July 2, 2020 Moonshine Minutes

Holliday goes off the Rail … yard



Rick Holliday is a man who in our region is synonymous with the Railyard Project. Now, though, he wants that to change. 

I’m Mayumi Elegado, editor-in-chief at Moonshine Ink, here today in an exclusive interview with Rick.

The railyard is the organic extension of downtown Truckee that has been long in the making, with vertical building finally showing this summer. The development, despite an inspired visioning process, was beleaguered by a recession, state funding disappearing, lawsuits, layers of agency oversight, and more, all of which created an overall complexity that would befuddle even the most tenacious of developers.


Through it all, Rick and his wife Nancy kept going because, as Rick says, “we just didn’t really know quite how to quit.” 

He and Nancy were harkened to Truckee in 2003 by the Union Pacific Railroad , which had decided to sell its land east of downtown. It was a prime location, but not quite prime condition.  

Nearly two decades later, now that the “bones are there,” Rick and Nancy are ready to officially hand over the reins to Jason Hansford, general manager of Truckee Development Associates, the subsidiary company that orchestrated the railyard project. 

Family and other ventures call — especially yet another big idea, in the form of a housing factory they launched just three years ago. Also, Nancy decided she wants Rick to lighten his load. When I asked why, Nancy said, “Because I fucking missed him!” Who can argue that? 

Rick sat down with me for a conversation to reflect on the Railyard Project, its lessons, and what next big ideas have captivated his imagination.

This has been a long journey, from 2004, when Union Pacific first sold you the property to today when building is finally going vertical. Tell us a little bit about the early days. What were some of the challenges?

The early days were fairly exciting from Nancy’s and my perspective. We met a lot of people that are household names — Tony Lashbrook being the most significant, and Kathleen Eagan and Maia Schneider, both of who had been mayors, in [the town’s] formation and Tony, who was just becoming the town manager. And the three of them really gave us the enthusiasm to want to take this development on.

The challenges to the railyard were very clear and obvious on day one. First and foremost, it’s what is called a brownfield, which means it needed to be characterized and cleaned up. For five years after we owned the land, we did clean-up of the soil, with some state funds and some of our own money. 

Then the second thing that was obvious is that it needed what all of us understand as infrastructure. The boring stuff. Water, sewer, power was not anywhere near the site. 

Then it needed roads, and right-of-ways, and then we needed to work with the railroad to tear their old buildings down and build them a whole new facility out of the way. 

In a previous interview, you told me that the field of infill redevelopment as a whole is not for the “faint of heart,” but that the Railyard is by far the “most complex development” that you’ve ever dealt with. 

That’s definitely true. I’ve developed many, many properties. The railyard in its totality is the most complicated because it involves creek restoration, soil remediation, infrastructure, redevelopment financing, very complex environmental rules, important local regulations that are important to the people of Truckee to follow, and it keeps going. Dealing with the railroad is a very, very complex entity to try to satisfy. And we had state, federal, and local agencies that we had to coordinate with, so that adds all kinds of layers. And then of course you got to deal with banks, money, and investors, and all that. So, very complicated.

What kept you going?

I think it’s the people of Truckee. As Nancy and I got to know more and more people, we realized that there was a lot of interest in this development happening and happening for locals, most importantly. And we just didn’t really know quite how to quit. So we just kept plowing ahead.

The new streets, sidewalks, and stop signs are in, plus the beginnings of the Artist Lofts affordable housing. What else is going in this summer? 

This summer, right at the present time, is the artist housing, which is probably the one that’s nearest and dearest to Nancy’s and my interest. It’s 77 units of affordable artist housing.

There’s a very exciting proposal for a hotel that the city just started proposing just before COVID, which I still think is very viable. Everybody’s heard about the grocery potential that we had with Nugget a few years ago. Weren’t able to hold onto them, which was a frustrating and difficult experience, but we think we are going to get a grocery store in the next year, from what my commercial partners tell me.

What about the movie theater? Is that still in the plans and moving forward?

It’s in the plans for me because Nancy and I love movies; we’re selfish. I’m half-joking. If I had a dollar for everybody who’s asked me about the theaters, it would have been financed four times over. Now, I think the challenge for someone trying to run a theater now is it’s a very different industry … Netflix and digital distribution and now COVID have thrown many, many challenges to people trying to do theaters. I’m fully supportive of our theater partner’s efforts and I think they are going to get there, but they are struggling with some of the same things that Nancy and I did. But they don’t look like the kind of people who would quit.

The main reason we’re sitting down today is that you want to announce an official stepping back from heading the development. What does this mean? Why step back now? 

I would say that I stepped back about a year or so ago. And I just don’t think it was terribly obvious. Jason Hansford, who most people know, is really the person in charge of the railyard. Part of me wanting to do this conversation with you was to reinforce Jason’s authority and let people know, he’s the voice of the railyard.

Let’s move to your new venture, Factory OS, want to tell us a little more about that?

Yes, I was driving home from Truckee in 2015 with my business partner, Kevin Brown, and I got an email that a factory in Sacramento on McClellan Air Force Base was just starting to produce apartments. So I stopped by. The company was named Zeta. I said, this is wonderful. I ordered 130 apartments for a development in San Francisco. They were well built, they were all the things I wanted. I thought I would be Zeta’s customer for Truckee; it turned out that Zeta wasn’t able to sustain itself.

I got a visit from a colleague who is in charge of real estate for Google. He and I were looking at this new methodology for building apartments. He said, you should start a factory. I thought he was joking. And he was serious. He said if you start a factory, we’ll be your first customer. So ironically in June of 2017, Google gave me a letter ordering 300 apartments from a company that I hadn’t even had a name for, I didn’t have a business card, or a location. Nancy took care of the name and helped with the location. Here we are three years later, we’re Factory OS in Vallejo.

When should we expect to see some of these units in Truckee?

In July. You’ll see some of these units come up the hill with the big Factory OS logo on them, and they’ll get set in about two weeks’ time, so there will be very little disruption. The building will kind of jump right out of the ground and then we’ll get working on the exterior and roof through the rest of the summer, so people can move in by the end of the year, first of next year. It’ll get built very fast. 

What will you do with all your free time?

Back to where we started … Nancy and I love Tahoe/Truckee. We sort of joke that our first meaningful experience together when we were 15 is we took a ski trip up here in 1968 and then we got married in ‘73. We had our honeymoon in Tahoe City at a condominium that a friend gave us for a week. Like many people, we just loved coming up and being with people that were active, interesting, and fun. It’s not changed. Now that we’re 50 years later, we’d like to spend more time with people up here. And be outdoors. 

Circling back to the railyard, what do you think the legacy of this project will be for the Tahoe/Truckee community? 

I think it’s still to be written yet because the buildings will define it. But I think that there are very few towns — going back to Tony, Kathleen, and Maia Schneider — that had people that had that kind of vision 15 years ago. That was long before people were talking about smart growth, before electric cars, before the internet was very significant. A whole bunch of things. Before social media was around. They saw that a really healthy town needed to have a healthy downtown. The downtown that is here is wonderful but it’s primarily serving tourism. To create a complementary downtown to build on the tourism and build on the community was something the town really needed. 

It was really fun to try to work on the vision — how do you do that? How do you create something that complements but doesn’t hurt the downtown? How do you create something that reinforces what the local community needs for a downtown that also strengthens the whole town?

I think the bones are all there. It’s just one of those things that’s taken a lot longer than we’d like.

But here it comes … 

Here it comes. We’re excited for the next 15 years. We’d like to be watching the development grow and supporting it, rather than being in the frontlines. That’s probably how I’d put it.

Hear the full interview, with transcription, on moonshineink.com, in the story titled, Off the Rail … yard Frontlines. A hearty Moon Pie thank you to our audio wizards — Stan Charles for the equipment loan and Pat Korte for recording then sewing it all together. We couldn’t have done it without you. 

That’s all for today. Thank you for listening. Please stay informed and share fact-checked information. Let’s all work together to Keep Tahoe Smart.



Previous articleOff the Rail … yard Frontlines
Next articleJuly 3, 2020 Moonshine Minutes