Charlotte reveals price for Red Line’s train tracks — and an Iredell County twist

Charlotte is planning to spend $91 million to purchase railroad tracks and land for the long-awaited Red Line project.

The city would spend $74 million to purchase 22 miles of rail corridor from Norfolk Southern and an additional $17 million for 1.6 acres of right of way, or land, along Graham Street near the Gateway Station , according to a Monday presentation to Charlotte City Council.

Charlotte began negotiating in 2023 with Norfolk Southern , which for years had refused to consider allowing commuter rail on the tracks.

The City Council will vote Sept. 3 on the purchase agreement and proposed state legislation for a sales tax increase to pay for transportation projects. The city hopes to get a 1-cent sales tax increase on ballots in November 2025, but a referendum requires approval from a Republican-led state legislature that’s been skeptical of Charlotte’s transit plan.

Charlotte plans to use short-term debt for the Red Line purchase. The proposed state bill ensures the city can be reimbursed for the purchase with the new sales tax. Charlotte would own the corridor until a new transit authority is created, which would then take ownership of the railway and operate the Red Line commuter rail. That’s in the draft bill the legislature also needs to approve.

The rail corridor’s appraised tax value is $69.2 million, and the Gateway right-of-way’s is $15.9 million, city staff told council members.

Council member Ed Driggs, who chairs the council’s transportation committee, described the decision facing city leaders as “daunting” but “exciting.”

“There’s no question that we need to make a large investment,” the District 7 Republican said.

Some council members said they still need more information and to further deliberate before they decide how they’ll vote.

“I want to make sure that, for me, that I understand exactly what I’m voting for,” Council member Tiawana Brown said.

Iredell County’s involvement

The purchase on the table only includes the portion of the railroad corridor in Mecklenburg County. The Red Line plan for years called for a Mount Mourne stop in Iredell County. But Mooresville and Iredell officials raised concerns earlier this year about Charlotte acquiring tracks in their jurisdiction, and the state legislature passed a provision giving them approval over any purchase.

Under the purchase plan, the Red Line would now end in Davidson.

It would cost an additional $17.75 million to purchase the 7-mile stretch of O Line tracks in Iredell County, according to Monday’s presentation. The city’s agreement with Norfolk Southern would allow for the future purchase of all 7 miles, a portion of it or a lease-like agreement for access.

Conversations with Mooresville and Iredell County officials are ongoing, interim Charlotte Area Transit System CEO Brent Cagle told reporters ahead of Monday’s council meeting.

CATS held public meetings in the spring to get public input on potential updates to the Red Line plan, but Cagle said Monday it would be tricky to add additional stops because it’s commuter rail.

Under the proposed agreement, Norfolk Southern would still be allowed to use the tracks infrequently for freight trains.

What about the Silver Line?

On Monday, council members also continued to raise questions about the future of the Silver Line rail project, which would run from Charlotte-Douglas International Airport through east Charlotte and into Matthews.

But the draft legislation under consideration may jeopardize the project .

City staff said they haven’t officially changed the 2030 transportation plan, which includes the full Silver Line. Cagle said Monday the Metropolitan Transit Commission, which currently shares governance over CATS with Charlotte, would reevaluate the plan starting in the fall through summer 2025.

But staff also acknowledged under the current proposal, there will not be enough money to fund all the rail projects in the 2030 plan, and that the plan prioritizes the Red Line.

Matthews has already been vocal with its concerns it could lose out if the eastern portion of the Silver Line is scraped or converted to bus rapid transit.

Changes to the Silver Line plan would also impact east Charlotte, some on council noted.

“Are we creating two cities?” at-large Council member Dimple Ajmera asked.