Alabama counties expected to sign toll road agreement

Houston County is moving forward as the lead entity in a public/private partnership with a non-profit group to construct, operate and maintain a toll road that would connect U.S. 231 with I-10 in Florida.

The project, announced more than two weeks ago, is the most effective way to build a connector, officials said, since state and federal transportation departments have no funding for it. Officials believe the road is vital for economic development, access and hurricane evacuation.

“We have been working on this project 20 years at least, from the Dothan area to I-10,” said County Commission Chairman Mark Culver. “Not a lot of money is out there to do this kind of project. We don’t know when it would get done, if ever. This is a vehicle to make it happen.”

Culver said he does not expect Dothan merchants to lose business because of the connector, though the road is a bypass.

“I don’t think there will be a significant loss of business with the connector,” Culver said. “A lot of that is local traffic. The Circle needs some help anyway. This toll road could be done prior to the Ross Clark Circle improvements.”

During Thursday’s commission meeting, Dothan attorney Wally Hinesely reviewed the resolution with the Alabama non-profit facilitator of the project, Focus 2000 of the Wiregrass Inc. A similar non-profit group will be set up in Florida.

Some issues, like the exact route and acquiring land through eminent domain, are yet to be finalized.

“I don’t know that there is a down side (to the project),” Hinesely said. “If there is a point eminent domain has to be used, the county can exercise that right.
Hopefully that won’t be needed, with the prices that would be offered.”

The route being considered, Hinesely said, are the same routes considered in the past by the Alabama Department of Transportation.

Hinesely said there are several IRS rules governing the agreement which allow a non-profit entity to issue tax-exempt bonds.

“It is an unusual mechanism, done when government does not have the funds,” Hinesely said.

According to the resolution, the toll road would revert back to the political sponsors, Houston, Geneva and Dale counties, once it is paid for. That is estimated to take a minimum of 20 years.

Construction on the road could begin this year and could take five years to complete.

After the road is paid off, counties could immediately turn over the road to the state for maintenance, sell the road to another private entity to operate, or continue to operate it themselves as a toll road.

Hinesely said in agreeing to be the sponsoring entity, Houston County is in no way obligated for payment of the bonds and the bonds would not count against the county’s bond indebtedness or limits.

Officials believe the partnership is the first such arrangement ever done between local entities in two different states, without state government being involved.

Culver said he expects Geneva and Dale counties to adopt their resolutions on Tuesday also, when Houston County is expected to approve its resolution. Dale County meets at 6 p.m., with a 4:30 p.m. work session. Geneva County meets at 8:30 a.m. Tuesday.

Meetings continue with officials in Washington, Jackson and Bay counties in Florida.