How the Center for Innovative Finance Support Office Does Business...
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About Us |
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Capacity Building |
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Outreach/Awareness |
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Research |
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Technical Assistance |
Location |
Orange County, California |
Project Sponsor / Borrower |
Transportation Corridor Agencies (TCA) |
Program Areas |
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Mode |
Toll Road |
Description |
In 1986, the Foothill/Eastern Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency were formed as public joint-powers agencies to manage financing, construction, and operations of several proposed roads in Orange County. In 1987, Senate Bill 1413 was passed by the California State Legislature, giving the Transportation Corridor Agencies the authority to construct toll facilities and to issue non-recourse bonds backed by future toll revenues and development impact fees. The Foothills Corridor, Eastern Corridor, and San Joaquin Toll Roads began construction in 1993 in order to mitigate congestion along the I-5 and I-405 corridors and to accommodate the major population development boom in Orange County, California. Today, the TCA are a joint powers authority consisting of two agencies: the San Joaquin Transportation Corridor Agency (SJHTCA), which manages and operates the 73 Toll Road and the Foothill/Eastern Transportation Corridor Agency (F/ETCA) which manages and operates the 133, 241 and 261 Toll Roads. The TCA facilities provide a substantial enhancement to the Orange County transportation network. The 73 Toll Road is a 12-mile, 8-lane facility running parallel to Interstate 5 in the southern portion of the county. The 241 Toll Road is a 24.5-mile facility that runs along the northern portion of the county with 4 to 6 lanes along its length, providing a connection to SR 91. The 133 and 261 Toll Roads provide north-south connections between Interstate 5 and the 241 Toll Road. The 133 Toll Road is 8 miles long with 6 lanes, while the 261 Toll Road is 6 miles long with 5 lanes. The TCA charges developers of certain residential and commercial properties a one-time development fee, contributing towards the construction costs of the transportation facilities. Residential developments are charged a flat fee per unit, while commercial developments are charged per square foot of new buildings. Residential fees are dependent on several factors including fee zone (two zones for SJHTC and F/ETC each based on proximity to the roadways) and the nature of housing (single family vs. multifamily). The fee rate schedule increases each year on July 1 by 2.667% for SJHTCA and 2.206% for F/ETCA. The development fees were crucial in providing seed capital for the early stages of the roads, especially during the environmental review and design periods. The development fees were successful due to the high level of new development in Orange County in the 1990s and through the mid-2000s. Although revenues from development fees dropped with the 2008 recession, local officials have modified their application, allowing developers to pay the fee upon the completion of a project rather than making it contingent on the issuance of a building permit. |
Cost |
$1.456 billion - San Joaquin Hills TCA $1.808 billion - Foothills/Eastern TCA |
Funding Sources |
SJHTCA: $1.456 billion
F/ETCA: $1.808 billion
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Project Delivery / Contract Method |
Design-Build |
Private Partner |
SJHTCA: Kiewit Corporation F/ETCA: Flatiron Construction Corporation |
Project Advisors / Consultants |
Not available |
Lenders |
Bondholders |
Duration / Status |
F/ETCA: 1st segment opened in 1993 with final completion in 1998. SJHTCA: Completed in 1996 |
Financial Status / Financial Performance |
Closed |
Innovations |
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Related Links / Articles |
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Contacts |
Lori Olin |
