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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 enormous 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Red Line plan is "fatally flawed and based upon assumptions about the projected freight use of the "O" Line that are no longer valid."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 is building. Cornelius Town Commissioner Dave Gilroy said: "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 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 "0" 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.

2011 Diversity Award winners Bob McIntosh, founder of the McIntosh Law Firm, and Nannie Potts

Feb. 21 The Diversity Council at the Lake Norman Chamber of Commerce has opened nominations for the second annual "Champions of Diversity" awards. Last year's honorees were Nannie Potts, the first African American mayor of Cornelius, as well as The McIntosh Law Firm and Duke Energy for their demonstrated support of a diverse workplace and community.

The Diversity Council is part of the Lake Norman Chamber's efforts to better reflect the local business community. "Diversity isn't just about race or gender, it's about everything from socio-economic background to age," said Jack Salzman, 2012 chairman of the chamber.

"I tend to view diversity as a positive result of doing things the right way, the American way. It's how to build a successful business and build a community in this day and age," Salzman, the owner of Lake Norman Chrysler Jeep Dodge Ram, said.

Nominations for the business awards emphasize a proven support of diversity through work practices, services, hiring policies and support within the community.

Feb. 17 The historic decline in real estate since 2008 is showing up in Cabarrus County real estate assessments, with the majority of values decreasing for the first time. Property owners in Cabarrus County will begin receiving property revaluation notices in the mail next week. On average, single family homes will see a 13 percent reduction in value.

SALZMAN

HOPPER

CARPENTER

Feb. 17 While none of the 50 state Democratic delegations will be put up in Lake Norman hotels, 12 out of 19 hotels in Cornelius, Davidson and Huntersville have 80 percent of their inventory contracted for the Democratic National Convention in September, according to Visit Lake Norman. At least one former delegate to a national convention, Mary Hopper, executive director of University City Partners, said Lake Norman business may ultimately fare better without actual delegates, but with members of the media instead. "Having been a delegate, I can tell you that Lake Norman may be better able to make money on folks who stay there since delegates do not have to spend money on food and are not in hotels much," she said.

Vinay Patel, vice president of Charlotte-based SREE Hotels, said his Concord and airport area hotels "were strategically selected for delegations based on their proximity to the large full-service hotels like Embassy Suites and Great Wolf Lodge with substantial capacity for meeting and reception space."

Over the next several weeks Patel anticipates additional placements, such as the thousands of security, media, speakers, and groups the committee will house.

Jack Salzman, chairman of the Lake Norman Chamber of Commerce, said not having the delegates themselves won't necessarily be detrimental to showcasing our region and generating income for area businesses. "We're looking forward to hosting media and general committee observers. I believe that the Lake Norman region will be represented well with a unique special event that will focus all of the assets we have to offer as a region including our wonderful lake," Salzman said, explaining that Visit Lake Norman is leading the way on this event and is working diligently to promote the Lake Norman region to the convention-goers. "We have a dedicated team of board members working to put a signature event together around this time to spotlight our communities. We believe launching a new "region" based, multi faceted event will show visitors all the unique features our area has to offer. The event will ideally involve the best assets of each community: Huntersville, Davidson and Cornelius," said Salzman, owner of Lake Norman Chrysler Jeep Dodge Ram.

LIND

Feb. 15 Commercial property owners and developers around Cornelius are quietly hoping they can organize a Red Line information session to help offset the wave of negativity that they say poured from of a Cornelius Town Hall presentation by Randal O'Toole, a fellow at the Cato Institute. Saying he was a fan of rail, O'Toole excoriated virtually every aspect of the $452 million commuter/freight line between Charlotte and Lake Norman.

As of right now, they're working with Cornelius Town Hall to find an acceptable speaker who could field a variety of questions, ranging from transit finance to economic development prospects along the 25-mile route. None, however, would comment on the record, although Mecklenburg County voters, albeit in a different time, have voted to fund a commuter rail line by approving a sales tax. Indeed, some members of the development community are expressing deep concerns that the Red Line plan is not getting a fair hearing during a 90-day review period. "Despite what Mr. O'Toole had to say and while we appreciate that viewpoint, we also have to look at the counterbalance to that, which I think is not as vocal and visible, that there's a quiet dialog under way. I think it would be a mistake to assume that the loudest voices represent the majority," one significant commercial property owner said. The Red Line proposal is still a proposal, developers emphasized, and can be shaped through rational input during the review process. Commercial property owners have attempted to recruit a speaker to come to Cornelius, but so far no one in Town Hall is biting. One possible speaker is William S. Lind, director of The American Conservative Center for Public Transportation, is co-author, of "Moving Minds: Conservatives and Public Transportation." In a letter supporting the Red Line, Lind says commuter rail is an economic driver. "The mean earnings of rail commuters were more than $76,000; the figure for bus riders was less than $14,000," he wrote. To download Lind's letter, click here.

Feb. 14 The Cabarrus County Convention & Visitors Bureau is a 2012 election winner, at least where hotels in Concord are concerned. Hundreds of delegates to the Democratic National Convention will be housed in six hotels along Bruton Smith Boulevard, between Charlotte Motor Speedway and Concord Mills. The delegations include Dems from Alaska who will stay at the Hilton Garden; Kansas delegates, Wingate Inn; Maryland and Rhode Island delegates, Embassy Suites and Courtyard by Marriott; Michigan delegates, Residence Inn; and New Mexico delegates, Spring Hill Suites.

Not on the DNC list: Lake Norman area hotels. But business leaders in Lake Norman are actively trying to organize a special lake-oriented event that could draw delegates and their spouses for a festive tour of the region during the convention, which gets under way Sept 3.

Their tentative plan, in conjunction with Mooresville, could take visitors by a boat or yacht out on Lake Norman, and would likely involve destinations and attractions in Huntersville, Cornelius, Davidson and Mooresville. The goal is to make it an annual signature event.

An earlier plan to carry delegates and visitors to Lake Norman on a special train north out of Charlotte to whistle stops in Huntersville, Cornelius and Davidson fell through after officials at Norfolk Southern discouraged the proposal. Business leaders are still hopeful members of the media—the DNC will draw worldwide attention to Charlotte—will stay in Lake Norman hotels. Neither Sally Ashworth, executive director of Visit Lake Norman, nor Randy Marion, chairman of the VLN board, could be reached for comment.

To view an interview with Randal O'Toole, click here.

O'TOOLE

Feb. 9 The Red Line Regional Rail Project came under fire Wednesday at a Cornelius Red Line Task Force forum Wednesday when a well-known commuter rail critic attacked the economic development numbers CATS uses to justify the Red Line and the Lynx line in Charlotte. Randal O'Toole, a fellow at the Cato Institute, said growth in and around Charlotte is occurring at the rate of 3 percent a year, with or without rail. Subsidies for rail merely shift where the development takes place, he said. BusinessToday has posted a copy of his report online.

As expected, the fellow with a distinct libertarian bent excoriated the proposed $452 million rail line from Lake Norman to Charlotte as a government excursion into 19th century technology. Instead, O'Toole advocated sort of a new era of bus and car technologies which would tap into the dispersed nature of both worker populations and jobs. Only 30 percent of all jobs are in traditional employment centers like downtowns, he said.

Many people in the real estate community are taking a wait and see approach as three months of meetings--and intense review--near the mid-point. Elected officials in North Mecklenburg and Mooresville hope the ferocious debate will help consultants devise a business plan that might win public approval. Feedback on proposed governance and financial plans is part of studying the project and improving it, Cornelius Mayor Jeff Tarte said.

HOWARD

"From the perspective of the real estate brokerage and development community we appreciate the opportunity to review the draft business and finance plan," said Brad Howard, one of the developers of the Langtree at the Lake mixed-use project in Mooresville. "We are actively engaged in the process and plan to stay engaged to analyze and better understand the details of the finance plan. I would like to hear from an expert that supports rail transit to provide balance to the discussion." He asked for local officials to bring in a rail proponent to speak "so we may hear opinions from both sides."

RUSSELL

By Reid Creager

Feb. 10 Because there’s less political uncertainty surrounding this year’s Democratic National Convention than four years ago, local communities hope that translates into more time for media, delegates and the general public to focus on activities and attractions in their areas.

“Four years ago, we were pretty sure who the nominee was going to be for the DNC -— but it was kind of still touch and go,” said Bill Russell, president of the Lake Norman Chamber. “Hillary [Clinton] still had a chance, and nobody really knew who Obama was and who Obama’s running mate was going to be. So there was still a little bit of that air of suspense.”

Since that’s not the case this year, “there’s probably going to be a little more time for the delegates themselves to enjoy the surrounding area than perhaps the delegates of 2008, who had to develop a plank and had to pick the delegates and had to focus on the politics.”

Mark Briggs of Parsons Brinckerhoff Advisory Services, left, and Cornelius Commissioner Jeff Hare Photo: Lake Norman Chamber

The Lake Norman Regional Transportation Commission is urging the nine governments along the proposed Red Line from Iredell County to Charlotte to use the full 90 days allotted to complete a financial review.

The $452 million Red Line is under enormous scrutiny, with Iredell County’s Board of Commissioners in January stopping just short of voting against it. Meanwhile, the word from Norfolk Southern is that the proposed joint freight/commuter rail line doesn’t fit in with their plans for the “O Line” that runs north out of Charlotte, bisecting Huntersville and skirting downtown Cornelius on its way to Davidson and Mooresville.

Still, the overall plan has approvals from many levels of Charlotte’s region-wide transportation governance, ranging from the Metropolitan Transit Commission to Mecklenburg County voters who approved a half-cent sales tax for region-wide transit improvements.

Getting everyone on the same page — including whether a complex new funding plan can tap into owners of commercial property — is the order of the day for some local leaders, including Cornelius Mayor Jeff Tarte. Condemning the Red Line is not the issue at hand, despite unbridled criticism of the plan from some quarters.

CATS says Blue Line could open in late 2016 or early 2017

With so much attention on the Red Line, the proposed $452 million commuter/freight line from Charlotte to Lake Norman, less attention is being paid to the Blue Line extension from Charlotte to UNCC and on into Cabarrus. Nevertheless, the Charlotte Area Transit System expects roughly two-thirds of the project design to be done by this fall.

COX

John Cox, CEO of the Cabarrus Chamber of Commerce, says the economy is to blame for cost trimming that ultimately shortened the line. Originally estimated to cost $1.12 billion, the Blue Line Extension was shortened by 1.2 miles of track and two stations north of UNC Charlotte, heading toward Concord.