GEDC approves $200,000 TXGN grant

The Gonzales Economic Development Corporation board of directors unanimously approved an application Monday, April 8 from the Texas Gonzales Northern Railway for a $200,000 grant. The grant application now moves to city council for project and funding approval.

The grant would be used to assist TXGN in adding 2,850 feet of rail track and roadbed to its existing right-of-way located approximately one mile north of the U.S. 90A railroad crossing. TXGN estimates that if the project is approved by city council, it will cost $700,000 and be completed by June 30.

The $200,0000 grant is seen as a reimbursement for TXGN’s role in recruiting Livestock Nutrition Center to open a location in Gonzales. The soon-to-open livestock feed location is slated to bring 15 new jobs to the area.

“When we first started talking about this, we were looking at supplying rail service for the cattle-feeding operation coming in,” GEDC board member and Gonzales city councilman Dan Blakemore said. “If we could keep this expansion on the railroad property, not only would it benefit this particular customer coming in, it could benefit some others that might come along.”

TXGN is a short-line rail company that owns and/or manages around 13 miles of lead track between Gonzales and Harwood. They are a subsidiary of the Dallas-based TNW Corporation.

Gonzales City Council will consider the application at its next meeting Thursday, April 11. City council meetings are always open to the public and will take place at 6 p.m. in the Gonzales Municipal Building, 820 St. Joseph St. Gonzales, Texas.