After being denied no less than six different federal transportation grants through the years, the city was finally awarded $24.9 million in 2020. (Photo courtesy of lexingtonnc.gov)
After almost two decades of applying for grants, making plans, and waiting, Lexington, N.C., is preparing to kick off the construction phase of its passenger rail service project, the Lexington Dispatch reported Sept. 18.
In 2003, the city first began discussions about providing passenger rail service in Lexington, located southeast of Winston-Salem.
After being denied no less than six different federal transportation grants through the years, the city was finally awarded $24.9 million in 2020. The funds came from the Better Utilizing Investments to Leverage Development (BUILD) grant program, through the Federal Railroad Administration (FRA), a division of the U.S. Department of Transportation.
A series of prerequisite tasks, though, had to be carried out over the next two years before USDOT could release the funds in preparation for the rail project's construction phase. Now, with Lexington and the state transportation agency (NCDOT) having completed all the prerequisites to obtain the grant, the monies are slated to be released at the end of September.
The city will hold an invitation-only event Sept. 28 where officials from FRA will officially present the grant award.
City Goes All-In for Passenger Rail Service
The Lexington construction effort is to include building two new boarding platforms, renovating the city's historic freight depot as an interim passenger station, digging a vehicle tunnel under the railroad at Fifth Avenue, which will connect with Talbert Boulevard, and improving the tracks between the two areas. In addition, crews will close the at-grade rail crossing on Seventh Avenue.
The Dispatch noted that due to the current economy and increases in construction labor and materials, the rail project will cost approximately 40 percent more to build than projected by the 2019 budget estimates. The total estimated cost of the project is currently $57 million.
In addition to the FRA grant, the NCDOT is contributing $10.95 million toward the project's construction, will provide an added $450,000 for design work, and will hire a third-party agency to aid in the fiscal management and oversight of the federal grant.
The city of Lexington is responsible for $5 million in matching funds, as required in the grant application. It will be paid over the life of the expected five-year project, the Dispatch reported.
Lexington officials told the news source that it will seek various sources for the $16 million increase in costs, including North Carolina Railroad, a private corporation that owns and manages a 317-mi. rail corridor stretching from Charlotte to Morehead City. Other possible funding options are the U.S. Economic Development Association, discretionary funds from North Carolina legislators, local corporate citizens, the private sector, foundations and additional grant programs.
The city will cover the balance of all other funds not obtained from outside sources.
Although money will soon be available to begin the rail project, another two years will pass before actual construction can start as preliminary work includes right-of-way purchases, demolition, final design, and plan review.
City officials told the Dispatch that there is an opportunity to begin renovation of the old freight station site prior to construction of the track and grade separation work as funding becomes available prior to 2025.
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