Without new tax money, Charlotte will give $4.3 million to new transit authority
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- Charlotte City Council allocates $4.3M to fund startup operations for transit board.
- A 1% sales tax increase will take effect July 1 to fund the board moving forward.
- Council took initial steps to transfer the transportation system to the new board.
The city of Charlotte is spending $4.3 million to launch the new transit board.
City Council on Monday unanimously agreed to take the initial steps to transfer oversight of the region’s public transportation system to the 27-member Metropolitan Public Transportation Authority. The action provides six months of funding to the MPTA and allows the city to handle administrative duties during that time, such as executing contracts and fielding start-up costs.
Mecklenburg County residents voted 52.1% to 47.9% in November to support a referendum raising county sales tax by 1%. Those tax dollars will fund the authority and the billions of dollars in future road, rail and bus projects it will oversee.
The tax increase won’t take effect until July 1, however. The council’s action allows the city in the meantime to draw money from the Charlotte Area Transit System’s operating fund, which consists of existing sales tax revenue that must be spent on public transit.
District 7 Councilman Ed Driggs called the vote a “milestone” first step with many more decisions to follow as the council wades into “uncharted waters.”
“They need our help initially to transact and to gradually inflate this thing and build it up,” Driggs said.
The legislation authorizing the referendum called for the establishment of a new board to take over governance of CATS from the city of Charlotte and Metropolitan Transit Commission. Some foundational tasks must be completed before July 1 as part of that transition, including the development of financial and operational policies and creation of plans for asset acquisition.
Much of the transit authority’s first 18 months in office will focus on foundation building rather than specific projects, according to District 2 Councilman Malcolm Graham. Board members will create community partnerships, establish a culture, build trust and adopt policies as some of its earliest decisions, he said.
As for the initial $4.3 million coming from the city, “it’s putting gas in the car so you can go,” Graham said.
City Council approves first businesses for Eastland Yards
In other business, the City Council was in near-unanimous agreement on who should be the first four tenants moving into Eastland Yards, the mixed-use development occupying the former Eastland Mall site now leased by the city.
The council unanimously approved subleases for three tenants: Rumbao Latin Dance Company and two businesses run by Manuel “Manolo” Betancur, the owner of eastside staple Manolo’s Latin Bakery.
Artisan Gelato will serve vegan gelato and gluten-free desserts, and Higher Grounds will offer coffee and light cafe foods. Betancur sought separate business space to avoid cross-contamination for customers with dietary restrictions, he told the City Council.
The fourth tenant is a salon suite business renting to individual beauty and wellness professionals. At-large Councilwoman LaWana Slack-Mayfield was the only to dissent out of concern it wasn’t the strongest fit as a first business.
“For years we watched empty land,” at-large Councilwoman Dimple Ajmera said. “Tonight, we are finally turning that page. This is not just about opening stores. It’s about restoring dignity, opportunity and joy to the people who live on the east side that have shown incredible patience and incredible resilience throughout the last 10 years.”
This story was originally published January 12, 2026 at 10:56 PM.
