CHARLOTTE — The municipalities that voted to rescind the I-77 toll lane project could have to pay NCDOT back for sunk costs. That’s estimated to be more than $60 million.
Channel 9 Government Reporter Joe Bruno obtained a draft amendment circulating the legislature. It would be an amendment to HB1094. Lawmakers are expected to gut and amend it with a DOT omnibus. However there are some folks involved with this process who believe this is not the appropriate vehicle for this language and would rather see a version of this in the budget.
The amendment requires NCDOT to determine whether a local planning organization, like the CRTPO, took an action to remove a project from its comprehensive plan after the commencement of predevelopment plans. If NCDOT determines that happened, then municipalities that voted for the removal are responsible for reimbursing costs. Charlotte has 31 of the CRTPO’s 74 votes.
The reimbursement amount is proportionate to the weighted vote each municipality has on the board. Costs include preliminary engineering, environmental studies, consultant fees and labor.
The amendment says until NCDOT is fully reimbursed, NCDOT will withhold state aid, like Powell Bill funding, and NCDOT will not begin any new State Transportation Improvement Program (STIP) projects. Municipalities use Powell Bill funding for street maintenance. Charlotte is expecting to receive $14.5 million in FY27 in Powell Bill funds.
The amendment bans municipalities from using PAVE Act funds to reimburse NCDOT. The PAVE Act is the 1 cent sales tax increase going into effect July 1. NCDOT would be prohibited from removing the I-77 south toll lane program from the STIP before January 1, 2027.
The amendment requires NCDOT to study the feasibility of options to terminate the northern portion of the I-77 toll lane project. It also is asking NCDOT to study options to acquire the project.
Charlotte City Councilmembers are aware of the draft amendment.
Senator Vickie Sawyer is sponsoring the amendment. Channel 9 is reaching out to her for more information.
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