Charlotte City Council backs transit tax deal and Red Line purchase, but questions remain

Charlotte leaders nearly unanimously backed a long-awaited measure to overhaul the region’s public transportation system Tuesday. But many City Council members still have questions about the approach and its feasibility.

The Charlotte City Council voted 10-1 to support a bill seeking a sales tax referendum to pay for transportation needs and spend $91 million to buy rail tracks from Norfolk Southern for the Red Line commuter rail project. Councilmember Tariq Bokhari was the lone dissenting vote.

The vast majority of the nearly 20 residents who spoke during the public comment portion of the meeting also supported both measures.

“This is a historic moment,” said Deputy Mayor Danté Anderson.

Still, many council members who voted for the bill and the Red Line purchase said it was a “difficult” decision, citing concerns about the lack of transparency during negotiations and the new transit management model in the legislation, and frustration in eastern Mecklenburg about the future of the Silver Line rail project.

“This is a difficult vote,” said Council Member Renee Johnson. “… We have to acknowledge that people are hurting.”

Bokhari, one of two Republicans on the council, expressed doubt that the GOP-dominated state Legislature would approve the bill, which is key to putting on the ballot a 1-cent sales tax increase to be used to fund transportation projects.

“If we are not precise, we are setting ourselves up for failure,” he said.

Read Charlotte’s full proposal to raise Mecklenburg’s sales tax on transportation

Red Line Terms and Conditions

Charlotte will spend $74 million to buy 22 miles of rail corridor from Norfolk Southern and an additional $17 million for 1.6 acres of land along Graham Street near Gateway Station.

The rail corridor has a tax value of $69.2 million, city staff said last week, while the Gateway road rights have a tax value of $15.9 million.

Charlotte plans to use short-term debt to buy the Red Line and pay itself back with money from a new sales tax. Charlotte will own the corridor until a new transit authority is formed, which will then take over ownership of the rail and operate the Red Line commuter rail.

“We’re taking some risks. I think they’re manageable risks,” said Councilmember Ed Driggs, who chairs the City Council’s transportation committee.

Bokhari said he feared Charlotte could be left “with problems.”

Tuesday’s deal covers only a portion of the rail corridor in Mecklenburg County. The Red Line plan for years has called for a Mount Mourne stop in Iredell County. But Mooresville and Iredell officials raised concerns earlier this year that Charlotte would buy track there, and the state Legislature passed a law giving them approval for any purchase.

Under the purchase plan, the Red Line would end at Davidson.

The cost of purchasing the 7-mile O Line in Iredell County would be an additional $17.75 million. The city’s agreement with Norfolk Southern allows for a future purchase of all 7 miles, a portion of it, or a lease agreement.

Talks are ongoing with Mooresville and Iredell County officials, Charlotte Area Transit System interim CEO Brent Cagle told reporters last week. Mooresville Mayor Chris Carney told WBTV last week that his city “will never tax or take money out of the budget to support rail” as long as he is in power.

Under the proposed agreement, Norfolk Southern would be allowed to occasionally use the tracks to service freight trains.

What a Sales Tax Increase Would Mean for Public Transportation

The bill would create a new, 27-member public transportation regulator that would take over management of CATS from Charlotte and the Metropolitan Transit Commission.

Charlotte would appoint 12 members, including three people “representing business interests.” Mecklenburg County would also receive 12 nominations, including six representatives from the county’s cities. Three seats would also be filled at the state level — one by the governor, one by the state House of Representatives and one by the state Senate.

The bill caps spending on light rail, commuter rail and streetcar projects at 40% of new sales tax revenue. Spending on buses — including bus rapid transit, microtransit and mobility hubs — would be capped at 20% of revenue, leaving 40% of new money for roads to appease Republican state lawmakers.

Many CATS bus drivers told council members Tuesday they are optimistic the new funding will improve service and prevent maintenance issues.

“This measure is crucial,” said bus driver Faith Strickland.

The lack of funding could put the eastern portion of the Silver Line at risk, outraging some residents in east Charlotte and Matthews.

Charlotte officials have repeatedly said the new transit authority would have to decide which parts of the existing 2030 transit plan — which includes the Red Line, Silver Line and extensions of the Blue and Gold Lines — would be implemented if the bill passes.

“Today is not the finish line,” said Councilwoman Marjorie Molina, whose 5th District covers much of east Charlotte.

But Matthews Mayor John Higdon has repeatedly said the project would either convert the eastern branch of the Silver Line to bus rapid transit — or eliminate it altogether.

“I think we all need to be honest with our voters,” he told The Observer on Friday.

Council member Dimple Ajmera said concerns about the Silver Line were a sticking point for her.

“We all know we’re dealing with a math problem here,” she said.

The district representative, who previously represented District 5, ultimately voted in favor of the measure because of the need for more public transportation, citing her own experiences riding buses as a teenager.

“I don’t want us to waste this opportunity,” she said.

What’s next for Red Line and the sales tax increase?

Matthews leaders previously voted against the plan, while Cornelius voted to support it. Mecklenburg County and other cities in the county will vote on the bill in the next two weeks.

Charlotte’s goal is for lawmakers to consider the bill when they return to Raleigh in November or during the 2025 legislative session before a referendum in November 2025.

“We’re hopeful, but we’re not assuming anything,” Driggs said, regarding the bill’s chances in the Legislature.

Driggs noted that if the bill passes, the decision on whether to raise the sales tax would be up to voters.

“It won’t pass if the people of Mecklenburg don’t like what they see,” he said.