"The state would be asking citizens to pay twice for a public road."
TxDOT could cut off county over SH 121
11/16/2005
By Amy Morenz
Plano Star Courier
Copyright 2005
Collin County stands to lose revenue if doesn't support the state's desire to have private companies build and operate a State Highway 121 toll road in the county, Texas Department of Transportation officials said on Monday.
The Frisco City Council was scheduled to vote on Tuesday whether to rescind its support for a Local Government Authority approved by Collin County, Frisco, McKinney, Allen and Plano. The item was placed on the agenda before Monday's meeting of TxDOT and local government leaders. State highway officials have not been enthusiastic about the idea of a county-run toll organization, said Scott Young, Frisco's assistant city manager.
TxDOT Dallas district engineer Bill Hale invited elected officials to Allen on Monday to informally give the state's response to Collin County's resolution for a Local Government Authority to build and operate SH 121's tolls.
"Your plan would not be received favorably," Hale said. "The state is not abdicating its authority."
Not only would the county lose direct revenue from the tolls themselves if the five governments rescind their backing, but it could also lose revenues to fund other projects, Hale said. Projects like North Central Expressway improvements are not currently in TxDOT's plans, he said.
"If we turn it down, it looks like we won't have another penny from the state or a minimum amount," said Plano city engineer Allan Upchurch.
The issue rests on which organization will build the toll road and the rate motorists will be charged. Collin County's resolution favors a locally run entity. The North Texas Tollway Authority would be its second option to build and manage the project.
The NTTA would have to change its current structure if it becomes involved, said Collin County Commissioner Jack Hatchell. Collin County wants to keep toll revenues in the area. The NTTA's structure, though, requires revenues to be distributed throughout its sytem.
Area leaders said on Tuesday they will keep a Dec. 15 appointment to meet with the State Highway Commission, though they will not make a formal presentation, as originally planned.
Hatchell is expected to ask Plano, Frisco, Allen and McKinney to see if they will stay firm on resolutions supporting for a Local Government Authority. Hatchell doesn't want to go to the Highway Commission with a divided group, he told Plano City Council members on Monday night.
"Our proposal will most likely be turned down," he said. "We've been told if we turn this down, the state will look at how we will fund other projects in the future."
Which could mean gridlock.
"You need to remember the rate of our population growth in the county that's now 1.2 million," said McKinney Mayor Bill Whitfield. "This is an issue of the health, safety and welfare."
Entities other than Collin County have paid for SH 121, Hale said. He suggested an approach where a local group could still set policies for SH 121 tolls under the state's guidance.
A private company would spread the risks, use innovation, provide better management and generate synergy, Hale said. A private company would recover its investment later in the project's lifetime after repaying debt.
"We have to make sure you are educated on what you are losing," Hale said.
Collin County leaders questioned how a private company would generate profits. The North Texas Central Council of Governments plans to schedule a meeting soon to explain how it would work.
"Collin County's gas tax revenues would be tremendous to pay for this," said Plano Councilman Scott Johnson.
The state would be asking citizens to pay twice for a public road, said Allen City Manager Peter Vargas.
"A private company would be expected to make money for this public project," said Vargas. "Our citizens ...want the project without a profit."
Frisco Mayor Mike Simpson wanted more details on how a private company would recoup its investment.
"Our concept was based on repaying only the costs of building," he said. "How would a private company generate a return?"
Hale said every company involved with projects makes a profit, including those who finance bonds purchased from the NTTA.
"I've never seen a subject with more misunderstanding than how a profit would be applied," said Mike Morris of the North Texas Central Council of Governments who manages the Regional Transportation Council. The RTC is charged with making decisions for state roads in North Texas.
Frisco Mayor Mike Simpson wanted more details on how a private company would recoup its investment.
"Our concept was based on repaying only the costs of building," he said. "How would a private company generate a turn?"
NTTA board members are weighing that agency's potential role, but did not make a decision on Friday. Four private companies are vying for the project and asked the state for a decision by year-end.
"We've invited the private sectors to be partners and they bring additional equity," Hale said. "The governor is clear that we are not afraid of private participation."
Collin County would lose potential revenues if it chooses the NTTA, said Hale. Local companies would bring extra revenues to the table in contrast to NTTA, which would need to put money into their system, he said.
In contrast, Collin County's proposal for a Local Government Corporation would make it harder to deal with connectivity and 42.5 percent of SH 121's traffic comes from outside the county, Hale said.
"This is a hell of a road that would provide 100 percent self-sufficiency," said Allan Rutter, NTTA's executive director. "That's why so many private companies want to build it, Our ability gets to the region's goals another way."
Collin County needs to decide what it's willing to pay and how much toll it wants to generate. A private company will probably expect higher tolls, Rutter said.
"That's not the case. That issue is scaring people...and it's almost totally comparable," Hale replied.
The RTC's meeting is Dec. 8 and its technical meeting is Dec. 2.
©Star Community Newspapers 2005 www.zwire.com
11/16/2005
By Amy Morenz
Plano Star Courier
Copyright 2005
Collin County stands to lose revenue if doesn't support the state's desire to have private companies build and operate a State Highway 121 toll road in the county, Texas Department of Transportation officials said on Monday.
The Frisco City Council was scheduled to vote on Tuesday whether to rescind its support for a Local Government Authority approved by Collin County, Frisco, McKinney, Allen and Plano. The item was placed on the agenda before Monday's meeting of TxDOT and local government leaders. State highway officials have not been enthusiastic about the idea of a county-run toll organization, said Scott Young, Frisco's assistant city manager.
TxDOT Dallas district engineer Bill Hale invited elected officials to Allen on Monday to informally give the state's response to Collin County's resolution for a Local Government Authority to build and operate SH 121's tolls.
"Your plan would not be received favorably," Hale said. "The state is not abdicating its authority."
Not only would the county lose direct revenue from the tolls themselves if the five governments rescind their backing, but it could also lose revenues to fund other projects, Hale said. Projects like North Central Expressway improvements are not currently in TxDOT's plans, he said.
"If we turn it down, it looks like we won't have another penny from the state or a minimum amount," said Plano city engineer Allan Upchurch.
The issue rests on which organization will build the toll road and the rate motorists will be charged. Collin County's resolution favors a locally run entity. The North Texas Tollway Authority would be its second option to build and manage the project.
The NTTA would have to change its current structure if it becomes involved, said Collin County Commissioner Jack Hatchell. Collin County wants to keep toll revenues in the area. The NTTA's structure, though, requires revenues to be distributed throughout its sytem.
Area leaders said on Tuesday they will keep a Dec. 15 appointment to meet with the State Highway Commission, though they will not make a formal presentation, as originally planned.
Hatchell is expected to ask Plano, Frisco, Allen and McKinney to see if they will stay firm on resolutions supporting for a Local Government Authority. Hatchell doesn't want to go to the Highway Commission with a divided group, he told Plano City Council members on Monday night.
"Our proposal will most likely be turned down," he said. "We've been told if we turn this down, the state will look at how we will fund other projects in the future."
Which could mean gridlock.
"You need to remember the rate of our population growth in the county that's now 1.2 million," said McKinney Mayor Bill Whitfield. "This is an issue of the health, safety and welfare."
Entities other than Collin County have paid for SH 121, Hale said. He suggested an approach where a local group could still set policies for SH 121 tolls under the state's guidance.
A private company would spread the risks, use innovation, provide better management and generate synergy, Hale said. A private company would recover its investment later in the project's lifetime after repaying debt.
"We have to make sure you are educated on what you are losing," Hale said.
Collin County leaders questioned how a private company would generate profits. The North Texas Central Council of Governments plans to schedule a meeting soon to explain how it would work.
"Collin County's gas tax revenues would be tremendous to pay for this," said Plano Councilman Scott Johnson.
The state would be asking citizens to pay twice for a public road, said Allen City Manager Peter Vargas.
"A private company would be expected to make money for this public project," said Vargas. "Our citizens ...want the project without a profit."
Frisco Mayor Mike Simpson wanted more details on how a private company would recoup its investment.
"Our concept was based on repaying only the costs of building," he said. "How would a private company generate a return?"
Hale said every company involved with projects makes a profit, including those who finance bonds purchased from the NTTA.
"I've never seen a subject with more misunderstanding than how a profit would be applied," said Mike Morris of the North Texas Central Council of Governments who manages the Regional Transportation Council. The RTC is charged with making decisions for state roads in North Texas.
Frisco Mayor Mike Simpson wanted more details on how a private company would recoup its investment.
"Our concept was based on repaying only the costs of building," he said. "How would a private company generate a turn?"
NTTA board members are weighing that agency's potential role, but did not make a decision on Friday. Four private companies are vying for the project and asked the state for a decision by year-end.
"We've invited the private sectors to be partners and they bring additional equity," Hale said. "The governor is clear that we are not afraid of private participation."
Collin County would lose potential revenues if it chooses the NTTA, said Hale. Local companies would bring extra revenues to the table in contrast to NTTA, which would need to put money into their system, he said.
In contrast, Collin County's proposal for a Local Government Corporation would make it harder to deal with connectivity and 42.5 percent of SH 121's traffic comes from outside the county, Hale said.
"This is a hell of a road that would provide 100 percent self-sufficiency," said Allan Rutter, NTTA's executive director. "That's why so many private companies want to build it, Our ability gets to the region's goals another way."
Collin County needs to decide what it's willing to pay and how much toll it wants to generate. A private company will probably expect higher tolls, Rutter said.
"That's not the case. That issue is scaring people...and it's almost totally comparable," Hale replied.
The RTC's meeting is Dec. 8 and its technical meeting is Dec. 2.
©Star Community Newspapers 2005
posted by Porkus Maximus Tex: at Wednesday, November 16, 2005
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