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City may loan DOT $30 million for Urban Loop

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Comments (16)

Wednesday, June 24, 2009

(Updated 11:56 am)

By Amanda Lehmert and
Taft Wireback
Staff Writers

GREENSBORO — City officials want to know if they can speed the Urban Loop toward completion by lending the state about $30 million to keep the project moving.

The loan could come from unspent bond funds that voters approved. The state would be asked to repay the loan with interest.

The cash infusion would show state government that Greensboro is committed to the project, said City Councilman Robbie Perkins, who made the suggestion at a council meeting Monday.

“We’re just trying to be pro-active on getting something done to keep the loop on track,” Perkins said. “I’ve always heard that if you can figure out a way to come up with some local money, you can keep these projects moving along.”

The council agreed that Perkins should explore the issue at a meeting later this week with state Secretary of Transportation Gene Conti and Doug Galyon, the Greensboro resident who is chairman of the state Board of Transportation.

The next section of the loop scheduled for construction extends five miles from U.S. 70 in eastern Greensboro to U.S. 29 in the northeast. As it stands, DOT plans to finish buying an estimated $15 million in rights of way for that leg in the next two years and begin $87 million in construction in 2012.

Two other segments of the road are not part of DOT’s formal schedule. State officials are able to say only that those legs will get under way sometime after 2015. Those sections extend from the loop’s current western end at Bryan Boulevard, about 13 miles across northern Greensboro to U.S. 29.

State government is facing huge budget deficits so pushing back large-scale projects could be an attractive option.

Perkins plans to meet with state officials Thursday.

Galyon said he did not know how the proposed loan offer will be received but it certainly couldn’t hurt Greensboro’s chances. “I certainly expect the reaction will be positive, but I don’t know for sure what they’ll say,” Galyon said.

He noted this would not be the first time that Greensboro loaned DOT the money for a project the city wanted badly.

Several years ago, Greensboro loaned DOT a substantial amount to complete improvements to Gallimore Dairy Road, he said. DOT repaid the loan in three years, he said.

The council discussion Monday focused on using the city money for advance land acquisition. But it’s not clear how DOT might spend the money.

The city has about $29 million in bond money not yet spent on transportation projects that voters approved nine years ago, said Adam Fischer, the city’s acting director of transportation. Voters also approved an additional $134 million in transportation bonds in 2008. It’s difficult to say whether those or other transportation projects would face additional delays if bond money is diverted to the loop, Fischer said.

About 25 miles of the loop have been built so far, leaving about 18 that remain between U.S. 70 in eastern Greensboro and Bryan Boulevard near Piedmont Triad International Airport.

On Monday, council members Goldie Wells and Sandra Anderson Groat said they supported the loan idea. But others were wary about making deals with a cash-strapped state government.

“Even if we have it in writing that the state would pay us back, the state is looking at a major shortfall. Is it possible they could renege on that?” asked Councilwoman T. Dianne Bellamy-Small. “I’m not against it, I am just saying, 'Do we want to put ourselves out there?’”

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

Contact Taft Wireback at 373-7100 or taft.wireback@news-record.com

Accompanying Photos

Jerry Wolford (News & Record)

Photo Caption: A sign in Quail Oaks.

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aintme

June 23, 2009 - 3:57 pm EDT

The real need for the loop is on the north side of town -- the part that's not planned until after 2015. I'd like to see that part started before the eastern connection to 29. But nobody asked me.

weatherwithyou33

June 23, 2009 - 4:27 pm EDT

I agree with this. Traffic isn't going to get any better up there with out it. I figure with this loan from the city and all of Obama's stimulus dollars allocated for road projects they should be able to knock the last 18 miles out in just a few years. Let's stop talking about it and get working.

rooster8786

June 24, 2009 - 10:42 am EDT

$29 million dollars from bonds voters approved 9 years ago PLUS $134 million voters approved in 2008? Who is in charge? Why do MY taxes keep going up yet the city of Greensboro has over $160 million dollars laying around in unspent bonds? The city council needs to represent the citizens of Greensboro in a fiscally responsible way and STOP misleading them about bonds, the purpose for the bonds, and how/when they will be spent. How much money is "lying" around in other unspent bonds?

Michael Grossman

June 24, 2009 - 10:48 am EDT

Rooster, your comment has been edited to delete the profanity. Please refrain from using it in the future. Thanks.
-N&R

triadwatch

June 24, 2009 - 12:51 pm EDT

Everyone is missing the point of the connector with the loop from wendover avenue and highway 29. I drove a truck for over 6 years and if you are coming down 29 north from danville please visualize how a trucker gets onto I-40 and I-85, hmm hmm hmm . A trucker has to get off of lee street and go through plenty of stoplights just to get to the interstate heading to burlington and raleigh. This is not feasible in the way to this section of interstate. That is why the eastern part is a priority because of the situation with truckers and many people who are heading to that part of N.C..

So in turn it is better to get the eastern part done before the other section from 29 to battleground. Residents can manage cone and pisgah church to get around or even 150 and 158 highway.

It was crazy to make the truckers get off of lee street to go to raleigh and eastern parts of N.C.

obiwon

June 23, 2009 - 4:04 pm EDT

I agree. The loop from the airport/Hw68/Bryan Blvd to US 220 is much more critical than the smaller extension from the eastern side. But, like the previous post, no one asked my opinion.

The_Weasel

June 24, 2009 - 12:24 pm EDT

I would say the Eastern section will be important when I-785 connects us to Dansville, VA. But the northern section will be bigger for most residents as the Northern section is closer to more people in Greensboro. The Eastern sections is less dense, but has promise for growth to connect us to Dansville. I would say for the next section with this loan should be the section from Bryan Blvd to Battleground Ave. exit and/or adding from HWY 29 to Yanceyville Street exit to the Eastern's section construction when they start in 2012. It would be nice if they added the whole thing, but $30 million only goes so far so those two sections or one if the DOT is cheap.

whyus

June 23, 2009 - 4:16 pm EDT

They are going to need the money to take care of all of those lawsuits for those who were misled about the Loop location.

The_Weasel

June 24, 2009 - 12:05 pm EDT

Why is the city going to be sued or do you mean the NC DOT, probably the DOT? Not the DOT fault that developers got greedy and took advantage of the system. They are leasons to be learned from this by the DOT, aka buy the land ahead of time instead dragging they are feet about buying it and for Greensboro not to approve projects taking places on land planned for the major highways and limit home construction near those highways.

firerescuechick

June 23, 2009 - 4:17 pm EDT

I have an idea. How about the council uses those funds for something more important, i.e. education. I bet they wouldn't of had to lay off teachers had they done that. The urban loop isn't a necessity. There are plenty of other projects that are.

The_Weasel

June 24, 2009 - 11:42 am EDT

I would saying using transportation bond funds for something completely different sets a bad precedent, I think rotating the transportation projects around is ok. Ok, back to the subject. They should have raised the sales tax from 6.75% to 7% and/or not funded or increased funding for so many of the community groups such as the Shakespeare Council, that Arts group, Aids/HIV Group, though aids/hiv is on the rise in the south according to new research, homeless center, though they started that initiative to reduce homeless in the county, other groups, something like $250,000 worth. Property taxes were mentioned as an alternative to the sales taxes, but I think too often people turned to that just because they tend to affect weathly people along with other issues with that, but the sales tax affects people depending on what you buy, groceries are taxed differently, but it also captures revenue from people that visit Greensboro, which why I would have voted for the sales tax. I have never anyone say I am not to visit wherever because of a .25% increase in sales tax? Anyways, they could have used either or both funding sources to save some teachers jobs, along with pay cuts, which teachers would not have liked, but needs to be done to save jobs and the important teacher per student ratio. No offense to the community groups, but the youth's education is more important and its long term effect severely out weighs the output of the community groups.

tledford

June 23, 2009 - 7:04 pm EDT

Leave the state out of it, use the $32MM to start the construction and make it a toll road, like almost every other state in the country. Greensboro/Guilford County can support it without the State; NC government may be the only thing that is even more of a joke that Guilford County and Greensboro City government.

Don Stowe

June 23, 2009 - 7:24 pm EDT

The comments in this blog point out why the governments are in such dire condition. Everyone is complaining about more taxes and slow ecomomy but at the same time they are saying, "Why don't we spend some more money. That project would be nice. We need it now instead of later. We have some money on hand, lets spend it." They fail to remember that Government does not have ANY money. The money belongs to the people who pay taxes. Let us send a message to the County, City, and State, "NO MORE."

Ladies and gentlemen, there will be a day of reckoning and we are very close to it now. The circus is still in town.

Mazdastorm

June 24, 2009 - 12:54 am EDT

I agree with others that saying the section of Loop between Bryan Blvd and US 220 is needed really bad. it can complete US 220 bypass. But, the Eastern section extension was planned first. but I wish people just let it go.. Loop is on the plans like forever. let the DOT finish the Loop.

rightwingnemesis

June 24, 2009 - 8:23 am EDT

One thing I can say here, is that at least the City Council is being proactive vs. playing "victim" like the school board does. This may not be the best plan, but you have to hand it to them, it is at least a plan. My hat is off to Perkins for thinking ahead rather than just complaining about the State DOT etc. We need some thinking like that on the County Commission and especially the board of education.

newtogso

June 24, 2009 - 3:42 pm EDT

I think Robbie Perkins has his priorities mixed up. The City has a tremendous backlog of transportation projects including the need for new sidewalks, repaving, maintenance backlog, the BiPed Master Plan, etc. and $30 million dollars could make a decent dent in this backlog. The implementation of these construction ready projects would put people to work now. Loaning the state $30 million dollars to buy land is only going to put more money into property owners hands. I don't think diverting these bond funds to the state is the highest and best use of these funds and it won't really speed up the construction of the loop.