Transcript HOT Lane Discussion

General Purpose Lanes on I-77
The Plan…
February, 2015
Overview




Project Overview
Status
Actions
Q&A
The Problem
Congested stretch
of four lane road
from mm21 to
exit 36…
with “no money”
to widen it
A Solution
Add a general purpose lane
in both directions
• 13 miles
• $80- 130M (est)
Source: “I-77 Feasibility Study,” December 7, 2009
The Current Plan
Privately Operated
Toll Lanes
• 27.5 Miles
• $655 M
Source: NCDOT Press Release, April 11, 2014
How Toll Lanes Work
 Built and operated under an exclusive
50 year contract
 Vehicles with 3+ occupants use lane
for free
 Electronic Tolling- no toll booths
 Guaranteed minimum speed
 No limit on tolls
 “Congestion pricing”
 More congestion in “free” lanes = higher
price to use toll lanes
Business Model Ensures Congestion
Difference
General Purpose
Lanes




~13miles
~$100 million
2-4 lanes
Able to expand
Toll Lanes
27.5miles
$655 million
All of RoW
U.R.I.F.
No improvements for 50 years
Why the difference?
Majority of
travel time
savings
Majority of
Cost
Source: RFP
Example: Toll Lane Flyover
Source: NCDOT
The Cost Of Toll Lanes
Source: I-77 JLTCO Report, 4-25-14, WI77 analysis
Taxpayer Obligation
 Taxpayer Contribution
$88M
 For private tolling lanes
 Taxpayer Subsidy
$75M
 To cover potential revenue shortfalls
 Taxpayer Bonus Allocation
$30M
 For improving private toll lanes
Total:
$193M
Substantial Taxpayer Involvement for Having “No Money”
Source: I-77 JLTCO Report, 4-25-14, WI77 analysis
Toll Rates 2015
$20 Round Trip When Toll Lanes Open
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Toll Rates 2035
$40 Round Trip In Twenty Years ???
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Cintra’s Answer
Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014
Congestion On General Lanes
Average Commute Time- Charlotte to Mooresville
2015
2035
Difference
AM Commute
(Minutes)
39.4
71.6
32.3
PM Commute
(Minutes)
41.5
69.3
27.8
Total
(Minutes)
80.9
140.9
60.0
Commute Time Lengthens By An Hour per Day
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Typical Access Point
Source: Executed Comprehensive Agreement
Access Points
South of Exit 33
South of Westmoreland
At Hambright
South of WT Harris
Exits 23, 25, 30, 31
Bypassed
Source: Transportation Funding Update,
Huntersville Town Board, Oct 20, 2014
Where Would You Locate Your
Business/Home?
Lake Norman?
Guaranteed
congestion and
increased travel
costs
Gastonia?
I-85 to be
widened with GP
lanes/CLT
Proximity
Concord?
I-85 widened with
GP lanes/New
Interchanges
Rock Hill?
I-77 No Tolls/Low
Taxes/CLT Proximity
LKN: A Uniquely Poor Position
Debt Service
$70.0
TIFIA Principal
$60.0
TIFIA Interest
PAB Principal
$50.0
PAB Interest
CA 91
Millions
Operating Expense
$40.0
$30.0
I-95 MIA
$20.0
HOU, DEN, MSP, SAN + 6 OTHERS
$10.0
$2015
2020
2025
2030
2035
2040
Historically high tolls required from second smallest metro area
Source: Financial Plan, Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012
Why would our government
fund such a project?
We cannot assume the bond markets will
come to their senses
Status
 “Commercial Close”
 Contract signed June 26, 2014
 Lawsuit Filed January 20, 2015
 “Financial Close” Deadline Missed
 Was supposed to be January 22, 2015
 What happened?
Financial Close
 Cintra posted a $15 million “Financial
Close Security” bond at contract signing
 Financial close deadline:210 days from
contract signing
 Contract allows extension in the case of…
 A “Relief Event”
 A “material adverse change” in the bond
terms
 Cintra posts a $50 million bond
Source: Executed Comprehensive Agreement, June 26, 2105
So what happened?
 Jan 19: NCDOT and Cintra amend the
contract
 Extends financial close to April 19, 2015
 “By mutual agreement”
 No penalty for Cintra, and…
 The taxpayer pays for re-financing
fees
$2.3M in legal fees to craft an unenforced contract
Source: Executed Comprehensive Agreement Amendment 1, January 19, 2015
Now What?
A New Funding Paradigm: STI
 Passed last summer
 HB 817
 Replaces Equity Formula
 Favored rural over urban areas
 More data-driven
 Supposed to remove pork politicking
NCDOT STI Scores for I-77 Project
Source: “STI & I-77” press release, NCDOT
How Does This Rank Against Other Statewide Projects?
Highest
scoring funded
project
73
“Statewide”
funded
projects
 I77 General Purpose Lane Project
Projects to be funded
Projects unfunded
I-77 GP project
through Lake
Norman
I77 scores
higher than
33 funded
projects
Lowest scoring
funded project
377 Unfunded Projects
Source: STI 9-24-14 STI 3.0 Total Score
A General Purpose Lane Project Would Likely Be Funded…
The “Bad” News: STI Corridor Cap
 “No more than 10% (or about $200 million) may be
assigned to any one project or group of projects within
the same corridor during a five year period.”
 …”I-77 South projects would out score, and use all of the
corridor funds available for at least the next ten
years….”
 “Right of way purchase for the I-77 South projects
begin in 2024, with actual construction still further
out.”
Rather than a 10 year wait, we have a 9 year window to widen I-77!!!!
Source: “STI & I-77” press release, NCDOT, July 24, 2014
The Better News…
 “Under the STI law all projects that were
projected for construction after July 1,
2015 are subject to scoring under the new
funding formula.”
 “Because the I-77 North Managed Lanes
(North of I-277) project is scheduled to
begin construction before July 1, 2015 it is
not subject to the new law and was not
scored under STI.”
It’s now 2015….
Source: “STI & I-77” press release, NCDOT, July 24, 2014
Why would NCDOT rank a GP project?
 “I-77 is …a critical, north-south
transportation corridor for the Charlottemetro region and beyond.”
 “Because the project is designed to
address an immediate need…”
 “…the (toll lane project) enables NCDOT
to address a critical need…”
Because NCDOT is on record as saying
widening I-77 is critical
Sources: I-77 HOT Lanes EA, July 2013; Fix I-77 Now! Blog, NCDOT, June 26, 2014
What’s next?
 Continue with the lawsuit
 Rank a GP project starting July
 Simply follow the process
 Requires political support
What can you do?
 Contact your state representative





Rep
Rep
Rep
Sen
Sen
Charlie Jeter: [email protected]
John Bradford: [email protected]
John Fraley: [email protected]
Jeff Tarte: [email protected]
David Curtis: [email protected]
 Address each individually
 Be respectful- remember, we can’t do this
without them!
 Use titles
Tell them we want a GP solution scored under STI
What else can you do?
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

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
Tell your friends and neighbors
Fliers for business
“Like” us FB
Raleigh road trip
Donate!
How can businesses help?
 You run a “special” and donate a
portion of the proceeds
 We promote your business
 5,000+ FB “likes”
 20-30000 weekly reach
 Locals
 Support our issue
 Zero cost
 Honor system
 A win-win!
About Widen I-77
 A 501(c) (3)organization
 Donations are tax deductible
 Subject to IRS reporting and auditing
Your best shot at widening I77 without tolls!
Thank You
WidenI77
PO Box 792
Cornelius, NC 28031
[email protected]
wideni77.org
Appendix
Bonus Allocation- All Projects
Source: CRTPO Agenda, Feb 18, 2015
Bonus Allocation- New Projects
Source: CRTPO Agenda, Feb 18, 2015
Bonus Allocation- LKN New Projects
Source: CRTPO Agenda, Feb 18, 2015
How Did We Get Here?
“We have $70 billion in
identified and ranked
transportation projects
with only $11 billion to
pay the bill.”
Some NC Transportation “Needs”
 $6.4 Billion for toll roads
 9 out of 10 most expensive projects are tolled
 $4.6 billion “cost to NCDOT”
 $717 million for new 4-lane
 From Lenoir (pop 19,000) to Tarleton (pop
11,000)
 $306 million to widen NC-33
 From Grimesland (pop 400) to Aurora (pop 500)
 $600 Million for Urban Loops
 Wilkesboro, Red Springs, Lillington et al
With these “needs”, no wonder NCGA really wants to build tolls…
Source: NCDOT 9-24-14 Priority 3.0 Final Scores
North Carolina’s First Toll Road
Triangle Expressway Financial Results
$30
Operating Exp: $21M
$20
$10
$$(10)
Revenues: $24M
$(20)
$(30)
$47M Annual
Shortfall
$(40)
$(50)
$(60)
Who pays the difference?
Source: NCTA Annual Report, WI77
analysis
Debt Service:
~$50M
Reprioritizing Transportation Funding
Regional (40%)
~$2.4B
Statewide (40%)
~$2.4B
Project Merit (Data)
Per capita
by region
D
Interstates/
NHS/STRAHNET
/Tolls/Etc
Equally
to Divisions
B
A
E
Division
(20%)
~$1.2B
C
1 2 3 4 5 6 7
8 9 10111213 14
F
(S) + Hwys,
Airport, Rail,
Transit
G
(S) + (R) +
Local
Three-Plus Chances for Funding GP Lanes
HB817, Strategic Transportation Investments,
Strategic Mobility Fund- Criteria
Statewide (40%)
~$2.4B
• Benefit/Cost
• Congestion
• Economic
competitiveness
• Freight
• Multi-modal
• Pavement
condition
• Lane width
• Shoulder width
100%
Division
(20%)
~$1.2B
Regional (40%)
~$2.4B
•
•
•
•
•
•
•
•
Benefit/Cost
Congestion
Economic
competitiveness
Freight
Multi-modal
Pavement condition
Lane width
Shoulder width
70%
• Local
considerations
30%
•
•
•
•
•
•
•
•
Benefit/Cost
Congestion
Economic competitiveness
Freight
Multi-modal
Pavement condition
Lane width
Shoulder width
50%
• Local
considerations
50%
Much Greater Emphasis on Project Merit
NDOT Divisions