Late last week, lawsuits were filed by the City over the State of South Carolina’s unwillingness to honor the Memorandum of Understanding (MOU) signed in 2002 that promised that rail access to the Port would only travel through the southern end of the former Navy Base.
The Federal suit was filed against the State of South Carolina, several state agencies, and the Army Corps of Engineers alleging that the State has embarked on a project that deviates from the permit application previously studied and approved by the Corps. The State court suit alleges that the State has impermissibly broken its word. The City is asking each court for an order prohibiting the State from taking any action to construct a rail yard in any manner that would violate the 2002 MOU.
Additionally, last Friday the Supreme Court of South Carolina denied a request filed by the State of South Carolina that asked for the 2002 MOU to be ruled upon in an expedited fashion by dispensing with normal court procedures.
North Charleston Mayor R. Keith Summey stated, “We believe that this decision made by the Supreme Court and the lawsuits filed in federal and state court are positive steps toward a meaningful outcome to this dispute for the citizens of North Charleston. The State’s refusal to honor the 2002 MOU has led us to this point. Despite recent events, we would still prefer a solution to be found outside of the court room. If the State will simply keep its promises I am confident that together we can find a solution.”
Mayor Summey on 1250 WTMA discussing rail lawsuits
Last night, less than an hour before passing the Senate version of the State Budget, which had been debated for five weeks, Senator Larry Grooms added an amendment to punish the City of North Charleston if legal actions against the State are not halted. Specifically, the amendment demands that the City return funds received from the State of South Carolina if a lawsuit is filed in federal court against the State.
Last week, North Charleston sent a Notice and Draft Complaint to the Federal government and several State agencies highlighting likely violations of federal environmental laws by the State of South Carolina as a result of a planned intermodal yard on the northern end of the former Navy Base. The proposed yard and northern rail access are in clear violation of a 2002 Memorandum of Understanding between the City of North Charleston and the State of South Carolina.
The City seeks to challenge the State in Court, where disputes are supposed to be settled. Senator Grooms’ threat seeks to stop the City from protecting the rights of North Charleston citizens by cutting funding to the City. His actions go against the fundamental right to challenge government action and call into question the very Constitution that this Country and State were founded upon.
This amendment and the State’s efforts to dishonor the 2002 Memorandum of Understanding are clear, yet disappointing efforts to damage the quality of life of the citizens of North Charleston.
These bully tactics will not deter the City of North Charleston from fighting for the rights of its citizens. I insist that the State of South Carolina do what it morally obligated itself to do and keep its promises.
Here is a breakdown of which Senators voted for and against the amendment:
The Senate proceeded to Sect. 86 and 86A, Part 1A and Part 1B, Aid to Subdivisions.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Ayes 25; Nays 12
AYES
Alexander Campbell Courson
Cromer Davis Elliott
Fair Gregory Grooms
Hayes Hutto Knotts
Leatherman Lourie Martin, Larry
McGill Nicholson O'Dell
Peeler Rankin Reese
Ryberg Setzler Thomas
Williams
Total--25
NAYS
Bright Bryant Ford
Land Leventis Malloy
Martin, Shane Massey McConnell
Pinckney Scott Sheheen
Total--12
Section 86 and Section 86A, Part 1A and Part 1B was adopted.
On May 17, 2011, the City of North Charleston sent a Notice and Draft Complaint to various state and federal officials to precede the filing of a lawsuit in federal court over the ongoing rail issue. Unless a resolution that is not detrimental to the citizens of North Charleston can be reached, a lawsuit will be officially filed in 60 days.
On Thursday, July 8, 2010, North Charleston Mayor R. Keith Summey publicly presented a three-party Memorandum of Understanding (MOU) and Agreement between the City of North Charleston, CSX Transportation, and Shipyard Creek Associates, LLC to address the ongoing rail issues surrounding the former Charleston Naval Base and the southern portions of the City. City Council unanimously agreed to move the MOU forward to Committee of the Whole for additional discussion. Pending City Council's approval, final adoption would be later in August.
The City long ago announced its intention to see Northern rail service to the Navy Base terminated in favor of a new Southern route. After years of effort, the City of North Charleston has been able to reach an agreement with Shipyard Creek Associates, LLC, and CSX Transportation that would, if seen to fruition, make this a reality. The MOU and agreement sets forth a long-term, multi-year plan by which CSX Transportation would abandon its rights of way beginning at a mutually-agreed upon location between Clement Avenue and Viaduct Road and extending Northward to just North of the intersection of Braddock Road. CSX Transportation will discontinue its rail operation over the old routes in favor of a new Southern access route and rail yard. The new rail yard would not be permitted to operate prior to abandonment of the old lines.
In support of the outlined plan, the City may contribute certain city-owned property and assist CSX Transportation in acquiring other property for use in the Southern access route. In addition, the City would commit to use TIF money (if available) to purchase from CSX Transportation the rights of way associated with certain portions of CSX Transportation’s old line locations. The anticipated cost of the City’s purchase obligations would be between $3 and $5 million dollars. Additional project funding would come from federal grants sought by the developer. In the event that the TIF and/or federal grants do not generate sufficient funds then the parties would have the option, but not obligation, to contribute other sources of revenue later.
It is important to note that CSX Transportation’s obligations are subject to several contingencies. One of the more notable of these is funding. The proposed plan is heavily dependent upon federal grant financing and the existence of sufficient property tax revenues to permit bonding against City TIF districts. Another is that CSX Transportation must be up and running on the newly-established lines before it would relinquish any rights to the pre existing lines. Obstacles to the project, whether they are from lawsuit, funding, governmental regulation, or other sources, could mean that the project may have to be abandoned. If the project failed then any land or TIF money the City previous contributed would be returned to it to the fullest possible extent. If the project is successful, the City will have succeeded in relocating rail access to the Base and new SPA terminal from the North to the South, thus improving the quality of life within some of North Charleston’s oldest neighborhoods.
City of North Charleston MOU Synopsis
The MOU between the City of North Charleston, CSX and Shipyard Creek Associates can be broken down into three key components which are outlined below. This document is a win-win for the community, the City and the railroad because they all will be able to see the fulfillment of some of their long-range goals. This MOU honors and further advances the existing MOU between the City and the State by routing rail out the southern end of the City as opposed to the northern end of the Navy Base through residential neighborhoods.
1.Abandonment of the Rail Along Spruill Avenue
CSX would abandon through Rails to Trails or by deeding to the City the property the rail occupies along Spruill from approximately Braddock to approximately Viaduct.
The total acreage that the City will receive is 32+/- acres.
The City Comprehensive Plan, LAMC Plan and the Noisette Plan all call for the removal of this rail to allow Park Circle, Olde North Charleston, Century Oaks, Horizon Village, Noisette, Union Heights and Chicora-Cherokee neighborhoods to be re-knitted back together.
No rail would come through Chicora-Cherokee and rail would be shifted out of the Park Circle area.
Potential for a greenway for pedestrian and bicycle connection to Downtown Charleston.
2.Redevelopment of the Stromboli Corridor
Through federal grants the City will purchase 40+/- acres of industrial land along the Stromboli Corridor.
Area has been targeted by LAMC as a redevelopment area to re-knit Union Heights, Windsor Place, Chicora Cherokee and Jacksonville Road Area.
City will use the land for community revitalization working closely with LAMC.
A new overflow rail line would be run through the Stromboli Corridor.
3.Redevelopment of the Cooper Yard/Macalloy Site
The Cooper Yard/Macalloy Site would be redeveloped into an intermodal rail yard and warehousing facility.
This would be a major job generator for the area.
A sound wall would be constructed along Spruill Avenue.
The project would reduce the number of trucks on local streets and roads.
The Clemson Wind Turbine Cluster would be allowed to move forward, creating more jobs.
Would not require re-opening the Environmental Impact Statement for the new port terminal.
