Charlotte’s controversial transit marketing contract to nearly triple spending
The new multi-million dollar marketing contract for the Charlotte Area Transit System is much larger in scope and cost than previous deals.
Though CATS has held a communications agreement with an outside company since 2020, the new contract allows for $550,000 in additional spending per year and carries added responsibilities, according to the agency. A CATS spokesperson told The Charlotte Observer the deal was crafted in anticipation of voters approving the 1% sales tax referendum, which would overhaul the region’s transportation system.
City Council sparked controversy when it approved the contract last week, just days after a second stabbing on the Blue Line light rail overseen by CATS. Critics suggested the city poured money into marketing in an attempt to minimize growing safety concerns after the killing of Ukrainian refugee Iryna Zarutska in August and the non-fatal stabbing of Kenyon Dobie in December.
CATS denied the allegations to the Observer last week and then issued a news release stating there is no correlation with recent incidents. CATS chalked the situation up to bad timing: a previous contract expired and needed to be replaced.
Public relations agency says CATS misled on contract
City Council unanimously awarded the $3.4 million contract to Texas-based firm Sherry Matthews Group on Dec. 8 as part of its consent agenda, which requires no discussion and is typically reserved for items that are not controversial.
In initial comments to the Observer, CATS drew a close connection between the old and new contracts. Spokesperson Brett Baldeck told the Observer on Tuesday CATS has “always had” an agreement with an outside firm, and the new contract was intended to replace the previous one that had expired.
CATS issued a news release on Wednesday reiterating the same idea: “CATS has had a transit marketing and communications contract in place with Saturday Brand Creative since 2020. That contract reached its end of life and CATS began a process to issue a Request for Proposals (RFP) earlier this year.”
The previous contract cost around $300,000 per year, and the new contract will be about $850,000 annually, according to CATS. The news release attributed the price increase to added community engagement duties.
One of the 18 marketing firms that submitted a contract proposal also said the contract appeared to be new and different.
CATS told communications firms applying for the job they would not be replacing an incumbent company because CATS hasn’t had this kind of contract for at least the past decade. Some “components of this type of work” were handled by a few firms, whereas the new agreement called for full-service communications support, according to a question and answer sheet CATS provided to interested firms.
“We would have never gone for this if they said there was an incumbent,” said a CEO of a North Carolina-based public relations agency that works with multiple city and state entities. The CEO, who wished to remain anonymous to protect his company, provided the Observer with CATS’ Q&A sheet and other city documents describing the proposed contract.
Catherine Kummer, the director of marketing and communications, said Saturday Brand Creative was among the companies that submitted a proposal but was not selected. An evaluation panel chose three finalists to move forward to an in-person interview round: Sherry Matthews Group, Chernoff Newman and CMRignite.
Sherry Matthews Group does not have a local office in Charlotte, Kummer said. But the group included several local partners in its proposal.
Why is CATS spending more on marketing?
The contract drew sharp condemnation from Republicans leaders in the area. The Mecklenburg County Republican Party chair called it propaganda and a cover-up. U.S. Rep. Tim Moore, whose district includes portions of Mecklenburg County, said the contract was “one of the most ridiculous things I’ve seen” from City Council.
“Spending $3.4 million in taxpayer dollars to convince people the light rail is safe — instead of using that money to actually make it safe,” Moore said in a post on X. “Democrat logic hard at work here.”
Still, efforts to connect the contract to recent stabbings are tenuous.
Records show CATS began soliciting contract proposals in July, nearly two months before Zarutska’s death. The agency extended its initial deadline by two weeks then announced it would restart the process with a rebid on Sept. 11. The delays were to ensure a fair process for all since some companies reported emails were landing in thier junk folder, Kummer said.
The second request had “no significant changes” in requirements from the first one, according to the public relations CEO who submitted a proposal. A copy of the July request shows “enhancing the public’s perception and use of public transit” were always stated goals, even before the stabbings occurred.
CATS sought to more than double its spending on communications contractors for a couple reasons, according to Kummer. The agency wanted to increase its community engagement efforts, which could involve anything from events out in the community to informational videos posted online or in transit centers.
The price increase was also preemptive measure in the event Charlotte voters approved the sales tax referendum in November, which they did. The new tax will fund transit projects in the region and establish a new authority that will make decisions on how to spend those taxes. The contract accounts for this growth.
Kummer said it’s unclear how much work the new authority will expect marketers to do, but the contract allows flexibility. The contract allows them to spend up to $3.4 million, she said, but that doesn’t mean every dollar will be spent if it isn’t needed. The contract has an initial one-year term that the city manager can renew up to three times, for a total of four years.
The Q&A from September identified “misinformation and lack of confidence in the system” as the biggest communications challenges facing CATS. The agency said it is “considering a rebrand or refresh” and anticipates it will revisit brand guidelines under the new contract.
This story was originally published December 15, 2025 at 5:00 AM.
