Toll road advocates say signed resolutions will help fund study, answer questions

While a committee of interested persons in Jackson County, Fla., discuss the pros and cons of a proposed toll road, the road’s organizers find themselves in a Catch 22.

One Florida county, Washington, has already said too many unanswered questions led the county commission to vote against entering into an agreement with Focus 2000, a group of people who hope to facilitate the construction of a limited access road from the Wiregrass to Interstate 10, and eventually from Montgomery to the Florida Gulf Coast.

Where is it going, exactly? How much will it cost? What are the estimated traffic counts? How many interchanges will there be? What is the environmental impact? How many existing roads will have to be closed? How much will the toll be? Will eminent domain be used?

Now, Jackson County people are asking the same questions.

Focus 2000 officials say they want to provide those answers to the panhandle county, but say they need the agreement of all the counties that the road could pass through in order to convince investors that funding a feasibility study for the road is a wise investment.

“The resolutions we are seeking (from the county commissions) simply give the ability to put together a proposal for the commissions to consider,” said Luther Strange, a Birmingham attorney representing Focus 2000. “So there is no binding requirement on the county to accept the toll road at all.”

The wordy resolution itself may have been a cause for confusion. Although commissions in Houston, Dale and Geneva counties have already passed the resolution, it is not clearly defined that the resolution is not the final approval for the project.

But Focus 2000 member Steve Shaw said the group is trying to be straightforward in the matter.

Shaw said he did not know how much a feasibility study would cost, but similar feasibility studies have cost millions.

“The reality is, nobody is going to invest that much money unless they have a signed resolution (from the commissions),” Shaw said.

Shaw said the feasibility study will answer many questions. Some questions, however, may not be able to wait for the study.

Who is Focus 2000?

Focus 2000 is a group of residents who hope to facilitate a public-private partnership to finance the construction of a limited access toll road connecting the Wiregrass to I-10, and further south. Shaw declined to say how many members the group had, but did say that potential big money investors in the project wished to remain anonymous, until it appears the project has the green light.

“Obviously there has to be big people behind it,” Shaw said. “Me, I’m just a local chamber of commerce guy.”

Why a public/private partnership?

Local, state and federal elected officials have been unsuccessful in securing government funds for a spur from the Wiregrass to Interstate 10 for the past 20 years. Trends indicate federal dollars for roads will be harder, not easier, to obtain in the future. The partnership allows private investors to obtain tax-free bonds to finance the road construction. Once the road is paid for, the agreement calls for the road to be given to the counties it passes through.

Why not a for-profit model?

Some road experts believe the for-profit model is better in the long run, because it gives the investors long-term interest in the project’s viability, and provides incentives to keep costs down during the design and construction phase. Strange and Shaw said the public-private partnership is the best option because it gives the counties better oversight over the project.

Have not-for-profit roads been successful?

Not so far. Tollroadsnews.com has reported the two major not-for-profit roads in the country have not performed well. The Pocahontas Parkway near Richmond, Va., had to be taken over by a for-profit company after traffic counts and toll revenue fell far short of projections. The Web site also reported the Greenville, S.C., Southern Connector is seeking a buyer as well to avoid bankruptcy.

But Strange said traffic on the Richmond road is improving, and said the fact that a for-profit entity bought it is evidence it is expected to make money. And, Strange said, the public/private partnership meant the local governments (and taxpayers) were not out any money and still benefited from a fully-functioning road that is attracting industry and providing easier access for motorists.

Since the road is not-for-profit, then no one makes a profit?

Wrong. Strange said designers, builders, investors and others would have the opportunity to profit from their work. However, Strange said the public/private partnership allows “everything to be out in the open” ensuring profits are reasonable but not exorbitant. The costs associated with the project will be paid for through tolls collected.

“All of those fees are disclosed in the financing document,” Strange said. “You will see what the fees are publicly.”