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Charlotte city leaders rush to purchase O-line, make progress on one-cent transit tax

Both moves would help push the region's decades-old vision to get the Red Line commuter train that would connect Charlotte with its northern suburbs and Lake Norman.

CHARLOTTE, N.C. — New documents obtained by WCNC Charlotte outline Charlotte City Council's new timeline in working to purchase the O-line and getting a one-cent sales tax on the ballot. 

“I think the red line deal is very much on track,” said councilman Ed Driggs. "I expect that will close in September, and then the question is if the legislation will authorize a referendum so we can say 'are you okay with a one-cent sales tax.'"

Both moves would help push the region's decades-old vision to get the Red Line commuter train that would connect Charlotte with its northern suburbs and Lake Norman. Talks over the Red Line train were at a standstill until last year when Norfolk Southern renewed talks about the potential of allowing the city to use its rail for the commuter train.

In a message sent to council members Wednesday night, City Manager Marcus Jones pushed leaders to get a lot done before the closing date of the Red Line purchase on Sept. 9, 2024.

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O-Line

The O-Line tracks are currently part of Norfolk Southern's national freight network. As part of the O-Line's sale to Charlotte, Norfolk Southern would continue to operate freight trains on the tracks.

For decades, the plan has been to stretch the Red Line from Charlotte to Mooresville. However, a recent law passed by the General Assembly is creating another hurdle for city leaders: it could change how much of the O-Line can be purchased. 

In addition to getting permission from Iredell County, the city now needs approval from the town of Mooresville. In an email sent to the city council, Jones said there is a planned meeting for Charlotte leaders and representatives from both Iredell County and Mooresville. 

“Right now, what Mooresville and Iredell County are working together on is to find a way to be okay with Charlotte having ownership of the tracks that come into our area and the different protections we would need with that to let it happen,” said Mooresville Mayor Chris Carney. “It comes down to 'can we protect the integrity of our area,' and the deal goes forward. We also have to be very clear, to tell the public that it's not us endorsing a train because we don’t know what all that comes with that.”

Jones said the city is looking at only buying the portion of the track that extends to Davidson if Iredell County and Mooresville leaders aren't on board. However, Jones said the decision ultimately lies with the Metropolitan Transit Commission, the policy board that currently oversees the Charlotte Area Transit System (CATS)

The city has worked with Mooresville since January to update design plans for the Red Line. Charlotte would front the money to buy the tracks, but in the letter sent to councilmembers, Jones says the city expects to be reimbursed from the new agency that oversees CATS. 

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One-cent sales tax

Meanwhile, Jones says there is draft legislation in the works to get a one-cent sales tax referendum on the ballot in 2025. The legislation would have to get approved by the Republican-dominated General Assembly before it could go before voters. 

“We will need to explain (to voters) all of the benefits, how traffic will be eased, how the air quality will improve, (how) economic development will benefit,” said Driggs.

Jones said in the email that 60% of the money raised by the sales tax would go toward transit, with 40% for rail and 20% for buses. The other 40% of the money would go toward roads.

City leaders previously wanted more money devoted to transit plans, but to appeal to Republicans in the state legislature, more money was designated to roads. The new plan forces the city to scrap plans to add the Silver Line to eastern Mecklenburg County. 

The draft legislation also outlines the push to create a new transit authority for Mecklenburg County. This would transfer all of CATS' assets and debts to the new organization and would protect staff members and their pension benefits. 

Jones said he is hopeful the public referendum could get on the ballot "as early as 2025." In his email, Jones laid out the following timeline for city leaders to move these plans forward:

City council timeline

  • Late July/early August: City Council will be briefed on these two actions in small group briefings
  • Aug. 19: Closed session briefing
  • Aug. 26: Action review presentation
  • Sept. 3: Vote on the Red Line acquisition and a resolution supporting the once-cent sales tax

Contact Jesse Pierre at jpierrepet@wcnc.com or follow her on Facebook, X and Instagram.

Flashpoint is a weekly in-depth look at politics in Charlotte, North Carolina, South Carolina, and beyond with host Ben Thompson. Listen to the podcast weekly. 
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