Title
Norfolk Southern O-Line Corridor Acquisition Financing
Action
Action:
A. Adopt an initial findings resolution making certain findings and calling for the execution of various documents necessary to issue a directly placed installment financing contract in an amount not to exceed $93,000,000 and setting a public hearing for February 24, 2025, and
B. Authorize the City Manager, or his designee, to take necessary actions to complete the financing, including submitting the application to the Local Government Commission.
Body
Staff Resource(s):
Teresa Smith, Finance
Matthew Hastedt, Finance
Explanation
§ On September 3, 2024, City Council approved the acquisition of approximately 22 miles of the O-Line railroad right-of-way, track improvements, and other real property rights from Charlotte to the Mecklenburg County line in the amount of $74 million.
§ On the same day, City Council also approved the purchase of approximately 1.6 acres of real property and any associated real property rights located near the Charlotte Gateway Station, in the amount of $17 million.
§ This directly placed installment financing contract will reimburse the city for the acquisition costs related to Norfolk Southern O-Line Corridor for the Red Line Commuter Rail Project.
§ The acquisition of the corridor protects the city and any future transit agency’s rights to operate commuter rail to northern towns in Mecklenburg County. This action provides financing for this purchase.
§ The North Carolina Local Government Commission is expected to review and approve the variable rate installment financing at their April 2025 meeting.
Fiscal Note
Funding: Municipal Debt Service Fund
Attachments
Attachment(s)
Initial Findings Resolution