HOT Lanes on I-77
What we don’t know…
Sept 9, 2014
Overview
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Project Scope
Toll Rates
Congestion
Ingress/Egress
Confidential Information
The Problem
Congested stretch
of four lane road
from mm21 to
exit 36…
with “no money”
to widen it
A Solution
Add a general purpose lane
in both directions
• 13 miles
• $80- 130M (est)
Source: “I-77 Feasibility Study,” December 7, 2009
The Current Plan
Privately Operated
Toll Lanes
• 27.5 Miles
• $655 M
• 50 year contract
• Cintra, a Spanish
company
Why the difference?
Source: NCDOT Press Release, April 11, 2014
Example: Toll Lane Flyover
Source: NCDOT
The Cost Of Toll Lanes
Source: I-77 JLTCO Report, 4-25-14, WI77 analysis
Taxpayer Obligation
 Taxpayer Contribution
$88M
 For private tolling lanes
 Taxpayer Subsidy
$75M
 To cover potential revenue shortfalls
 Taxpayer Liability
$215M
 Government-backed bonds
Substantial Taxpayer Involvement for Having “No Money”
Source: I-77 JLTCO Report, 4-25-14, WI77 analysis
How Toll Lanes Work
 Built and operated under an exclusive
50 year contract
 Vehicles with 3+ occupants use lane
for free
 Electronic Tolling- no toll booths
 Guaranteed minimum speed
 “Congestion pricing”
 More congestion in “free” lanes = higher
price to use toll lanes
 No limit on tolls
Business Model Ensures Congestion
Toll Rates 2015
$20 Round Trip When Toll Lanes Open
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Toll Rates 2035
$40 Round Trip In Twenty Years ???
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Cintra’s Answer
Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014
Congestion On General Lanes
Average Commute Time- Charlotte to Mooresville
2015
2035
Difference
AM Commute
(Minutes)
39.4
71.6
32.3
PM Commute
(Minutes)
41.5
69.3
27.8
Total
(Minutes)
80.9
140.9
60.0
Commute Time Lengthens By An Hour per Day
Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012
Typical Access Point
Source: Executed Comprehensive Agreement
Ingress & Egress
Mooresville
Exit 36 (NC 150)
35
33
Exit 31 (Langtree)
?
Exit 27 (Westmoreland)
25
30
?
28
23
Exit ~20 (Hambright)
Exit 18 (WT Harris)
?
Exit 13 (I-85)
Charlotte
Existing LKN Exits Bypassed (23, 25, 28, 30)
Source: RFI for Senator Tarte, 6-17-14; NCDOT “Managed Lanes” FAQ
Patron Confidential Information
 Foreign company could collect:
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Name, Address, Tel #, email, credit card info
Drivers license number
Vehicle registration information
Social Security Number
Law enforcement records
Financial profiles
Medical data
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NCDOT (upon request)
Authorized employers or contractors
Authorized collection agencies
North Carolina Public Safety agency (for toll enforcement)
Any other public law enforcement agency (for toll
enforcement)
Any governmental entity (under applicable law)
 Information shared with:
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Source: Executed Comprehensive Agreement, Sect 8.7, June 26, 2014
Private toll lanes…
 Are Expensive
 $20 daily tolls
 Ensure Congestion for 50 years
 Commute times nearly double
 Bypass local businesses
 Could collect significant personal data
 Can be shared widely
 Siphon millions out of our local
economy and send it to Spain
Private Toll Lanes Are Not the Answer
Status
 “Commercial Close”
 Signed June 26, 2014
 “Financial Close”
 Q4 2014
Time Is Short
Now What?
A New Funding Paradigm: STI
 Passed last summer
 HB 817
 Replaces Equity Formula
 Favored rural over urban areas
 More data-driven
 Supposed to remove pork politicking
NCDOT STI Scores for I-77 Project
How Does This Rank Against Other Statewide Projects?
Highest
scoring funded
project
73
“Statewide”
funded
projects
 I77 General Purpose Lane Project
Projects to be funded
Projects unfunded
I-77 GP project
through Lake
Norman
I77 scores
higher than
33 funded
projects
Lowest scoring
funded project
377 Unfunded Projects
A General Purpose Lane Project Would Likely Be Funded…
The Bad News: STI Corridor Cap
 A maximum of 10% of projected
funding in the “statewide” category
 A “corridor” is defined as “any
contiguous projects or group of
projects”
 Since I-77 South (i.e. Charlotte)
scores higher it would use all corridor
cap money
 NCDOT says corridor cap applies... we
disagree, but…
The Good News…
 Corridor cap only applies to
STATEWIDE Category
 I-77 LKN could still be funded under
Regional and Division categories
 60% of total fundng
 ~$9B dollars
 I-77 general use project eligible to be
ranked as early as July 2014!
Six Month Wait vs 50 Years of Tolls
What do we do now?
 Apply pressure to rank the general
use project under STI
 Local elected officials
 State representatives
 CRTPO
 Seek to null the contract
About Widen I-77
 A 501(c) organization
 Donations are tax deductible
 Subject to IRS reporting and auditing
Our only shot at avoiding 50 years of tolls…
Thank You
WidenI77
PO Box 792
Cornelius, NC 28031
wideni77@hotmail.com
wideni77.org
Appendix
Reprioritizing Transportation Funding
Regional (40%)
~$2.4B
Statewide (40%)
~$2.4B
Project Merit (Data)
Per capita
by region
D
Interstates/
NHS/STRAHNET
/Tolls/Etc
Equally
to Divisions
B
A
E
Division
(20%)
~$1.2B
C
1 2 3 4 5 6 7
8 9 10111213 14
F
(S) + Hwys,
Airport, Rail,
Transit
G
(S) + (R) +
Local
Three-Plus Chances for Funding GP Lanes
HB817, Strategic Transportation Investments,
Strategic Mobility Fund- Criteria
Statewide (40%)
~$2.4B
• Benefit/Cost
• Congestion
• Economic
competitiveness
• Freight
• Multi-modal
• Pavement
condition
• Lane width
• Shoulder width
100%
Division
(20%)
~$1.2B
Regional (40%)
~$2.4B
•
•
•
•
•
•
•
•
Benefit/Cost
Congestion
Economic
competitiveness
Freight
Multi-modal
Pavement condition
Lane width
Shoulder width
70%
• Local
considerations
30%
•
•
•
•
•
•
•
•
Benefit/Cost
Congestion
Economic competitiveness
Freight
Multi-modal
Pavement condition
Lane width
Shoulder width
50%
• Local
considerations
50%
Much Greater Emphasis on Project Merit
NDOT Divisions