“This whole thing is completely wrong.”
Trans-Texas Corridor plans revealed
September 28, 2006
By TONY HARTZEL
The Dallas Morning News
Copyriht 2006
The first sections of the 370-mile Trans-Texas Corridor toll road could open as soon as 2013 and might cost $8.8 billion to build, according to new plans released Thursday by the Texas Department of Transportation.
Cintra Zachry, the state’s private-sector partner, submitted its 1,600-page vision for the project. The $3.5 million master development plan for the Texas-sized toll road has been two years in the making.
The basic idea behind the Trans Texas Corridor is that motorists need a new north-south alternative to the busy and often-hellish Interstate 35. Much of the plan is still subject to change. The final toll road route could be selected by next spring.
Cintra Zachry estimates that it or other highway builders would pay the state a total of $2 billion to let them build the project. In return, they could collect toll revenue for the next 50 years to recoup their investment.
The use of private-sector money to help build toll roads is a cornerstone of Gov. Rick Perry’s transportation policy, said Texas Transportation Commission Chairman Ric Williamson.
“Rick Perry didn’t go down this road lightly,” he said. “He understands the political risk of proposing to solve problems.”
Cintra Zachry originally estimated the project would cost about $6 billion and result in up-front payments of $1.2 billion to the state. Both estimates have increased dramatically in two years. State officials say inflation is partly to blame, as well as the addition of several new projects around southern San Antonio.
The report also predicts the initial cost to motorists when the first sections open around 2014. Cars and small trucks will pay about 15.2 cents per mile, or $56.24, to travel the entire route. Truckers initially will pay 58.5 cents per mile for a cost of $216.45 to travel the entire route. Final toll rates will be set when the state negotiates contract terms on each section of the toll road.
The corridor’s exact route won’t be announced until early next year. That leaves many details subject to change. For example, the plan includes several options for paths in or around North Texas, including the long-planned Loop 9 route across much of southern Dallas and Tarrant counties.
“This plan is only the concept for how it will be developed,” said Amadeo Saenz, assistant executive director of the Texas Department of Transportation. “Where it will be developed, which is where we’re getting most of our questions, is a separate process.”
When the route is determined, the state expects to pay Cintra Zachry an undetermined amount of money to update the development plan. So why release the plan now when it will just have to be updated next year?
"It’s so complex, it makes sense to start working out some elements of the project,” said Phillip Russell, director of the Texas Turnpike Authority division of the state transportation department.
The plan does not assume that Cintra Zachry will build the corridor. But the company has a leg up on the competition because it’s already guiding the planning process.
According to the agreement between the state and Cintra Zachry, the state has several options for choosing who can build portions of the project. Cintra Zachry can submit offers for any of the seven Trans-Texas Corridor segments.
The five-member Texas Transportation Commission, made up of gubernatorial appointees, can then decide whether to accept Cintra Zachry’s proposal or seek competing bids.
Cintra Zachry is a partnership between Cintra, a longtime Spanish toll road operator, and San Antonio-based Zachry Construction Corp., a giant in the Texas highway construction industry.
The company expects to contribute its own money to pay for up to 30 percent of the projects it builds. It could also use special federal loans, revenue bonds and private investment.
The financial arrangement under which companies give the state up-front payments in return for future toll money is not set in stone. State officials could forego part of its up-front money and take a share of toll revenue if it benefits taxpayers more.
The state’s general philosophy is to seek a mixture of up-front cash and future toll revenue.
Around North Texas, two separate sections of the corridor could generate $847 million in up-front payments.
Taking a cut of future toll revenue could be lucrative. For example, the plan predicts that the road will attract a substantial share of traffic from nearby congested urban highways almost immediately after it opens.
In southern Dallas County, for example, almost half of all trucks are expected to use that section of the new corridor rather than travel on adjacent clogged highways, according to the report.
Completion of the development plan marks the end of a major step in the Trans-Texas Corridor’s progress. The plan predicts that offers to build the first sections of the project could be submitted as early as next year. Projects such as a freight rail line from North Texas to Laredo would not open until around 2016.
Longer-term projects like high-speed rail lines and a road section from San Antonio to Laredo would not be built until between 2017 and 2055 — or never.
Some critics believe Cintra Zachry and the state have been too secretive about their relationship.
Attorney General Greg Abbott has ordered them to release documents relating to financial and development plans.
Cintra Zachry and the transportation department have filed suit to keep the documents under wraps, arguing they contain proprietary information.
A court hearing is scheduled for Oct. 10. Mike Behrens, executive director of the transportation department, said he hopes to resolve the matter very soon.
“We have to treat this exactly as we treat every other contract,” said Mr. Williamson. “We’re as anxious to remove this from the table of discussion as anyone.”
The discussion about the court case, as well as the release of the plan six weeks before the November elections, has stirred up Mr. Perry’s challengers.
“Nothing is going to change Kinky’s position on this,” said Laura Stromberg, the spokeswoman for independent candidate Kinky Friedman. “This whole thing is completely wrong.”
Texans are opposed to the way the contract for the corridor was awarded, said Heather Guntert, a spokeswoman for Democratic candidate Chris Bell.
“It’s misguided to think that pushing the Trans-Texas Corridor is a good campaign strategy. It will definitely backfire.”
E-mail thartzel@dallasnews.com
© 2006 The Dallas Morning News Co www.dallasnews.com
September 28, 2006
By TONY HARTZEL
The Dallas Morning News
Copyriht 2006
The first sections of the 370-mile Trans-Texas Corridor toll road could open as soon as 2013 and might cost $8.8 billion to build, according to new plans released Thursday by the Texas Department of Transportation.
Cintra Zachry, the state’s private-sector partner, submitted its 1,600-page vision for the project. The $3.5 million master development plan for the Texas-sized toll road has been two years in the making.
The basic idea behind the Trans Texas Corridor is that motorists need a new north-south alternative to the busy and often-hellish Interstate 35. Much of the plan is still subject to change. The final toll road route could be selected by next spring.
Cintra Zachry estimates that it or other highway builders would pay the state a total of $2 billion to let them build the project. In return, they could collect toll revenue for the next 50 years to recoup their investment.
The use of private-sector money to help build toll roads is a cornerstone of Gov. Rick Perry’s transportation policy, said Texas Transportation Commission Chairman Ric Williamson.
“Rick Perry didn’t go down this road lightly,” he said. “He understands the political risk of proposing to solve problems.”
Cintra Zachry originally estimated the project would cost about $6 billion and result in up-front payments of $1.2 billion to the state. Both estimates have increased dramatically in two years. State officials say inflation is partly to blame, as well as the addition of several new projects around southern San Antonio.
The report also predicts the initial cost to motorists when the first sections open around 2014. Cars and small trucks will pay about 15.2 cents per mile, or $56.24, to travel the entire route. Truckers initially will pay 58.5 cents per mile for a cost of $216.45 to travel the entire route. Final toll rates will be set when the state negotiates contract terms on each section of the toll road.
The corridor’s exact route won’t be announced until early next year. That leaves many details subject to change. For example, the plan includes several options for paths in or around North Texas, including the long-planned Loop 9 route across much of southern Dallas and Tarrant counties.
“This plan is only the concept for how it will be developed,” said Amadeo Saenz, assistant executive director of the Texas Department of Transportation. “Where it will be developed, which is where we’re getting most of our questions, is a separate process.”
When the route is determined, the state expects to pay Cintra Zachry an undetermined amount of money to update the development plan. So why release the plan now when it will just have to be updated next year?
"It’s so complex, it makes sense to start working out some elements of the project,” said Phillip Russell, director of the Texas Turnpike Authority division of the state transportation department.
The plan does not assume that Cintra Zachry will build the corridor. But the company has a leg up on the competition because it’s already guiding the planning process.
According to the agreement between the state and Cintra Zachry, the state has several options for choosing who can build portions of the project. Cintra Zachry can submit offers for any of the seven Trans-Texas Corridor segments.
The five-member Texas Transportation Commission, made up of gubernatorial appointees, can then decide whether to accept Cintra Zachry’s proposal or seek competing bids.
Cintra Zachry is a partnership between Cintra, a longtime Spanish toll road operator, and San Antonio-based Zachry Construction Corp., a giant in the Texas highway construction industry.
The company expects to contribute its own money to pay for up to 30 percent of the projects it builds. It could also use special federal loans, revenue bonds and private investment.
The financial arrangement under which companies give the state up-front payments in return for future toll money is not set in stone. State officials could forego part of its up-front money and take a share of toll revenue if it benefits taxpayers more.
The state’s general philosophy is to seek a mixture of up-front cash and future toll revenue.
Around North Texas, two separate sections of the corridor could generate $847 million in up-front payments.
Taking a cut of future toll revenue could be lucrative. For example, the plan predicts that the road will attract a substantial share of traffic from nearby congested urban highways almost immediately after it opens.
In southern Dallas County, for example, almost half of all trucks are expected to use that section of the new corridor rather than travel on adjacent clogged highways, according to the report.
Completion of the development plan marks the end of a major step in the Trans-Texas Corridor’s progress. The plan predicts that offers to build the first sections of the project could be submitted as early as next year. Projects such as a freight rail line from North Texas to Laredo would not open until around 2016.
Longer-term projects like high-speed rail lines and a road section from San Antonio to Laredo would not be built until between 2017 and 2055 — or never.
Some critics believe Cintra Zachry and the state have been too secretive about their relationship.
Attorney General Greg Abbott has ordered them to release documents relating to financial and development plans.
Cintra Zachry and the transportation department have filed suit to keep the documents under wraps, arguing they contain proprietary information.
A court hearing is scheduled for Oct. 10. Mike Behrens, executive director of the transportation department, said he hopes to resolve the matter very soon.
“We have to treat this exactly as we treat every other contract,” said Mr. Williamson. “We’re as anxious to remove this from the table of discussion as anyone.”
The discussion about the court case, as well as the release of the plan six weeks before the November elections, has stirred up Mr. Perry’s challengers.
“Nothing is going to change Kinky’s position on this,” said Laura Stromberg, the spokeswoman for independent candidate Kinky Friedman. “This whole thing is completely wrong.”
Texans are opposed to the way the contract for the corridor was awarded, said Heather Guntert, a spokeswoman for Democratic candidate Chris Bell.
“It’s misguided to think that pushing the Trans-Texas Corridor is a good campaign strategy. It will definitely backfire.”
E-mail thartzel@dallasnews.com
© 2006 The Dallas Morning News Co
posted by Porkus Maximus Tex: at Thursday, September 28, 2006
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