Charlotte Borrowing $200 Million for Bike Paths, Bridge Fixes, and Better Roads

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The City of Charlotte is about to take out a massive $200 million loan to improve traffic flow, increase bike paths, reducing congestion, repairing bridges and sidewalks, and upgrade traffic signals.

At yesterday’s Local Government Commission (LGC) meeting, the state approved a $200 million request to issue a short-term bond. The bond, backed by general obligation debt, will be drawn in monthly advances as project work begins. The bond bears a variable interest rate tied to SOFR and matures in 2028, with a possible extension to 2031. The city can repay early without penalty.

No new land will be added to existing ground leases, and the project is expected to boost jobs, tourism, and tax revenue.

PNC Bank will purchase the bond; Parker Poe Adams & Bernstein is serving as bond counsel, and DEC Associates is the municipal advisor. The LGC, chaired by State Treasurer Brad Briner, ensures that local governments only take on reasonable and affordable debt.