Ownership of the Flying Yankee was transferred to the State of New Hampshire by Bob Morrell  in 1996, with several conditions and caveats relating to it's restoration and use.  Much research and investigation accompanied this decision, and finally a contract was issued to the Claremont & Concord RR tp begin the restoration. In 1998, the New Hampshire National Guard was enlisted to provide the men and equipment for the move from Glenn to Claremont. The move was supervised by Jim Robinson, who had successfully guided the move from Edaville to Glenn.

In the meantime, the Flying Yankee Restoration Group had been established as a 501(C)(3) non-profit organization, and a board of directors formed to oversee the restoration and operations, and to be responsible for raising the funds to pay for the restoration.

It was at this point that Paul Giblin, the president of the FYRG initiated the seat sales, or naming rights, program that provided much of the funding for the work that would follow.

The Restoration Begins:

Restoration work done at Claremont was extensive as well as costly; the entire interior of the train was stripped out with the majority of the material saved for reuse. At this point the restoration was too adhere to a 100% original policy. Later on, it was found that this was, in some cases, impractical, if not impossible, due to FRA rules changes, lack of repair parts, or financial constraints.