MOUNT VERNON — Invoking the government’s prerogative of eminent domain, the Knox County Board of Commissioners voted Monday afternoon to acquire parcels of land making up the old railroad bed that runs between Howard and Millwood. The land will be used as the site of a sewer line connecting Millwood to the existing wastewater treatment operation in Howard.

Assistant County Prosecutor Charles McConville said he did extensive searching in the county’s historical records to reconstruct the parcels of land. The parcels were sold by area residents John Humbert, Lydia Humbert, Henry South, Charles H. Miller, Charles D. Jones, Pius Engle and George Lepley between 1905 and 1907 to what was then the Cleveland, Akron and Columbus Railway Co. This allowed construction of the spur line, which operated for over 50 years, providing rail access to the Millwood Sand Co.

The CA&C Railroad eventually was bought out by larger rail companies, leaving the property under the ownership today of the Consolidated Rail Corp., headquartered in Philadelphia, Pa. When the commissioners asked to purchase this land in 2008, Consolidated Rail Corp. said it would only sell the parcels if non-usage clauses were included in any transaction, thus limiting the railroad’s exposure to any liability issues.

The necessity of eminent domain came because the county was alerted to problems with deteriorating septic systems in and around the hamlet of Millwood. In May, the Knox County Board of Health declared the on-site sewage systems serving Millwood a public health nuisance requiring immediate attention.

Despite reservations expressed by some adjacent property owners along U.S. 36, the parcels have been chosen as the most practical and economical way to connect a Millwood wastewater branch to the Howard system. Exact placement of the lines within the railroad right of way will be determined at a later date.

The seizure of the land by eminent domain removes all previous claims to the land, thus releasing the Consolidated Rail Corp. from any liability issues. The rail company will be paid $98,000 for the parcels of land, the value of which was appraised for the commissioners by licensed independent real estate appraiser Paul Baumberger on Aug. 15, 2008.

The vote was unanimously in favor of acquiring the land. A check was written and given to McConville to file the appropriate papers.

Earlier in the day, financing for the entire project was discussed. The commissioners and Auditor Jonette Curry met with engineer Doug Mill from ADR and Associates, and with investment advisor David Conley from Baird and Company. Conley said federal Economic Recovery Zone Bonds, which are tax credit bonds issued as part of the federal government’s stimulus package, can be used to finance the project, which includes installation of lines and several lift pump stations, running the connector line to Howard, and upgrading the existing system.

Under this program, the county was allocated $2.3 million in reimbursements. The county can sell taxable bonds, 45 percent of which will be reimbursed from the federal government. The projects must, however, be under way by December 2010.

Mill said finalized figures won’t be ready for some time, but preliminary study data was available for the application. Conley said he would advise using those figures to start with, and using Build America Bonds (reimbursed at 35 percent) to fund the remainder of the project.

Conley also recommended making the application by February so that it could be combined with the bond refinancing project the county is preparing to undertake. He estimated preparation for these activities would require four four-hour meetings within the coming month.

In other historical railroad business, Commissioner Allen Stockberger recently identified that a small parcel of land near Brinkhaven, recently published in the News as having a small amount of unpaid taxes due, is something of a legal “orphan.” The parcel was listed as being owned by the T&OC Railroad Company.

Stockberger had Scott Snider, Knox County Map Department GIS supervisor, researched the parcel. Snider found that the piece of land first shows up as owned by a railroad in 1910, although the current owners’ name does not appear until 1930. In a memo sent to Stockberger on Monday, Snider said the original name on the deed is the Toledo, Walhonding Valley & Ohio River Railroad, better known in local lore as the Wally Railroad. It was formed around 1891, and was renamed the Toledo, Columbus and Ohio River Railroad in 1911.

Snider said he assumes that this, the TC&OR Railroad, was the name that should have been entered on the original paperwork, perhaps explaining how it got lost over the years. This and other railroads were absorbed by the Pennsylvania Railroad soon afterward. Parts of the system are still in business as Penn Central Transportation, but it is unclear whether ownership could be tracked down, or would be worth doing so, as the delinquent sum is low.

The commissioners referred the issue to McConville, who will check into the legal status of the property.