Jackson Mississippi parkway strong development concession - state's CFO and dep-ED

Brenda Znachko, chief financial officer and deputy exec-director at Mississippi DOT says the Jackson Airport Parkway is a financially "strong" project. She says a traffic and revenue study by URS is being finalized, and will be released at an industry workshop, compulsory for bidders, in Jackson July 1.

RFQ's will be due August 1.

Meanwhile, she told us this week, the T&R numbers have been used as the basis for a feasibility study by JPMorgan (CORRECTION HERE 2008-06-09 10:30), the department's financial advisers. Their work will be kept confidential through the procurement process, but Znachko told us it indicates the project is "strong" as a toll concession.

Despite the project's name, Znachko says, the overwhelming bulk of the projected traffic and revenue is local commuters, not airport users as such. She says alternate routes from the developing eastern areas to downtown - including I-20, I-55, and MS25 get some serious congestion, so the tollroad will offer a speed as well as a distance advantage in peak hours.

The parkway project will serve to improve performance in the whole network of roads in Jackson, the traffic modeling suggests.

The department is still considering - with advice from Nossaman their lawyers - the question of how to handle the 'non-compete' issue: whether additions to free capacity will be controlled by the contract or compensated for, or left unconstrained.

Free flow tolling but cash option not ruled out

The RFP describes the specified toll system as needing to allow for free flow tolling at highway speed. However Znachko indicated that is not intended to rule out cash toll collection to the side.

"We'll leave that open for the proposers to address as they see fit," she told us.

A developing pitchfork

On the 'pitchfork' style three-pronged connection at the downtown end in which three streets are connected to the Parkway, Znachko says there must be provision for all three to be built eventually. However it will be acceptable to initially just build the single simple connection to High Street.

The concession contract will probably provide a commitment to build connections north and south as traffic builds and High Steet is overloaded. (see North and South CD roads on the map nearby)

Mississippi DOT has issued RFQ

Mississippi DOT has issued the request for qualifications as the first stage in procurement. See link below.

Other points in the RFQ:

- the Jackson metro area has been growing over the past five years at an amazing 3.5% annually based largely on vigorous auto parts and assembly business and medical services and schools

- much of this growth of population is east and northeast and these areas will generate most of the traffic on the Airport Parkway

- a federal record of decision signaling completion of environmental permitting was issued back in November 1999

- no MsDOT funding will be provided so the project will have to be fully self-financing

- MSDOT will however work to gain USDOT TIFIA loan support

- in 2008-$s the project cost is $345m to $500m depending on the design

See the 49 page RFQ here

http://www.theairportparkway.com/documents/RFQ_Final_053008.pdf

TOLLROADSnews 2008-06-07