Charlotte Council Approves Sales Tax Referendum and O-Line Purchase, September 3, 2024
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Charlotte City Council Committee Discussions: Historic Transportation Votes and Housing Policy, September 3, 2024
The Charlotte City Council met on September 3, 2024, at 6:00 PM in the Charlotte-Mecklenburg Government Center to consider two major transportation items and receive committee updates. The council voted nearly unanimously to adopt a resolution supporting legislation that would allow Mecklenburg County voters to decide on a one-cent sales tax increase for transportation, and to authorize the purchase of the Norfolk Southern O-Line corridor for the future Red Line commuter rail project. Council also heard presentations on Eastland Mall development and a new affordable housing funding policy.
Public Comments & Testimony
- Sales Tax Referendum and Red Line (combined testimony): Over a dozen speakers addressed the council, nearly all in support of both items. Speakers included Adam Rue (South Park Community Partners, supporting the generational investment), Hope Wright (Sustain Charlotte, urging approval while noting the legislation is a compromise), Tesho Akendelli (Camp North End, supporting the Red Line and requesting a Camp North End stop), Joe Bost (Charlotte Regional Business Alliance, emphasizing business community support), Jarrett Herms (Transit Service Advisory Council chair, advocating for transformative transit), Arthur Walker and Nile Bowen and Faith Strickland (CATS bus operators and drivers, highlighting benefits for bus service and wages), Will Darden (Commonwealth Morningside Neighborhood Association, emphasizing equity and economic mobility), Chris Wallace (CATS rider, supporting both items and urging multimodal improvements), and Michael Smith and John Morris (residents, urging progress and noting the federal government’s support). Garland Green (South Charlotte resident) requested robust public engagement before the referendum. One speaker, Russell Wingett, expressed skepticism about using traditional rail technology and suggested exploring autonomous vehicles, but did not explicitly oppose the purchase.
Discussion Items
- Resolution Supporting Sales Tax Referendum (Item 1): Council members discussed the need to allow voters to decide on a one-cent sales tax for roads and transit. Chair Ed Driggs clarified that the resolution only asks the General Assembly for permission to hold a referendum, not to impose a tax. Several members noted that the vote is a step toward addressing long-standing transportation needs and that it enables federal matching funds. Council Member Tariq Bokhari voiced opposition, citing concerns about the regressive nature of the tax, lack of a defined roads plan, and a flawed governance model. The resolution passed nearly unanimously (one dissenting vote).
- Norfolk Southern Corridor Acquisition for CATS Red Line (Item 2): The council considered the $101 million purchase of approximately 22 miles of O-Line right-of-way and related property for the future Red Line commuter rail. Supporters called it a once-in-a-lifetime opportunity, noting the price is below market value ($3.36 million per mile compared to comparable sales). Council members acknowledged the risk but stressed that owning the land provides options even if the full transit plan fails. Bokhari again dissented, arguing that the governance structure is not yet resolved and the city could be left with a liability. The purchase passed nearly unanimously (one dissenting vote).
- Eastland Mall Development Update: Council Member Malcolm Graham presented the committee’s recommendation to approve an additional $11.338 million in funding ($8.994 million from CIP and $2.334 million from hospitality funds) for public infrastructure and amateur sports facilities at the Eastland site, bringing the total city support to $41.338 million. The committee voted 5-0 to recommend approval; the full council will vote on September 9.
- Affordable Housing Funding Policy Referral: Director Hefner presented the Housing Safety and Community Committee’s recommended policy for the historic $100 million housing bond. The policy shifts focus to resident outcomes (residential stability, neighborhood affordability, economic mobility) and includes new priorities: home ownership, anti-displacement, resident services, partnerships/leverage, and innovation. Bond investment categories with allocation goals were outlined (e.g., $35M rental housing production, $25M home ownership, $14M preservation, $9M supportive housing, $5M site acquisition near transit, and $5M innovation pilot). The committee voted 5-0 to move forward; full council will vote on September 9.
Key Outcomes
- Item 1 (Sales Tax Referendum Resolution): Approved with nearly unanimous support (one dissenting vote). The resolution requests the North Carolina General Assembly to authorize a referendum for a one-cent sales tax for transportation in Mecklenburg County.
- Item 2 (Norfolk Southern O-Line Purchase): Approved with nearly unanimous support (one dissenting vote). The city will spend $101 million to acquire the corridor, property for Gateway Station, and transitional insurance, with closing expected by September 9, 2024.
- Eastland Mall Funding: Committee recommended approval of $11.338 million in additional funds; full council vote scheduled for September 9.
- Housing Bond Policy: Committee recommended the new affordable housing funding policy; full council vote scheduled for September 9, ahead of the November bond referendum.
Meeting Transcript
I'd like to call this council member meeting on September third to order. And I'd like to start with introductions. We'll start to my left with the city attorney. Good evening, Patrick Baker, City Attorney. Good evening, Lawana Mayfield, Council Member at Large. Ed Driggs, District Seven. Malcolm Graham, District Two. Marcus Jones, City Manager. Dante Anderson, Mayor Pro Tim, District One. Good evening, everyone. James Smith Joy Large. Good evening, Marjorie Molina, District Five. Renee Johnson, and I'm honored to represent District Four. Ariel Smith, Late City Clerk. Thank you. Thank you to everyone. And now for tonight, in addition to our council committee discussions, we have two business items for a vote. And since these items are time sensitive in nature, and we have speakers signed up for both items, I propose we lead off our meeting with the consideration of the two business items. But before I do so, uh, little birdie told me that uh today is Mr. Ed Drick's birthday. So we have a cake for Ed, and I love for us to sing happy birthday to her. Okay, excellent. Happy birthday to both of you. And the cake will be in the back. If if someone wants a slice, they'll be cutting in the back. Okay, so we're going to move forward with our first agenda item. It is the resolution in support of legislation authorizing a sales tax referendum. And I'm going to read the language first so that it can be in the record. And then I would like to see if there is a motion to support it. So this motion, this this agenda item is to adopt a resolution to support the coalition of local jurisdictions in Mecklenburg County to seek authorization from the North Carolina General Assembly authorizing the voters of Mecklenburg County to determine by referendum whether they will approve an additional sales tax for further investment in roadway and public transportation systems. Is there a motion for item one? To approve. Second. I have a motion and a second. Thank you. But before we go through with our comments as a council, we do have several people who are signed up to speak on this particular item. And our clerk is going to keep track. Everyone will have three minutes to speak when they come up. And so our first person is Hope Wright. Is Hope in the room? Nope. Okay. What about Adam Bree? Thank you, Adam. Here he is. All right, Adam. We have three minutes. Thank you, Mayor Pro Tem, members of Council, Mr. Manager. Uh, good evening.
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