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Despite all the concerns, NCDOT official praises Norfolk Southern for 'active role in Red Line planning'

Feb. 22 UPDATE A letter Tuesday from Norfolk Southern Railroad to the N.C. Department of Transportation casts more doubt on the proposed $452 million Red Line from Charlotte to Lake Norman.

The letter, from John V. Edwards, general director of passenger policy at Norfolk Southern, to the NCDOT's Paul Morris, says the Red Line plan is "fatally flawed and based upon assumptions about the projected freight use of the "O" Line that are no longer valid."

Oddly, Morris fired back a few hours later this way: "It is wonderful to have Norfolk Southern taking an active role in this project."

Opposition to the Red Line may be building. Cornelius Town Commissioner Dave Gilroy stated: "We need to move on."

The Red Line proposal seemed to get off on the wrong track in December when a proposal put forward by state-paid consultants called for special assessment or taxation districts around 10 proposed stations between Charlotte and Mooresville. Nine government entities were called on to study the proposal for 90 days starting in January.

But it became apparent in recent weeks that a key player in the commuter rail—the owner of the tracks themselves—was hardly on board.

Jeff Hare, a Cornelius Town Commissioner, said it was "disappointing that we have been all asked to spend time analyzing a plan where a necessary participant in the plan was not involved in the plan’s design.  There seems to be no quick fix based upon the Norfolk Southern letter.  We will wait for a response from NCDOT before proceeding with any additional analysis."

Part of the Red Line proposal called for a Joint Powers Authority to oversee the project and pay the bills. It would not have taxing authority, but there would be a tax of 75 cents per $100 of assessed valuation in  Special Assessment Districts around the stations.

Edwards' letter, which refers to the use of the tracks themselves, not the financing, says the "current proposal is not feasible and does not constitute a starting point for further discussions. The JPA development process, therefore, is premature and will not lead to an accelerated construction schedule." Nevertheless, Norfolk Southern left the door open for more study. "It will be an expensive process for NCDOT," Edwards said in the letter. Of course, the state is in difficult financial circumstances because of the recession and spending that has outstripped income.

"If NCDOT wishes to pursue some form of commuter rail on Norfolk Southern's "O" Line, Norfolk Southern will be ready to begin the study based upon updated freight operating assumptions, and the correct financial, tax, liability and regulatory models. This process is not short or easy. It will be an expensive process for NCDOT. But we will work with you to ensure that together we get it right," Edwards said.

Gilroy, an avowed critic of the Red Line, said it was "astonishing how half-baked this all was."

The Cornelius town commissioner questioned the financial underpinnings of the project. "My sense is that it’s a house of cards, and they’re in a mode of promising everything to everyone, but then somehow making the math work as well. This is a tough, actually impossible, trick to pull off," Gilroy said.