How will segments 5 and 6 of SH 130 be paid for? How will segments 5 and 6 of SH 130 be paid for? On June 30, 2006 the Texas Department of Transportation announced approval of the state's first concession agreement - a $1.3 billion private investment by the SH 130 Concession Company to build the remaining 40 miles of State Highway 130. Per the agreement, the SH 130 Concession Company will provide the funds necessary to complete segments 5 & 6 of SH 130 from Austin to Seguin. They also agree to pay millions of dollars for right of way costs, thus lifting the financial burden from Caldwell, Guadalupe and Travis counties. Why are toll roads needed in Texas? Planners have identified $188 billion in needed projects to achieve an acceptable level of mobility by 2030. The Texas Department of Transportation estimates that only $102 billion will be available to meet those needs, leaving a significant funding gap of $86 billion. The traditional tax-based method of financing roads is no longer sufficient to handle the state's mobility needs in a timely fashion. Developing roads as tollways will stretch limited taxpayer dollars and accelerate construction of highway projects, resulting in congestion relief for motorists, sooner rather than later. Why should I pay tolls when I'm already paying taxes to build roads? Texas has one of the lowest state gas taxes in the nation but that revenue only pay for 32% of our current state transportation budget. In addition, as many as 30,000 people move to Texas every month and the number of registered vehicles continues to rise. This has resulted in the need for more roads to keep pace with the demand on our strained highway system. We must utilize all financial options, including tollways, which offer an alternative method of financing for needed highway projects. In addition, relying only on gas taxes to pay for roads means taking 10 - 25 years to build new highways and make overdue improvements. By borrowing money that will be repaid with user tolls, we can build the roads we need now. How many toll projects are currently operating in Texas? The Central Texas Turnpike Project includes not only the northern portion (Segments 1-4) of SH 130, but also SH45 North and the Loop 1 (MoPac) extension between Austin and Round Rock. In addition to the CTTP projects and SH 130 Segments 5 and 6, Central Texas is also home to the new 183A toll road, built and operated by the Central Texas Regional Mobility Authority, and to the SH45 Southeast tollway linking I-35 and SH 130 south of Austin. Including SH 130 Segments 5 and 6, there will be more than 120 miles of completed or under-construction tollways in Central Texas. Elsewhere in the state, tollways include Houston's Sam Houston Parkway, operated by the Harris County Toll Road Authority. In Dallas, the Mountain Creek Lake Toll Bridge, President George Bush Turnpike, and Dallas North Tollway are operated by the North Texas Tollway Authority. In addition, 15 international toll bridges are located along the Texas/Mexico border. The Texas Department of Transportation's TxTag electronic toll collection system allows motorists to use roads throughout the state with one toll tag. When did toll roads start in Texas? While toll road construction has taken off in recent years, the first toll road in the state-the Dallas North Tollway-dates back to the 1950s. What factors are considered when developing a project as a toll road?
What is a development agreement? A development agreement allows highway projects to be built faster, allowing motorists to benefit sooner from improved mobility and safety.Prior toll roads, including the northern portion of SH 130, have been built under exclusive development agreements between the Texas Department of Transportation and various consortia - teams of design and construction contractors. Under such an agreement, the contractor designs and builds the roadway under the oversight of TxDOT and in accordance with the project's state and federal approvals, using a combination of funding sources. What is a concession agreement? The concession agreement between the SH 130 Concession Company and TxDOT for SH 130 Segments 5 and 6 is an additional evolution of this model. Under these agreements, the SH 130 Concession Company is providing all of the funding, through innovative financing and private equity, meaning no local or state funds will be utilized to build the roadway. In return, SH 130 Concession Company will operate the road, collect tolls, and receive a return on its investment, with additional revenues being made available to the state for other projects.The terms of the agreement give the state a share of the toll revenue over the next 50 years. The state's cut of the toll revenue begins with the first dollar earned on the toll road, and increases proportionately with toll revenues; eventually the state will reach a 50-50 split with the SH 130 Concession Company. It is estimated that the state could receive approximately $1.6 billion in toll revenue over the next 50 years. Per the terms of the concession agreement, key risks such as construction, cost, overruns, construction delays, revenue risk and financial risks are transferred to the SH 130 Concession Company, and the final product will be a state-owned toll road with title to any property purchased to be held by the state. Is SH 130 two different roads? No. The northern (Segments 1-4) and southern (Segments 5-6) portions of SH 130 are being built at different times, by different teams, under different agreements with TxDOT, but the road itself is continuous. The entire 91-mile SH 130 project, from Georgetown to Seguin, has received federal approval. All segments of SH 130 are being designed to incorporate the same aesthetic and functional elements, including fully interoperable toll systems, and travel between the various segments will be seamless.Where will segments 5 and 6 of SH 130 be located? Segments 5 and 6 of SH 130 begin in Mustang Ridge, travel through three counties-Travis, Caldwell, Guadalupe (approximately 40 miles)-and connect to IH 10 in Seguin.What is the proposed configuration for segments 5 and 6 of SH 130? Although the ultimate configuration has not been finalized, the proposed configuration for Segments 5 and 6 is as follows:Segment 5 will consist of a minimum four lane divided toll highway with a minimum of two toll lanes in each direction and a minimum two continuous frontage roads in each direction. It will include a direct connect interchange at the future connection of SH 130/SH 45 SE. This interchange shall include the following connections: SH 45 to SH 130 Segment 5 will provide grade-separated crossings at the following locations: New Laws Road, New Lockhart Road, SH 21, CR 179, CR 222, FM 1185. It will also provide ramps from and onto the non-toll lanes at the following locations: North of New Laws Road, between New Lockhart Road and SH 21, between SH 21 and CR 179, between CR 179 and CR 222, and between CR 222 and FM 1185. Segment 6 will consist of a minimum four lane divided toll highway with two lanes in each direction. Direct connect interchanges will be provided at the following locations in Segment 6: US 183 to SH 130 Segment 6 will also include grade-separated crossings at the following locations: FM 2001, UPRR #1 (existing track), SH 142, CR 108, CR 218, CR 215, CR 109, SH 80, FM 621, CR 242, CR 241, FM 3353, FM 20, CR 119, UPRR #2 (existing track) and US 90. It will also provide ramps from and onto the non-toll lanes between FM 1185 and the Interchange with US 183, between the interchange with US 183 and FM 2001, between FM 2001 and SH 142, between CR 108 and CR 218 and South of CR 218. When will segments 5 and 6 of SH 130 be complete? Currently, Segments 5 & 6 of SH 130 are in the pre-construction phases. The Texas Department of Transportation and the SH 130 Concession Company will be working to finalize the right of way schematics, and complete the preliminary design and geotechnical site survey. Once these initial steps have been completed, final facility design will begin. Right of way acquisition may begin as early as spring 2007. Actual construction is expected to begin in 2009, and is expected to be complete by 2012. The estimated cost for SH 130 Segments 5 and 6 is currently $1.35 billion, including right of way acquisition, utility relocation, and improvements to connecting streets and roads, as well as the construction cost of the highway itself. Toll rates for SH 130 will be set when the road is ready to open for traffic by 2012, but can be expected to be comparable to the rates on other Central Texas toll roads.How will tolls be collected on segments 5 and 6 of SH 130? Segments 5 & 6 of SH 130 will have an all-electronic toll collection system, allowing motorists to travel at highway speeds without stopping at toll plazas and looking for coins. Drivers will be able to pay their tolls with TxTag, a small electronic sticker that attaches to the windshield and automatically deducts toll fees from a prepaid account.Will the tolls be in place forever? It is expected that tolls will remain in place after the SH 130 Concession Company earns its return on investment. Like all roads, segments 5 & 6 of SH 130 will require maintenance and improvements for many years to come. Toll revenues collected after initial construction costs are paid off will provide a steady stream of money to keep the road safe and in reliable condition. It will also be available to help fund for more local transportation projects.
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