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General Purpose Lanes on I-77

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

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General Purpose Lanes on I-77

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  1. General Purpose Lanes on I-77 The Plan… February, 2015

  2. Overview • Project Overview • Status • Actions • Q&A

  3. The Problem Congested stretch of four lane road from mm21 to exit 36… with “no money” to widen it

  4. A Solution • Add a general purpose lane in both directions • 13 miles • $80- 130M (est) Source: “I-77 Feasibility Study,” December 7, 2009

  5. The Current Plan • Privately Operated Toll Lanes • 27.5 Miles • $655 M Source: NCDOT Press Release, April 11, 2014

  6. 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

  7. Difference General Purpose Lanes Toll Lanes • ~13miles 27.5miles • ~$100 million $655 million • 2-4 lanes All of RoW • Able to expand U.R.I.F. No improvements for 50 years

  8. Why the difference? Majority of travel time savings Majority of Cost Source: RFP

  9. Example: Toll Lane Flyover Source: NCDOT

  10. The Cost Of Toll Lanes Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

  11. 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

  12. Toll Rates 2015 $20 Round Trip When Toll Lanes Open Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  13. Toll Rates 2035 $40 Round Trip In Twenty Years ??? Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  14. Cintra’s Answer Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014

  15. Congestion On General Lanes Average Commute Time- Charlotte to Mooresville Commute Time Lengthens By An Hour per Day Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  16. Typical Access Point Source: Executed Comprehensive Agreement

  17. 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

  18. Where Would You Locate Your Business/Home? Lake Norman? Guaranteed congestion and increased travel costs Concord? I-85 widened with GP lanes/New Interchanges Gastonia? I-85 to be widened with GP lanes/CLT Proximity Rock Hill? I-77 No Tolls/Low Taxes/CLT Proximity LKN: A Uniquely Poor Position

  19. Debt Service CA 91 I-95 MIA HOU, DEN, MSP, SAN + 6 OTHERS Historically high tolls required from second smallest metro area Source: Financial Plan, Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012

  20. Why would our government fund such a project? We cannot assume the bond markets will come to their senses

  21. 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?

  22. 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

  23. 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

  24. Now What?

  25. 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

  26. NCDOT STI Scores for I-77 Project Source: “STI & I-77” press release, NCDOT How Does This Rank Against Other Statewide Projects?

  27. Highest scoring funded project 73 “Statewide” funded projects  I77 General Purpose Lane Project Projects to be funded Projects unfunded I77 scores higher than 33 funded projects I-77 GP project through Lake Norman Lowest scoring funded project Source: STI 9-24-14 STI 3.0 Total Score 377 Unfunded Projects A General Purpose Lane Project Would Likely Be Funded…

  28. 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

  29. 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

  30. Why would NCDOT rank a GP project? • “I-77 is …a critical, north-south transportation corridor for the Charlotte-metro 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

  31. What’s next? • Continue with the lawsuit • Rank a GP project starting July • Simply follow the process • Requires political support

  32. What can you do? • Contact your state representative • Rep Charlie Jeter: Charles.Jeter@ncleg.net • Rep John Bradford: John.Bradford@ncleg.net • Rep John Fraley:John.Fraley@ncleg.net • Sen Jeff Tarte: Jeff.Tarte@ncleg.net • Sen David Curtis: David.Curtis@ncleg.net • 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

  33. What else can you do? • Tell your friends and neighbors • Fliers for business • “Like” us FB • Raleigh road trip • Donate!

  34. 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!

  35. 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!

  36. Thank YouWidenI77PO Box 792Cornelius, NC 28031wideni77@hotmail.comwideni77.org

  37. Appendix

  38. Bonus Allocation- All Projects Source: CRTPO Agenda, Feb 18, 2015

  39. Bonus Allocation- New Projects Source: CRTPO Agenda, Feb 18, 2015

  40. Bonus Allocation- LKN New Projects Source: CRTPO Agenda, Feb 18, 2015

  41. How Did We Get Here? “We have $70 billion in identified and ranked transportation projects with only $11 billion to pay the bill.”

  42. 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

  43. North Carolina’s First Toll Road Triangle Expressway Financial Results Operating Exp: $21M Revenues: $24M Debt Service: ~$50M $47M Annual Shortfall Who pays the difference? Source: NCTA Annual Report, WI77 analysis

  44. Reprioritizing Transportation Funding A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 E D F G Division(20%) ~$1.2B Regional (40%) ~$2.4B Statewide (40%) ~$2.4B Project Merit (Data) Per capita by region Equally to Divisions Interstates/ NHS/STRAHNET /Tolls/Etc (S) + Hwys, Airport, Rail, Transit (S) + (R) + Local Three-Plus Chances for Funding GP Lanes HB817, Strategic Transportation Investments,

  45. Strategic Mobility Fund- Criteria Division(20%) ~$1.2B Regional (40%) ~$2.4B Statewide (40%) ~$2.4B • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 100% • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 70% • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 50% • Local considerations • 50% • Local considerations • 30% Much Greater Emphasis on Project Merit

  46. NDOT Divisions

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