Log in Newsletter

Hope Mills board to consider insurance options for Johnson Street project


HOPE MILLS - The Hope Mills Board of Commissioners on Monday is expected to consider CSX requirements related to insurance and signal improvement requirements at the Johnson Street rail crossing.

The board on Jan. 18 asked town staff to bring recommendations on the projects for its consideration. The board meets at 7 p.m. at Town Hall.   

The town initially wanted to make Johnson Street one-way down to the lake, according to Public Works Director Don Sisko. Part of the project included sidewalk work through the railroad crossing.

The town has two outstanding matters with CSX regarding the Johnson Street sidewalk project. The first is regarding CSX insurance requirements for the project. The second concerns roadway alignment and subsequent design changes to the signals at the railroad crossing, Sisko states in a document in the agenda packet.

CSX Railroad requires the town to have a railroad protective policy declaration for $5 million, according to information in the agenda packet from Sisko. The North Carolina League of Municipalities, the town’s insurance carrier, cannot write a railroad protective policy because it would be in the name of CSX Railroad, which is prohibited by the league bylaws, the agenda document states.

To address the issue, the town could obtain a policy specifically for this circumstance from a local agent, or it could ask the North Carolina League of Municipalities to remove its standard exclusion from the town policy for work within 50 feet of a railroad for an additional premium of approximately $1,200 per year. It also could request coverage under the CSX umbrella policy for an additional premium of approximately $3,000 to $4,000 per year, Sisko states in the document.

The board discussed the issues with Sisko on Jan. 18. The consensus of the board was for Sisko to investigate the town’s best option and present a detailed recommendation to the board.

On the other matter, CSX has told town officials that work will be required to change the signals. The modifications will depend on the guidance provided by the town related to the previously approved one-way alignment of Johnson and Hill streets, the agenda document states. CSX has verbally estimated that the changes would start at $30,000 to $40,000, the agenda document states.

Sisko said it appears the town has three options. The first is to pay CSX all of the fees and continue with the project under the original concept. A second option is to discontinue the sidewalk at both sides of the railroad right of way. That would essentially remove the railroad requirements from the project. A third option is to discontinue the sidewalk project and revaluate.

Also on the agenda, the board will consider site plans for two projects. The first is for a Circle K to be located at 4173 Legion Road. The second is for Main St. Convenience & Tobacco to be located at 345 N. Main St.

Jason Canady covers Hope Mills for CityViewTODAY. He can be reached at jcanady@cityviewnc.com. Have a news tip? Email news@CityViewTODAY.com.

Hope Mills, Board of Commissioners, CSX, rail crossing, sidewalks, insurance