Private Tollway Will Be a Moneymaker, Say Firms Hired by Private Tollway Company

Categories: Transportation

finaltollstudy.jpg
via North Central Texas Council of Governments
Our transportation overlords at the North Central Texas Council of Governments have been accused of massaging numbers to justify letting a company called the Texas Turnpike Corp. build a tollway from Dallas to Greenville that no one who lives in the way seems to want.

The council of governments, aka NCTCOG, (Or as Shutze calls them, THE COG!), presented a PowerPoint slide full of a bunch of numbers last month that they say explains why the tollway makes sense. But the PowerPoint slides had that unofficial, PowerPoint-ish look to them. Where are all the NCTCOG's data coming from?! tollway opponents demanded to know.

Controversy over NCTCOG's numbers began at a meeting on September 22. A woman from the public named Christine Hubley announced that she had dug up some data from the Texas Department of Transportation showing much lower future traffic projections than NCTCOG's estimates. The News followed up with a story on the discrepancy, writing that while NCTCOG predicts anywhere from a 70 to 503 percent increase in drivers along different sections of the so-called Blacklands Corridor, the state's figures stay in the more conservative range of 23.3 percent to 65.1 percent.

The state's lower numbers, as the News notes, come from an official-looking data center at the University of Texas at San Antonio that works with the U.S. Census Bureau.

See also: NCTCOG Seems Pretty Enthusiastic about Letting a Dallas Company Build Texas' First Private Toll Road

So where is the NCTCOG getting its higher numbers from? I asked the NCTCOG for the source of all its data, and spokesman Amanda Wilson soon emailed me a giant file that included a long report called a regional travel demand model, describing a complicated formula for predicting future population growth.

The file also includes a bunch of maps, an economics report and, finally, two reports authored by consulting firms. One report, described as "a socioeconomic demographic forecast," predicts that a lot of jobs are coming to the tollway area in the future. That's nice, though should probably be taken with a grain of salt, as authors at the Insight Research Corp. point out in the report that they're working for the Texas Turnpike Corp. And a report authored by Baez Consulting, another firm hired by the Texas Turnpike Corp., predicts that the tollway is definitely necessary and will be very profitable.

Asked by email if she thought getting data from company-funded reports presents a conflict of interest, Wilson stresses that NCTCOG's controversial traffic figures came only from its travel model, a report she says was done completely independent of industry money.

"NCTCOG did not rely on traffic forecasts developed by Baez Consulting or any other company hired by the Texas Turnpike Corp. in our Feasibility Study," she said in an email.

It was after NCTCOG generated that traffic report that they then gave their numbers to the Texas Turnpike Corp. to generate yet more reports in a never-ending, report-generating cycle. As Wilson explains: "At the request of Texas Turnpike Corporation (TTC), NCTCOG provided these traffic projections to their consultants, Insight Research Corporation and Baez Consulting, who in turn benefited from NCTCOG's traffic projection in their independent estimations of economic impact and toll revenue for TTC's proposed tollroad project."

It's the Texas Turnpike Corp.'s job to establish financial feasibility, Wilson says. So the tollway, though unpopular, looks like it at least will be super profitable, as long as you feel comfortable putting your trust in reports funded by the corporation that wants to build it, based on traffic numbers that may or may not be inflated.

Here is NCTCOG's traffic report. The first commenter who reads the whole thing and summarizes it in a way the rest of us can understand gets a cookie:

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24 comments
noblefurrtexas
noblefurrtexas topcommenter

First of all, little of this passes the smell test - much less the laugh test.  The NTCCOG appears to have unlimited conflicts of interest, and it makes one curious who is benefiting from whom.


Worse yet, massaging the numbers is considered a level of fraud out of government that is totally unacceptable, and should ring alarm bells to the people who will get stuck funding someone elses investment opportunity.


NTCCOG was never intended to be another layer of government, and it shouldn't be allowed by the member counties and the taxpayers. 


Wake up and smell the stench.

EdD.
EdD.

Are there revenue guarantees in this deal? Many tollways nowadays have a contract provision that if the actual toll revenue doesn't meet a certain benchmark then the taxpayers have to hand over a bag of money to make up the difference. If this is the case here, setting the projected revenue as high as possible is to the private company's advantage since it guarantees them a big check no matter how little the road gets used.

dfw_maverick
dfw_maverick

If this proposed Tollway is funded by private sources why would they inflate numbers?  Seems if they are investing their own money they want to get a return on investment

Bremarks
Bremarks

TTC is Exhibit A for the definition of "Crony Capitalism."  Check out the background of John Crew, it's President.  www.publicwerks.com.  And his campaign contributions. 

TheCredibleHulk
TheCredibleHulk topcommenter

I wonder if it is a coincidence that NCTCOG scheduled all of these public information meetings regarding the tollway at the very same time traffic along the Hwy. 78 corridor is completely jacked up due to the new construction NE of Wylie.

Nothing creates more sympathy for a new reliever-route than sitting stuck in traffic.

doublecheese
doublecheese

Anyone who thinks just building a highway will bring commerce should see the lack of development along the PGBT east of 75 all the way to I-30.  Firewheel Mall in Garland is about it.  Sure, these things take time, but there's no rush to build anything out.


Now take this new proposal, and you create a new toll road that there is no demand for which connects to another toll road in an area with anemic traffic.  It's really just so far beyond stupid, it's conspiratorial.  


On and off ramps with extensive access roads would be required for any kind of economic benefit to the areas this road would go through.  My understanding is that there are very few of these proposed at all.  So cities in the way get no benefit from this at all.

mavdog
mavdog topcommenter

Texas Turnpike Corporation to the consultants: Can you generate economic and use projections on our project?

Consultants: Sure, what do you want them to say?

patrick.j.kennedy
patrick.j.kennedy

When every highway needs a parallel reliever highway, it's time to question the thinking and those doing it.

tvlscat
tvlscat

Thank you for keeping this issue in the forefront.

WylieH
WylieH

[Asked by email if she thought getting data from company-funded reports presents a conflict of interest, Wilson stresses that NCTCOG's controversial traffic figures came only from its travel model, a report she says was done completely independent of industry money.]

And this is the heart of the matter: the NCTCOG's "travel model" is a total piece of garbage.

wcvemail
wcvemail

First! and first! to say that the irony dripped from the headline all over my desk.

TheCredibleHulk
TheCredibleHulk topcommenter

@dfw_maverick

Why does it matter? Nobody really wants it but the people that will profit from building it (TTC) - investors are merely the first level of suckers to be fleeced.

I don't know what Morris & Co. get out of it, but you can bet that in the face of this type of overwhelming opposition, there's "$ome" reason your fellow man, Morris, is willing to sell you out. Or, actually, sell ME out, because my little corner of the world is potentially right in the sights of these PRIVATE developers with the power of eminent domain to take what they desire. 

That is NOT the way eminent domain is designed to work..

doublecheese
doublecheese

@dfw_maverick Those who have no problem bilking taxpayers have no problem bilking private investors.  Make no mistake, these people never use their own money.

patrick.j.kennedy
patrick.j.kennedy

Furthermore, these numbers can be changed to make them whatever they want to be.  If we decide to wave a magic wand and say there will be 40,000 new people living in new sprawl along this corridor that don't currently exist, then they'll create traffic and thus the model will say so and therefore the road is necessary.  But in that case, the road is necessary to unlocking the value of the land for said development.  It's circular logic and should be determined by the locals what they want their area to be.  

MaxNoDifference
MaxNoDifference

@wcvemail Better get that cleaned up right away or it will eat completely through your desktop and then through your floor.

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