Remarks for Secretary Tippett
South Brunswick Isles Rotary Club
Friday, Jan. 19, 2007 at 7:30 a.m.
Ocean Ridge Plantation
Sunset Beach


Introduction
Good morning.

Luther, thank you for that kind introduction.

I'd like to also thank you and the rest of the South Brunswick Isles Rotary Club for inviting me here today, and for your gracious hospitality.

Joining me are your Board of Transportation member Lanny Wilson and Allen Pope, NCDOT's Division Engineer for this area.

Both these men do a wonderful job taking care of the transportation needs of Brunswick County.

Before I begin, I'd like to mention that you should each have a copy of the new State Transportation Map and the department's 2007 Agenda at your seats. These publications are hot off the press and were just presented to the Board of Transportation last week.

I appreciate this opportunity to update you on the status of major projects in southern Brunswick County. I am honored to be with some of the area's finest business and community leaders, and I thank you for your many outstanding efforts.

North Carolina's Rotary clubs certainly provide outstanding service to our communities and work hard to make these areas better for the citizens who call them home.

Your work is especially important as this region, along with the rest of North Carolina, is becoming an increasingly popular place to live and work.

Transportation and Growth
While this growth provides numerous opportunities, it is also placing an increasing demand on our transportation system.

To put the situation in perspective:

· North Carolina's population grew from 5 million in 1970 to 8.5 million in 2004, and is expected to grow by 4 million more people in the next 25 years.

· Vehicle miles traveled more than tripled from 30 billion in 1970 to 94 billion in 2004, and are expected to increase 50 percent more by 2020.

· Truck freight hauled in North Carolina is projected to increase to 808 million tons by 2020, a 190-percent increase since 1998.

Many of the state's highways were built as farm-to-market roads and were not designed or built to handle the heavy traffic volumes they carry today. As a result, an increasing number of the state's most important corridors need significant upgrades.

Other Factors
There are several factors besides growth that make this situation especially challenging for North Carolina.

In North Carolina, unlike many other states, a major portion of the burden to fund local transportation improvements rests on the state level rather than the local level. We have more than 79,000 miles of state-maintained highway. Only Texas has as many.

According to a recent census report, North Carolina ranks 19th nationally in per capita highway spending on the state level, but only 49th in those same expenditures on the local level.

Construction inflation continues to increase by about 45 percent over the last three years alone-making it more costly for us to complete needed projects. Unfortunately, these costs are continuing to rise.

Gov. Easley and the General Assembly recognize the strain placed on the department's budget and they built $200.7 million into this year's budget to reduce the annual transfer from DOT's Highway Trust Fund to the General Fund. They also provided an additional $18 million to the Highway Fund for maintenance.

This means that more of our transportation revenues will actually go toward transportation improvements.

Other Steps We are Taking
We can longer rely on traditional funding sources and must look hard at ways to help generate new funds to better meet the diverse demands of our state.

One of these new funding sources is the use of Grant Anticipation Revenue Vehicles, or GARVEE bonds.

These bonds allow us to borrow against future federal funding, accelerating our transportation dollars to complete projects sooner and reduce inflation-related costs.

The General Assembly has authorized DOT to issue $950 million in GARVEE bonds, and we are currently working to determine candidate projects. We are also examining the possibility of using these bonds to complete our most-needed interstate maintenance improvements.

The department is also looking at ways to partner with private industry to give further options for constructing and maintaining mutually beneficial highway facilities.

We are currently pursuing legislation that would expand our ability to form such partnerships.

As Brunswick County leaders, I urge you to help this community think "outside the box" about ways you can contribute to transportation improvements.

While we work to secure additional funding, we are also delivering much-needed highway projects across the state, including several key projects in this region.

U.S. 17
U.S. 17 is a lifeline for citizens in southeastern North Carolina. We have several short-term projects coming up that will not only improve the quality of the highway, but also ensure that it will continue to meet the transportation demands of this region.

In the summer of 2008, the department will begin installing new guardrails along U.S. 17 as part of a larger regional project. These new guardrails will replace aging barriers along area highways and improve safety on bridges and overpasses.

Also, the department is planning to invest $10.6 million to improve access and traffic flow along U.S. 17. While we have not yet determined the full scope of these important improvements, they will include the closure of underutilized crossovers along U.S. 17 and the construction of superstreet facilities at high volume intersections, such as the one just north of here in Leland.

Strategic Highway Corridors
These efforts on U.S. 17 are part of the department's Strategic Highway Corridors plan, which was adopted by the N.C. Board of Transportation in 2004 to identify, protect and maximize the use of highway corridors that play a critical role in regional or statewide mobility.

Among the recommendations of the Strategic Highway Corridors plan is the upgrading of U.S. 17 in Brunswick County to a freeway facility in the future.

Freeways are designed to have, among other things, a speed limit of 55 miles-per-hour or greater, access only at interchanges, no traffic signals and no driveways.

Other strategic highway corridors in Brunswick County include U.S. 74/76, N.C. 87,
I-140 and I-74.

I-74
One of our long-range goals is the extension of I-74 to Brunswick County. When completed, I-74 will stretch from Michigan to Myrtle Beach, S.C. The entire corridor is a long way from completion; but I'd like to say that North Carolina is making progress on its part of the highway.

NCDOT has opened two sections of the interstate in North Carolina near Mount Airy and south of Asheboro. A third section around Ellerbe in Richmond County is scheduled to open this spring.

The section of I-74 that includes Brunswick County would begin near Whiteville in Columbus County. The highway would enter the county well west of N.C. 87 and curve south, connecting to U.S. 17 near Shallotte.

The interstate would then follow U.S. 17 for a short distance before following the Carolina Bays Parkway extension corridor. It would then parallel U.S. 17 to the west and enter South Carolina west of Calabash.

A feasibility study for the highway, the initial stage in road-building process, was completed in 2005. We are now revisiting the study and revising cost estimates to include the parkway extension and other factors. Those revised cost estimates are anticipated this spring.

I should also add that the N.C. Turnpike Authority has expressed an interest in this corridor and has commissioned a financial feasibility study of the route.

Carolina Bays Parkway Extension
As I just mentioned, the I-74 corridor includes the Carolina Bays Parkway extension. This proposed highway would provide motorists throughout the area with improved mobility by providing an alternate route to U.S. 17 in northern South Carolina, which is often heavily congested.

A joint initiative with South Carolina, the route would begin at the end of the current Carolina Bays Parkway, just west of Myrtle Beach at S.C. 31. It would enter North Carolina west of the current U.S. 17 and connect to U.S. 17 via an interchange near the intersection of U.S. 17 and N.C. 904 (Longwood Road).

In February 2005, transportation leaders in both North and South Carolina met to discuss this important highway corridor. NCDOT agreed to be the lead agency in the development of the Carolina Bays Parkway extension as South Carolina is taking lead on the project to extend I-73 from Rockingham into their state.

A feasibility study for this route was completed in 2006, which determined that there are three viable alternative routes for this highway that warrant additional study. However, the department must first work to establish funding for the environmental studies to carry this project forward.

Secondary Road Improvements
We also have some major improvements planned in the near future for other heavily traveled routes.

I am pleased to tell you that travel to and from Sunset Beach is about to get easier. The department plans to let a contract this spring to replace the old pontoon bridge to the island. Construction on the $24.4 million high-rise bridge should be completed in 2010.

Also this spring, we will be letting a contract to add paved shoulders on 16 of the curves along Sunset Harbor Road. Motorists should notice an improved drive along this route by the end of the year.

We will also begin major improvements to the intersection of N.C. 130 and Smith Avenue near Shallotte in late 2008. Our plans include realigning this intersection to make it safer and easier to navigate.

A little further down the road, we have plans for a project to extend Georgetown Road 2.4 miles to N.C. 179 near Ocean Isle Beach.

And once funding sources have been identified, NCDOT also plans to build a two-lane road from U.S. 17 at Ocean Isle Beach Road to McMiley Road as well as building roads from N.C. 179 to U.S. 17 Business near Shallotte.

As the area continues to grow, the construction and extension of these secondary roads will not only help to alleviate congestion on the main routes to the barrier islands, it will also help disperse traffic throughout the area to give local motorists more options.

The new routes will also be a crucial aid during hurricane evacuations and work to ensure that the region's road system can sustain the inevitable growth of this area for years to come.

Conclusion
The projects and programs that I've highlighted for you this morning are just a few of the many ways that we are working to improve transportation and enhance the quality of life in and around southern Brunswick County.

I look forward to partnering with you as we continue to make one of North Carolina's most beautiful regions even more desirable to visit, work and live in.

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