CATS moves forward with north rail plan

Organization hopes to borrow money to close huge gap in funding
STEVE HARRISON

CATS inched forward Wednesday with its plans to build a commuter-rail line to north Mecklenburg, despite uncertainty over whether the half-cent sales tax for mass transit will survive. The Charlotte Area Transit System discussed details with the Metropolitan Transit Commission of how it plans to pay for the commuter-rail line, which will run on existing Norfolk-Southern tracks from uptown to either Davidson or Iredell County.

For several months, the biggest question has been how to bridge a $76 million funding gap. The line overall will cost between $241 million and $261 million, with an estimated completion date of 2011.

CATS said Wednesday at the MTC meeting in Cornelius that it plans to borrow the money from the federal government, tapping a low-interest loan available for the improvement of rail corridors. The federal government has previously said it won't give CATS money to build the North Corridor. It has helped fund the light-rail line along South Boulevard, which is nearing completion.

CATS's plan is to pay that money back by borrowing against new property tax revenues that the commuter line is expected to generate. It estimates that land around train stations will generate $5.2 billion in new development by 2019. Nearly 80 percent of the new property tax revenue would be left over for basic services, CATS said. CATS hopes the MTC will approve its finance plan in July or August so it can begin awarding design and engineering contracts later in the year.

Critics who want to repeal the sales tax, which is a major source of CATS funding, have said the North Corridor commuter train won't be effective. They have said the fact that CATS is still searching for funding is a sign that it shouldn't be built.

The MTC also discussed a city presentation detailing possible budget cuts if it loses the half-cent sales tax. County Commissioner Dan Bishop questioned the analysis. He said city staff should have instead presented a scenario in which property taxes were raised and budget cuts made.

They are bound and determined .....we will see what the future brings.