The Facts About Privatization and How to Protect the Public

Appendices B and C: Completed, Underway and Proposed Privatization Projects

U.S. PIRG Education Fund Private , Public Costs The Facts About Privatization and How to Protect the Public

Appendices B and C: Completed, Underway and Proposed Privatization Projects

U.S. PIRG Education Fund

Written by: Phineas Baxandall, Ph.D. U.S. PIRG Education Fund

Kari Wohlschlegel and Tony Dutzik, Frontier Group

Spring 2009 Acknowledgments

The authors thank Robert Puentes of the Brookings Institution, Ellen Dannin of the Penn State Dick- inson School of Law, Dennis Enright of NW Financial, and Michael Likosky of University’s Institute for Public Knowledge for their thoughtful review and insightful suggestions. Thanks also to Josh Bogus for his research support in the early phases of this project. Finally, thanks to Susan Rakov of Frontier Group and to Carolyn E. Kramer for their editorial assistance.

U.S. PIRG Education Fund thanks the Foundation for making this project possible.

The authors bear responsibility for any factual errors. The recommendations are those of U.S. PIRG Education Fund. The views expressed in this report are those of the authors and do not necessarily reflect the views of our funders or those who provided editorial review.

Copyright 2009 U.S. PIRG Education Fund

With public debate around important issues often dominated by special interests pursuing their own nar- row agendas, U.S. PIRG Education Fund offers an independent voice that works on behalf of the public interest. U.S. PIRG Education Fund, a 501(c)(3) organization, works to protect consumers and promote good government. We investigate problems, craft solutions, educate the public, and offer Americans meaningful opportunities for civic participation. www.uspirg.org

Frontier Group conducts research and policy analysis to support a cleaner, healthier and more democratic society. Our mission is to inject accurate information and compelling ideas into public policy debates at the local, state and federal levels. www.frontiergroup.org

For additional copies of this report, or to obtain a detailed listing of completed and proposed road priva- tization projects across the country, please visit www.uspirg.org.

Cover: Photo by Geoffrey Holman, istockphoto.com; photo modification by Harriet Eckstein

Traffic sign images that appear on pages 5, 6, 17, 27, 27, 29 and 37 are from the Manual of Signs, by Richard C. Moeur (http://www.trafficsign.us/) Copyright 1996-2005 Richard C. Moeur. All rights are reserved.

Design and layout: Harriet Eckstein Graphic Design Table of Contents

Appendix B: 1 Completed Privatization Projects

Appendix C: 8 Privatization Projects Proposed or Underway

Appendix B: Completed Privatization Projects

State: Alabama Contract Type: design, build, finance, oper- Road: Alabama River /Montgomery ate and maintain Expressway Project Details: A 4.5-mile privately built Concessionaire: Built by United Toll tollway in Montgomery County. Systems, purchased by Macquarie in 2006 Cost/Financing: COSTS - $4 million (U.S. and later by American Roads. DOT) Contract Type: design, build, finance, operate Status: Opened in 1998. Now owned by and maintain American Roads (American Roads). Project Details: A 12.5-mile privately built Controversy: A 50-cent toll hike in 2007 tollway in Montgomery County. triggered a consumer boycott of the road, Cost/Financing: COSTS - $12 million which led to a 50 percent decrease in traf- (U.S. DOT) fic. (Mullinax) Status: Opened in 1998. Now owned by Sources: U.S. Department of Transporta- American Roads (American Roads). tion, Federal Administration, Sources: U.S. Department of Transporta- U.S. Toll-Based Highway Improvements: tion, Federal Highway Administration, 1992-2008, January 2009; American U.S. Toll-Based Highway Improvements: Roads, Emerald Mountain Expressway, 1992-2008, January 2009; American Roads, downloaded from www.emeraldmoun- Montgomery Expressway, downloaded from tainexpressway.com, 29 January 2009; www.montgomeryexpressway.com/, 29 Kenneth Mullinax, “Bridge Boycott January 2009. Taking Toll on Profits,” Montgomery Ad- vertiser, 24 March 2007.

State: Alabama Road: Emerald Mountain Parkway State: Alabama Concessionaire: Built by United Toll Sys- Road: Black Warrior Parkway/Tuscaloosa tems, purchased by Macquarie in 2006 and later by American Roads. Concessionaire: Built by United Toll

Appendix B 1 Systems, purchased by Macquarie in 2006 taken over by Orange County Transporta- and later by American Roads. tion Authority. Contract Type: design, build, finance, oper- Contract Type: originally built as a de- ate and maintain sign, build, finance, operate and maintain Project Details: A 7.5-mile privately built project tollway in Tuscaloosa County Project Details: CPTC entered into a lease Cost/Financing: COSTS - $25 million agreement with Caltrans to construct and (U.S. DOT) operate a toll facility in the median of an Status: Opened in 1994. Now owned by existing highway (Lowenthal). American Roads (American Roads). Cost/Financing: (1) COSTS - $126 million. Sources: (1) U.S. Department of Transpor- (2) FINANCING - CPTC provided $139 tation, Federal Highway Administration, million in financing in exchange for a 35- U.S. Toll-Based Highway Improvements: year lease (Lowenthal). 1992-2008, January 2009; (2) American Status: The road is now owned and oper- Roads, Tuscaloosa Bypass, downloaded from ated by Orange County Transportation www.tuscaloosabypass.com, 29 January Authority. 2009. Controversy: The agreement had a non- compete clause that prevented Caltrans from making improvements on compet- State: Alabama ing roadways. When Caltrans needed to Road: Foley Beach Express make safety improvements, it was even- Concessionaire: Built by Baldwin County tually forced to buy out the consortium Company, later acquired by Ameri- (Lowenthal). can Roads Sources: Testimony of State Contract Type: design, build, finance, oper- Senator Allen Lowenthal, 24 May 2007 ate and maintain Project Details: The highway includes a 7.5-mile federally funded portion, a 5-mile State: California privately built portion transferred to the Road: South Bay Expressway county and operated free of tolls, and a Concessionaire: South Bay Expressway LP over the Intercoastal Waterway. - Macquarie is the primary investor (Toll Roads News) Contract Type: design, build, finance, oper- Cost/Financing: COSTS - $25 million total ate and maintain (Toll Roads News) Project Details: The road extends from SR Status: Opened in 2000. Now owned by 54 in Spring Valley to Otay Mesa Road American Roads (American Roads) near the international border crossing (All Sources: (1) “Investor Pike: Foley Beach Business). Express Opens in Coastal Alabama,” Toll Cost/Financing: (1) COSTS - The project Roads News, 3 August 2000. (2) American cost $840 million (All Business). (2) FI- Roads, Beach Express, downloaded from NANCING - private investment was the www.beachexpress.com, 29 January 2009. main source of financing, in exchange for a 35-year lease (Toll Roads News - San Diego) State: California Status: The road officially opened on No- Road: SR 91 Express vember 19, 2007 (All Business). Macquarie Concessionaire: The California Private was initially granted a 35-year concession, Transportation Company (CPTC) origi- however they have since requested an nally developed the road. It has since been extension. The legislature has agreed to a

 Private Roads, Public Costs 10-year extension, subject to local support. in exchange for a 99 year lease (Toll Roads Local governments have indicated that they News). (4) TOLLS - Tolls increased want to relax restrictions on the expansion immediately from $2 to $3, and beginning of parallel roads, so negotiations are under- in 2010 they will increase annually by at way (Toll Roads News - San Diego). least 2% of the CPI or GDP (CoPIRG). Controversy: The project was late and Status: The road opened in 2004 and nego- overbudget, for a variety of reasons. The tiations for a lease began in April 2007. concession was finalized in 1991, but it took Controversy: The Authority must com- 16 years to build the road (Toll Roads News pensate the concessionaire if previously - Schwarzenegger). unplanned road or transit projects are Sources: (1) “South Bay Expressway, San built in the corridor and hurt revenues. Diego’s First Toll Road, Opens,” All Busi- The concessionaire recently stated that it ness, 16 November 2007. (2) “San Diego’s believes a proposed project violates this South Bay Expressway Opened Monday,” agreement (Leib). Toll Roads News, 23 November 2007. (3) Sources: (1) CoPIRG, Northwest Parkway “Schwarzenegger Making New Push for White Paper, 10 December 2007. (2) Ir- PPPs & Union Critic Hits Two Toll Road vin Dawid, “ Toll Road Goes Concessions,” Toll Roads News, 28 November Private,” Planetizen, 18 April 2007. (3) 2007 Jeffrey Leib, “Toll Firm Objects to Work on W. 160th,” Denver Post, 23 July 2008. (4) “Colorado Highways: Public Highway State: Colorado Authority Tollways,” MESalek.com, 4 Road: Northwest Parkway September 2007. (5) “Northwest Parkway Concessionaire: Owned by Northwest Colorado Toll Concession Finalized with Parkway Public Highway Authority, Financial Close,” Toll Roads News, 19 No- representing Broomfield, Lafayette and vember 2007. Weld counties. Leased to companies from and Brazil - Brisa Auto-Estradas de Portugal SA and Companhia de Con- State: cessoes Rodoviarias of Sao Paulo, Brazil, Road: Southern Extension which is one of the largest toll-road opera- Concessionaire: Road was built by a joint tors in Europe (Dawid). venture of: Orlando Orange County Contract Type: lease Expressway Authority (OOCEA), Walt Project Details: The Parkway runs from Disney World, Osceola County, private I-25 north of Denver to US 36 in Broom- landowners, the Reedy Creek Improve- field. The concession agreement provides ment District, and Florida’s Turnpike financing for an extension over US 36 to District. It is currently operated by Florida CO 128 in Broomfield at the western end of Turnpike District. the project. The Parkway was initially built Project Details: The road makes it pos- by the Authority, but after years of financial sible to travel from Walt Disney World problems, the Authority began looking for to Orlando International Aiport without concessionaires (Toll Roads News). having to drive on the congested I-4 (Na- Cost/Financing: (1) COSTS - it cost $415 tion Master). million to construct the tollway (MESalek). Cost/Financing: (1) COSTS - Construction (2) FINANCING - the Authority used cost $153 million. (2) FINANCING - $74 private money to finance the construction million came from private party contribu- (Toll Roads News). (3) FEE – The conces- tions (Nation Master). (3) TOLLS - tolls sionaires paid $603 million for the toll road are charged for revenue

Appendix B  Status: The road opened on June 23, 1999 Skyway. Since taking control of the road, (Nation Master). the company has been making investments Sources: “Southern Connector,” Nation to improve it, including $40 million to Master, downloaded from www.nationmas- install electronic tolling called I-Zoom, ter.com/encyclopedia/Southern-Connec- $6 million for a new fleet of 40 snowplows, tor-(Orlando). added toll booths at a few congested areas, and a new salt barn (Kelly). Cost/Financing: (1) FEE - $3.8 billion for a State: 75 year concession term (Toledo Business Road: Chicago Skyway Journal) Concessionaire: A Cintra-Macquarie con- Status: The consortium formally assumed sortium responsibility on June 29, 2006 (Kelly). Contract Type: lease, operate, maintain Controversy: (1) The agreement includes a Project Details: Chicago leased the Sky- non-compete clause that prevents way, which arches over the Calumet River from upgrading to a four-, divided before connecting with the Indiana East- highway along any 20-mile stretch of road West Toll Road at the border. within 10 miles of the toll road for at least Cost/Financing: (1) FEE - Cintra-Mac- 55 years (Saunders). (2) Macquaire has told quarie paid $1.8 billion for a 99-year lease investors that they will make a profit off (Williams) their investment within 15 years (Saun- Status: The road is operated by Cintra- ders). (3) Full details of the agreement were Macquarie. not disclosed until after negotiations were Controversy: (1) No public interest study finalized (Saunders). was done before state and local politicians Sources: (1) Niki Kelly, “Toll Road Detrac- agreed to the deal (theNewspaper). (2) tors Air Gripes With State,” The Journal Many residents are upset that a significant Gazette, 22 June 2008. (2) “Indiana Lur- portion of the money was allocated to non- ing and MI Firms,” Toledo Business highway purposes (Barlas). Journal, 1 January 2007. (3) Burt Saunders, Sources: (1) Stephen Barlas, “P-P-P Prom- “Alligator : Leasing Would be Selling ise?” Roads and , August 2007. (2) Our Soul,” South Florida Sun-Sentinel, 8 “GAO Questions Wisdom of Public Pri- September 2008. vate Partnerships,” theNewspaper.com, 28 July 2008. (3) Leslie Williams, “Leasing Alligator Alley - Benefit or Boondoggle?” State: South Carolina Naples Daily News, 26 April 2008. Road: Southern Connector (I-185) Concessionaire: A 63-20 was created, called Connector 2000 Association. The private State: Indiana investor partner was Interwest Carolina Road: East-West Toll Road Transportation Group, LLC. Project ad- Concessionaire: Statewide Mobility Part- visors: Lehman Brothers; Haynsworth ners, a joint venture between Cintra-Mac- Sinkler Boyd PA; Southern Municipal quarie (Kelly) Advisors; Leatherwood, Walker Todd & Contract Type: lease, operate, and main- Mann; Wilbur Smith & Associates (In- tain novative Financing). Project Details: Governor Mitch Daniels Contract Type: Originally a finance, design, announced in 2006 a plan to lease the construct, and operate. Now the operator Indiana East-West Toll Road, a 157-mile is considering leasing the road. highway that connects with the Chicago Project Details: The Connector forms a

 Private Roads, Public Costs belt route around the south of the Green- Tollroad Proposal Takes Hit in Fl Pan- ville area (Toll Roads News). The Connector handle,” Toll Roads News, 11 June 2008. (5) was initially built by a 63-20 non-profit, Connector 2000 Association, Inc., Event the Connector 2000 Association. After Notice No. 2008-9-4, 4 September 2008. lower-than-expected revenues, the Asso- ciation began looking for bids to operate a concession (Toll Roads News). State: Cost/Financing: (1) COSTS - the project Road: Camino Colombia Toll Road cost $240 million. (2) FINANCING - the Concessionaire: Initially constructed as non-profit issued exempt bonds to -fi a private toll road, though it is currently nance the road in exchange for operating state owned it for 50 years (Innovative Finance). (3) Contract Type: Failed private toll road TOLLS - toll revenue averages $5.4 million Project Details: The toll road bypasses per year (Toll Roads News) Laredo, stretching from Camino Colom- Status: The road opened in March 2001 bia International Bridge to I-35 at exit 24. (Plunkett). In the fall of 2007, Connector The route was originally built with private 2000 Association began looking for a con- financing, however it had extremely low cessionaire to take over the operation and revenue. In late 2003, the toll road was fore- financial liability of the toll road. These closed on and the state sold it at auction. plans have been temporarily suspended TxDOT bid $11 million to purchase the (Toll Roads News). In fall 2008, Standard road, but was beaten by John Hancock Life & Poor’s downgraded the Connector’s Insurance Company with a bid of $12.1 bonds to an extremely speculative “CC” million (source for Hancock bid - Plun- rating, projecting that the association kett). The route was immediately closed to would default on its bonds by January 2010 all traffic, forcing TxDOT to buy it back in the absence of a debt restructuring. for $20 million (Nation Master). (Connector) Cost/Financing: (1) COSTS - $90 million Controversy: (1) The Government Ac- to construct the road (Nation Master). (2) countability Office found that a significant FINANCING - For construction, $75 portion of the up-front payments derive million came from to private companies, from the tax-exempt status of the bonds and the remaining $15 million was donated issued and the depreciation deductions in land and capital from families in the (theNewspaper). (2) Revenues have fallen area (Plunkett) (3) TOLLS - toll revenues far short of projections. The analyst Wil- have missed projections by 96 percent bur Smith Associates was asked to prepare a (Plunkett) financial analysis of the road, which would Status: The road is currently owned and be used to solicit funding. After showing operated by TxDOT (NationMaster) high revenue projections, investors were Controversy: See Project Details section persuaded to finance the project, and Wil- Sources: (1) “Texas State Highway 255,” bur Smith collected more than $12 million NationMaster, downloaded from www. off the subsequent contracts (Plunkett). nationmaster.com/encyclopedia/Texas- Sources: (1) “Southern Connector - Green- State-Highway-255. (2) Chuck Plunkett, ville, South Carolina,” Innovative Finance, “No 2-Way ,” Denver Post, 25 Oc- May 2002. (2) “GAO Questions Wisdom of tober 2006 Public Private Partnerships,” theNewspaper. com, 28 July 2008. (3) Chuck Plunkett, “No 2-Way Street,” Denver Post, 25 October State: Utah 2006. (4) “Wiregrass Pike ‘Not-for-Profit’ Road: Adams Parkway

Appendix B  Concessionaire: Adams Avenue Parkway, Controversy: 1) Low ridership on the Inc. Greenway led to problems, resulting in Contract Type: Private toll road toll reductions and a potential TRIP II Project Details: A one-mile parkway link- default on its loan. This eventually led to ing I-84 to Adams Avenue. The road was Macquarie purchasing the concession from built by local land-owners as a for-profit TRIP II in 2005 (Barlas). 2) In early 2008, venture. people began lobbying for a freeze on toll Cost/Financing: COSTS - $12 million. rates and increasing control on the con- Status: The road opened in 2001. cessionaire. However, the state legislature Sources: U.S. Department of Transporta- passed a law in April guaranteeing the right tion, Federal Highway Administration, to increase tolls annually by the CPI plus 1 U.S. Toll-Based Highway Improvements: percent, and giving the State Corporations 1992-2008, January 2009; Adams Avenue Commission the right to approve further Parkway, Inc., Welcome, downloaded from toll increases (Toll Roads News). adamsavenueparkway.com, 29 January Sources: (1) Stephen Barlas, “P-P-P- 2009 Promise?” Roads and Bridges, August 2007. (2) “Dulles Greenway Gets Advantageous New Concession Regulation,” Toll Roads State: News, 16 March 2008. (3) U.S. Depart- Road: Dulles Greenway ment of Transportation, Innovation Wave: Concessionaire: The contract was originally An Update on the Burgeoning Private Sector awarded to Toll Road Investors Partnership Role in US Highway and Transit Infrastruc- II (TRIP II), a consortium comprised of ture, National Council on Public Private Shenandoah Greenway Corp., Autostrade, Partnerships, 18 July 2008 and Brown & Root. Eventually it was leased to Macquarie Infrastructure Group, with Autostrade in control of maintenance and State: Virginia operations (Barlas) Road: Pocahontas Parkway Contract Type: Concession Concessionaire: The road was originally Project Details: The Dulles Greenway is controlled by the Pocahontas Parkway As- an extension of the state-owned Dulles sociation, a non-profit consortium. It was Toll Road in Loudoun County. The road taken over by after the PPA was opened in 1995 and was financed by TRIP headed for default (Toll Roads News). II. In 2005, TRIP II sold the bulk of its Contract Type: enhance, manage, operate, shares to Macquarie. In exchange for maintain extending the lease, Macquarie agreed to Project Details: The 8.8-mile road serves major improvements on the road, including as a bypass around Richmond and opened the completion of a new lane, new inter- to traffic in 2002. In 2006, Transurban changes, and expansion of toll plazas (Toll acquired the rights to operate the road for Roads News). 99 years, agreeing to construct a 1.58-mile Cost/Financing: (1) FEE - Macquarie leased extension of the road to Richmond Inter- the road for $625 million, and the lease national Airport (USDOT). was extended from 40 to 60 years (Toll Cost/Financing: (1) COSTS - Initial Roads News). (2) TOLLS - Toll increases construction cost $381 million. (2) FEE between 2013-2020 can be equal to the - Transurban paid $548 million for a 99- increase in the CPI plus one percent, the year lease (USDOT). (3) FINANCING increase in real GDP, or 2.8 percent (US - the initial construction was financed by DOT) bonds issued by the non-profit (USDOT).

 Private Roads, Public Costs (4) TOLLS - static tolls are charged and than expected growth in the Richmond collected by Transurban area and Richmond International Airport. Status: The road opened in 2002. Refinanced in 2006 (Replogle). Controversy: 1) GAO found a significant Sources: (1) “GAO Questions Wisdom of portion of the up-front payments derive Public Private Partnerships,” theNewspaper. from the tax-exempt status of the bonds com, 28 July 2008. (2) Michael Replogle, issued and depreciation deductions. GAO Testimony before the Committee on Trans- calculated that the annual taxation cost of portation and Infrastructure, Subcommitee $1.2 billion in tax-exempt bonds issued for on Highways and Transit, 24 May 2007. (3) VA’s Pocahontas Parkway, SC’s Southern “Wiregrass Pike ‘Not-for-Profit’ Tollroad Connector, and Nevada’s Las Vegas Mono- Proposal Takes Hit in FL Panhandle,” Toll rail was as much as $35 million a year. SC Roads News, 11 June 2008. (4) US Depart- and VA also lose up to $3 milion a year in ment of Transportation, Federal Highway state tax revenue (theNewspaper). 2) Dur- Administration, Public Private Partnerships: ing first year of operation, actual traffic/toll Virginia Route 895, downloaded from www. revenues were 43 percent less than pro- fhwa.dot.gov/PPP/case_studies_pocahon- jected. The revenue has increased, but not tas.htm, 30 January 2009. to expected levels, largely because of slower

Appendix B  Appendix C: Privatization Projects Proposed or Underway

State: Alabama and Florida (Wiregrass Pike). (3) CONCESSION Road: I-10 Connector TERM - Five years after construction if Concessionaire: A non-profit corporation completed, as long as the bonds are paid in Alabama, Focus 2000, was created to off (Ingram - Connector) design, build and operate the Alabama Status: Many of the necessary parties in toll road (Ingram - Plans). Focus 2000 is Alabama have signed off on the project, composed of potential investors, business though talks with Florida officials have owners, and the Chambers of Commerce stalled due to worries that traffic on US in the affected areas. (MacDonald) A non- 231 will be diverted. Focus 2000 hopes profit for the Florida sector will be created Florida counties will formally support the in the future (Ingram - Connector) project by summer 2009. A feasibility traf- Contract Type: Two private, non-profit fic study will be completed in March 2009, corporations will design, contruct, and after which Focus 2000 will go to the bond operate the toll road using private funds market for funding (Ingram - Top 10). The (Ingram - Connector). road must still clear environmental review, Project Details: The toll road is intended and it is possible that the Florida segment to be a north-south connection between of the road, which will cross wetlands, may the Wiregrass region in Alabama and I-10 fail the review process (MacDonald). in the Florida Panhandle. The main sec- Controversy: (1) There has been much tion of the road will extend from Dothan, criticism about the lack of information Alabama to I-10. Secondary proposals provided to the general public, such as include extending the road northwest from traffic forecasts, revenue estimates, financ- Dothan to Montgomery, and extending ing details, and detailed routes. For this the road south from I-10 to Panama City reason, County, FL, voted (Wiregrass Pike). against the project. Supporters of the road, Cost/Financing: (1) COSTS - $400 mil- however, say it can be built without the lion (Ingram - Top 10). (2) FINANCING County’s support by routing it through - The road will be built using a non-profit Jackson County instead (Wiregrass Pike) corporation that will use private financing (2) There is also criticism of the financing

 Private Roads, Public Costs structure of the road and its reliance on bill. The House has already passed legisla- a non-profit corporation. The other two tion authorizing the state toll authority to major roadways built using this model, enter into a public-private partnership, and the Pocahontas Parkway and Greenville the Senate is expected to pass the necessary Southern Connector, both failed because legislation (Sherer). the developers have an incentive to over- Sources: (1) Dana Beyerle, “North-South invest as their fees are related to the capital Freeway: $5.3 Billion,” Times Daily, 28 costs of the project (Wiregrass Pike). October 2008. (2) Jim Folsom Jr., “Trans- Sources: (1) Debbie Ingram, “Connector portation Infrastructure in Alabama is at Road Called Economic ‘Foyer’ For Florida, a Crossroads,” The Leeds News, 20 August Alabama,” Jackson County Floridian, 5 May 2008. (3) Phillip Rawls, “Folsom Wants 2008. (2) Debbie Ingram, “Plans for Toll Commission to Study West Alabama Free- Road Connector to I-10 in Florida An- way,” The Associated Press, 8 May 2008. (4) nounced,” OANow.com, 6 May 2008. (3) Dennis Sherer, “Highway to Mobile Would Debbie Ingram, “Top 10 Stories: No. 7: Take Public/Private Effort,” Times Daily, 9 Toll Road Proposed,” Dothan Eagle, 24 November 2008. December 2008. (4) Ginny MacDonald, “Group Proposes Montgomery-to-Panama City Toll Road,” The Birmingham News, 15 State: Alabama May 2008. (5) “Wiregrass Pike ‘Not For Road: US 280 East Profit’ Tollroad Proposal Takes Hit in Concessionaire: Undetermined FL Panhandle,” Toll Roads News, 11 June Contract Type: Undetermined 2008. Project Details: The State DOT wants to construct elevated lanes on US 280 from I-459 to Double Oak Mountain (Associ- State: Alabama ated Press) Road: North-South Highway Cost/Financing: (1) COSTS - undeter- Concessionaire: Undetermined mined. (2) FINANCING - The road will Contract Type: Undetermined be financed through toll revenue, probably Project Details: The four-lane road will under a privatization agreement (NBC run from the Shoals to Mobile (Rawls, 13) Beyerle). Status: Figg Engineering Co. is studying Cost/Financing: (1) COSTS - $5.3 billion the project to determine how to integrate (Beyerle). (2) FINANCING - The state the elevated 280 traffic into I-459, as well has allocated $7.8 million to study the pro- as how to pay for the lanes (Construction posal (Beyerle). Lawmakers have stated that Equipment Guide). they intend to use both public and private Sources: (1) “Toll Roads Could Be Alabama financing (Sherer). Highway Funding Answer,” NBC 13, 3 July Status: In May 2008, Lieutenant Gover- 2008. (2) “ALDOT Director Says US 280 nor Folsom announced the creation of a Project Would Require Tolls,” Construc- Commission on Public Private Partnership tion Equipment Guide, 30 January 2008. (3) Projects to study ways to finance new roads. “Transportation Director’s Goals Include The Commission was scheduled to report Possible Ala. Toll Road,” The Associated its findings in February 2009 to the Legis- Press, 31 December 2007. lature, and will include infomration on the North-South highway (Folsom). Before the State: Alabama road can be built with private financing, the Road: Patriot Parkway - Huntsville South- Senate would need to approve a toll road ern Bypass

Appendix C 9 Concessionaire: Undetermined. URS has alone, so they are currently working to cre- been selected to do a traffic and revenue ate a state-federal-city-county toll package. study to assess the feasibility of the road $60 million has already been invested in (Toll Roads News). construction (Associated Press). Contract Type: Undetermined Status: No visible action has been taken Project Details: The proposal is to con- recently. Initially, the DOT’s research struct a mostly 6-lane bypass around indicated the loop would not be viable as a Redstone Arsenal in Hunstville. A 4-mile toll road (Rawls - AL Governor Eyeing). bridge will be built over wetlands (Toll However, it has been mentioned more re- Roads News). cently as a possible toll road by the gover- Cost/Financing: (1) COSTS - The project nor and DOT director. In December 2007, will cost between $750 to $800 million the state DOT director indicated that he (Toll Roads News). (2) FINANCING was working on a state-federal-city-county - Private financing will probably be used toll package to complete the roadway (As- (Toll Roads News). sociated Press). Status: A lack of money at the state level Sources: (1) “ALDOT Director Says has caused delays in studying the Parkway US 280 Project Would Require Tolls,” (Clines). Construction Equipment Guide, 30 January Controversy: There are environmental 2008. (2) “Transportation Director’s Goals concerns about the road. Nearly a third of Include Possible Ala. Toll Road,” The As- the road will traverse the swamps of the sociated Press, 31 December 2007. (3) Phillip River which may cause ecologi- Rawls, “Alabama Governor Eyeing Tolls cal problems. Currently the proposal is to For Some New Roads,” The Associated Press, build a bridge structure to protect these 23 September 2007. (3) Phillip Rawls, “Ala- wetlands (Toll Roads News). bama Governor, Transportation Secretary Sources: (1) Keith Clines, “Battle Chal- Promote Toll Roads,” The Associated Press, lenges Mayor on Projects; Spencer Says 26 January 2008 They’re Already in Works,” The Huntsville Times, 4 October 2008. (2) “Huntsville AL to get 21km Tolled Southern Bypass,” Toll State: Roads News, 4 September 2007. Road: Knik Arm Bridge Project (Officially called Don Young’s Way) Concessionaire: The Knik Arm Bridge and State: Alabama Toll Authority (KABATA) has shortlisted Road: Montgomery Outer Loop two construction consortiums: Bouygues Concessionaire: Undetermined Travaux Publics SA and Macquarie Bank. Project Details: The road will serve as an Attorneys at Nossaman, Guthner, Knox & outer loop around Montgomery, connect- Elliot are advising on the contract, while ing I-65 to I-85 (Associated Press). Citigroup Global Markets is serving as fi- Cost/Financing: (1) COSTS - undeter- nancial advisor (Public Works Financing). mined. (2) FINANCING - undetermined. Contract Type: Concession - design, build, The Governor has stated that this road operate, maintain may be constructed with private finacing, Project Details: The bridge would connect or joint public-private financing, if the toll mostly undeveloped land near Port MacK- revenue is not sufficient to cover construc- ensie to Anchorage through Government tion costs (Rawls - Transportation Secre- Hill. There may also be a connection from tary). The DOT director has stated the the bridge to Ingra and Gambell project cannot be built with toll revenues (Hopkins).

10 Private Roads, Public Costs Cost/Financing: (1) COSTS - Project will Additionally, affected communities are not cost $667 million if construction begins required to sign off on the final contract or in 2009 (Public Works Financing). Some on scheduled toll increases, and concession believe the project will actually cost more deals can be signed for an unlimited num- than $1 billion when extra costs are taken bers of years (Public Works Financing). into account, such as cost of delays, financ- (3) Congressman Don Young requested ing costs, and potential permitting delays the initial earmark for the bridge. There or lawsuits. The connection from the is some worry about potential conflicts of bridge to Ingra and Gambell streets will interest, as his son-in-law owns land where cost an additional $200 million (Hopkins). the bridge will be built and will profit from (2) FINANCING - The US DOT has al- its construction (Burke). (4) Construction located $600 million of tax-exempt private- of the bridge may threaten a population of activity bonds (Saskal). Private finacning beluga whales (Burke). will be used for the majority of the costs Sources: (1) Garance Burke, “Palin (Public Works Financing). (3) CONCES- Supports $600 Million ‘Other’ Bridge SION FEE - KABATA predicts that it Project,” International Business Times, 16 will receive an upfront fee of $37 million September 2008. (2) Kyle Hopkins, “Knik and lease payments totalling $381 million Arm Bridge Hits Fork in the Road,” An- (Public Works Financing). (4) CONCES- chorage Daily News, 9 June 2008. (3) “Knik SION TERM - KABATA estimates the Arm Bridge Hits a Snag,” Public Works concession will be for 60 years (Public Financing, June 2008. (4) Rich Saskal, Works Financing). (5) KABATA predicts “Alaska’s Knik Arm Bridge Held Up Amid a round trip toll rate of $8 to $12 (Public Questions of Cost, Necessity,” The Bond Works Financing) Buyer, 7 July 2008. Status: The state and federal government are requiring a review of the bridge’s pro- jected costs before moving forward with State: Arkansas the project. The Authority has already filed Road: No road has been identified an environmental impact statement, but Project Details: Officials have passed en- the Federal Highway Administration will abling legislation for concession deals and not issue a record of decision until another regional mobility authorities. However, cost estimate is conducted. Once a record no viable road for privatization has been of decision is released, the next step would identified because rural areas do not have be to issue a detailed request for qualifica- enough traffic to justify the investment. tions (Saskal). Controversy: There are numerous points of controversy surrounding this project: State: Arizona (1) Governor Palin has expressed concern Road: Hassayampa Freeway Network over the maximum damages KABATA Concessionaire: Undetermined or the state would be forced to pay to the Contract Type: Undetermined - Public, concessionaire if government permits are public-private, and private options are delayed or not issued, or if traffic falls under consideration below a guaranteed floor (Public Works Project Details: The Maricopa Association Financing). (2) The legislation authoriz- of Governments and other stakeholders ing KABATA to enter into privatization designed a conceptual transportation agreements does not require public re- framework for the Hassayampa Valley. view, comments on the draft contract, or Private toll roads are one option under legislative approval of the final contract. consideration for financing the plan.

Appendix C 11 Cost/Financing: Estimated $22 billion Bernadino and Los Angeles, and the Cit- (Leuck) ies of Adelanto, Victorville, Apple Valley, Status: Funding for the highway network Lancaster and Palmdale have formed a is not included in the regional transporta- Joint Powers Authority to develop a new tion plan. expressway from SR 14 to I-15. The road Sources: (1) Curtis Leuck and Associates, may eventually reach I-5 (County). The I-10 Hassayampa Valley Roadway Framework local governments are working together Study, prepared for the Maricopa Associa- to build the corridor under some form of a tion of Governments, September 2007. public-private partnership (Stanton). Cost/Financing: (1) COSTS - Estimated at $2.6 billion (County) State: Arizona Status: The City of Victorville has re- Road: Val Vista Freeway ceived federal funds to develop a portion Concessionaire: Undetermined of the corridor from US 395 to I-15 and Contract Type: Listed as a potential public- on through SR 18. The preliminary en- private partnership by Arizona DOT gineering and environmental studies are Project Details: A 46-mile greenfield proj- underway. The Joint Powers Authority ect proposed primarily for Pinal County, has released a Request for Proposals seek- Arizona. ing services from engineering consultant Sources: Harold Kitching, “Two Major firms to develop and manage the effort Highway Projects in the Casa Grande Val- (County). ley Tied to a Proposed One-Cent Increase Sources: (1) County of San Bernadino in the State’s Sales Tax Could End Up Department of Public Works, High Desert Being Toll Roads,” Casa Grande Dispatch, Corridor, Joint Powers Authority, 2007. (2) 5 June 2008. Barb Stanton, “Public-Private Partnerships in California,” The Barb Stanton Show, 20 January 2008. State: Arizona Road: North-South Corridor Concessionaire: Undetermined State: California Contract Type: Listed as a potential public- Road: Valley View Avenue in Felton private partnership by Arizona DOT Concessionaire: Undetermined Project Details: A group of businesspeople Contract Type: Concession and developers in Pinal County financed Project Details: The Public Works Depart- a feasiblity study for construction of ment in Santa Cruz has over $100 million highway(s) in the North-South Corridor in necessary street maintenance projects. as toll roads. The Department suggested privatizing the Sources: “$900+ Million Tollroad Being roads to avoid the initial outlay, however Studied in Pinal County Arizona,” Toll public outcry led officials to shelve the Roads News, 9 March 2007. plan for both Little Basin and Valley View Roads (Alexander). State: California Status: Plans for privatizing Valley View Road: High Desert Corridor Avenue have been tabled for now (Alex- Concessionaire: Undetermined ander). Contract Type: Undetermined - The Sources: Kurtis Alexander, “County Plan project may be built as a develop/manage to Privatize Roads gets No Traction,” Santa contract instead of a concession Cruz Sentinel, 24 September 2008. Project Details: The Counties of San

12 Private Roads, Public Costs State: California Cost/Financing: (1) COSTS - A prelimi- Road: Little Basin Road off Highway 236 nary study calculated the costs at between Concessionaire: Undetermined $2.28 and $4.89 billion for the basic tun- Contract Type: Concession nel. It would cost an additional $1.3 bil- Project Details: See Valley View Avenue. lion to build an intermediate Status: See Valley View Avenue. underground with four ramps (Toll Roads Sources: See Valley View Avenue News). (2) FINANCING - Initial plans for the envisioned the use of some State: California private financing. Thus far the MTA has Road: Foothill South Toll Road allocated $780 million to the project with Concessionaire: Undetermined revenue from a half-cent sales tax measure Contract Type: Undetermined (Abendschein). Project Details: The Foothill South Toll Status: A preliminary study in 2006 found Road is a proposed road that would begin at that constructing the tunnel would be fea- Oso Parkway in Rancho Santa Margarita, sible, but it would cost $3 billion and take pass though San Onofre State Beach, and 9 to 11 years to complete. In March 2007, connect with I-5 at Baseline Road. MTA board officials approved a study to Cost/Financing: (1) COSTS - $875 million determine whether it would be possible to Status: The California Coastal Com- tunnel under the city of South Pasadena; mission rejected plans for the toll road in there is no indication that the study has February 2008 over numerous concerns, been completed (Associated Press). In such as environmental damage, low traffic, August 2008, a bill authorizing the MTA the need to promote mass transit, and little to enter into an agreement with a private research into alternatives. The US Com- company to complete the tunnel died in merce Department upheld the Coastal committee, and there is no indication of Commission’s decision in December 2008. whether transportation officials will con- (Rosenblatt) tinue to try to get legislative approval for a Sources: Susannah Rosenblatt, “O.C. Toll privatization agreement (Abendschein). Road Hits in D.C.,” Los Angeles Controversy: The Metropolitan Transpor- Times, 19 December 2008. tation Authority allocated $780 million to the project with revenue from a proposed half-cent sales tax measure. In response, State: California two localities, South Pasadena and La Road: I-710 Tunnel Flintridge, filed lawsuits to stop the Concessionaire: Undetermined funding because an environmental impact Contract Type: Undetermined. In August study had not been conducted and there 2008, a bill that granted the Metropolitan was no specified route. South Pasadena Authority the authority to privatize roads officials say they do not oppose the road, died in committee. There is no indication only allocating money when no route has whether officials will continue to pursue been identified. La Canada Flintridge of- privatization (Abendschein). ficials are concerned about traffic impacts Project Details: The I-710 Tunnel is a pro- from the extension. Both cities maintain posed alternative to a contentious surface that the MTA violated the California road that would cut through downtown Environmental Quality Act by proposing South Pasadena and demolish many histor- funding without an environmental review ical homes. The tunnel would serve as the (Abendschein). missing link in the I-710 freeway between Sources: (1) Dan Abendschein, “Lawsuits Alhambra and Pasadena (Poole). Filed to Stop Tunnel: Two Local Cities

Appendix C 13 Oppose Extension That Would Link 210, unstable to handle drilling, or that water 710 Freeways,” Pasadena Star-News, 9 levels would complicate keeping the road September 2008. (2) “Study of $3 Billion dry, then the project will be abandoned Freeway Tunnel Under South Pasadena (Begley). Ok’d,” The Associated Press, 22 March 2007. Sources: (1) Doug Begley, “Driling Under (3) Jean Guccione, “Ask the Bottleneck Way to Study Building Traffic Tunnel to Blog: 710 Freeway Tunnel,” Los Angeles Orange County,” The Press Enterprise, 23 Times, 15 March 2007. (4) Robert Poole April 2008. (2) “The Big Dig Continues,” and Peter Samuel, “The Return of Private Los Angeles Times, 23 March 2007. (3) Rob- Toll Roads,” Public Roads, US DOT Federal ert Poole and Peter Samuel, “The Return Highway Administration, March/April of Private Toll Roads,” Public Roads, US 2006. (5) “ for I-710 in South DOT Federal Highway Administration, Pasadena CA Found Feasible,” Toll Roads March/April 2006. News, 2 July 2006.

State: California State: California Road: Adding truck lane capacity to I-710 Road: Tunnel linking the Foothill/Eastern eastbound along SR 60 Toll Road in Orange County to I-15 in Concessionaire: Undetermined Riverside County Contract Type: Undetermined Concessionaire: Undetermined Project Details: The proposal is to add Contract Type: Undetermined truck lane capacity to the corridor follow- Project Details: The tunnel would link ing the I-710 freeway from the ports of the Foothill/Eastern Toll Road in Or- LA and Long Beach to intermodal yards, ange County to I-15 in Riverside County, then eastbound along the SR 60 Pomona providing an to the SR 91 Freeway (Poole). Riverside Freeway and the SR 74 Ortega Cost/Financing: (1) COSTS - Undeter- Highway. The tunnel would go through mined. (2) FINANCING - Undetermined. the mountains of National Tolls will be placed on the truck lanes to Forest (Poole). The tunnel is one of three provide revenue. alternate proposals. The other two are Status: There has been no recent mention building a freeway parallel to or above SR of the proposal. 91 and widening SR 74 (Begley). Sources: (1) Robert Poole and Peter Sam- Cost/Financing: (1) COSTS - $6 billion. uel, “The Return of Private Toll Roads,” (2) FINANCING - Private financing will Public Roads, US DOT Federal Highway probably be involved. The federal govern- Administration, March/April 2006 ment has given a $15.8 million grant to examine congestion relief methods in the State: Colorado region, and it is currently being used to Road: I-70 Express Lanes fund the drilling and testing of the tun- Concessionaire: Undetermined nel. Contract Type: Undetermined - tolling is Status: Geologists are drilling into the one option under consideration Santa Ana Mountains to collect rock Project Details: The Colorado Dept. of samples. The results will be used to deter- Transportation is engaged in a corridor mine whether tunneling into the moun- study of the I-70 corridor east of I-25 in tains is feasible (Los Angeles Times). The Denver. The creation of express toll lanes tests should be completed by late 2009. is one option under consideration. Private If the results indicate that the rock is too capital funding is a possibility.

14 Private Roads, Public Costs Cost/Financing: COSTS - undetermined Sources: (1) Colorado Department of Status: A Draft Environmental Impact Transportation, CDOT Ends Northwest Statement for the corridor is in a public Corridor Environmental Study Prior to comment period. Completion (press release), 17 October Sources: U.S. Department of Transporta- 2008. (2) Jeffrey Leib, “Toll Firm Objects tion and Colorado Department of Trans- to Work on W. 160th,” Denver Post, 23 July portation, I-70 East Draft Environmental 2008. (3) “Concessionaire Sought Soon for Impact Statement and Section 4(f) Evaluation, 13 Mile Pike Northwest of Denver - Miss- November 2008 ing Link in Beltway,” Toll Roads News, 11 December 2008.

State: Colorado Road: Jefferson Parkway Toll Road from State: Colorado C-128 to C-93 near Golden Road: US 36 Concessionaire: Jefferson Parkway Public Concessionaire: Undetermined Highway Authority (JPPHA) will soon Contract Type: Undetermined - the road begin talking to private groups interested will be tolled, but it is unclear whether it in a long-term concession lease (Toll Roads will be privatized News). Project Details: The project would be to Contract Type: Concession - design, build, expand US-36 between I-25 and Boulder operate, maintain with the addition of high occupancy vehicle Project Details: JPPHA plans to build a lanes for the length of the corridor (Leib). toll road from Colorado 128 near Jefferson The project may eventually include a County’s Airport to Colorado 93 (Toll rapid transit service (States). Roads News) Cost/Financing: (1) COSTS - undeter- Cost/Financing: (1) COSTS - Total costs mined. (2) FINANCING - The project for the corridor are estimated at $1.176 will be built with some private financing. billion, though some of this is out of the Status: The acting director of the Colorado JPPHA’s jurisdiction. The Jefferson Park- Tolling Enterprise told legislators that the way portion is exepcted to cost $835 mil- agency expects to solicit interest in a pos- lion (Toll Roads News). (2) FINANCING sible privatization agreement that would - CDOT has spent $15 million developing help fund and construct the road (Leib). the project (Toll Roads News) The project has stalled, though. In 2007 Status: The JPPHA will soon issue a Re- that state attempted to get a grant from quest for Expressions of Interest for a toll US DOT for the road, but it was rejected. concession, followed by a formal Request The Governor has begun lobbying again to for Proposals. The permitting process receive some of the money New York lost is complete except for getting air qual- when it turned down a proposal to toll driv- ity conformity and acceptance from the ers entering parts of Manhattan (Flynn). Denver Regional MPO. They hoped to Sources: (1) Kevin Flynn, “US 36 Expan- submit this application by February 2009 sion May Get Second Shot,” Daily Camera, (Toll Roads News). 8 April 2008. (2) Jeffrey Leib, “Toll Firm Controversy: (1) People are worried that Objects to Work on W 160th,” Denver this concession may contain a non-compete Post, 23 July 2008. (3) “Members of CO clause similar to the one in the Northwest Delegation Urge Dept. of Transportation Parkway agreement. (2) There is significant to Award Funding to Colorado for Im- opposition from Golden residents, where provements on US 36,” States News Service, the road is intended to go (Leib). 9 April 2008.

Appendix C 15 State: Colorado now carry the warning and property values Road: Prairie Falcon Express have dropped 25 percent. The legislature Concessionaire: Front Range Toll Road, considered legislation to clear the property Ltd., LLP has acquired all assets and the titles of this disclaimer (Sealover). rights of and interest in the Front Range Sources: (1) Martin Forstenzer, “Developer Toll Road Company, which is conducting Wants Toll Road, Colorado Makes it Dif- business under the name Prairie Falcon ficult,”New York Times, 22 September 2006. Parkway Express Company, PTR. Ray (2) Ed Sealover, “Property Owners in Path Wells is the face of the campaign. of Super Slab Likely to Get Titles Cleared,” Contract Type: Develop, design, construct, The Gazette, 24 March 2008. finance, maintain and operate Project Details: The road wouuld begin 13- 16 miles north of Fort Collins and end 7-10 State: miles south of Pueblo (Forstenzer). Road: Route 1, I-95, and a section of US Cost/Financing: (1) COSTS - Costs are 301 estimated at $2-3 billion. (2) FINANC- Concessionaire: Undetermined ING - private financing will be used. (3) Contract Type: Undetermined TOLLS - Tolls would likely be 5 to 6 cents Project Details: In June 2004, the Governor per mile, or $10-12 to go the length of the established a Transportation Development roadway. The concessionaire would make Funding and Options Task Force to deter- additional money by granting concessions mine ways to improve and increase capac- in plaza areas and real estate development ity on roadways. In creation of the task at interchanges (Forstenzer). force, the Governor specifically mentioned Status: The formal process of getting ap- privatization of US 301, Route 1, and I-95. provals under state law began in August However, the report barely mentioned the 2006. Before the construction can begin, creation of P3s, and two officials indicated Colorado law requires that public reviews that such agreements were off the table must take place and an environmental (Toll Roads News). analsysis must be conducted, a process Cost/Financing: (1) FEE - A concession of which could take years. After completion I-95 could garner a $1.9 billion lump-sum of the design and environmental studies, payment (Ackerman) the project will be reviewed by regulatory Status: It appears that privatization has agencies. Upon approval, land acquisition been tabled in Delaware (Smith). and construction will begin. The actual Sources: (1) Andrew Ackerman, “Delaware’s construction is expected to take 2.5 to 3 Gov. Minner Mum on Highway Privatiza- years. Public outcry appears to have tem- tion Proposal,” The Bond Buyer, 23 January porarily halted the project. (Sealover) 2006. (2) Nicole Smith, “Shortfall Strategy: Controversy: (1) In August 2006, Wells Debt Boost, Fee Hikes,” The Bond Buyer, 28 hired a Halliburton subsidiary called Kel- March 2007. (3) “Delaware Task Force Shies logg, Brown & Root to work on the new Away From Investigating Privatization,” Toll proposal. Some property owners believe Roads News, 1 December 2005. the company was hired to intimidate property owners because of the company’s political influence (Forstenzer). (2) Legisla- State: Florida tion in 2006 notified county clerks of the Road: Alligator Alley proposed roadway, which was then attached Concessionaire: 6 Teams have submitted to the housing deeds of homeowners in the statements of qualifications: Trans- proposed path. As a result, housing titles portation Partners, Everglades Parkway

16 Private Roads, Public Costs Partners, Atlantia SPA, Vinci Concessions Alley TR Florida,” Toll Roads News, 26 Sep- and Hubbard Construction Co., Alliga- tember 2008. (4) “More Detail on Three tor Alley Development Partners, GVI- Florida Lease-Concession Prospects,” Lehman Alligator Alley Access Partners Toll Roads News, 3 October 2007. (5) Leslie (Samuel). Williams, “Alley Draft Agreement Out But Contract Type: Lease, maintain, operate Tolls, Other Details Forthcoming,” Naples Project Details: Alligator Alley is a 78-mile Daily News, 26 August 2008. (6) Leslie Wil- section of I-75 in south Florida that con- liams, “Collier Considers Suing State Over nects the Atlantic and Gulf coasts, going Possible Alley Lease,” Naples Daily News, from near Fort Lauderdale to Naples (Toll 23 September 2008. (7) Leslie Williams, Roads News - Brisa Group). “FDOT Postpones Deadline to Bid on Cost/Financing: (1) FEE - FDOT estimates Alligator Alley Lease,” Naples Daily News, it can receive an upfront fee of between 24 December 2008. $504 million to $1.332 billion for a 50 to 75 year concession (Toll Roads News - More Detail). (2) TOLLS - With a concession fee State: Florida of $1.3 billion, tolls would be appoximately Road: North Tampa’s East-West Road $4 for cars, rising to $8 in year five, and Project $10 in year ten (Toll Roads News - More Concessionaire: Plenary was chosen as the Detail). (3) PROCEEDS - the state will use preferred partner in February 2007 (Public the concession payment for transportation Works Financing). projects (Williams - Collier) Contract Type: Undetermined Status: Many groups have been trying to Project Details: The proposal is to build stall the concession agreement, and there a 3-mile road in Tampa (Public Works is intense opposition from politicians and Financing) citizens. Recently, FDOT postponed the Cost/Financing: (1) COSTS - $150 million deadline for bids. This occured because to construct the road. (2) FINANCING proposers have said they need more time - private financing will be used to pay for because of the financial crisis. The lack of construction in exchange for a 60 year credit is creating a burden for the propos- concession term. (3) TOLLS - Plenary pro- ing firms (Williams - FDOT Postpones). posed an initial toll level of $1.50, rising to Controversy: (1) The draft agreement con- $2.75 in five years, and rising thereafter by tains a compensation clause requiring the either 4% or the CPI, whichever is greater state to compensate the private operator (Public Works Financing). if transportation policies or other public Status: In June 2008, Tampa Hillsboro actions reduce the value of the toll road Expressway Authority and the city of (Williams - Alley Draft). (2) A study by Tampa ended the PPP procurement and KPMG accounting firm found that the terminated negotiations. The proposed state could raise $600 million to $1.6 bil- tolls were considered too high and the lion through bonds (Mayo). concession term of 60 years was considered Sources: (1) Michael Mayo, “Time to too long. This decision was made when the Throw the Brakes on Alligator Alley federal government requested a new traffic Lease Plan,” South Florida Sun-Sentinel, study. Plenary offered to pay $500,000 for 17 August 2008. (2) Chelsea J. Samuel, the study, but also sought changes to feeder “Alligator Alley Lease Bids Get OK from roads and an extension of the lease to 60 Review Panel,” The News-Press, 26 August years, from the initial 40-year term (Public 2008. (3) “Brisa Group Scores Highest in Works Financing). Qualifications for Concession of Alligator Sources: (1) “Developer Plenary Punts

Appendix C 17 on Tampa Road,” Public Works Financing, (2) FINANCING - the project will use pri- June 2008 vate financing. (3) TOLLS - variable tolls will be charged on the express lanes based on congestion. The state will collect the State: Florida tolls and set the rates, using the proceeds to Road: Poinciana Parkway pay the contractor a lump sum and annual Concessionaire: Avatar Holdings, a Florida payments over 35 years. (Turnbell). real estate developer Status: Construction is supposed to begin Contract Type: design, build, finance, oper- in 2009 and be completed by 2014 (Turn- ate and maintain bell). Project Details: A 9.7-mile road, of which Sources: (1) Michael Turnbell, “Four 4.1 miles would be toll. The road will link Teams Win Right to Bid on Major I-595 Poinciana, a master-planned community Project,” South Florida Sun-Sentinel, 4 De- built by Avatar, to the Orlando-area trans- cember 2007. (2) Larry Lebowitz, “Spanish portation network. Conglomerate Will Run I-595 Toll Road,” Cost/Financing: COSTS - Approximately Miami Herald, 25 October 2008 $200,000. Status: Avatar has the necessary state and federal permits to begin construction. Its State: Florida agreements with Osceola and Polk counties Road: I-75 state that construction is to begin by 2011 Concessionaire: ACCI/API - a joint venture and end by the end of 2011. of Anderson Colombia Co. Inc. and Ajax Sources: Avatar Holdings, Inc., Form 10- Contract Type: design-build Q Quarterly Report for the Period Ending Project Details: The project entails widen- September 30, 2008. ing the highway from two to three lanes (Udelhofen). Cost/Financing: (1) COSTS - the consor- State: Florida tium has a $430 million contract. (2) FI- Road: I-595 Reversible Express Lanes NANCING - the joint venture will finance Concessionaire: The contract was awarded the construction, and it will be repaid by to ACS Infrastructure Development FDOT over the next five years with some Contract Type: design, build, finance, repayments stretching out two years after operate and maintain. The private entity the project is complete (Udelhofen). will finance the construction, then it will Sources: Greg Udelhofen, “Florida’s receive an upfront fee from the state and Largest Road Project Underway,” Asphalt annual payments over 35 years Contractor, 1 March 2008. Project Details: The proposal is to build reversible express lanes in the I-595 me- State: Florida dian between SR 7 and I-75, construct Road: BeachLine Expressway (SR 528) additional lanes between exits and move Concessionaire: Undetermined some entrance/exit ramps to relieve merg- Contract Type: concession ing problems, and build the missing link Project Details: BeachLine East is the of SR 84 between Davis Road and SR 7 FDOT portion of a longer toll road called (Turnbell). ACS Infrastructures will re- the BeachLine, designated FL 528, which ceive 30 annual payments of $63.98 million has segments owned by the Orlando toll regardless of the tolls collected after the authority and Florida Turnpike Enterprise. road opens (Lebowitz) The state owns the stretch of road from SR Cost/Financing: (1) COSTS - $1.5 billion. 520 near the Orange and Brevard County

18 Private Roads, Public Costs lines to the Bennett at US High- Sources: (1) Florida Department of Trans- way 1 (Toll Roads News). portation, First Coast Outer Beltway Update Cost/Financing: (1) FEE - Under a full mar- (press release), 29 April 2008. (2) “Jack- ket toll rate, the concession could generate sonville Florida Outer Beltway $2 Billion a fee of $321 million. At half market toll + Toll Concession on the Go,” Toll Roads rates, the road would generate $140 million News, 18 December 2007. (Toll Roads News). Status: The state government is first focus- ing on Alligator Alley before considering State: Florida proposals for other roads. Road: State Road 9B Sources: (1) Aaron Deslatte, “BeachLine Contract Type: Design, build, finance, Joines Rent-a-Road Mix,” Orlando Sentinel, operate and maintain 22 September 2007. (2) “More Detail on Project Details: SR 9B is a planned freeway Three Florida Lease-Concession Pros- south of Jacksonville. It will go from SR 9A, pects,” Toll Roads News, 3 October 2007. connect to SR 9 (I-95), and then go south, possibly extending west as a bridge over St Johns River where it will connect with SR State: Florida 23 (NationMaster). Road: First Coast Outer Beltway Cost/Financing: Duval County has re- Contract Type: Design, build, finance, tracted Requests for Qualifications on operate and maintain the SR 9B project. Currently, FDOT Project Details: The First Coast Outer is evaluating a series of projects under Beltway is a consolidation of two earlier consideration across the state, and there projects, Brana Field Chaffee Road and St. is a Special Session on the state budget Johns River Crossing. The 4-lane road will deficit, so county officials decided to re- start southward from I-10 in Duval County tract the RFQ and await further updates west of Jacksonville, go east across the St. (FDOT). Johns River, and meet up with I-95 south Sources: (1) Florida Department of Trans- of Jacksonville (Toll Roads News) portation, “State Road 9B For Qualifica- Cost/Financing: (1) COSTS - Construc- tions - Retraction.” (2) “State Road 9B,” tion will cost $2.2 billion. (2) TOLLS - a NationMaster, downloaded from www. revenue maximizing toll would be 20 cents nationmaster.com/encyclopedia/State- per mile in 2000, and 27 cents per mile in Road-9B-(Florida), 30 January 2009. 2015 (Toll Roads News) Status: A Request for Qualifications has been postponed pending the resolution of State: Florida a number of issues. FDOT needs to first re- Road: Pinellas Bayway solve issues associated with potential prop- Concessionaire: Concession erty on the project and postponement Contract Type: Undetermined will allow the completion of environmental Project Details: The Governor has men- studies. The state is currently looking for tioned privatizing the Bayway, though it is financial advisers to assist in writing con- not a top priority because the bridges are tracts (FDOT) in poor condition (Brassfield). Controversy: There is some debate over Cost/Financing: Undetermined whether the proposed roadway is too Status: The Bayway is not considered a distant from Jacksonville to generate the top priority for privatization, no traffic necessary to make it a viable toll action has been taken (Brassfield). project (Toll Roads News). Sources: (1) Mike Brassfield, “Would

Appendix C 19 Bridge Leases Pay Off For Florida?” St. financed and built by existing public toll Petersburg Times, 25 November 2007 agencies. (FDOT) Status: A final alignment for the parkway is scheduled to be determined in spring State: Florida 2009. Road: Sunshine Skyway Sources: (1) Florida Department of Trans- Concessionaire: Undetermined portation, Wekiva Parkway Funding Plan, Contract Type: Concession 27 October 2004; (2) Wekiva River Basin Project Details: Sunshine Skyway, desig- Commission, Wekiva River Basin Com- nated I-275, spans the mouth of Tampa mission Meeting Minutes, 11 July 2008; (3) Bay and is considered the most direct route Orlando-Orange County Expressway Au- for west Tampa area people to get to St. thority, Wekiva Parkway Project Development Petersburg. and Environment Study, downloaded from Cost/Financing: (1) FEES - Lease of the www.expresswayauthority.com/Corporate/ Skyway could generate a $477 million oursystem/SR429/WekivaParkway.aspx, to $1.315 billion concession payment. (2) 28 January 2009 TOLLS - Tolls are currently 75 cents. At a full market toll rate, tolls would be $1.50 in 2008, rising to $3 in 2012, and $5 in 2017 State: Georgia (Toll Roads News) Road: Various Proposals Status: No action has been taken - Sun- Concessionaire: Undetermined shine Skyway is in need of a lot of main- Contract Type: Undetermined tenance work, which would reduce the Project Details: Georgia is facing budget concession fee (Brassfield). shortfalls and transportation problems. Sources: (1) Mike Brassfield, “Would Governor Perdue has already gone to Bridge Leases Pay Off for Florida,” St. Pe- Texas and Spain, leading many to think tersburg Times, 25 November 2007. (2) Lar- he plans to privatize some roadways. In ry Lebowitz, “Spanish Conglomerate Will 2003, the Georgia General Assembly Run I-595 Toll Road,” Miami Herald, 25 passed legislation allowing it to enter into October 2008. (3) “More Detail on Three P3 agreements, which prompted financiers Florida Lease-Concession Prospects,” Toll to propose adding toll lanes along I-75 Roads News, 3 October 2007. and I-575, though none of the plans have been acted upon. In 2004, the state fielded proposals from three firms to convert GA State: Florida 316 between Lawrenceville and Athens Road: Wekiva Parkway into a toll road that would charge drivers Concessionaire: Undetermined - Project 12 cents per mile, but public opposition is being planned by the Orlando-Orange blocked the plan. DOT Commissioner County Expressway Authority Gena Evans shelved the privatization Contract Type: Undetermined proposals when she took office saying the Project Details: The Wekiva Parkway contracts required a trained eye and careful would be a 27-mile parkway, completing deliberation (Wheatley). the beltway around Orlando. Status: DOT Commissioner Gena Evans Cost/Financing: COSTS - The estimated shelved many proposals when she came to cost of the project in 2004 was $970 mil- office. Governor Perdue however appears lion. (FDOT) FINANCING - Public- to be considering P3s as a way to deal private partnership is being considered for with transportation and budget problems financing. (Wekiva) The road could also be (Wheatley). He recently went to Spain and

20 Private Roads, Public Costs met with a private toll operator, and he possible that GA 400 will be revived in this has indicated that he plans to unveil a new new plan (Yarbrough). transportation proposal. Sources: (1) Crossroads 400 Group, A Sources: (1) Thomas Wheatley, “Will Group With Unparalled Expertise - and Ex- Perdue Privatize Georgia Highways?” perience, downloaded from crossroads400. Creative Loafing, 24 September 2008, (2) com/about.shtml. (2) Ariel Hart, “State Dick Yarbrough, “DOT Provides All the Kills GA 400 Toll Lane Proposal,” Atlantic Comedy We Can Handle,” Gwinnett Daily Journal Constitution, 21 October 2008. (3) Post, 21 January 2009. US Department of Transportation, In- novation Wave: An Update on the Burgeon- ing Private Sector Role in US Highway and State: Georgia Transit Infrastructure, National Council on Road: GA 400 Public Private Partnerships, 18 July 2008. Concessionaire: The private entity is (4) Dick Yarbrough, “DOT Provides All Crossroads 400, a consortium of contract- the Comedy We Can Handle,” Gwinnett ing and engineering firms: APAC-South- Daily Post, 21 January 2009 east; Granite Construction Company; Washington Group International; AR- CADIS; Post, Buckley, Schuh & Jernigan; State: Georgia URS Corporation; Washington Group Road: I-285 Truck Toll Lanes International (Crossroads 400 Group) Concessionaire: Goldman Sachs submitted Contract Type: Undetermined - Crossroads the initial proposal (though has since with- 400 proposed a design-build arrangement, drawn the bid), and four others have been but has also mentioned an interest in oper- submitted since (USDOT). The other ating and maintaining the completed toll teams are led by: Skaska USA Civil Inc., facility. The consortium did not initially Babcock & Brown LP, Cintra Concesiones propose private financing. (USDOT) de Infraestructuras de Transporte SA, and Project Details: In 2004, a consortium of Horizon Mobility Group (a consortium engineering and road-building companies that includes former GDOT commissioner under the name Crossroads 400 submit- Tom Moreland) (Mahoney) ted a proposal to build HOT lanes on GA Contract Type: Undetermined 400. The lanes would be built along GA Project Details: I-285 is a beltway around 400 from I-85 at Brookwood or I-285 in Atlanta. The proposal is to develop truck- Sandy Springs north to GA 20 in Cum- only toll lanes on I-285 from the I-75 in- ming (Hart). terchange in Cobb County south to I-20, Cost/Financing: (1) COSTS - $1.6 billion and from the I-20/I-285 interchange to (Hart). (2) FINANCING - the initial pro- Thornton Road (Mahoney). The lanes are posal did not include private equity financ- intended to complement the TOT lanes ing (USDOT). (3) TOLLS - there would that may be constructed as part of the be variable toll rates based on congestion Northwest Corridor Project (USDOT). Status: A state committee decided to table Cost/Financing: (1) COSTS - Goldman the proposal on the basis that it was not Sachs’ proposal estimated construction revenue neutral. The proposal had been costs at $400 to $500 million (Toll Roads rewritten and supporters say it is now rev- News). (2) FINANCING - the project enue neutral. Recently, the Governor went could be built with public bonds, though to Spain and met with a private toll road it will most likely be privately financed company, and has indicated that he plans (Hart - Debate). (3) TOLLS - there has to release a new transportation plan. It is been some discussion of making the tolled

Appendix C 21 TOT lanes mandatory for truck traffic, but (2) FINANCING - private financing there has been significant opposition from would be used. (3) TOLLS - revenue would trucking groups (Hart - Debate). come from variable toll rates. Toll rates are Status: GDOT is currently studying the expected to be a minimum of 20 cents per proposals. mile in 2010, and would rise to $1.01 per Controversy: A 2008 study by GDOT found mile by 2050. Forecasts predict toll revenues that truck lane projects, such as I-285, may of $2-3 million in the first year, and $23 not reduce enough to million in 2030 (Toll Roads News) be worth building. The study found that Status: GDOT issued a Notice of Intent to adding truck lanes would speed up regular Solicit in July 2007. The next step would be traffic on adjacent interstates by only 10 to issue a request for proposals, but the date miles per hour in the next three decades. for this has not been solidified (GDOT). Given that a full truck-lane network would When the DOT Commissioner, Gena cost $13 billion, the study recommends that Evans, came to office she decided to shelve the state not pursue TOT lanes. After the privatization proposals, so it is likely that release of the study, DOT Commissioner this project is now on hold. Gena Evans said all the proposals were Sources: (1) Georgia Department of still on the table, but she would take the Transportation, Active PPI Proposals: I-20 findings into account when evaluating the Managed Lanes Corridor, downloaded from projects (Hart - Truck). www.dot.state.ga.us/informationcenter/ Sources: (1) Ariel Hart, “Truck Lanes programs/ppi/ProjectsandProposals/ Might Not Be Worth the Cost,” Atlanta Pages/I-20ManagedLanesCorridor.aspx. Journal-Constitution, February 26, 2008. (2) US Department of Transportation, (2) U.S. Department of Transportation, Innovation Wave: An Update on the Burgeon- Innovation Wave: An Update on the Burgeon- ing Private Sector Role in US Highway and ing Private Sector Role in US Highway and Transit Infrastructure, National Council on Transit Infrastructure, National Council Public Private Partnerships, 18 July 2008. on Public Private Partnerships, July 18, (3) “Georgia DOT Seeking Investors for 2008, (3) Ariel Hart, “Debate Gears Up Toll Lanes on I-20 Southeast of Atlanta,” Over Truck Lanes,” Cox News Service, May Toll Roads News, 7 August 2007. 26, 2007, (4) Ryan Mahone, “Sachs Get Competition for I-285 Toll Lane Project,” Atlanta Business Chronicle, July 28, 2006, (5) State: Illinios Tollway System “Goldman Sachs Making Pitch for Atlanta Road: Illinois Tollway System Toll Truckway on I-285,” Toll Roads News, Concessionaire: Undetermined May 11, 2006. Contract Type: Lease Project Details: The 274 miles of roadways is being considered for privatization (Bary). State: Georgia The Governor has so far rejected the idea Road: I-20 Managed Lanes of leasing the tollway system (Shields). Concessionaire: Undetermined Cost/Financing: (1) FEE - Based on the Contract Type: design, build, finance, oper- concession fee in the Indiana deal, the ate and maintain road could generate a $20 billion up-front Project Details: The I-20 Managed Lanes payment (Bary). A report commissioned Corridor project would add two managed by the bipartisan Illinois Commission on lanes along the I-20 corridor from east of Government Forecasting and Account- I-285 to Turner Hill Road (USDOT). ability placed the value of the road at $1-24 Cost/Financing: (1) COSTS - undetermined. billion, depending on the structure of the

22 Private Roads, Public Costs deal. Factors that will determine the value Evansville Courier & Press, 17 March 2007. of the road are: length of the concession (2) Carol Henrichs, “Big Illinois Push agreement, traffic projections, intial toll for Illiana Expressway, Decision Now increases, the cost of capital, and operating Remains in Indiana Hands,” CHBlog, efficiencies (Shields). 25 April 2007. (3) Yvette Shields, “Amid Status: No visible action has occurred Criticism, Indiana Governor Scraps Plans since 2007. to Privately Finance Toll Road,” The Bond Sources: (1) Andrew Bary, “Paying Up,” Buyer, 27 March 2007. (4) Vicki Urbanik, Barrons, 8 May 2006. (2) Yvette Shields, “Illiana Tollroad: Stop the Spin, Let’s Have “More Plans Afoot in the Land Where P3s Honest Public Debate,” Chesterton Tribune, Began,” The Bond Buyer, 28 March 2007 9 March 2007.

State: Indiana/Illinois State: Road: Illiana Expressway Road: Capital Beltway Concessionaire: Undetermined Concessionaire: Undetermined Contract Type: build-lease Contract Type: Design, build, finance, Project Details: The Illiana Expressway operate and maintain would connect I-57 in Illinois to I-94 in Project Details: The project is to construct Indiana. (Shields) Express Toll Lanes (ETLs) on the Capital Cost/Financing: (1) COSTS - undeter- Beltway from the American Legion Bridge mined. (2) FINANCING - Governor to the Woodrow Wilson Bridge (Smith). Daniels has proposed using private financ- Cost/Financing: (1) COSTS - Undeter- ing (Shields). mined Status: Due to public opposition, Governor Status: There has been intense public op- Daniels withdrew his initial proposal for position to the project, and state govern- the Expressway in March 2007 and asked ment officials have indicated they do not lawmakers to consider a proposal for a want to challenge local governments on the shorter version of the road (Shields). The issue (Brown). However, the project does state is currently conducting a two year remain on the table (Dresser). study of the project (Henrichs). Controversy: (1) Cultural sites will be Controversy: (1) There is concern over land affected by an expansion of the Beltway. seizures and farmland destruction (Courier There are a number of known and potential Press). (2) Proponents of the road maintain historical or archeological sites in the area. that it will relieve congestion on the Bor- If the project were to proceed, an archeo- man Expressway, but no studies or traffic logical investigation would be required projections have been done. Some believe whereever it is likely that ground will be the real impetus of the Expressway is to add disturbed (Brown). (2) Natural resources highway capacity for new developments, may be threatened by the project, such such as LaPorte County’s proposed Inter- as flood plains and associated wetlands modal transportation facility, the proposed like the Potomac River, Rock Creek, and Lake County Convention Center, and small tributaries. There are also 44 types the Peotone Airport (Urbanik). (3) Ques- of rare, threatened, or endangered species tions remain about how the extra traffic of plants and animals in the vicinity of the will affect Lake and Porter counties proposed project (Brown). (3) Citizens in and their ability to reduce air pollution the two affected counties are opposed to (Urbanik). the project because it will lead to increased Sources: (1) “Tollway Draws Little Support,” noise, pollution and traffic congestion,

Appendix C 23 disrupt nearby businesses, and pose dan- constructing express toll lanes on the gers to schools and hospitals in the vicinity Beltway. Former Governor Ehrlich said (Brown). that the state is interested in private funds Sources: (1) Matthew T. Brown, et al., The to finance transportation megaprojects, Capital Beltway and Public Private Partner- and requested private companies to submit ships, The National Council for Public ideas on a variety of projects. Express toll Private Partnerships, December 2007. (2) lanes on the Beltway may be one of the Michael Dresser, “Driven Away?” Baltimore projects to be privatized (Truck Flix). Sun, 7 September 2008. (3) Nicole M. Cost/Financing: The Baltimore Beltway is Smith, “Seeking a ‘More Mobile Mary- slated for a $1 billion expansion, though the land,’” The Bond Buyer, 23 October 2006. project is being studied (Smith). Status: State Highway Administrator Neil J. Pedersen said a study of tolls on the Belt- State: Maryland way never got off the ground (Dresser). Road: Baltimore-Washington Parkway Sources: (1) Michael Dresser, “Driven Concessionaire: The toll road would be op- Away?” The Baltimore Sun, 7 September erated either by the Maryland Toll Author- 2008. (2) Nicole M. Smith, “Seeking a ity or a private company if the state chooses ‘More Mobile Maryland,’ State Eyes Pub- to pursue a privatization agreement. lic-Private Partnerships,” The Bond Buyer, Contract Type: lease 23 October 2006. (3) “Maryland Mulls Project Details: At the request of the Fed- Public-Private Partnerships for Roads,” eral Highway Administration, Maryland Truck Flix, 15 October 2006 officials are studying the impact of placing tolls on the existing lanes of five capital- region parkways, including the Baltimore- State: Maryland Washington Parkway. Such a proposal is Road: I-270 Corridor likely to be unpopular (Dresser). Concessionaire: Undetermined Cost/Financing: (1) TOLLS - Preliminary Contract Type: If built as a private road, it studies show that people would be will- would be a design, build, finance, operate ing to pay $10-$15 for congestion-free and maintain contract. travel along the length of the parkway Project Details: The I-270 project would (Dresser). connect the Shady Grove Metro station in Status: Maryland officials maintain they Montgomery County to an existing private do not intend to toll existing roadways project in Virginia (Smith). Former Gover- (Dresser). nor Ehrlich said that the state is interested Sources: (1) Michael Dresser, “Driven in privatization to finance transportation Away?” The Baltimore Sun, 7 September projects, and may pursue such a deal for 2008 the Corridor (Truck Flix). Cost/Financing: Undetermined Status: Toll financing on I-270 between State: Maryland Montgomery and Federick remains a pos- Road: Express toll lanes on the Baltimore sibility, but the project is not a certainty Beltway (Dresser). Concessionaire: Undetermined Sources: (1) Michael Dresser, “Driven Contract Type: If built as a private road, it Away?” The Baltimore Sun, 7 September would be a design, build, finance, operate 2008. (2) Nicole M. Smith, “Seeking a and maintain contract ‘More Mobile Maryland,’ State Eyes Project Details: The state is considering Public-Private Partnerships,” The Bond

24 Private Roads, Public Costs Buyer, 23 October 2006. (3) “Maryland ’s Hefty Highway Bill,” The Bay Mulls Public-Private Partnerships for City Times, 27 July 2008. (2) “Michigan Roads,” Truck Flix, 15 October 2006 Pursues Road Funding Solutions Via Tax Proposals,” Land Line Magazine, 15 Au- gust 2008. (3) Michigan Department of State: Transportation, Frequently Asked Questions: Road: Mass Turnpike Roads, downloaded from www.michigan. Concessionaire: Lease gov/mdot/0,1607,7-151-14013-28071--F,00. Contract Type: Lease html. Project Details: The Patrick Administra- tion paid UBS as a consultant to explore transportation funding options including State: privatizing the Mass Turnpike. Aides at the Road: Jackson Airport Parkway Governor’s office say the issue is not going Concessionaire: MDOT has shortlisted anywhere, but they are using tax dollars to three teams that will proceed to the Re- study the proposal. Governor Patrick has quest for Proposals stage: Jackson Access also directed the secretary of transporta- Mobility Group (ACS and Dragados), tion to prepare legislation to dismantle the Airport Parkway P3 Group (Cintra and Turnpike Authority, merge the remaining Ferrovial), and Global Via (MDOT Press transportation agencies, and restructure Release). the Big Dig debt. This could be a first step Contract Type: finance, design, build, oper- towards privatization. ate and maintain Cost/Financing: Undetermined Project Details: The Parkway would be a Status: The proposal is being studied. high-speed toll lane between downtown Sources: (1) “Governor Orders Legislation Jackson and the airport with a bridge over to Dismantle the the Pearl River (Public Works Financing). Authority,” Toll Roads News, 2 October Cost/Financing: (1) COSTS - construction 2008. costs are estimated at $320-$400 million (Toll Roads News). (2) FINANCING - private financing will be used. In exchange, State: Michigan the investors will manage the roadway for Road: No road has been identified 50 years (Public Works Financing). Concessionaire: Undetermined Status: MDOT has shortlisted three teams Contract Type: Undetermined that will proceed to the RFP stage of the Project Details: Some individuals have selection process. Selection of the winning suggested tolling roads in Michigan to team is expected in March 2009 (MDOT pay for transportation costs, however it Press Release). The road is expected to appears that no legislative action has been open by the end of 2012 (MDOT - Airport taken (The Bay City Times). Currently, Parkway). legislators seem to be focusing on generat- Sources: (1) Mississippi Deparment of ing revenue through various tax proposals Transportation, Airport Parkway Project, (Land Line). MDOT’s website says that toll downloaded from www.theairportpark- roads are not economically feasible in the way.com/Home.aspx. (2) Mississippi state because it is off the nation’s heavily Department of Transportation, MDOT used east/west corridors (MDOT). Announces Shortlisted Teams for the Airport Cost/Financing: Undetermined Parkway Project (press release), 20 August Status: The idea is being considered. 2008. (3) “Jackson, Miss. Airport Connector Sources: (1)”Toll Roads Could Help Pay SOQ,” Public Works Financing, June 2008.

Appendix C 25 (4) “Jackson Mississippi Airport Parkway south around Boulder City Municipal Air- - Call for Toll Concession Developer,” Toll port before connecting to US-93 west of Roads News, 1 June 2008 Hoover Dam (Vogel). Cost/Financing: (1) COSTS - $500 million (Vogel). State: Missouri Status: The Bypass will need approval by Road: No specific proposal - truck toll the 2009 Legislature. Some worry that lanes on I-44, I-70 and US 71 have been private investors will not be interested in mentioned it. If the state approves the Bypass, it would Concessionaire: Undetermined need one to two years to conduct additional Contract Type: Undetermined studies and solicit bids. The road will not Project Details: Currently state toll roads be completed until 2012-2014 (Vogel). are unconstitutional in Missouri, but other Controversy: (1) There are doubts about methods of tolling are not, such as privately whether investors will be interested due operated but publicly owned toll roads, to potentially low toll revenue. Proponents high occupancy toll lanes, truck only toll argue the private investors will become roads, and competitively contracted mass interested when toll roads are legalized. (2) transit services (Stokes). The Show-Me Many legislators and Governor Gibbons Institute, a think tank in Missouri, is tour- are on record opposing toll roads unless ing the state to promote the use of tolls. motorists have a free alternative to each One of their proposals includes truck toll destination. US 93 is supposed to serve that lanes on I-44 (ky3) They propose building purpose (Vogel). truck lanes as four-lane routes parallel to Sources: (1) Ed Vogel, “Boulder City By- I-44 and I-70, and perhaps US 71 (Joplin pass: Bridging Funding Gap,” Las Vegas Globe). Review-Journal, 3 September 2008 Cost/Financing: Undetermined Status: Currently it seems that the MDOT has only examined the feasibility of toll State: Nevada roads; promotion for P3s is mainly coming Road: US Highway 95 to I-15; I-15 south to from outside sources. It does not appear I-215; Summerlin Parkway to US 95 that any direct action has been taken. Concessionaire: Undetermined Sources: (1) “Truck-Lane Toll Roads Contract Type: Sorm form of privatization Worth Study,” The Joplin Globe, 12 March - possibly design, build, finance, operate 2008. (2) “For Whom the Road Tolls,” ky3 and maintain Political Notebook, 29 February 2008. (3) Project Details: The Nevada Transporta- David Stokes, et al, “Missouri’s Chang- tion Board has endorsed a proposal to al- ing Transportation Program,” Show-Me low for privatized toll lanes in Las Vegas. Institute, 27 February 2008. This will be the pilot project if it receives approval from the 2009 Legislature. The project would toll cars with 1 to 2 passen- State: Nevada gers on the express lanes. Road: Boulder City Bypass Cost/Financing: (1) COSTS - $1.4 billion Concessionaire: Undetermined (Riley). (2) FINANCING - 88% of the fi- Contract Type: Undetermined nancing will be covered by private entities, Project Details: The bypass has been pro- in exchange for a 50 year concession term posed as an exception to the current ban (Riley). (3) TOLLS - tolls will be placed on toll roads. The road would start near on cars with less than three passengers. Railroad Pass on US-93 and would continue Private investors will use the toll revenue

26 Private Roads, Public Costs to pay back their investment at a fair rate “Latest Plan for Corzine to Consider: Pri- of return, which was judged to be 13%. vate Lanes on the Turnpike,” The New York Anything above that rate will be shared Times, 9 July 2008 with the state (Riley). Status: The project is awaiting approval by the 2009 Legislature, which convenes State: in February. Currently, state law prohibits Road: tolling roads (Saskal). Concessionaire: Undetermined Sources: (1) Rich Saskal, “Nevada Moves Contract Type: Lease Forward with P3 Toll Road Plan,” The Bond Project Details: See Buyer, 19 May 2008. (2) Brendan Riley, Cost/Financing: Undetermined “Budget Fallout: Toll Road Plan Ok’d,” Las Status: See New Jersey Turnpike Vegas Review-Journal, 16 May 2008 Sources: See New Jersey Turnpike

State: New Jersey State: New Jersey Road: New Jersey Turnpike Road: Concessionaire: Undetermined Concessionaire: Undetermined Contract Type: Lease Contract Type: Lease Project Details: In 2005, Acting Governor Project Details: See New Jersey Turnpike Codey proposed either selling or leasing Cost/Financing: (1) FEE - Senator Gormley the rights to operate the state’s three toll proposed a concession fee of $3.75 billion roads to private investors in order to fill the (Eastern Roads). budget deficit (Eastern Roads). Some have Status: See New Jersey Turnpike advocated selling portions of the Turnpike, Sources: (1) “Atlantic City Expressway: starting with its congested southern por- Historic Overview,” Eastern Roads, down- tion. State legislator Ray Lesniak has called loaded from www.phillyroads.com/roads/ for the sale of a 49% interest in the NJ atlantic-city/. (2) Nate Schweber, “Latest Turnpike Authority, which owns both the Plan for Corzine to Consider: Private Turnpike and the Parkway (Bary). Lanes on the Turnpike,” The New York Cost/Financing: (1) FEE - The proposal to Times, 9 July 2008 sell 49% of the Authority could raise over $20 billion (Bary). Status: Public outcry led New Jersey to end State: New York plans for leasing the toll roads. Other ideas Road: No specific proposal - the Tappan have been proposed, such as increasing Zee Bridge is considered a possibility tolls, but they have all been rejected. More Concessionaire: Undetermined recently, Gov. Corzine proposed privatiz- Contract Type: Undetermined ing individual lanes on the toll roads, either Project Details: Governor Paterson has an- as HOT lanes or as lanes for trucks and nounced that he is creating a commission , as suggested by Sen. Lesniak. Large to study privatization and to come up with opposition exists to the plan though, and it specific recommendations. One possible is unlikely to pass (Schweber). concession the commission will consider Sources: (1) Andrew Bary, “Paying Up,” is the Tappan Zee Bridge, which spans the Barrons, 8 May 2006. (2) “Atlantic City north of Manhattan and will Expressway: Historic Overview,” Eastern soon have to be replaced at a cost of $9.3 Roads, downloaded from www.phillyroads. billion (Gormley). com/roads/atlantic-city/. (3) Nate Schweber, Cost/Financing: (1) COSTS - It will cost

Appendix C 27 $9.3 billion to replace the bridge (Gormley) Should Go With High- Status: The Commission will report its ways; And Should the Garden Parkway findings in the 2009 legislative session. Become a Truckway,” Gaston Gazette, 10 Sources: Michael Gormley, “Following October 2008. (3) “North Carolina Turn- Other States, New York May Lease As- pike Seeks Subordinate Debt to Fill Fund- sets,” WTOP News, 3 October 2008 ing Gap for ,” Toll Roads News, 11 September 2007. (4) “Private Money May Prove to be Best Route to Toll State: North Carolina Roads,” WRAL, 6 August 2007. Road: Gaston Garden Parkway Concessionaire: Undetermined Contract Type: Undetermined - the project State: North Carolina may be built under a P3 agreement, but Road: Mid-Currituck Bridge the state has recently supplied gap funding Concessionaire: Undetermined which may decrease the need for private Contract Type: design, build, finance, oper- financing. ate and maintain Project Details: The proposal is to con- Project Details: The proposed bridge will struct a toll road going through Gaston go over the Currituck Sound between County from I-485 near Charlotte/Doug- the mainland and the Outer Banks or the las International Airport west to I-85 near peninsula on the ocean (Toll Roads News South Carolina. There has also been a sug- - Subordinate Debt). Three proposals for gestion to build the road just as a truckway, the project are being considered (Preyss). which would be cheaper (Marshall). David NCTA is more open to a concession of the Joyner, executive director of NCTA, has Bridge than other roads because a majority stated that the executive committee has of the users will be tourists and other visi- asked them to consider public private part- tors (TRN - Subordinate Debt). nerships if the state is unable to allocate Cost/Financing: (1) COSTS - Depending adequate financing (WRAL). on which route is chosen, the project will Cost/Financing: (1) COSTS - Construc- cost between $315-635 million (Preyss). tion costs will be between $410-750 (2) FINANCING - Preliminary stud- million (Toll Roads News, Marshall). (2) ies suggest traffic will only support $200 FINANCING - The state is able to finance million in traditional revenue bonds (Toll only part of the road with traditional fi- Roads News - Subordinate Debt). In 2008, nancing, leaving a $188 million gap (Toll the Legislature agreed to proivde some Roads News). In 2008, the General As- gap funding for the project (Siceloff). (3) sembly agreed to provide $35 million a year TOLLS - The agency projected that over (beginning in 2010-11) in “gap funding” a 39-year period, motorists would pay as which will allow the first leg to be built. much as $12 for a two-way trip across the No funding for the second section of the bridge (Preyss) road has been secured (Barrett). Status: North Carolina’s Turnpike board Status: Construction will probably begin has decided to begin a toll concession in 2010. North Carolina is still seeking procurement for the bridge (Toll Roads funding for the second section of the News). NCTA expects to choose a pre- road. development partner in November 2008 Sources: (1) Michael Barret, “Residents and award the project contract by early Hoping to Build Opposition to Garden 2010 (NCTA). Parkway Route,” Gaston Gazette, 20 Oc- Controversy: Some have expressed con- tober 2008. (2) Alex Marshall, “Where cern over the bridge’s effects on natural

28 Private Roads, Public Costs resources and residents of the Aydlett area be built without private financing. (Preyss). Controversy: There is concern that the road Sources: (1) North Carolina Turnpike Au- would bring more subdivisions to Union thority, Mid-Currituck Bridge Project, October County, which is already having difficulty 2008, downloaded from www.ncturnpike. providing sewer services to new homes org/pdf/NCTA%20Newsletter%209-30- (Marshall). 08%20FINAL.pdf. (2) Jennifer Preyss, Sources: (1) Alex Marshall, “Where Should “Mid-Currituck Study Includes No-Bridge North Carolina Go With Highways, And Option,” Daily Advance, 20 October 2008. Should the Garden Parkway Become a (3) “North Carolina Turnpike Seeks Sub- Truckway,” Gaston Gazette, 10 October ordinate Debt to Fill Funding Gap for 2008. (2) Bruce Siceloff, “State Puts Cash Triangle Expressway,” Toll Roads News, 11 Behind Toll Roads,” News Observer, 10 July September 2007. (4) “North Carolina to 2008. (3) “North Carolina Turnpike Seeks RFP $850m Triangle Exwy DB, P3 for Subordinate Debt to Fill Funding Gap for Currituck Sound Bridge,” Toll Roads News, Triangle Expressway,” Toll Roads News, 11 15 November 2007 September 2007. (4) “Private Money May Prove to be Best Route to Toll Roads,” WRAL, 6 August 2007. State: North Carolina Road: Monroe Connector Concessionaire: Undetermined State: Ohio Contract Type: Undetermined - the project Road: was initially considered for privatization, Concessionaire: Undetermined but the state provided some gap funding Contract Type: Undetermined which may decrease the need for a conces- Project Details: Privatization of the Turn- son (Siceloff). pike was first advocated by gubernatorial Project Details: The project would involve candidate Ken Blackwell (Bary). Governor constructing a 22-mile road that would Strickland opposes the privatization of the run parallel to US 74 (Marshall). David Turnpike, though has indicated that he Joyner, executive director of the North would still be willing to listen to arguments Carolina Turnpike Authority, stated that in favor of privatization (Miller, Toledo the executive committee has asked them Business Journal). A legislative task force to consider public private partnerships made many suggestions for raising money, if the state is unable to allocate adequate which included constructing private High funding (WRAL). Occupancy Toll lanes on various roads, Cost/Financing: (1) COSTS - construction which may include the Turnpike (Miller). will cost $553 million (Toll Roads News Cost/Financing: (1) FEE - Estimates place - Subordinate debt). (2) FINANCING the concession fee for the Turnpike be- - NCTA is only able to cover part of the tween $1-6 billion (Ellis). (2) TOLLS - It construction costs, leaving a $151 million has been estimated that annual cash flow funding gap (Toll Roads News - Subor- from tolls would be $109.4 million (Ellis). dinate Debt). In 2008, however, the state Status: Strickland has created a 21st Cen- approved gap funding of $24 million per tury Transportation Priorities Task Force year to finance construction of the road to explore new ways to generate revenue (Siceloff). for highway and other transportation Status: The Legislature has provided gap projects (Miller). Most likely, no action funding for the road starting in fiscal year will be taken until the task force releases 2010-11 (Siceloff). Thus, the project may its final report.

Appendix C 29 Controversy: 1) A study using data from that the agency needs to coordinate with the State of Ohio, the Federal Highway local stakeholders before it can return to a Administration, and the Ohio Turnpike serious study of the plan (Saskal). predicted the amount of diverted truck Sources: (1) Oregon Department of Trans- traffic due to higher tolls. The researchers portation, I-205: The East Portland Freeway, found that privatization of roadways, which 4 February 2007, downloaded from www. usually involves increased tolls, has numer- oregon.gov/ODOT/HWY/REGION1/ ous externalities: higher rates of accidents I205/generalinfo.shtml. (2) Rich Saskal, as trucks are diverted to less-safe/smaller “Toll-Free State Begins Studying Its Op- roadways, reduced quality of life for com- tions,” The Bond Buyer, 28 March 2007 munities along alternate routes, higher maintenance costs for alternate routes, higher cost of goods as drivers pass on the State: increased costs, and less efficient commerce Road: I-95 as trucks use less-desirable alternate routes Concessionaire: Undetermined (Science Daily). Contract Type: Undetermined - probably Sources: (1) Andrew Bary, “Paying Up,” a design, build, operate and maintain Barrons, 8 May 2006. (2) David A. Ellis and contract Edward W. Hill, An Analysis of the Proposed Project Details: In June 2008, the state Lease of the Ohio Turnpike, Cleveland State Senate unanimously passed a bill that University, 25 June 2006. (3) Jay Miller, would allow state agencies to obtain bids for “Ohio Facing Huge Deficit for Transporta- express toll lanes and high occupancy toll tion System,” Crain’s Cleveland Business, 15 lanes. The House is still holding hearings. January 2008. (4) “Toll Road Privatization Construction of ETLs or HOT lanes on May Result in More Crashes on Other I-95 and the Schuylkill Expressway are the Roads,” Science Daily, 15 January 2008. top projects under consideration (Spett). (5) “Indiana Luring Ohio and MI Firms,” Cost/Financing: Undetermined Toledo Business Journal, 1 January 2007. Status: The Senate has approved the so- licitation of bids for the construction of HOT lanes. The House must still pass State: Oregon the measure before the project can move Road: I-205 Widening forward (Spett). Concessionaire: Undetermined Sources: David Spett, “Toll Lanes Con- Contract Type: Undetermined sidered for I-95, Schuylkill,” Philadelphia Project Details: In late 2005, Oregon DOT Inquirer, 8 September 2008. selected Macquarie Infrastructure Group to study toll-road options for three projects (Sunrise Corridor, Newberg-Dundee by- State: Pennsylvania pass, and I-205 widening). I-205 widening Road: Schuylkill Expressway was found to be a feasbile option, however Concessionaire: Undetermined because less research has been done on it, Contract Type: Undetermined ODOT decided to focus on the Bypass for Project Details: See I-95. now (Saskal). The I-205 widening project Cost/Financing: Undetermined would expand the road from four to six Status: See I-95. lanes in the south corridor (I-205). Controversy: See I-95 Cost/Financing: Undetermined Sources: David Spett, “Toll Lanes Considered Status: Officials said that more details need for I-95, Schuylkill,” Philadelphia Inquirer, to be finalized for the I-205 widening, and 8 September 2008.

30 Private Roads, Public Costs State: Pennsylvania $5.5 billion to complete both the Mon Road: Fayette Expressway and the Southern Concessionaire: A consortium of Abertis Beltway (Buckley) Infraestructuras, Citi Infrastructure In- Status: Requests for proposals were issued vestors, and Criteria Caixa Corp won the in September 2008. The deadline is Janu- lease bid (Bumsted). ary 15th, after which turnpike officials will Contract Type: lease analyze the submissions (Tanner). Project Details: Governor Rendell proposed Sources: (1) Chris Buckley, “Expressway, leasing the Turnpike to generate money for Beltway Concepts Needed,” The Valley transportation projects (Bumsted). Independent, 18 September 2008. (2) David Cost/Financing: (1) FEE - The consortium Tanner, “Pennsylvania Turnpike Exten- offered $12.8 billion for a 75 year lease. sion Draws Three Bidders,” Land Line, 19 (2) COSTS - the proposal includes a plan January 2009 for $5.5 billion in capital improvments on the Turnpike (Bumsted). (3) TOLLS - the consortium’s proposal would allow the State: Pennsylvania operator to raise tolls 25% on January 1st. Road: Southern Beltway Tolls would then increase 2.5% annually Concessionaire: See Mon Fayette Express- or match the rise in the CPI, whichever is way higher (Cataldo). Contract Type: finance, design, construct, Status: The legislature stalled in approv- operate and maintain ing the deal and Abertis withdrew its bid. Project Details: See Mon Fayette Express- However, the consortium indicated that it way. plans to bid again in 2009 (Whiteman). Cost/Financing: See Mon Fayette Express- Sources: (1) Brad Bumsted, Jim Ritchie, way and Karl Andren, “$12.8 Billion High Bid Status: See Mon Fayette Expressway to Lease Turnpike,” Tribune-Re- Sources: See Mon Fayette Expressway view, 20 May 2008. (2) Adam L. Cataldo, “Pennsylvania Offered $12.8 Billion by Citi, Abertis,” Bloomberg, 19 May 2008. State: South Carolina (3) Lou Whiteman, “Penn Turnpike Lease Road: I-73 Deal Fizzles,” Daily Deal, 2 October 2008 Concessionaire: Undetermined Contract Type: Undetermined - may be a finance/build/operate contract, or possibly State: Pennsylvania another agreement involving the right to Road: Mon Fayette Expressway install commercial outlets Concessionaire: Three firms have been Project Details: A study committee has shortlisted: Mon Valley Public Private been asked to release a report on its work Partners; Global Via Infraestructuras and in February to explain what partnerships URS Corp; ACS Infrastructure Develop- would be allowed under exisitng law. No ment and Dragados USA (Tanner) road has been named specifically, but a 105- Contract Type: finance, design, construct, mile new construction project on I-73 in operate and maintain Horry, Dillon and Marlboro counties has Project Details: The proposal is to build been mentioned (Chourey). The southern a road from in portion of the road would run from I-95 to Jefferson Hills to I-376 in Pittsburgh and SC Route 22, while the northern portion Monroeville (Tanner). would go from I-95 to Hamlet (Ward). Cost/Financing: (1) COSTS - it will cost Cost/Financing: (1) COSTS - $2.4 billion.

Appendix C 1 (2) FINANCING - the project will prob- State: Texas ably require private financing. A 2005 Road: TTC 35 Federal Transportation act earmarked $81 Concessionaire: Cintra-Zachry million for I-73 in South Carolina, and an Contract Type: finance, build, operate and additional $3 million was allocated later maintain in the year. The funds are being spent on Project Details: The proposal is to relieve environmental studies and right of way congestion on I-35 by building a toll road purchases (Ward). from east of San Antonio to the Dallas-Fort Status: The study committee will release Worth area (TxDOT) a report in February detailing what part- Cost/Financing: (1) COSTS - $6 billion nerships are allowed under existing law (TxDOT). (2) FINANCING - Cintra- (Chourey). Federal environmental permits Zachry will finance the majority of the have already been issued for the southern road in exchange for a lease on the road- portion, and permits for the northern por- way. (3) FEE - Cintra-Zachry is paying tion are expected in the spring (Ward) the state $1.2 billion for the contract Sources: (1) Sarita Chourey, “Public-Pri- (TxDOT). vate Pacts on Roads Considered,” Augusta Status: Texas is currently negotiating a Chronicle, 2 October 2008. (2) Terry Ward, master development plan with Cintra- “I-73 Backers Seek Sources of Private Zachry (TxDOT). Funding,” SCNow, 29 April 2008 Sources: Texas Department of Transporta- tion, “TTC-35 News,” Keep Texas Moving, 14 May 2007 State: Texas Road: Highway 130 segments 5 & 6 Concessionaire: A consortium of Cintra State: Texas and Zachry Construction Road: I-10 from El Paso to Orange on the Contract Type: finance, build, operate and Louisiana Border maintain Concessionaire: Undetermined Project Details: Segments 5 & 6 will begin Contract Type: design, build, finance, oper- in Mustang Ridge and connect to I-10 in ate and maintain Seguin (TxDOT) Project Details: The project was initially Cost/Financing: (1) COSTS - $1.36 billion. part of the now-defunct Trans Texas Cor- (2) FEE - Cintra paid $25.8 million upfront ridor. Though Texas is no longer pursu- to construct and operate the road for 50 ing the TTC, it is likely that individual years. (3) FINANCING - the consortium segments of the project will go forward. will supply the majority of the financing Texas is eligible to split federal money (Williamson). with 7 other states to reduce congestion Status: The agreement was signed in on I-10. March 2007. Construction will begin in Cost/Financing: Undetermined the summer of 2009, and the road should Status: Outcry folowing the contract for open in 2012 (Wear) TTC-35 led the government to place a Sources: (1) Texas Department of Transpor- moratorium on P3 contracts until 2009 tation, “Frequently Asked Questions,” SH (Blumenthal). 130. (2) Ben Wear, “Kickoff Close for First Sources: Ralph Blumenthal, “Proposal in (and only?) Private Tollway,” The Statesman, Texas for Public-Private Toll Road System 3 January 2009. (3) Richard Williamson, Raises an Outcry,” The New York Times, 10 “Cintra Closes on $1.36B Texas Toll Proj- February 2008 ect,” The Bond Buyer, 11 March 2008

32 Private Roads, Public Costs State: Texas Cost/Financing: (1) COSTS - construction Road: I-635 Managed Lanes Project costs are estimated at $2 billion Concessionaire: The state prequalified two Status: The Request for Proposals has consortia for the project. been issued. The environmental permit- Contract Type: develop, design, construct, ting process is ongoing. The project was finance, maintain and operate exempt from the moratorium placed on Project Details: The proposal is to recon- concessions (TxDOT). struct the LBJ Freeway between I-35 E and Sources: Texas Deparment of Transporta- North Central Expressway (Carona) tion, North Tarrant Express (Fact sheet) Cost/Financing: (1) COSTS - in 2006, the costs were calculated at $3.5 billion (Perez). State: Texas Status: A request for proposals has been Road: Montgomery County Parkway issued, and the submission deadline was Concessionaire: Undetermined September 15, 2008. Texas will review Contract Type: Undetermined these proposals, as this project has been Project Details: The Parkway will be built exempted from the two-year moratorium east of I-45 to serve as an alternate route on privatization deals. (Lee). Sources: (1) John Carona, “More Room on Status: It appears that the state is studying the Road: Managed Lanes Project on I-635 the project before deciding how to fund is Critical to North Texas,” TTC News Ar- the road, either through private financing chives, 25 February 2008. (2) Benjamin G. or bonds (Lee). Perez and James W. March, Public Private Sources: Renee C. Lee, “Montgomery Partnerships and the Development of Trans- County Leaders Being Driven to Create portation Infrastructure: Trends on Both Sides Toll Road,” TTC News Archive, 4 Decem- of the Atlantic, Report for First Internation- ber 2007 al Conference on Funding Transportation Infrastructure, 2-3 August 2006 State: Texas Road: Grand Parkway State: Texas Concessionaire: Grand Parkway Construc- Road: North Tarrant Express tors has made an unsolicited offer; the prin- Concessionaire: Possible concessionaires cipals are Williams Brothers Construction include: NTE Mobility partners (com- and Dannenbaum Engineering. The pro- posed of Cintra and Meridiam Infrastruc- posal envisions a joint venture with Harris ture); Itinere Infrastructure LLC (Sacyr County Toll Road Authority serving as the SAU and Itinere Infrastructure); OHL managing partner. TxDOT will solicit bids Infrastructure Inc (OHL Concesiones, after the market value is calculated. OHL Infrastructure) Contract Type: Undetermined Contract Type: design, build, finance, oper- Project Details: The Parkway will encircle ate and maintain the metropolitan area outside Project Details: The project includes im- Highway 6 (The Grand Parkway). provements on six segments along I-820, Cost/Financing: (1) COSTS - the project SH 121/183, and I-35W, with accelerated will cost $5.3 billion. development of Segment 1. The project Status: TxDOT needs to calculate a market will add tolled managed express lanes value for the Parkway, after which it will so- and additional general purpose lanes (Tx- licit bids. The toll road authority has right DOT). of first refusal - it has said it is interested

Appendix C  in operating part of the roadway, but not Controversy: I-69 was originally going to the entire project (Murphy). be built over new terrain paralleling US- Controversy: The road will be built in 59, US-77 and US-281. Due to widespread many undeveloped areas, leading to fears opposition from environmental groups that it will contribute to urban sprawl. and property rights activists, TxDOT Sources: (1) The Grand Parkway Associa- announced in June 2008 that it would tion, The Grand Parkway, downloaded from complete the roadway by upgrading US-59, www.grandpky.com/about%20us/default.asp US-77 and US-281 to interstate standards through rural areas, with bypasses around urban centers along the route (Public State: Texas Works Financing). Road: Formerly known as TTC-69 Sources: (1) Lee McGuire, “TxDOT to Concessionaire: Zachry and ACS will Scale Back Trans-Texas Corridor,” KVUE. develop a master plan for I-69 which may com, 10 June 2008. (2) “Zachry-ACS Wins pave the way for the team to finance and Texas 69 Road Plan,” Public Works Financ- build projects over the next 50 years (Public ing, June 2008 Works Financing). Contract Type: The Zachry team is being paid to create a development and financial State: Virginia plan for the corridor, which will give them Road: 460 Corridor Improvements the right of first negotiation on certain Concessionaire: Three proposals have been projects (Public Works Financing). submitted by Virginia Corridor Partners, Project Details: I-69 is a planned national Itinere, and Cintra. highway connecting Mexico, the United Contract Type: Design, build, finance, States, and Canada (McGuire). In Texas, operate and maintain I-69 will start from three border cross- Project Details: Route 460 will be con- ings (Laredo, McAllen, and Brownsville), structed between I-295 in Petersburg and along US 59/281/77 to Victoria. When Route 58 bypass in Suffolk. In 2006, VDOT the branches converge, the roadway will issued a Solicitation for Proposals to develop continue along US 59 and turn towards and/or operate the road (VDOT) Louisiana. A planned branch continues Status: Detailed proposals are to be submit- north on US 59 to Texarkana. The highest ted by Spring 2009 and an agreement should priority will be to upgrade US 77 (Public be completed by Fall 2009 (VDOT). Works Financing). Sources: Virginia Department of Trans- Cost/Financing: (1) COSTS - total costs portation, “Public Private Transportation will be $8 billion (Public Works Financ- Act Info,” US Route 460 Corridor Improve- ing). (2) FINANCING - private equity ments, 22 January 2009 and some federal loans will be used (Public Works Financing). (3) TOLLS - I-69 will remain toll free where it overlaps with ex- State: Virginia isting highways; bypasses of cities may be Road: I-81 Corridor tolled (Public Works Financing) Concessionaire: STAR Solutions Status: The proposed timeline anticipates Contract Type: Some form of privatization financial close on the entire US 77 system in Project Details: VDOT is negotiating with 2011, and then building all the projects and STAR Solutions for improvements to the upgrading US 77 within seven years. The I-81 corridor. The main proposal is to build moratorium on concessions does not apply separate lanes for trucks along the length to this project (Public Works Financing). of the road (VDOT).

34 Private Roads, Public Costs Cost/Financing: Undetermined Location Study, downloaded from www. Status: Negotiations are continuing with virginiadot.org/projects/hamptonroads/ STAR Solutions (VDOT). southeastern_parkway_and_greenbelt.asp, Sources: Virginia Department of Trans- 28 January 2009; (2) Tom Holden, “South- portation, Frequently Asked Questions about eastern Parkway: Long Way to Go for Short Interstate 81 in Virginia (fact sheet), June Cut,” Virginian-Pilot, 18 December 2006 2007, downloaded from www.virginiadot. org/PROJECTS/constSTAN-I81-over- view.asp State: Virginia Road: Capital Beltway Concessionaire: Capital Beltway Express State: Virginia LLC - a joint venutre of Transurban and Road: -area highways Fluor (Toll Roads News) Concessionaire: undetermined Contract Type: design, build, lease Contract Type: Concession Project Details: The Concessionaire will Project Details: In April 2007, the legis- construct four toll lanes and direct connec- lature authorized Northern Virginia and tor ramps on 14 miles of the Capital Belt- the Hampton Roads region to do conces- way between the Springfield interchange sions. Hampton Roads is proposing the and a point near the Maryland border (Toll implementation of six toll road projects. In Roads News). Northern Virginia, corridor investments Cost/Financing: (1) COSTS - $1.93 billion. are estimated at $15.4 billion over 25 years (2) FINANCING - mostly private equity (Toll Roads News) and bonds backed by the consortium will Cost/Financing: (1) COSTS The Northern be used (VDOT). In exchange, the conces- Virginia investments are estimated to be sionaire will operate the road for 75 years $15.4 billion over 25 years (Toll Roads (Toll Roads News). (3) TOLLS - Tolls will News). be charged on vehicles with fewer than Status: Unknown three occupants without restrictions on the Sources: “Virginia Bill Gives Tolling rates charged. The consortium predicts an Power to Two Regions,” Toll Roads News, internal rate of return of 13% (Toll Roads 9 April 2007 News). Status: The road is scheduled for comple- tion by spring 2014 (Toll Roads News). State: Virginia Controversy: 1) No limits have been placed Road: Southeastern Parkway on toll rates. (2) The state is required to Concessionaire: undetermined compensate the concessionaire for lost toll Contract Type: Undetermined revenue if the number of HOVs encroaches Project Details: The Southeastern Parkway upon tollable capacity beyond a certain and Greenbelt would travel 21 miles from threshold (Toll Roads News). Chesapeake to Virginia Beach. VDOT Sources: (1) “Private Activity Bonds Issued documents suggest that public private for I-495,” Public Works Financing, June partnerships are an option. (VDOT) 2008. (2) “Financial Close on 80 Year Con- Cost/Financing: COSTS - The project is cession for $1.52b Toll Lanes on Capital estimated to cost approximately $1.4 bil- Beltway N Virginia,” Toll Roads News, 20 lion. Tolls are expected to cover 30 to 40 December 2007. (3) Virginia Department percent of the costs. (Holden) of Transportation, “Virginia HOT Lanes: Sources: (1) Virginia Department of Trans- Some Things Can’t Wait for Traffic,” portation, Southeastern Parkway and Greenbelt Virginia HOT Lanes, July 2008

Appendix C  State: Virginia Virginia HOT Lanes. (5) Eric M Weiss, Road: I-95 and I-395 HOT Lanes “HOT Lane Plan Comes with Promises: Concessionaire: Fluor-Transurban; Trans- Companies Vow to Keep Traffic Flowing, urban will hold the major equity in the Finance, Public Transit Upgrades,” The project and manage operations. Fluor Washington Post, 18 April 2007. (6) Eric M will have smaller equity and will do the Weiss, “Steep Prices Projected for HOT design and construction work (Toll Roads Lanes,” The Washington Post, 3 March 2007 News). Contract Type: design, build, operate and manage State: Virginia Project Details: The project will expand Road: Jordan Bridge Replacement the HOV lanes and extend them south. Concessionaire: Figg Bridge and Britton The consortium is also expected to help Hill Partners (Toll Roads News) finance public transit alternatives (Virginia Contract Type: demolition of previous HOT Lanes). bridge plus rights to build new toll bridge Cost/Financing: (1) COSTS - total costs are Project Details: The private partners estimated at $882 million. (2) FINANC- purchased the 80-year-old bridge (which ING - Transurban will contribute the had been closed for safety reasons) from majority of the equity in exchange for a 70 the city of Chesapeake, Virginia, for a year lease (Myers). (3) TOLLS - vehicles nominal fee. The partners will demolish with 3 or more passengers will travel for the existing span and build and operate a free. There is no cap on the level of tolls replacement two-lane span. There will be (Weiss - HOT Lane). no regulation of toll rates on the bridge. Status: Construction is expected to begin (Toll Roads News) in 2009 and be completed in 2012 (VA Cost/Financing: COSTS - total costs are Megaprojects) estimated at $90 million to $100 million; Controversy: (1) Tolls may be extremely FINANCING - Project will be privately high. Regional transportation planners financed and owned by the private entities estimate that tolls may reach $1.60 per in perpetuity. (Toll Roads News) TOLLS mile in crowded segments (Weiss - Steep - tolls are likely to be $2 each way, com- Prices). (2) Representatives in Prince Wil- pared to 75 cents on the former bridge liam County worry that the roads may ruin (Forster). a successful carpool facility and overcharge Status: Legislation to approve the deal is drivers (Weiss - HOT Lane). pending signature by the governor. The Sources: (1) Phone conversation with Mary new bridge is scheduled for completion in Myers, Public Relations Contact for the July 2010. I-95/395 Project, October 14, 2008. (2) Sources: “Privately Built New Jordan “Transurban-Fluor Beats Clark-Shirley for Bridge in Chesapeake, VA Getting Leg- VA I-95/395 Concession,” Toll Roads News, islative Approval,” Toll Roads News, 24 1 November 2005. (3) Virginia Depart- February 2009; Dave Forster, “Legislators ment of Transportation, “I-95/I-395 HOT Bless Chesapeake’s Plans to Replace Jor- Lanes,” Virginia Megaprojects, 2008. (4) dan Bridge,” Virginian-Pilot, 24 February Virginia Department of Transportation, 2009. “Bringing Congestion Relief to I-95/395,”

36 Private Roads, Public Costs U.S. PIRG, Federation of State PIRGs 44 Winter Street, 4th floor Boston, MA 02108