Title
I-77 South Express Lanes Project
Action
Action:
Direct the vote of Charlotte’s representative of the Charlotte Regional Transportation Planning Organization Board to support the North Carolina Department of Transportation’s plan for a public-private partnership service delivery model for managed lanes along Interstate-77 South.
Body
Committee Chair:
Ed Driggs, Transportation, Planning, and Development
Staff Resource(s):
Liz Babson, City Manager’s Office
Debbie Smith, Transportation
Explanation
§ The I-77 South Managed Lanes project is designed to improve an important corridor that brings business to the Charlotte region and supports the city’s mobility vision of making jobs more accessible.
§ The project was initially identified in 2007 and adopted as a project for state funding by the Charlotte Regional Transportation Planning Organization (CRTPO) in 2014 as part of the region’s plan for transportation investment to manage congestion, increase safety, and support continued economic growth.
§ The North Carolina Department of Transportation (NCDOT) is seeking direction from the CRTPO Board as to whether the state should move forward with a procurement process for a public-private partnership (P3) delivery option for the managed lanes along I-77, south of uptown Charlotte.
§ NCDOT has completed a comparative analysis study between Traditional Toll Delivery and P3 Toll Delivery options and determined that a P3 Toll Delivery option is financially feasible with the existing committed public funding, while a Traditional Toll Delivery option is not financially feasible given current funding constraints.
§ The P3 delivery model is a long-term partnership in which NCDOT would select a private developer to design, build, finance, operate, and maintain a project under a Design, Build, Finance, Operate, and Maintain agreement.
§ If a P3 option is selected, project development could continue as the comparative analysis indicates that the $600 million in State Transportation Improvement Program (STIP) funding is likely sufficient to fund any necessary public contribution for the project. NCDOT would work with CRTPO to define key objectives and priorities that would help inform initial key contract terms.
§ If CRTPO votes to support a P3 delivery option next steps would include:
- CRTPO creates a working group, consisting of CRTPO Board members or their designees, to partner with NCDOT to develop project objectives and priorities to inform indicative terms to be included in the Request for Qualifications (RFQ), including applicable participation goals in collaboration with the Office of Historically Underutilized Businesses in the Department of Administration for the State of North Carolina.
- Once NCDOT drafts the key terms, CRTPO will have 60 days to review prior to any public advertisement.
- CRTPO can rescind support of the P3 at any point up until NCDOT issues an RFQ.
§ The CRTPO Board is expected to vote on a delivery method at its October 2024 meeting, which will determine if NCDOT moves forward with a P3 or if the project is put on hold.
Background:
§ In 2007, transportation planners from the Charlotte region, NCDOT and the South Carolina Department of Transportation examined the feasibility of managed lanes on major arterial streets in the Charlotte area, known as the “Fast Lanes Study.” The I-77 Express Lanes South project was identified in this study.
§ In 2014, the CRTPO approved the project list for scoring for the fiscal years 2016-2025 STIP, including a project to widen I-77 South from I-485 to I-277 with express lanes.
§ In 2022, the draft fiscal year 2024-2033 STIP included funding only for the preliminary engineering for the project to widen I-77 South from I-485 to I-277 with express lanes.
§ February 2022, NCDOT received an unsolicited proposal from Cintra. NCDOT and CRTPO assembled a working group to evaluate the proposal.
§ In February 2023, CRTPO Board requested NCDOT prepare a comparative analysis between a P3 Toll Delivery option and a Traditional Toll Delivery option delivered through North Carolina Turnpike Authority.
§ In February, April, August, and September of 2024, NCDOT presented comparative analysis updates to CRTPO Board. Key findings included:
- Traditional toll delivery has a significant projected funding gap of $1.3 billion.
- A Traditional Toll Delivery for the I-77 South Express Lanes is not financially feasible given the current funding constraints.
- A P3 Toll Delivery for the Project is likely financially feasible. When adjusting inputs to align with those of similar P3 projects across the United States, the analysis shows that the $600 million in STIP funding would likely cover any necessary public contribution for the Project.
§ At the October 7, 2024, Transportation, Planning, and Development City Council Committee Meeting, a discussion was held regarding the I-77 South Express Lanes Project.
§ At the October 7, 2024, Council Committee Discussion Meeting, NCDOT presented the results of the comparative analysis and discussed the path forward for a P3 delivery.
Attachments
Attachment(s)
NCDOT Presentation from October 7, 2024