Catskill Mountain Railroad has lost a battle with Ulster County over it's lease agreement.
A state Supreme Court judge upheld the county's notice of default of the lease for the railroad's failure to rehab and maintain its tracks and keeping proper financial records.
Also blocked was the railroad's attempt to make the county pay for repairs or help secure federal funds. In 2013, County Executive Mike Hein proposed that the 38-mile railroad be converted into a recreational trail.
Last week, the county legislature adopted a compromise that sets aside more track for train operations while guaranteeing a connected recreational trail.