Tennessee DOT gets toll powers - looks at $270m tollroad northeast of Nashville
Posted Sat, 2007-06-30 11:47
Tennessee department of transportation (TDOT) gets limited toll powers under a law being signed by Governor Philip Bredesen. The law called Tennessee Tollway Act comes out of SB1152 and HB1204 and has been extensively debated the past several months. It was passed by large majorities in both houses of the legislature.
However passage of the bill was gained by accepting an amendment limiting tolling to two projects initially - a bridge project and a road. In addition a provision in the draft bill for toll concessions with private entities (PPPs) was scrubbed.
The act allows the state DOT to issue bonds and do traditional US public toll financing. It creates a state tollway account separate from the state hightway fund. The tollway account will be a depositary for any borrowings for tollroads, for any state or federal appropriations, and for toll revenues. It is to be used for toll projects.
The state's funding board is authorized to issue any bonds on behalf of TDOT for toll projects and may pledge funds in the state tollway account as security. Oddly there is no explicit mention of pledging future toll revenues, the normal way of funding public toll facilities in the US since the Maine Turnpike Authority did this in about 1947. (If the state can only pledge present fund balances it can do no net borrowing!)
The state's transport commissioner gets the power to set toll rates or assign toll setting rates.
No existing roads or road facilities may be tolled. A provision in the original bill for conversion of existing HOV Lanes to toll lanes was killed in an amendment.
Toll evasion is set as a Class C misdemeanor.
TDOT has to report back to the legislature at the beginning of 2009 on its use of tolling powers. There are provisions for legislative approval of the pilot program and for public hearings on all toll projects.
Hadley Bend Connector first up
First up as a toll project is the Hadley Bend Connector (HBC), which has already been the subject of a conceptual feasibility study by Wilbur Smith Associates. It would provide improved connections between central Nashville and Hendersonville to the northeast. Traffic presently uses circuitous routes because of the meandering course of the Cumberland River to the north of Nashville. The HBC would bridge the river three times in the more complete version (Scenario 2) would be 10.3km (6.4mi) long and go from TN155 to TN31E with three river crossings and two interchanges, one partial.
Capital cost of the 2x2 lane expressway project is put at $267m ($146m for a shorter version).
WSA modeled a toll of $1.50 and assumed opening in 2016.
Tolls would be:
2016 $8.5m
2017 $12.0m
2018 $14.8m
2021 $17.6m
2026 $25.2m
2031 $33m
Bonding capacity is put at $176m to $246m for the longer project. The shorter one is less viable. WSA say that it has "a reasonable expectation to be feasible" as a toll financed facility.
The project needs environmental clearance.
BACKGROUND: The Nashville metro area of five counties had 1.18m in 2003 and official forecasts see 535k people (45%) added by 2030 for 1.72m people.
ERRONEOUS REPORT: Associated Press has been running a story which says: "NASHVILLE, Tenn. (AP) - Governor Bredesen has signed into law a measure to create a toll road authority in Tennessee."
This is quite wrong. The law contains no provision to establish a toll road authority. It vests tolling power in the existing state department of transportation.
TOLLROADSnews 2007-06-30
Tennessee department of transportation (TDOT) gets limited toll powers under a law being signed by Governor Philip Bredesen. The law called Tennessee Tollway Act comes out of SB1152 and HB1204 and has been extensively debated the past several months. It was passed by large majorities in both houses of the legislature. However passage of the bill was gained by accepting an amendment limiting tolling to two projects initially - a bridge project and a road. In addition a provision in the draft bill for toll concessions with private entities (PPPs) was scrubbed.
The act allows the state DOT to issue bonds and do traditional US public toll financing. It creates a state tollway account separate from the state hightway fund. The tollway account will be a depositary for any borrowings for tollroads, for any state or federal appropriations, and for toll revenues. It is to be used for toll projects.
The state's funding board is authorized to issue any bonds on behalf of TDOT for toll projects and may pledge funds in the state tollway account as security. Oddly there is no explicit mention of pledging future toll revenues, the normal way of funding public toll facilities in the US since the Maine Turnpike Authority did this in about 1947. (If the state can only pledge present fund balances it can do no net borrowing!)
The state's transport commissioner gets the power to set toll rates or assign toll setting rates.
No existing roads or road facilities may be tolled. A provision in the original bill for conversion of existing HOV Lanes to toll lanes was killed in an amendment.
Toll evasion is set as a Class C misdemeanor.
TDOT has to report back to the legislature at the beginning of 2009 on its use of tolling powers. There are provisions for legislative approval of the pilot program and for public hearings on all toll projects.
Hadley Bend Connector first up
First up as a toll project is the Hadley Bend Connector (HBC), which has already been the subject of a conceptual feasibility study by Wilbur Smith Associates. It would provide improved connections between central Nashville and Hendersonville to the northeast. Traffic presently uses circuitous routes because of the meandering course of the Cumberland River to the north of Nashville. The HBC would bridge the river three times in the more complete version (Scenario 2) would be 10.3km (6.4mi) long and go from TN155 to TN31E with three river crossings and two interchanges, one partial. Capital cost of the 2x2 lane expressway project is put at $267m ($146m for a shorter version).
WSA modeled a toll of $1.50 and assumed opening in 2016.
Tolls would be:
2016 $8.5m
2017 $12.0m
2018 $14.8m
2021 $17.6m
2026 $25.2m
2031 $33m
Bonding capacity is put at $176m to $246m for the longer project. The shorter one is less viable. WSA say that it has "a reasonable expectation to be feasible" as a toll financed facility.
The project needs environmental clearance.
BACKGROUND: The Nashville metro area of five counties had 1.18m in 2003 and official forecasts see 535k people (45%) added by 2030 for 1.72m people.
ERRONEOUS REPORT: Associated Press has been running a story which says: "NASHVILLE, Tenn. (AP) - Governor Bredesen has signed into law a measure to create a toll road authority in Tennessee."
This is quite wrong. The law contains no provision to establish a toll road authority. It vests tolling power in the existing state department of transportation.
TOLLROADSnews 2007-06-30