They scare everybody away and take possession of the old mansion. The protesters refuse to give in, but just when the bulldozer is about to tear down the building, both the wrecking crew and the protesters are tormented by Stretch (Jim Ward), Fatso (Jess Harnell), and Stinky ( Bill Farmer), the Ghostly Trio. Tim attempts to reason with them, informing them that the old building is falling apart and that he only wants to improve the community by building a new mini-mall in place of the old mansion. The group of protesters are being led by Chris' teacher Sheila Fistergraff (Lori Loughlin). But Tim arrives to see people protesting the demolition of the building, which they consider is a historic landmark.
Meanwhile, a boy named Chris Carson (Brendan Ryan Barrett), a loner with a passionate obsession with the supernatural, and his father, workaholic Tim Carson (Steve Guttenberg), who is attempting to demolish the Applegate Mansion in order to proceed with his plans of a new renovation for the town. Only then does Casper realize that he is in fact a ghost.
Instead of going to Ghost Central, where the train is headed, he is kicked off the train, and finds himself in the city of Deedstown, where he unintentionally scares all of the town's citizens.
Casper ( Jeremy Foley) is on a train full of ghosts, with no idea of where he is and completely unaware that he is a ghost himself.