Environmental concerns arise over creosote-tie grinding facility application near Rainbow River

Mounds of railroad ties along the railroad track that runs through downtown Dunnellon and Chatmire on Oct. 23, 2025. [Jennifer Hunt Murty]

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Posted October 23, 2025 | By Jennifer Hunt Murty
jennifer@ocalagazette.com

Track Line Rail LLC, a Texas-based company, is seeking to operate a creosote-treated railroad-tie shredding and grinding facility on East McKinney Avenue in unincorporated Marion County.

Currently on the site are high mounds of railroad ties along roughly 500 feet length of the train track. A chemical odor can be smelled about 100 feet from the piles, which are visible from Williams Street, the main thoroughfare running through Dunnellon. The mounds and proposed processing site are less than 1,000 feet from the Rainbow River.

Employees at nearby businesses, who asked not to be identified, said the piles have grown taller over the past month. One worker said the stacks now rise above the trees behind their business.

According to prior reporting by WUFT, Track Line Rail previously operated for five months in Newberry, where it ground chemical-coated wooden railroad ties into mulch for use as fuel in cement kilns — without proper permits. Residents living within 100 feet of the site complained of “foul odors and fine dust.” Regulators from the city, county and the Florida Department of Environmental Protection (FDEP) found the company had been operating without authorization, forcing it to halt operations over the summer.

WUFT reported that cleanup at the Newberry location required the removal of more than 10,000 ties and seven truckloads of contaminated mulch and that the company ultimately left town without paying penalties.

Company CEO Dave Malay declined to confirm whether the railroad ties were moved to Marion County or to answer additional questions. Before hanging up the phone, he said, “We are all legal.”

Marion County Commission Chair Kathy Bryant said the county is sending code enforcement to the site and will be “pushing back” on the company’s application.

The Dunnellon City Council will hold a special meeting Oct. 27 at 5 p.m. to consider its opposition to FDEP’s draft air-pollution permit for the project.

Although the proposed site lies outside Dunnellon’s city limits, the council’s draft letter to FDEP warns that emissions from the project could directly affect city residents. The city cites expected annual emissions of 58.77 tons of particulate matter, 67.22 tons each of nitrogen oxides and carbon monoxide, and 23.95 tons of sulfur dioxide, along with volatile organic compounds and fine particulate matter (PM 2.5) that pose respiratory risks to vulnerable populations.

“Creosote is a known hazardous substance containing polycyclic aromatic hydrocarbons (PAHs), many of which are carcinogenic. The processing of creosote-treated materials through shredding and grinding operations creates airborne particles that can transport these toxic compounds into our community and watershed. Even with the proposed mobile dome canopy, the handling, loading and transportation of shredded CTRT materials presents ongoing opportunities for fugitive emissions and contamination,” the city’s letter states.

According to permit documents, the company plans to use water to control dust. City officials argue that runoff could lead to creosote contamination of the Rainbow River watershed and that the heavy industrial use is incompatible with Dunnellon’s residential and eco-tourism character.

“Our community should not bear the burden of deteriorated air quality for an industrial operation that provides no benefit to our residents,” the council’s draft letter states.

The meeting agenda lists a presentation from Bill White of Rainbow River Conservation, followed by a likely vote authorizing the mayor to send the opposition letter to FDEP.