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

Charlotte leaders nearly unanimously backed long-awaited measures to overhaul the region’s public transit 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 draft legislation on a sales tax referendum to pay for transportation needs and spend $91 million to purchase railroad tracks from Norfolk Southern for the Red Line commuter rail project. Council member Tariq Bokhari was the lone vote against.

The vast majority of almost 20 residents who spoke during a public comment period at the meeting also backed both measures.

“This is an historical moment,” Mayor Pro Tem Danté Anderson said.

Still, multiple council members who voted for the draft bill and the Red Line purchase said it was a “difficult” decision. They cited concerns about a lack of transparency during negotiations and the new governance model for public transit in the legislation, and frustration in east Mecklenburg about the future of the Silver Line rail project.

“This is a tough vote,” Council member Renee Johnson said. “... We have to acknowledge people are hurting.”

Bokhari, one of two Republicans on the council, questioned whether the GOP-dominated state Legislature will sign off on the draft legislation, which is crucial to getting a 1-cent sales tax increase on the ballot to pay for transportation projects.

“We are setting ourselves up for failure by not being precise,” he said.

Read Charlotte’s full proposal to increase Mecklenburg sales tax for transportation

Red Line deal terms

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

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 last week

Charlotte plans to use short-term debt for the Red Line purchase and reimburse itself with money from the creation of a new sales tax. Charlotte will 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.

“We’re taking a bit of a risk. I believe it’s a manageable risk,” said Council member Ed Driggs, who chairs the City Council’s transportation committee.

Bokhari said he’s worried Charlotte could be left “holding the bag.”

Tuesday’s deal 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 buying tracks there, and the state legislature passed a bill 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. The city’s agreement with Norfolk Southern allows for the future purchase of all 7 miles, a portion of it or a lease agreement.

Conversations with Mooresville and Iredell County officials are ongoing, interim Charlotte Area Transit System CEO Brent Cagle told reporters last week. Mooresville Mayor Chris Carney told WBTV last week his town “will never tax nor take money out of our budget to support rail” while he’s in office.

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

What sales tax increase would mean for transit

The bill would create a new 27-member transit authority that would take over governance of CATS from Charlotte and the Metropolitan Transit Commission.

Charlotte would appoint 12 members, including three people “representing business interests.” Mecklenburg County would also get 12 appointments, including six representatives from the county’s towns. There would also be three seats filled at the state level — one by the governor, one by the state House and one by the state Senate.

The draft legislation caps spending on light rail, commuter rail and streetcar projects at 40% of the new sales tax revenue. Spending on buses — including bus rapid transit, micro-transit and mobility hubs — would be capped at 20% of revenue, leaving 40% of the new money for roads in an effort to appease Republican state legislators.

Multiple CATS bus drivers told council members Tuesday they’re optimistic the new funding would improve service and prevent issues with maintenance.

“This measure is critical,” bus operator Faith Strickland said.

That funding breakdown could jeopardize the eastern portion of the Silver Line, rankling some in east Charlotte and Matthews.

Charlotte officials have repeatedly said it will be up to a new transit authority to decide what parts of the existing 2030 transit plan — which includes the Red Line, Silver Line and expansions of the Blue and Gold lines — will move forward if the draft legislation advances.

“Tonight is not the finish line,” said Council member Marjorie Molina, whose District 5 includes much of east Charlotte.

But Matthews Mayor John Higdon has repeatedly said the draft will lead to the eastern leg of the Silver Line converting to bus rapid transit — or not happening at all.

“I think all of us need to be honest with our constituents and voters,” he told the Observer Friday .

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

“We all know that there is a math problem here,” she said.

The at-large representative, who previously served District 5, ultimately voted for the measures because of the need for more public transportation, citing her own experience using buses as a teenager.

“I don’t want us to miss out on this opportunity,” she said.

What’s next for Red Line, sales tax increase?

Matthews leaders voted previously to oppose the plan , and Cornelius voted to support it. Mecklenburg County and the county’s other towns will vote on the bill over the next two weeks.

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

“We are hopeful, but we’re not taking anything for granted,” Driggs said of the bill’s chances in the legislature.

If it does move forward, Driggs noted, the decision on whether to increase the sales tax will be voters’.

“It will not pass unless the people in Mecklenburg like what they see,” he said.