Click to download the 90-page business plan. Additional links and summaries below.

By CHRISTINA RITCHIE ROGERS
CorneliusNews.net

CHARLOTTE – Consultants Wednesday night outlined a 5-year plan to build the Red Line Regional Rail, a 25-mile commuter train line from Charlotte to Mooresville, and to pay for the estimated $452 million project through a formal partnership among local governments, the state and Charlotte Area Transportation System.

Under the proposed plan, the partners would cooperate by setting up a Joint Powers Authority (JPA), which would govern construction and operation of the rail line. The plan calls for the sharing of construction and operations costs:  25 percent from CATS, 25 percent from the state of North Carolina, and 50 percent from local governments.

Wednesday’s presentation came at a joint meeting in Charlotte of the Metropolitan Transportation Commission and its Red Line Task Force. It included an updated estimate of the project’s cost – $452 million in 2018 dollars, adjusted for inflation. That’s slightly lower than the $456 million number state and local officials had been using, based on previous estimates.

The plan outlined Wednesday fleshes out how the towns would meet their obligation, and it won’t mean increased taxes for individual homeowners, consultant Mark Briggs said. Instead, under the proposed plan, towns would pay for the rail through revenues expected to result from the increased value of property along the rail line.

The proposal envisions capturing that increased tax revenue and using it to raise money from investors through two tactics.  Local governments would dedicate those future revenue streams to pay off private financing and run the rail service.

• Tax-increment financing (TIF) districts – As nearby property gains value as a result of the rail line’s construction, that will result in increased tax revenues. That revenue stream could help attract private investors to buy bonds for the line’s construction.
• Special assessment districts (SADs) – Local governments would give owners of income-generating properties near the rail line the option to pay additional taxes or fees, which then could be used to pay for new infrastructure. The potential for economic gains as a result of the rail construction could be an incentive for property owners to pay the additional assessments, the consultants said Wednesday. A majority of the owners in each area would need to sign a petition in order to create a SAD.

The downtown business districts of Cornelius and Davidson are identified as major areas for significant transit-oriented development, according to a map shown Wednesday. Meanwhile, areas just to the north of Davidson and just south of Cornelius are identified for potential freight-oriented developments.

North commuter rail line corridor map, with outlines of rail-related residential and freight-oriented commercial developments that could become part of special financing districts. (Click to download a PDF)

The potential revenue streams, through TIF and SAD in the seven municipalities along the line, could be be pledged to investors who would buy bonds to would pay for capital construction costs, consultants said Wednesday. And based on their analysis and research over the past year, they are confident that the $452 million can be generated to fund the project and that adequate financing options are available for construction and ongoing maintenance.

“If the numbers are correct, it’ll be amazing,” Cornelius Mayor Jeff Tarte said. But the town is going to do its “due diligence” before deciding anything he said. On Nov. 21, the Cornelius Town Board gave town staff the go-ahead to recruit a Cornelius Rail Task Force, a group of town officials and citizens who would independently review the Red Line proposals.

The new business plan is the latest development in a 15-year planning effort among state and local officials to bring commuter rail to north Mecklenburg and south Iredell.  Officials still have plenty of work ahead: The project needs approval from all local governments along the line, and then investors would have to buy the financing plan.

“Citizens should be excited,” said Bill Thunberg of Mooresville. He will become executive director of the Lake Norman Transportation Commission on Jan. 1, and also represents Mooresville on the Metropolitan Transportation Commission. Mooresville and Iredell County elected officials have long been skeptical of the Red Line plans, and Mr. Thunburg remains sensitive to that fact. He would like Mooresville to work with the county to fully vet the plans and review all the information, he said.

“The facts are irrefutable,” said John Woods, Davidson Mayor and Red Line Task Force chair. “All we want is an opportunity to have logical, factual discussions with all the entities involved.”

NEXT STEPS

Officials and citizens will have the opportunity to learn about the Red Line Regional Rail plan in its entirety at a 4-hour public meeting Dec. 13, in Mooresville.

Local officials will review the plans over the next few months and if approved, construction could begin as early as 2014. Project consultants hope to adopt a consensus agreement by March 31, 2012. If adopted, officials for the second half of 2012 will work on creating the JPA and establishing TIF and SAD funding mechanisms.

With those governance and funding mechanisms are in place, officials would be able to pay for the project in 2013 and plan construction in 2014-16. According to the plan, rail service would begin in 2017.

MTC members Wednesday night learn about the plans for funding the Red Line Regional Rail project.

The Lake Norman Transportation Commission says the project could attract $4 billion in private capital and generate more than 23,000 jobs over a 20 year buildout.

WANT TO GO?

Officials and consultants also will discuss the report with local elected officials on Tuesday, Dec. 13, from 10 a.m. to 2 p.m. at Charles Mack Citizens Center, 215 N. Main St., Mooresville. Meeting information on the Lake Norman Transportation Commission website.

RELATED DOCUMENTS

Red Line Regional Rail overview – 2 page summary of the project and financing proposals. (PDF)

Red Line business plan – the full 90-page plan and attachments. (PDF)

North commuter rail line corridor map, with outlines of rail-related residential and freight-oriented commercial developments that could become part of special financing districts.

Business plan FAQs (Frequently Asked Questions)

Overview slide presentation on the Red Line – dated 12-13-11, the date of the next meeting in Mooresville.

Town of Davidson Red Line Task Force page, with these and other related documents, www.ci.davidson.nc.us/redline

RELATED LINKS

Nov. 22, 2011, CorneliusNews.net, “Town seeks task force to review rail plans.”

Nov. 23, 2011, Statesville Record & Landmark, “Iredell leaders skeptical about Mooresville-to-Charlotte train”.

Oct. 27, 2011, “Officials say new regional authority should run rail project”