RALEIGH — The North Carolina Local Government Commission (LGC) approved $1.1 million in financing for the North Carolina Turnpike Authority to complete Phase 2 of the I-540 outer loop in Wake County.
The funding for the project will come from revenue bonds and a Transportation Infrastructure Finance & Innovation Act (TIFIA) loan through U.S. Department of Transportation.
The approval of I-540 coincided with Fitch Ratings upgrading the NCTA’s outstanding senior lien turnpike revenue bonds, senior lien turnpike revenue bond anticipation notes, and subordinated Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from BBB to BBB+.
Fitch also granted BBB+ ratings to the authority’s $372 million of turnpike revenue bonds and $424 million of subordinated Series 2024 TIFIA loan. These improved ratings result in lower financing costs for the loans and serve as an indicator of the state’s credit quality. Fitch’s outlook for both the bonds and TIFIA loans is stable.
The I-540 project will connect the towns of Apex, Cary, Clayton, Fuquay-Varina, Garner, and Holly Springs through a 10-mile stretch of I-40 running up to U.S. 64 in Knightdale.
Construction for Phase 2 of the I-540 project is slated to begin in Spring 2024 with traffic expected to be able to use the extension projected in 2028. A portion of the I-540 extension running through parts of Holly Springs and Cary has already seen considerable progress with work on that segment being conducted over the past year.
Other projects approved at the Dec. 5 LGC meeting include:
- Durham Utility System – $181,000,000
- Beech Mountain Sewer Main Improvements Project - $1,175,526
- Chowan County High School Replacement Project – $34,998,500
- Raleigh Housing Authority Birch and Branch – $30,000,000
- Raleigh Housing Authority The Preserve At Gresham Lake – $26,000,000
- Wake Forest IP Street Paving Project – $5,500,000
- Fayetteville Public Works Commission PO Hoffer WTP / Glenville Lake WTP Reliability Improvements – $5,000,000
- Sawmills IP Park and Parking Lot Lighting – $1,345,500
An item receiving unanimous approval was the memorandum of understanding for the transfer of administrative, financial, and operational ownership of the wastewater system in the town of Eureka to the town of Fremont, both of which are located in Wayne County.
With a population of 183, Eureka has 108 sanitary sewer connections. To address the challenges within its system, Eureka has been granted a $20 million state appropriation specifically for water and wastewater infrastructure improvements.
Eureka has been under the financial management of the LGC since July 2019.
Fremont, with a population of 1,463, possesses 735 sanitary sewer connections. While Fremont has been accepting and treating wastewater from Eureka, both towns are designated as distressed utilities, per the LGC.
