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

Categories: Transportation

finaltollstudy.jpg
via North Central Texas Council of Governments
The NCTCOG held its last public meeting about a new tollway proposal that is still being studied, in the ultimate Catch-22.

A few years ago, a private, Dallas-based corporation announced it would like to build a private toll road, all with its own money, connecting northeast Dallas County to somewhere around Greenville, running basically parallel to the Interstate 30 and passing near Lake Lavon and Lake Ray Hubbard. The Texas Turnpike Corp., has been so enthusiastic about its idea that the North Central Texas Council of Governments, the regional transportation planning agency, has agreed to get involved and examine it.

The tollway is just an idea that's being studied, the agency's transportation department director Michael Morris has assured the worried property owners whose land might be in the route's way. It's not a done deal, officials have said, and they don't even know where exactly the route would go, if they find the toll road is necessary at all.

See more: Uncertainty about the Path of a Dallas Company's Toll Road Worries Property Owners

It seems likely, though, that the NCTCOG has found both a need for the tollway and has agreed to let the Texas Turnpike Corp. be the one to build it. At a joint NCTCOG/Texas Turnpike meeting Monday, Morris and other agency staffers announced that they had finished their long-awaited study into the toll proposal, which they lumped in with a general study about the entire area they identified as the Blacklands Corridor. They presented their results in a packet of PowerPoint slides and said that Monday's meeting would be the final government meeting on the topic.

"We are at our final recommendation, which you'll hear this evening, and again, thank you very much for coming out to hear these particular recommendations," Morris told about 1,300 people gathered in Rockwall, a crowd that was both ticked off and eager to find out more specifics on what the agency's recommendations actually are.

But the recommendations still didn't bring any clarity on what the actual route of the toll would be. The study concluded that a new toll road should be built, somewhere. In the hand-outs, the agency says its study identified a need for: "New Location Freeway/Tollway."

There's a map included for the "Freeway/Tollway," linking the Bush Turnpike to Greenville, but the route is still just a bunch of squiggly lines that are preliminary and "Subject To Further Study."

After presenting their vague study findings, the government staffers passed the microphone off to the Texas Turnpike Corp. With that, NCTCOG was finished.

"It's important to mention that this is the last meeting, as the COG staff stated, of their feasibility study," said Texas Turnpike Corp.'s Neal Barker. "However, it's the first of several public meetings that we're hosting for the Northeast Gateway Tollway Project." He promised that the public would get invited to numerous future meetings hosted by the private corporation, where everyone would learn more about the tollway.

The TTC says it's still studying where the route will be, if the tollway gets built at all. The company anticipates figuring out the actual route next spring and then submitting its final application to the Texas Transportation Commission sometime next year.

Even if there is a need for a private tollway, why does the Texas Turnpike Corp. automatically get to be the company to build it? The short answer: because no one else can, thanks to the Texas Legislature. Unlike other companies that bid for work on toll road projects created by the government, Texas Turnpike can move ahead on its own initiative.

And with the power of eminent domain.

For the longer answer, NCTCOG spokesman Amanda Wilson directed me to the agency's website.

The Texas Turnpike Corp. has statutory authority, given by the Texas Legislature, to develop toll roads under certain conditions with TxDOT oversight. Firms that have submitted bids to the Texas Department of Transportation to develop toll projects as Comprehensive Development Agreements (LBJ Express, North Tarrant Express) do not have such authority and can only develop projects by responding to a solicitation by a public-sector entity such as TxDOT, the North Texas Tollway Authority or a Regional Mobility Authority.

Send your story tips to the author, Amy Silverstein.


Advertisement

My Voice Nation Help
44 comments
ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

I like the disclaimer on the bottom of the illustration.


Basically, it ranks right up there with "part of this nutritious breakfast".


Basically, you could put all sorts of squiggles in different colors between two points on a part and say "People like to go between points A and B, but we won't know where the route will go until much later after we convince everyone that the road will be built and by then it will be too late for you too complain or block the construction because we will have lots of glossy reports with dubious assumptions that will support our original idea."

fred.garvin.mp.713
fred.garvin.mp.713

Not to bury the lede here, but: this is how urban sprawl happens. Instead of investing in existing infrastructure (not sexy), we build new transport infrastructure in anticipation of dubious future demand, but that same infrastructure creates its own demand as it drives development along the route.

Road infrastructure seems to follow the mantra of "if you build it, they will come."

The problem with doing this with roads and car-based transport is that the roads are expensive to build and maintain. Major renovations really negatively impact development along that route AND during that time of renovation traffic slows--the very thing the renovation is supposed to be alleviating

(think LBJ's many expansions to *relieve congestion* but the years of construction work that worsen congestion in the process).

ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

Let me guess.  If this tollroad is built then there is no need to widen, or increase, the capacity of, IH30 from Rockwall to Greenville?

mavdog
mavdog topcommenter

If private money wants to build a highway and charge those who use it a toll, goforit. there is nothing new nor novel about this, it's been done before  being sometimes profitable and sometimes unprofitable. the investors take the risk.

However, the private investment group should NOT be given the power of Eminent Domain.That is a power of the State, it forces the transfer of property, and should never be a right given to private investors.

schermbeck
schermbeck

Of course, the lack of specificity intentionally keeps the opposition from solidifying as everyone along the squiggly lines hopes it misses them by zigging instead of zagging.

ryan762
ryan762

I used to drive from Wylie to Commerce (by way of Greenville) when I was working on a graduate degree. It wasn't that long ago, and I was very frequently alone on those roads to and from class.

Is there really a strong demand for this road?

s.aten
s.aten

Did you see the news about the Indiana turnpike filing for bankruptcy?  Also the Texas 130 toll road could be filing for bankruptcy next year. Seems there is a limit to how many people want to pay gasoline taxes and then a pay a toll to drive.


realtalk214
realtalk214

the officers behind Texas Turnpike Co


http://www.publicwerks.com/about.html


http://texasturnpikecorp.com/?page_id=7



3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


EXECUTIVE

ALAN D FRIEDMAN 

3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


VICE PRESI

AYLIN O WALSH 

3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


PRESIDENT

JOHN CREW 

3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


VICE PRESIK NEAL BARKER 

3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


EXECUTIVESTEVEN W MCCULLOUGH 

3811 TURTLE CREEK SUITE 1300 

DALLAS , TX 75219


GOVERNINGW WARD GREENWOOD 

1515 PRESTON AVENUE 

AUSTIN , TX 78703



ozonelarryb
ozonelarryb

How could no one ask Morris if the "Blackland Corridor" wasn't his pet name for I345?

ozonelarryb
ozonelarryb

Please someone dig into recent land transfers in that area.

WylieH
WylieH

This is possible even more idiotic than the Trinity Toll Road.  How much longer is this madness going to be allowed to continue?

ScottsMerkin
ScottsMerkin topcommenter

@fred.garvin.mp.713 the problem is, we still to this day build new roads that are already outdated in terms of capacity when they open.  I drive 161 quite often and damn if that road isnt overcrowded and slow during any rush hour.  The speed limit is 70 but you hardly reach 40 at times

Amy S
Amy S

@mavdog "Private money" includes the pension funds of public workers. Have any savings in a mututal fund? You just became "private money". 


Let's say the TX leg approves a guaranteed minimum flow of traffic to get funding (see my link below to Businessweek article - this is the trend). You sell the finance deal to these megafinance companies showing a government guarantee of a steady rate of return.  It just became a golden investment egg, one guaranteed by the citizens of Texas. And how much better to have the company getting the deal be a Texas one, instead of a foreign one?


Of course the potential exists that we guarantee both a bad investment and an underused road.

kduble
kduble

@ryan762 Of course there will be demand. These roads create their own demand as real estate development occurs along the entire length. Then again, such induced demand argues against building them.

dingo
dingo

@ryan762 

One feasibility study stated an anticipated 91% increase in population in the area east of the two reservoirs, if memory serves.


Out north is getting too far out north so development is apparently headed east.

tlewis186
tlewis186

@ryan762  Of course there is no demand. There is only money to be made. 


Amy S
Amy S

@s.aten Watch in the next legislative session. There will be a bill to guarantee the toll road corporation a minimum flow of traffic in order to get their capital. This is the trend in toll roads that have a questionable need in order to get the capital needed to build them. 

Anon.
Anon.

One of those guys ought to be familiar to folks. Mr. McCullough used to be the City Manager of Irving and was the interim city manager after Mayor Beth successfully ran off that last guy.

Amy S
Amy S

@WylieH This stopped being about roads a long time ago. It's about finance, and a flow of money. I don't consider myself an alarmist, or someone who stockpiles stuff for the end of the world. But I did read a book a few years ago that hit the nail on the head when it comes to toll roads. There's an entire chapter devoted to them. Worth a read. http://www.amazon.com/The-Coming-Economic-Collapse-Thrive/dp/B002IT5P1U

Anon.
Anon.

This is far from over. The opinion of Mr. Morris is significant, but not the overriding deciding factor. Rest assured that the area's state and national legislative delegation is paying close attention to these developments. It is a Very Big Deal when 1,500 people turn out to resoundingly say, not just "No", but "Hell No and Don't Let the Door Hit You on the Way Out!"

That's a colorful way of saying that TxDOT still has a role to play in this game. At some point TxDOT will have to study this as well and then they will have opportunities for public input. TxDOT knows who authorizes their budgets. The various TxDOT District Directors involved will take into very careful consideration what their bosses, the aforementioned legislative delegation, this about this.

So, to state again the same kind of advice I shared with another Unfair Park commenter, if you are in, or even near, the study area, then share your thoughts and opinions with your state house and senate representative. Believe it or not, they do listen when folks call, write, or make appointments for some office time with them.

OxbowIncident
OxbowIncident

@WylieH ...until these people who banked on this business own a bunch of banks.

MaxNoDifference
MaxNoDifference

@ScottsMerkin @fred.garvin.mp.713 One of the problems with 161 is that the the road shrinks from 6 lanes to 4 lanes when it isn't a toll road, causing congestion from the cramming of 3 lanes of traffic to two on each side.

mavdog
mavdog topcommenter

@Amy S

Yes, in fact the Dallas Police & Firefighters pension Fund has invested in both the North Tarrant Express and the LBJ toll projects. Those are not the same as the "Blackland" Tollroad proposed in this story, those are public/private partnerships using existing infrastructure as the public contribution and the capital needed for expansion as the private contribution.

Any money invested in mutual funds don't "become private money", it started and continues to be private money. I have a choice of which fnd to invest in and if the fund tells its investors they want to put $ into "alternative investments" as these are called, the investor has the ability to pull their money out.

The State shouldn't guarantee any cash flow, shouldn't be guaranteeing any debt, the State should not be involved in any capacity. Period. That is why it is called a "Privately funded toll road". We all need to be vigilant to make sure it stays that way.

Again, if private money wants to invest in the road, I do not see any reason they should not be allowed to do such. They should not be granted any rights of the State, they should be 100% private enterprise.

s.aten
s.aten

@Amy S @s.aten  - that is so wrong. If a private company gets to operate a toll road then they should also bear the risk that traffic projections are wrong.   I wonder if they will limit improvements to I-30 to reduce competition as well?

ScottsMerkin
ScottsMerkin topcommenter

@riconnel8 @s.aten just wow!  That should be read by everyone here and many more who have no idea what Perry did/is doing with taxpayer funds

kduble
kduble

@Amy S Of course, the author predicting $200 oil didn't anticipate fracking, which may be why the book is 72% off list price. We'll still run out of oil, but it will take longer.

Anon.
Anon.

@Amy S

Great information, Amy. Non-compete clauses are one way toll road developers can guarantee more traffic on their facilities. Those are frequently used to drive traffic certain directions, even in entertainment venues. Just look at how a non-compete clause resulted in Reunion Arena being torn down before it was even fully paid for!

There are a number of problems with the idea that the sorts of tactics you describe will be used in this instance. One of them is Bob Hall, who beat Deuell in the republican primary for Texas Senate District 102, which goes from Greenville to Garland. Hall and the relevant house district representatives are all highly unlikely to allow any such restrictive legislation to go through. They are listening closely to their voters about this toll road. That 1,500 member lynch mob that showed up in Rockwall got everyone's attention.

Bob Hall might be the most important roadblock to this project since he is very anti-toll road and seems to have listened to John Carona regarding the best ways to build and maintain highways - i.e. via taxes, not tolls. It is much less expensive to build and maintain a tax supported highway versus a toll supported highway.

By the way, Michael Morris manipulated the RTC into providing exactly that kind of income guarantee, or backstop, that you describe for the SH360 extension that was recently approved between the RTC, TxDOT, and the NTTA. It was a particularly bad piece of public policy resulting in no direct oversight by elected officials of any of the potential excess revenues that might be created by that highway, while at the same time pledging non-trivial amounts of regional resources should the facility not generate enough revenue to make its bond payments. A few on the RTC tried to amend that by including elected officials on the oversight committee, but their attempt failed.

They key here, again, is to make sure the state representatives and senators hear from their constituents about the possibility of the state providing a financial backstop to the project and the possibility the developer tries to insert some sort of non-compete clause between the proposed facility and I30, SH66, SH78, and SH380.

Amy S
Amy S

@WylieH The wizard is only a wizard until someone pulls back the curtain.

Amy S
Amy S

@mavdog Let's agree to stay vigilant on this. Next year they are back in session. 

Amy S
Amy S

@s.aten @Amy S Private money is a very interesting term. Private money is the pension funds of teachers and other public workers. Private money is (yours? my?) savings in bond-based mutual funds in 401K accounts. 


Private money is not a company that has this cash sitting around. The company formed is selling the deal to "private money" for investment. 


My guess is that the minute the legislature makes a flow guarantee on this venture, the financing will sell out immediately just in pension funds looking for a safe 5-6% return that flows forever.

riconnel8
riconnel8

@ScottsMerkin I know....I felt the same way when I read it.  I was hoping that one of the writers at DO would pick it up and run with it. 

mavdog
mavdog topcommenter

@squeakywheel88 

maybe they should run it through your living room.......

if they were willing to pay me the money I want to be paid "for my living room" I would let them...that's the way property rights work.

mavdog
mavdog topcommenter

@Amy S

As the saying goes, there's a reason we allow the Texas Legislature to only convene for 140 days every other year....think of how much more mischief and problems they would cause if they were allowed to be in session more than that.

Amy S
Amy S

@mavdog I confess an addiction to watching  TXCN. There's something educational about watching the other major cities perspective on state issues.

Now Trending

Dallas Concert Tickets

From the Vault

 

General

Loading...