The railroad balked, saying freight rail was its primary business and the passenger runs were simply a way of keeping railroading alive for young and old and bringing tourists to the community.
During the past several weeks, talks between the railroad, the community and Carbon County officials brought about a resolution.
"We couldn't be more thrilled that an amicable agreement was worked out and the trains are rolling once again back into Jim Thorpe," said Chris Barrett, president and chief executive officer of the Pocono Mountains Visitors Bureau.
He says they are a huge economic engine for Jim Thorpe and beyond.
"It has an effect of bringing about $42 million into our community every year. So it's a substanial economic asset for our region," Barrett said.
In a statement from the railroad, owner Andy Mueller Jr. said, "We are delighted that the borough leadership has decided to work with us on continuing our tradition of bringing visitors to Jim Thorpe."