The N.C. Department of Transportation is offering a sweeping community benefits package that could total as much as $300 million as it seeks support for the proposed Interstate 77 toll lanes project, which would run from south of uptown Charlotte to the South Carolina border.
The benefits would be aimed at communities that could be negatively affected by the highway expansion and would include funding for projects such as bike lanes, greenways, recreation space and a concrete cap over part of the highway near uptown.
In a first for the state, the package could also fund two new community-owned grocery stores on Charlotte’s west side, where access to fresh food is limited.
The proposal is part of the state’s plan to partner with a private company to build the $4.3 billion toll lane project.
Grocery stores included
Under the proposal, the state would include community benefits requirements in its contract with the private company selected to build the toll lanes.
The funding could pay for nonprofit organizations to develop two community-owned grocery stores — one on West Boulevard and another at Five Points near Johnson C. Smith University.
Another possibility under discussion is a new recreation center on Nations Ford Road.
Charlotte businessman Malcomb Coley, who recently met with state Transportation Secretary Daniel Johnson and community leaders, said a DOT consultant told the group the total value of the benefits package could reach $300 million.
A significant investment
The state is contributing $600 million toward the $4.3 billion project. The private company selected to build the toll lanes would be responsible for financing the remaining $3.7 billion.
Adding as much as $300 million in community benefits would increase the amount needing to be financed by roughly 8%, with toll revenue expected to repay those costs over time.
While community benefits agreements are common in development projects, the scale of this proposal appears unusual for a transportation project in North Carolina. The Interstate 26 expansion in Asheville, for example, includes commitments such as bus shelters, sidewalk improvements and a neighborhood history mural on a sound wall — benefits that are significantly smaller than those being discussed for the I-77 project.
Funding grocery stores as part of a highway project is also uncommon. The state said benefits such as the grocery stores in Charlotte would only be possible through the public-private partnership on I-77.
Could it change minds?
The offer could help shift opinion among Charlotte leaders opposed to the project.
In May, the Charlotte City Council voted 6-5 against the state’s proposal to have a private company build the toll lanes.
One of those opposing votes came from council member Joi Mayo, whose district includes much of west Charlotte.
Some residents remain opposed to the project, but others may see the proposed investments as a major opportunity for long-sought community improvements, particularly the addition of grocery stores on the west side.
If Charlotte reverses its position, that could provide enough support for the Charlotte Regional Transportation Planning Organization to approve the toll-lane project when it votes later this year.
