WILMINGTON — The Trump Administration has completed its review of a $242 million federal grant for the Cape Fear Memorial Bridge replacement project, thus allowing the funds to be released for the project.
READ MORE: Cape Fear Memorial Bridge: NCDOT engineer says tolling only current option to fund $800M gap
ALSO: USACE: Memorial Bridge should be 135 ft. or more, anything less would injure harbor dredging project
North Carolina Department of Transportation spokesperson Veronica Newsome notified PCD of the status change on Friday. She said NCDOT was notified in a meeting this week.
“NCDOT is in the process of completing pre-construction activities, including the completion of necessary environmental documents,” she wrote in an email. “Once pre-construction activities are completed, NCDOT will work with the USDOT to finalize the agreement for the $242 million Large Bridge Grant award, which will provide partial funding to construct the new bridge.”
The restoration follows a letter sent to USDOT Secretary Sean Duffy on July 16. Executive Director Mike Kozlosky of the Wilmington Urban Area Metropolitan Planning Organization, which oversees federal funding to local transportation projects, requested the release of the funds.
“The pause of these funds has created concern throughout our state and region,” Kozlosky wrote. “The pause and potential cancellation would be extremely detrimental to this important transportation priority.”
A WMPO spokesperson told PCD they did not receive a response to the letter; it is unclear the effect it had on USDOT’s decision to unpause the grant. Local leaders have also advocated for bridge funding at the federal level, including Rep. David Rouzer and Sen. Thom Tillis.
The funding — which was paused to ensure compliance with the president’s Feb. 26 executive order — will cover nearly a quarter of the 135-foot bridge replacement’s $1.1 billion price tag. NCDOT has also committed $85 million to the project, though without further grant funding, which NCDOT staff have deemed unlikely, the remaining cost will need be covered through a toll. State law does not allow the tolling of existing roads, though the replacement structure would be considered new, and thus a toll would be allowed.
Besides or in conjunction with a toll, the WMPO could use alternative funding streams to fund the bridge. These include a local sales tax, which New Hanover County has already passed; in part, it could be dedicated for transportation needs. Another was a special tax for only transit. Both would need referendum majorities to be instituted.
Other options include implementing or increasing a motor vehicle license tax, vehicle license fee, vehicle rental tax, a bicycle registration fee. Though it would require state approval, transportation impact fees could also be leveraged on developers by municipalities to help fund the capital cost of the additional public services, infrastructure, or transportation facilities necessitated by, and attributable to, new development.
Additionally, municipalities can create transportation improvement bonds and general obligation bonds, both of which require voter approval. Revenue bonds — paid back by user-generated revenues — are another option, though they are more vulnerable to economic downturns.
The WMPO has not chosen to pursue any of the options presented, though WMPO board members will meet Monday, July 28, to discuss alternative funding again.
Tips or comments? Email journalist Brenna Flanagan at [email protected].
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