DOT should drop toll road proposals, financial adviser says

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Financial adviser says DOT should drop toll road proposals
I-75, I-575 project unlikely to make money under any scenario, adviser says

By ARIEL HART
The Atlanta Journal-Constitution
Published on: 04/16/08

The multibillion-dollar project to build toll lanes along I-75 and I-575 in Cobb and Cherokee counties is unlikely to be financially feasible as proposed by the private consortium Georgia Transportation Partners, and it should be dropped, the state Department of Transportation's financial adviser told the DOT board Wednesday.

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The adviser, Aaron Barman of Royal Bank of Canada, said all proposals currently under consideration for private investment in public toll roads — including I-75, which is already under a development contract, and Ga. 400, I-285 and I-20 — should be suspended.

He said there are ways the roads might work as toll roads, but not as currently proposed. Instead, he said, the DOT should first make decisions on issues such as how high tolls should be and whether trucks should be in mandatory toll lanes.

Transportation officials also should do more detailed traffic analyses before deciding what sort of public-private transportation system to put out to bid and how to do it. The decision is ultimately the DOT board's.

The I-75/I-575 project proposed adding two truck-only toll lanes along I-75 and adding so-called "Lexus lanes" for drivers who choose to pay to get out of congestion along both I-75 and I-575.

Very little private investment was included in the plan, but hundreds of millions of dollars would be invested by the state.

The recommendations on toll roads seemed in line with the DOT board's growing dissatisfaction with patchwork toll road planning, depending on private companies to suggest what part of the system to build rather than the DOT itself planning a comprehensive system.

Commissioner Gena Abraham said RBC's recommendations resulted from her request to re-evaluate the state's public-private toll road program. She said that while the recommendations were RBC's alone, she would "listen very strongly" to its findings. First, though, she and board members said they intended to sit down with the companies that had made the toll road proposals to hear their side.

"Maybe we missed something or maybe RBC missed something," Abraham said. She added that rejecting those proposals did not mean cutting those corridors from road expansion, it just could be done differently.

Representatives from companies that had bid on two of the projects who were present at the meeting declined to comment.

Bechtel Infrastructure joined with other companies to propose the project on I-75 and I-575 at $1.8 billion, but the state added more aspects to the project and inflation drove up construction and land costs, bringing the price to $4 billion.

In addition, trucking groups said they would sue if they were forced to use the toll lanes. But the state conceded that mandatory truck tolls were probably the only way to pay for the project.

Abraham said the DOT could get out of the $38.5 million development contract with Bechtel and its partners, after paying for work that already has been done, which could amount to $5 million to $7 million.

Each of the consortia that pitched projects under the toll program easily may have spent $1 million each on their proposals, but Abraham said it was possible the state could pay them stipends.

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Comments

By Richard

Apr 20, 2008 5:51 PM | Link to this

We asked for it.
Everyone living in the burbs and commuting to Atlanta chooses to do so. especially in the crowded NW corridor. If they only lived in town and walked or took Marta to work we would not have traffic issues to deal with. Some people are concerned with crime, if more families and law abiding citizens lived in town then crime really would diminish to what people experience in the burbs. Others want a yard to play in, that's why there are parks, piedmont park, john howell park, grant park, candler park. there is lots of room for everybody.

By MC

Apr 18, 2008 1:35 AM | Link to this

Facts are: MARTA is forbidden by state law from expanding beyond Fulton and DeKalb counties. Until this is changed (and I'm not sure our current legislators are so enthusiastic about MARTA) we have to rely on a mostly ITP heavy rail network shaped something like a plus sign.

I suspect, however, that the escalating cost of driving will focus more attention on public transit, perhaps bringing MARTA a small step closer to freedom from spiteful legislation.

By Mojo

Apr 17, 2008 3:39 PM | Link to this

The GDOT will NEVER be involved w/ anything other than creating, paving, and improving ROADWAYS. So you will never hear them propose any type of mass transit rail. Buses maybe but never rail. A while back a retired DOT worker told me that it's in the Georgia Constitution somewhere that the GDOT can ONLY work w/ roadways. Seems farfetched but has anyone yet heard of the GDOT doing anything anywhere in this state w/ mass transit rail systems?
Ahhh..no. Toll roads around Atlanta are stupid and will only make the gridlock 10 times worse as everyone lines up to pay stupid tolls w/ the dream of somehow buying their way to open road travel around Atlanta expressways.

By Joe

Apr 17, 2008 1:46 PM | Link to this

Good idea for the construction co. They will make a lot of money, and will give promised donations to the backers in the gov't. Yes privatise all public roads and give the proceeds to the construction co. tax payers will not mind paying tools for road that they have paid for and are paying for it. Wake up. Check who is backing this?

By DH

Apr 17, 2008 1:15 PM | Link to this

I-575 should have three FREE / non-restricted lanes in each direction from the Woodstock area to the south, and possibly a fourth FREE / HOV lane in each direction from Bells Ferry to the south.

I think all of us up here have paid enough in taxes over the years to give us a few more FREE lanes on I-575!

By mark

Apr 17, 2008 12:05 PM | Link to this

I thought the idea was to take measures to take cars off the roads not add more , i think a rail system makes lot more sense then toll roads ,specialy when it comes to privatising our state highways.

By JoJo

Apr 17, 2008 11:52 AM | Link to this

Absolutely no to the toll road proposals. This has become a major metro area and needs to emulate progressive major metro areas everywhere in the world by developing a good mass transit system, especially a great deal more rail (look at Boston, DC, Montreal, etc.) Whenever this is suggested opponents scream about the projected costs; but they ignore the enormous costs we're incurring right now because of the absence of a great mass transit system. When tens of thousands of us sit fuming in our cars for an extra 15 to 60 minutes every workday, burning expensive gas and pouring out pollutants, don't you think there are costs incurred? Those costs are not immediate, out-of-pocket costs so we tend to ignore them but they're nevertheless real. And they come to billions every year!

By Yurtle_the_turtle

Apr 17, 2008 11:49 AM | Link to this

Why are we even discussing toll roads? Are there not any creative solutions any more? This sounds like government in partnership with private business to bilk the taxpayer for more money. And, let's be honest here, NO tolls are EVER taken down once the road is completly paid for...it is a tax to use the system. STUPID IDEA

By stuck in traffic

Apr 17, 2008 11:15 AM | Link to this

I enjoyed reading the posts about spending "major money", doing it now, and that the DOT can do it just fine. As an Atlantan stuck in traffic daily, I would love to see all of that happen, the only problem is that DOT doesn't have the money. The I-75/575 project is projected at $4 Billion. That is over 2 times the yearly expenditure of GDOT. These Mega project have to either be paid with higher taxes or toll roads. If corporations want to come to Georgia and front billions of dollars, I'm all for it. This city needs help but no one wants to pay for it.

By dc

Apr 17, 2008 10:57 AM | Link to this

More telecommuting is the key, not taxing, taxing, taxing out the wazoo. Telecommuting is coming, or either more people will lose their job because they cannot get to work. I hope that does happen, then, we'll all get what we need, back to civility. Work close to home, have more family time, and be overall less streesed about things. Shame on government politics, I know I could do without all government.

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