PHOENIX AZ: MetroRoad

The HDR engineering group that has been involved in many years of efforts to start toll roads in the East Valley of the Phoenix area has just withdrawn its latest HOT-lanes proposal from negotiation with the state of Arizona. The proposed HOT lanes plus a later proposed San Tan toll road are in the rapidly developing East Valley in the Tempe, Scottsdale, Mesa, Chandler areas east of central Phoenix.

“Changing dynamics and politics, coupled with state initiated changes to the project, have resulted in a project that is no longer financially feasible,” said James Suttle, VP at HDR announcing the withdrawal to the state Transp Board Nov 10. The new speaker of the state house Jeff Groscost had said the newly created state infrastructure bank meant that toll roads should not be needed in the state. Other East Valley politicians were taking up an anti-toll stance.

Suttle told us the reason for withdrawing the proposal was that the plan had become non-viable financially. HDR proposed a not-for-profit which would return the road to the state when the debt was paid off. Phase 1 which it was negotiating with the state involved 15km of third lanes on either side of the 2x2 lane east-west Superstition Fwy (US-60) and 9km of third lanes on the 2x2 lane north-south Price Fwy (AZ-101). These routes intersect and are overloaded with traffic in rush hours. Central lanes were to be run as HOT lanes, free for HOV3+ and tolled for others.

The original cost estimate was $44m but after the state gave the go-ahead to the group and it began detailed engineering designs it discovered that several aspects were more expensive than it had anticipated. It had used historic per-mile average costs in preparing the initial proposal. Extra costs arose from elaborate drainage needed, great lengths of retaining wall, and sound walls, and more expensive ramp reconstructions. Suttle said these pushed the cost estimate up to $67m. At this cost the project was still financially feasible though looking less robust. The project was then hit on three more fronts:

• the local MPO Maricopa county came out with new lower traffic projections causing the financial model being used by HDR to produce lower revenues

• with the elections producing a new crop of politicians strident anti-toll rhetoric was heard

• the state insisted that HDR add to its project HOT-to-HOT direct connector ramps at the I-10/US-60 interchange at the western end of the Superstition (US-60) which HDR estimated added $31m to the capital cost

Suttle told us he agrees the HOT/HOT direct connectors are desirable at I-10/US-60 but there was no way the prospective revenues would service the debt required to take on the extra $31m job. There was no prospect of any other funding so the addition of the connectors killed it.

In an address to the state Transp Board Nov 10 Suttle said that perhaps in the future his group could be involved in competing for a valleywide system of HOT or toll lanes — which his group actually proposed first up 5 years ago. He expressed no bitterness though he said the group had spent about $2m developing the proposal.

A state official we spoke to praised HDR saying the group had shown great ingenuity and persistence and was to be commended for its entrepreneurship and professionalism. It had contributed to the public debate and the effort was not wasted, though it was very disappointing the proposal had not stacked up. The department is now talking to local governments and state politicians about whether to pursue a detailed study of developing a HOT lanes system regionwide. There is already a quite long (30km) HOV section of I-10 and plans to add HOV to I-17 which goes north out of Phoenix. Adding toll buy-in is seen as a way to make better use of the HOV lanes, the official said.

The other toll road project being considered in the area, the South Mountain toll road proposed by Interwest is apparently proceeding. The group is committed to choosing a preferred alignment from three possibles and to produce a traffic and revenue study. (Contact Suzanne Sale AZDOT 602 255 7441, James Suttle HDR 402 399 1094)