Financing

The $125+ Million I-520, Palmetto Parkway, Phase II project will be funded jointly by South Carolina Department of Transportation, the State Infrastructure Bank (SIB), the City of North Augusta and Aiken County. The State Infrastructure Bank is authorized to select and assist in financing large, qualified projects that enhance mobility and safety, promote economic development, or increase the public's quality of life.

In 2000 the voters of Aiken County approved a countywide sales tax to provide $15 million for the project. In 2001 the City of North Augusta and Aiken County submitted an application to the SIB for funding of the Palmetto Parkway. Late that year the SIB approved $65 million in immediate funding for the first phase of the project and committed to an additional $100 million when funds became available.

The SIB funding was combined with $4 million of federal grants, secured by the SC Congressional delegation, and the $15 million of local funds to total $84 million, $55 million of which was used to construct Phase 1. The balance was used to begin the acquisition of right of way for Phase 2. The state of Georgia also paid for the completion of the portion of I-520 within its borders, from Laney Walker Boulevard to the Savannah River, and half of the cost of the Savannah River Bridge. Construction of Phase I was begun in late 2002 with a ribbon cutting ceremony at the completion in June of 2004.

Following construction of Phase I, SIB awarded a second grant of $95 million for Phase II in 2005. This grant was combined with $17 million from the federal government secured by Congressman Gresham Barrett, Senator Lindsey Graham and Senator Jim DeMint as well as an additional $2 million in funding from Aiken County’s second round of local capital projects sales tax. Contracts for Phase II were let in November 2006 and construction began in January of 2007. In late 2007 the SIB awarded an additional $18 million for the project to include improvements to US 25, the Exit 5 interchange and Belvedere-Clearwater Road that had initially been excluded to reduce the overall cost. Completion of I-520 from US 1 to the interchange with I-20 is expected by December 2009.

Background