General Purpose Lanes on I-77The 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

~13miles 27.5miles ~$100 million $655 million 2-4 lanes All of RoW Able to expand U.R.I.F.

Toll LanesGeneral Purpose Lanes

No improvements for 50 years

Why the difference?

Source: RFP

Majority of travel time

savings

Majority of Cost

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

Substantial Taxpayer Involvement for Having “No Money”

Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

Total: $193M

Toll Rates 2015

Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

$20 Round Trip When Toll Lanes Open

Toll Rates 2035

Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

$40 Round Trip In Twenty Years ???

Cintra’s Answer

Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014

Congestion On General Lanes

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

Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

Commute Time Lengthens By An Hour per Day

Average Commute Time- Charlotte to Mooresville

Typical Access Point

Source: Executed Comprehensive Agreement

Access Points

South of Exit 33South of Exit 33

South of WestmorelandSouth of Westmoreland

At HambrightAt Hambright

South of WT HarrisSouth 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

Lake Norman? Guaranteed

congestion and increased travel

costs

Gastonia? I-85 to be widened with GP lanes/CLT

Proximity

Gastonia? I-85 to be widened with GP lanes/CLT

Proximity

Concord? I-85 widened with

GP lanes/New Interchanges

Concord? I-85 widened with

GP lanes/New Interchanges

Rock Hill? I-77 No Tolls/Low

Taxes/CLT Proximity

Rock Hill? I-77 No Tolls/Low

Taxes/CLT Proximity

LKN: A Uniquely Poor Position

Debt Service

Source: Financial Plan, Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012

Historically high tolls required from second smallest metro area

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2015 2020 2025 2030 2035 2040

TIFIA Principal

TIFIA Interest

PAB Principal

PAB Interest

Operating Expense

Millions

CA 91

I-95 MIA

HOU, DEN, MSP, SAN + 6 OTHERS

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

Source: Executed Comprehensive Agreement Amendment 1, January 19, 2015

$2.3M in legal fees to craft an unenforced contract

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

How Does This Rank Against Other Statewide Projects?

Source: “STI & I-77” press release, NCDOT

I77 General Purpose Lane Project

I77 scores higher than 33 funded projects

Projects to be funded

Projects unfundedI-77 GP project through Lake Norman

73 “Statewide” funded projects

377 Unfunded Projects

Highest scoring funded project

Lowest scoring funded project

A General Purpose Lane Project Would Likely Be Funded…

Source: STI 9-24-14 STI 3.0 Total Score

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 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…”

Sources: I-77 HOT Lanes EA, July 2013; Fix I-77 Now! Blog, NCDOT, June 26, 2014

Because NCDOT is on record as saying widening I-77 is critical

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 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

What else can you do?

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

WidenI77PO Box 792Cornelius, NC 28031wideni77@hotmail.comwideni77.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

Source: NCDOT 9-24-14 Priority 3.0 Final Scores

With these “needs”, no wonder NCGA really wants to build tolls…With these “needs”, no wonder NCGA really wants to build tolls…

North Carolina’s First Toll Road

$(60)

$(50)

$(40)

$(30)

$(20)

$(10)

$-

$10

$20

$30

Revenues: $24M

Operating Exp: $21M

Debt Service: ~$50M

$47M Annual Shortfall

Source: NCTA Annual Report, WI77 analysis

Triangle Expressway Financial Results

Who pays the difference?Who pays the difference?

Reprioritizing Transportation Funding

Statewide (40%)~$2.4B

Regional (40%)~$2.4B

Division(20%)

~$1.2B

Per capitaby region

Equallyto Divisions

Project Merit (Data)

5 6 7

8 9 10111213

4321

14

A B C

D E F G

Interstates/ NHS/STRAHNET

/Tolls/Etc

(S) + Hwys, Airport, Rail,

Transit

(S) + (R) + Local

Three-Plus Chances for Funding GP LanesHB817, Strategic Transportation Investments,

Strategic Mobility Fund- Criteria

• Benefit/Cost• Congestion• Economic

competitiveness• Freight• Multi-modal• Pavement

condition• Lane width• Shoulder width

100%

Statewide (40%)~$2.4B

Regional (40%)~$2.4B

Division(20%)

~$1.2B

• 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