CVTA commits $4 million to Fall Line Design‑Build No. 2 to cover bid shortfall; $1.05 million to regional balance

On June 6, 2025, the Central Virginia Transportation Authority (CVTA) voted to commit $4,000,000 in FY2024 interest earnings to the Fall Line Design‑Build No. 2 project and to allocate $1,050,000 of the same interest pool to the authority’s regional project balance entry. The motion passed by voice/roll‑call vote.

The action follows a recommendation from the CVTA technical advisory committee and the finance committee to set aside a total of $5,050,000 of FY24 interest income for use on project applications and balance‑entry needs. Chet Parsons, CVTA executive director, told the authority that VDOT had submitted bid results showing an increased cost exposure for Design‑Build No. 2 and that the project currently faces a “deficit of 10,200,000.0.” Parsons said the TAC and finance committee recommended applying $4,000,000 of the interest earnings to Design‑Build No. 2 and directing the remainder to the regional project balance entry so the project award can proceed.

Parsons described the Fall Line corridor work in operational terms: the earlier design‑build section runs from Ashland through Hanover and into Henrico, and Design‑Build No. 2 covers a separate segment that Parsons said “extends from Chester Linear Park in Chesterfield County south through ... around Virginia State and across the Appomattox to Patton Park.” He said committing the interest earnings is “very timely” because awards are imminent and the CVTA contribution would allow the contract to be awarded and the work to move forward.

Board members discussed the recommendation in the meeting’s workshop format; Parsons and finance committee members explained that the authority originally set the FY24 interest pool aside to provide flexibility for cost escalations and inflationary impacts on projects. Parsons also stated that, if the authority contributes $4,000,000, the remaining shortfall (which he characterized as a roughly $6.2 million remainder) could be recouped through state funds.

The authority recorded a roll‑call vote in which members present indicated “aye” and the motion carried. Following the vote, the finance committee chair reported that the item had been the key topic in the committee meeting and that staff would continue work on related bond‑issuance and funding processes.

Clarifying details discussed in the meeting include: the FY24 interest pool amount set aside ($5,050,000), the allocation of $4,000,000 to Design‑Build No. 2 and $1,050,000 to the regional project balance entry, and Parsons’s statement of a project deficit of $10,200,000. Parsons described Design‑Build contracts as single contracts that bundle engineering, rights‑of‑way and construction to reduce costs and speed delivery; he said Design‑Build No. 2 covers roughly 10 miles of corridor work as described above.

Next steps identified at the meeting include completing the award process for Design‑Build No. 2 with VDOT and applying the committed funds as indicated. Staff also flagged that use of the balance entry is intended for cost escalations and that detailed processes for accessing reserve funds and verifying project status will be developed by staff and presented to the finance committee for future authority action.

Ending: The authority’s commitment aims to allow imminent awards to proceed; staff said they will continue coordinating with VDOT and local fiscal agents to apply the funds and report back on progress and any further funding needs.