One major concern I have with the corridor is non-compete clauses in the development contracts. Essentially, if the state is asking a private entity to put up money to build a road the state can't compete with the private entity for 'business.' In this case business is travelers...you and me driving on the roads. Non-compete clauses severely limit the ability of the state to improve or build new roads that would be in competition with the privately run toll road.
It is a major concern on the I-35 TTC project because the only free alternative is the existing I-35. TXDOT has said all along that planned I-35 improvements are not limited by TTC-35 and that they would continue. I've always believed that this was said so that TXDOT could dismiss fears that toll roads would soon be the only option available because it was nothing more than an EMPTY PROMISE. Well, sure enough, today here is the proof of how empty that promise was.
TXDOT is now saying that the funding may not be available to continue I-35 expansion and TTC-35 will be the solution to relieving congestion that was supposed to be relieved with I-35 improvements. See the article here.
Here is my comment to TXDOT. Let me help you with a little math. The I-35 corridor between San Antonio and Dallas is where all your problems are. You say, per the article referenced above, that you will need in excess of $1 billion to develop the road and $150 million for right of way costs. According to you that is money that you won't have and can't get from the federal government. Wow, those are big numbers and might scare some folks. Well, being the problem solver that I am I wonder where you might find those funds. Perhaps you could take a page from the Cintra-Zachry playbook and ask the federal government. Yes, that's right the federal government...you know...the people that you say are broke. Well, according to Cintra's conceptual financial plan for TTC-35 for the segments between and around Dallas, San Antonio, and Austin they are expecting to procure $1.772 billion dollars in financing from the federal government. By your own estimate, this would be sufficient funding to improve I-35 as planned and possibly go a little further. If a private concern can get the money...WHY THE HECK CAN'T YOU?!?!?!?!?!
SOUND REALLY FISHY TO ME. Instead of TXDOT perhaps we should call you TXDOSOS. That stands for Texas Department of Snake Oil Salesman.
Click for details and verification of the 1.772 billion I quoted...
My 1.772 billion dollar number came from browsing through the conceptual financial plan put forth by Cintra for TTC-35. You know, the one that they tried to keep secret even though the courts told them it was public information.
That document is found here.
Well, the first thing to note about this document is that on page 2 of the pdf one of the bullets on the left side of the page indicating what the proposer intends to accomplish is "require NO public funds". Note the footnote attached though.
The footnote references the following text.
"2 - Public funds are understood to include state and federal highway funds. State infrastructure bank, TIFIA credit instruments or local sources are not included in the public funds assumption per Q&A response dated August 3,
2003. Of these sources, the CFP anticipates TIFIA funding only."
The devil's in the details right? How is a federal loan not considered public money. The federal government has no money without us...that's yours and my tax dollars being put at risk so a private entity can build, operate, and PROFIT off of a road.
Now, back to totaling up the 1.772 billion dollars.
The document outlines details of each specific near-term segment that they plan to build for TTC-35. These detailed segments start on page 12 of the document.
In the heading for each segment there are dollars and dates. The box titled "SOURCES AND USED DURING INITIAL CONSTRUCTION" shows where the money is coming from. TIFIA is the federal loan program that Cintra plans to utilize. You can find more about this program here. If you go through the six near term segment headers on pages 12-17 you can find all the individual numbers, per facility. If you go to page 18 you can see an aggregate summary indicating 1.772 billion in TIFIA credit coming to 21.4% of the total project funding.
Hope this helps in clarifying the numbers.
click to collapse...
2 comments:
Hello,
I am a member of a regional planning commission that is opposed to the TTC. I am interested in a document that will verify the $1.7 billion loan from the federal govt to Cintra. Can you help?
Gene
Gene,
I am updating the post to include documentation of my 1.772 billion number.
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