deals be conducted under the utmost secrecy and some of our sources indicate that one of his conditions is that that the negotiations for the potential purchase of the BRG be kept under wraps until it is a done deal. In fact, some news stories indicate that he requires a written agreement to that effect when he's trying to negotiate a deal.By all accounts, and by the actions of its administrators, this is exactly what happened in this case.The local yokels better beware and realize they're dealing with a ruthless corporate raider. News reports on his corporate style indicate that he is a mercihless negotiator who will squeeze every last dollar he can from his opponent.A Denver Post business story says that: : "Despite the company's closely held ownership and Broe's penchant for privacy, he is a well-known figure in Colorado. His 37 years of operating a Denver-based business have placed him on the buying or selling end of dozens of transactions, making him an iconic figure in the commercial real estate sector.
"On balance, I like dealing with him," Elliman said. "Would I do a deal with him? Absolutely I would. But I'd have my hand on my wallet and I'd have a damn good lawyer with me."
Ultimately, it will be up to the commissioners of the Port of Brownsville to approve the granting of the franchise of the railroad to Broe. If they do, the handing control of the entire railroad complex would be left up to Broe, who would decide how it is operated, and even to set its rates.And is it fair for these board commissioners pending the May 10 election, which could change the composition of the board, to commit their successors to the franchise with Broe? Do you think this Colorado bunch will do it out of the goodness of their heart?
"He's a registered Republican, a confidant of former Gov. Bill Owens, an Owens appointee to Colorado State University's governing board in 2003, and has served on the Wyoming Business Council, an economic development group."
Don Elliman, director of the Colorado Office of Economic Development and International Trade, said Broe was "a complex guy who rubs some people the wrong way, but he has an enormous amount of accomplishments."On balance, I like dealing with him," Elliman said. "Would I do a deal with him? Absolutely I would. But I'd have my hand on my wallet and I'd have a damn good lawyer with me."
Ultimately, it will be up to the commissioners of the Port of Brownsville to approve the granting of the franchise of the railroad to Broe. If they do, the handing control of the entire railroad complex would be left up to Broe, who would decide how it is operated, and even to set its rates.And is it fair for these board commissioners pending the May 10 election, which could change the composition of the board, to commit their successors to the franchise with Broe? Do you think this Colorado bunch will do it out of the goodness of their heart?
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A 65-year-old man died of apparent smoke inhalation after seeing a building on his property on fire and going inside to look for his 33 rpm albums, the fire chief said. A garage-turned-event space located away from a home near Mile 17 ½ Road and Mayberry Boulevard caught on fire about 7 p.m. Friday, Alton fire chief Javier Garcia said. The man inhaled smoke, came outside of the building with about a dozen 1960s albums under his arm and collapsed on the ground outside, Garcia said. He was sent to Mission Regional Medical Center, where he died. His identity was not released Friday night. Hidalgo County fire marshals are investigating the fire’s cause, which has not been determined.
Better go buy some K-Y.
They might as well let them run the show as the locals seem unable to a run city, county, school district or port on their own without corruption or suing each other. The Colorado gringo can't be any worse.
A man was transported by Life Flight to a hospital after he was reportedly shocked while installing a sign in Kermit. Kermit Police Chief Jamie Dutton said the man was at Kent Tire Co., 235 Highway 302 in Kermit, putting up a sign when he was shocked. Dutton said the man was in a bucket lift and using a tape measure when the wind blew and the tape measure touched a power line, badly shocking the man. Although he said he’s no doctor, Dutton said it’s possible the man had third-degree burns on more than 20 percent of his body. The man was taken to Winkler Memorial Hospital and then shortly after transported to the burn unit at University Medical Center hospital in Lubbock. A manager with Kent Tire Co. said the man worked with Sign Solution in Odessa. The owner of the business could not be reached for comment.
Here we again. Secret deals. Hush, hush meetings , under the chair quasi legals fees, would amount to "legal" bribery, concessions given to only one company, and apparently no proposals were made public ......the Aborigines and Pioneers again left in the cold. By the way what happened to a few million shekels that disappeared like Houdini?
City commissioners will consider whether to suspend the recently hired city manager at a special meeting set for Sunday morning. The meeting comes after the District Attorney’s office launched an investigation into an unnamed city employee earlier this month for failing to report a complaint about the alleged sexual abuse of a child to law enforcement. Escobar said preliminary information in the investigation indicates that a complaint was made to a city official March 5 about Rio Grande City Boys & Girls Club employee Jason Solis allegedly sexually abusing a child, but it was not forwarded to the police department. Failing to report child abuse is a misdemeanor, unless it is shown that the person intended to conceal the abuse. In that case, it is a state jail felony, according to the Texas Family Code. Starr County District Attorney Omar Escobar declined to give the name of the city employee currently being investigated. But both City Manager Matt Ruszczak and Mayor Ruben Villarreal said previously that the city manager would be the point-of-contact if a complaint was made.
It bothers me that they lied about it rather then simply not comment. I think a government entity that has to lie to it's constituents to do business with a company probably shouldn't be doing business with that company.
All these Port assholes are squeezing and abusing our taxpayers monies..... Chingao......
I told you to call "Freddy" Pena up in Denver weeks ago to represent the poor masses of Brownsville and save them from the corporate takeover. But, no, you did nothing. "Freddy" is a Democrat and a man of the people like his mentor "Wild" Bill Clinton.
What a BS statement! Explain how they are squeezing and abusing taxpayer monies. The Port is actually doing better with the current board and director than ever before. I for one am tired of all the negative stuff and people that like to trash but don't offer any supporting evidence. Lame!!!
hope they are promising more jobs its a long wait at the unemployment line.
folks i guess its pointless to fight them or should i say give em hell, no wait im saying give them hell, this is taxpayers monies they are giving away, this needs to stop immediately, how can we stop it, >??????? there has to be a way, hum, why dont they wait until the elections for the port is over and then the new or whomever wins can give t away or not? right??? cca
Yes. The local Aborigines and Pioneers don't know Chit about running local governments. Besides the people don't vote. Just look at the political entities. Just to attempt to do business you have to shell-out a few Rupees.
La Madera will take the Port !!!
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