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Beaufort County Faces Funding Dilemma for Critical U.S. 278 Corridor Project

Beaufort County Faces Funding Dilemma for Critical U.S. 278 Corridor Project

Beaufort County Faces Funding Dilemma for U.S. 278 Corridor Project

Beaufort County is seeing some major traffic issues lately, and it seems like the growing population is part of the equation. More people mean more cars on the road, especially at busy intersections, and that’s raising quite a few eyebrows among local leaders. After much discussion, in a meeting held Tuesday night, the Beaufort County Council made a hefty decision regarding the much-anticipated U.S. 278 Corridor Project.

County Administrator’s Tough Task

During the meeting, the council voted for County Administrator Michael Moore to formally inform the State Infrastructure Bank (SIB) that the county simply doesn’t have the $190 million needed to keep the project moving forward. Originally projected at around $292 million, the cost has ballooned to nearly $488 million! The project aimed to address issues with the MacKay Creek bridge and ease traffic congestion from Moss Creek Drive to Spanish Wells Road.

The Tax Dilemma

A while back, council members had floated the idea of raising property taxes if a proposed 1% sales tax didn’t see success come November. But the sales tax faced a tough crowd, getting rejected by voters with 55% saying no to 45% in favor. As you can imagine, many council members quickly flipped the script on possible property tax increases after hearing loud opposition from residents.

Council Member’s Concerns

District 7 Councilmember Logan Cunningham, who attended the meeting virtually, didn’t hold back on his frustrations about the funding predicament. “How are we going to fund this without raising property taxes?” he fumed, pointing out that this was far from a new concern voiced in previous meetings. Cunningham even left the meeting before the vote, disappointed with what he saw as delays in making necessary decisions.

Holding Out Hope for Funds

The council also decided to request the SIB to keep its $120 million grant for the project on hold, urging that these funds should not be redirected to other state endeavors. They also plan to keep the funds earmarked from a previous sales tax approved back in 2018. That said, there’s chatter about what might happen if the county can’t secure needed funds—especially from State Senator Tom Davis, who played a part in securing that initial funding.

A Potential DOT Intervention?

Senator Davis raised a significant concern: if Beaufort County can’t find the necessary money, the Department of Transportation (DOT) may step in to handle repairs directly. This action could mean only one lane for traffic each way during repairs—a situation Cunningham worried might increase congestion further. He argued that the DOT would not deliver a complete fix, just a temporary one.

The Path Ahead: A Fragile Future

As it stands, the environmental phase of the project is getting closer to completion, but it won’t move into design or construction without proper funding. An SIB letter dated November 7 indicates a pressing need for the county to outline its funding strategy within a tight 15-day timeline, highlighting the county’s duty to fill the financial gap.

The Road to Financial Recovery

Assistant County Administrator Jared Fralix presented some potential avenues for covering the funding shortfall during the meeting, including:

  • Applying for a $190 million federal grant next fall for major bridge projects.
  • Issuing general obligation bonds if more funding from the SIB can be secured.
  • Upcoming referendums for transportation or capital project sales tax in the future.

Fralix mentioned that local contributions from regional transportation funds could also play a role, potentially adding up to $14.5 million if approved by several state and local agencies. However, it seems some funds are already tied up in other projects, delaying their arrival.

Community Voices Matter

Though the county’s decision to reach out to the SIB signals a bit of uncertainty, Senator Davis maintains that the U.S. 278 Corridor Project isn’t necessarily dead in the water. New state and federal funding could still be on the horizon. He pointed out that if Beaufort County manages to find an additional $90 million, the project might be revived, but local investment is key. “Without some local assistance in addressing the shortfall,” he warned, “the chances of getting additional money from state or federal sources are slim.”

The Bigger Picture

The potential economic impact on places like Hilton Head is also causing concern, especially if the DOT makes only limited repairs. Davis stressed the need to think broadly about how delays could affect community support and revenue at large.

Questions Looming Ahead

So, what’s next? Can Beaufort County drum up the funding needed to cover that $90 million gap? Will state and federal agencies step up with new funds even if local leaders have reservations about raising taxes? What could happen to the local economy if the project experiences further delays or scales back altogether? The clock is ticking, and time is of the essence for decision-makers grappling with these pressing questions.


Beaufort County Faces Funding Dilemma for Critical U.S. 278 Corridor Project

HERE Beaufort
Author: HERE Beaufort

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