"Not everyone believes the state is telling the truth when it comes to converting existing freeways to toll roads."
For whome the roads toll
January 18, 2006
By Lisa Ferrell
Managing Editor
Inside Collin County Business
Copyright 2006
Some say it’s the only answer, others aren’t ready for a third toll road in Collin County, but most just fear a “Robinhood-like” scenario that isn’t just limited to school finance.
The issue — converting Hwy. 121 to a toll road — has been not only a water cooler topic at the office but a major concern for local officials and businesses along the well traveled road linking the county to DFW airport and beyond.
The facts are simple: the state is short on cash, there are a number of roadway projects that are a priority, the amount of people in the Metroplex (as well as the State of Texas) continues to increase. So growing demand and limited resources to accommodate it have made industry experts get creative in finding ways to solve their problem.
But what’s at the heart of the issue are two things: money and control.
During a year of extensive media coverage, meetings, public discussions and editorials the voice of Collin County is clear: Hwy. 121 needs to be improved. The questions surrounding the process are what local officials continue to ask.
Which agency will be picked to construct and operate Hwy. 121 as a toll road? How much will the tolls be and what exactly will they pay? Will money generated by Hwy. 121 be siphoned to other areas around the state?
The beginning
The idea to convert existing roadways to toll roads came into play as the state began looking at the slate of projects they needed to tackle. The idea is to generate revenue through a user-fee based system in order to cover the costs of roadway improvements.
But not all roads that are on a priority list of improvements are being considered as possible toll roads. Those possible toll roads in the Metroplex include: SH161, Express toll lanes for LBJ freeway, as well as SH183 and a portion of I-35E.
“Right now we’re in a position where only 30 percent of the needed improvements that we’d like to make can be funded in the future,” said Jeff Neal, Senior Transportation Planner with the North Central Texas Council of Governments. “We now have to come up with as many ways as possible to be able to fund the construction of these projects in the future.”
One of the things that was realized about Hwy. 121 is how far in the future it would be completed according to the current transportation plans.
“Just in the Dallas District of TxDOT, their mobility plan is calling for approximately $10 billion worth of projects that they hope to construct,” Neal said. “Based on the current level of funding and the prioritization of all the projects we’d like to build, it was thought that the 121 corridor of Collin County would not be completed as a freeway until as late as 2037.”
Because Hwy. 121 is so far down the list of highways to be improved/expanded, local officials have been thinking of ways to move the process along. One of those ways included a pass through financing option that Collin County is currently looking at doing with the needed improvements to Hwy. 75.
The pass through financing source of funding was something that Collin County engineer Ruben Delgado said he approached the state with several years ago as a solution for Hwy. 121. It didn’t work out as an option because, according to Delgado, they were looking at Hwy. 121 as becoming a toll road.
“It’s probably the number one highway in the state to become a toll road because it will generate a lot of money,” he said.
So whether or not Collin County likes the idea of a third toll road, it looks like it’s the option the state is leaning towards.
But not everyone believes the state is telling the truth when it comes to converting existing freeways to toll roads. And groups across the state have organized to fight TxDOT and the Texas Legislature when it comes to converting existing roads to pay as you go roads.
Current funding
Currently the Department of Transportation is primarily funded through the gas tax (see sidebar) as well as motor vehicle registration.
“I believe the gas tax has not been increased in a number of years,” Neal said. “Right now the collection of funds from the gas tax has stayed relatively flat. We would expect though that in the future as more and more cars are made to be more efficient that the amount of money that would come in to fund roadway construction from that gas tax would probably decrease.”
But the cost of constructing and maintaining roadways is predicted to rise as compensation and construction materials rise.
“As money goes down and construction goes up we’re going to be less and less likely to afford a lot of construction projects that are demanded out there,” Neal said.
The only portion of 121 that is funded by the gas tax in Collin County extends from Hillcrest to the Denton/Collin County line. The rest of Hwy. 121 is only slated for access road improvements.
The plan, according to Neal, is to construct Hwy. 121 from Central Expressway to the Dallas North Tollway as a six lane highway with various frontage road accommodations.
If Hwy. 121 were to be converted to a toll road construction could begin in as early as 2008.
That timeline is appealing to business leaders, government officials, and Hwy. 121 commuters considering the alternative — a completion date of 2037.
Although there is some argument to be made regarding whether or not to convert Hwy. 121 into a toll road, there’s an even bigger debate occurring regarding how that would be accomplished and where Collin County dollars would end up going.
Local authorities want to make sure that tolls collected from 121 in Collin County be used to pay off the bond used to construct their portion of the toll road as well as operational and maintenance costs for the toll road.
According to Delgado, the county is pushing for NTTA to become the agency to construct and operate the toll road. NTTA is among a group of companies that include Skanska BOT, Macquarie Infrastructure Group, Texas Toll and Power, Cintra, Concesiones de Infraestruturas de Transporte, S. A., and Pioneer Heritage Partners that have made a proposal to the state.
“TxDOT has received a proposal from a private organization to build and operate 121 as part of what is called comprehensive development agreement,” Neal said. “It’s possible that some other entities may come and construct 121, perhaps even operate it.
“I think ultimately the final decision on whether or not that happens does rest with TxDOT.”
Delgado thinks TxDOT may make a decision as soon as February.
“The bottom line is we want NTTA to be the agency,” Delgado said. “We want local control.”
According to Delgado there are about $500 million worth of road projects in Collin County. They view Hwy. 75 as the priority of those projects and are working out a way to fund improvements. Delgado said they are exploring a pass through financing deal that will allow the county to lend the state money to make improvements that the state will eventually pay back. Delgado explained that is a complex option that will require much planning.
© 2006 Inside Collin County Business www.insidetxbiz.com
January 18, 2006
By Lisa Ferrell
Managing Editor
Inside Collin County Business
Copyright 2006
Some say it’s the only answer, others aren’t ready for a third toll road in Collin County, but most just fear a “Robinhood-like” scenario that isn’t just limited to school finance.
The issue — converting Hwy. 121 to a toll road — has been not only a water cooler topic at the office but a major concern for local officials and businesses along the well traveled road linking the county to DFW airport and beyond.
The facts are simple: the state is short on cash, there are a number of roadway projects that are a priority, the amount of people in the Metroplex (as well as the State of Texas) continues to increase. So growing demand and limited resources to accommodate it have made industry experts get creative in finding ways to solve their problem.
But what’s at the heart of the issue are two things: money and control.
During a year of extensive media coverage, meetings, public discussions and editorials the voice of Collin County is clear: Hwy. 121 needs to be improved. The questions surrounding the process are what local officials continue to ask.
Which agency will be picked to construct and operate Hwy. 121 as a toll road? How much will the tolls be and what exactly will they pay? Will money generated by Hwy. 121 be siphoned to other areas around the state?
The beginning
The idea to convert existing roadways to toll roads came into play as the state began looking at the slate of projects they needed to tackle. The idea is to generate revenue through a user-fee based system in order to cover the costs of roadway improvements.
But not all roads that are on a priority list of improvements are being considered as possible toll roads. Those possible toll roads in the Metroplex include: SH161, Express toll lanes for LBJ freeway, as well as SH183 and a portion of I-35E.
“Right now we’re in a position where only 30 percent of the needed improvements that we’d like to make can be funded in the future,” said Jeff Neal, Senior Transportation Planner with the North Central Texas Council of Governments. “We now have to come up with as many ways as possible to be able to fund the construction of these projects in the future.”
One of the things that was realized about Hwy. 121 is how far in the future it would be completed according to the current transportation plans.
“Just in the Dallas District of TxDOT, their mobility plan is calling for approximately $10 billion worth of projects that they hope to construct,” Neal said. “Based on the current level of funding and the prioritization of all the projects we’d like to build, it was thought that the 121 corridor of Collin County would not be completed as a freeway until as late as 2037.”
Because Hwy. 121 is so far down the list of highways to be improved/expanded, local officials have been thinking of ways to move the process along. One of those ways included a pass through financing option that Collin County is currently looking at doing with the needed improvements to Hwy. 75.
The pass through financing source of funding was something that Collin County engineer Ruben Delgado said he approached the state with several years ago as a solution for Hwy. 121. It didn’t work out as an option because, according to Delgado, they were looking at Hwy. 121 as becoming a toll road.
“It’s probably the number one highway in the state to become a toll road because it will generate a lot of money,” he said.
So whether or not Collin County likes the idea of a third toll road, it looks like it’s the option the state is leaning towards.
But not everyone believes the state is telling the truth when it comes to converting existing freeways to toll roads. And groups across the state have organized to fight TxDOT and the Texas Legislature when it comes to converting existing roads to pay as you go roads.
Current funding
Currently the Department of Transportation is primarily funded through the gas tax (see sidebar) as well as motor vehicle registration.
“I believe the gas tax has not been increased in a number of years,” Neal said. “Right now the collection of funds from the gas tax has stayed relatively flat. We would expect though that in the future as more and more cars are made to be more efficient that the amount of money that would come in to fund roadway construction from that gas tax would probably decrease.”
But the cost of constructing and maintaining roadways is predicted to rise as compensation and construction materials rise.
“As money goes down and construction goes up we’re going to be less and less likely to afford a lot of construction projects that are demanded out there,” Neal said.
The only portion of 121 that is funded by the gas tax in Collin County extends from Hillcrest to the Denton/Collin County line. The rest of Hwy. 121 is only slated for access road improvements.
The plan, according to Neal, is to construct Hwy. 121 from Central Expressway to the Dallas North Tollway as a six lane highway with various frontage road accommodations.
If Hwy. 121 were to be converted to a toll road construction could begin in as early as 2008.
That timeline is appealing to business leaders, government officials, and Hwy. 121 commuters considering the alternative — a completion date of 2037.
Although there is some argument to be made regarding whether or not to convert Hwy. 121 into a toll road, there’s an even bigger debate occurring regarding how that would be accomplished and where Collin County dollars would end up going.
Local authorities want to make sure that tolls collected from 121 in Collin County be used to pay off the bond used to construct their portion of the toll road as well as operational and maintenance costs for the toll road.
According to Delgado, the county is pushing for NTTA to become the agency to construct and operate the toll road. NTTA is among a group of companies that include Skanska BOT, Macquarie Infrastructure Group, Texas Toll and Power, Cintra, Concesiones de Infraestruturas de Transporte, S. A., and Pioneer Heritage Partners that have made a proposal to the state.
“TxDOT has received a proposal from a private organization to build and operate 121 as part of what is called comprehensive development agreement,” Neal said. “It’s possible that some other entities may come and construct 121, perhaps even operate it.
“I think ultimately the final decision on whether or not that happens does rest with TxDOT.”
Delgado thinks TxDOT may make a decision as soon as February.
“The bottom line is we want NTTA to be the agency,” Delgado said. “We want local control.”
According to Delgado there are about $500 million worth of road projects in Collin County. They view Hwy. 75 as the priority of those projects and are working out a way to fund improvements. Delgado said they are exploring a pass through financing deal that will allow the county to lend the state money to make improvements that the state will eventually pay back. Delgado explained that is a complex option that will require much planning.
© 2006 Inside Collin County Business
posted by Porkus Maximus Tex: at Wednesday, January 18, 2006
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