The state Attorney General's office gave formal approval today to the plan for designing, building and financing completion of I-485 around Charlotte. Gov. Bev Perdue announced plans Nov. 9 for completing the road with a novel way to pay for it that included construction companies, in effect, financing part of the work by allowing the state to pay for it over a period of years. State Treasurer Janet Cowell's office raised questions about the process, including whether it amounted to taking on more state debt -- and at the end of the day Tuesday restated her concerns about debt.
Here’s a link to the attorney general's opinion.
In a letter to N.C. Secretary of Transportation Gene Conti dated Jan. 12, Chief Deputy Attorney General Grayson G. Kelley issued an advisory opinion in which he noted that the General Assembly had contemplated the use of design-build-finance projects when it approved legislation enabling the process "to, in effect, borrow money from local governments and non-profit corporations on the condition that all funds advanced be reimbursed with seven years." The legislature later approved contracting with private entities, local governments or the NC Turnpike Authority to finance roads, streets and bridges, Kelley noted.
"In our view, the plain language (of the law) vests NCDOT with the authority to contract with private entitites for the construction of the I-485 projects under contract terms which may involved financing. As such, assuming the extended payment schedule described in the draft Request for Proposals constitutes 'financing,' we believe the General Assembly has authorized NCDOT to expedite cosntruction in this manner," Kelley wrote.
"Furthermore, we have been unable to identify any provision of North Carollina law that would prohibit the contracting proposal described by NCDOT. Nor are we aware of any case law restricting delayed payments by a state entity to a contractor."
The advisory opinion represents a clear statement that many felt was needed to lend legitimacy to the plan, given the treasurer's office's reservations about the process. Cowell's office has strangely played this close to the vest. The Observer weeks ago invited Cowell to write an op ed piece explaining her view of the financing process but so far she has not taken advantage of that opportunity.
At the end of the workday Tuesday, her spokesperson Melissa Waller said:
"We appreciate the effort of the Attorney General's office in consulting with the Department of Transportation and our office to produce the advisory opinion, completing the next step of this important process. However, we respectfully disagree with the Attorney General’s opinion. While we continue to support the completion of the I-485 project through other optimal financing methods, we also believe that the larger issue of debt management should be referred to the Debt Affordability Advisory Commission and the General Assembly."
