hot lanes on i-77
DESCRIPTION
HOT Lanes on I-77. More Questions Than Answers. Feb 22, 2013. The Problem. Congestedstretch of four lane road from exit 23 to exit 36. The Latest GP Lane Estimate. A ballpark cost for two GP lanes from exit 23 to exit 36: $80- $130M. Four lanes from 23- 28; two from 28- 31: ~$75M. - PowerPoint PPT PresentationTRANSCRIPT
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HOT Lanes on I-77More Questions Than Answers
Feb 22, 2013
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The Problem
Congestedstretch of four lane road from exit 23 to
exit 36
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The Latest GP Lane Estimate
Four lanes from 23- 28; two from 28- 31: ~$75M
Source: “I-77 HOT Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, Oct. 10, 2012
A ballpark cost for two GP lanes from exit 23 to exit 36:
$80- $130M
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The Current HOT Lane Proposal
Source: “I-77 HOT Lanes Project Overview NCSITE Lunch N’ Learn”, August 21, 2012; “I-77 Widening Update”, MUMPO (Bill Coxe), Sept 19, 2012; “Billions invested in Roads”, Charlotte Observer, Jan 14, 2013
27.5 Miles of HOT Lanes
Cost: $550 Million
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GP vs HOT
HOTGP
27.5 Miles
$550M
13 Miles
$80- 130M (est)
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Cost Breakdown -$M
Source: “Billions invested in Roads”, Charlotte Observer, Jan 14, 2013
$170
$380
Public
Private
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HOT Lane Funding- Public*
Source: NCDOT
State FederalState Mobility 28CMAQ 1 12NHPP 13 117
Total 42 128
Source ($M)
*Maximum contribution of public funds
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Mobility Funding
Source: “Mobility Fund Project Scoring,” NCDOT, 2012
I-77 GP Lanes- 20pts less, but still ~#4 out of 95 projects (top 5%)
I-77 GP Lanes Still A Good Candidate for Mobility Funds
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HOT Lane Funding- Federal
Source: NCDOT
State FederalState Mobility 28CMAQ 1 12NHPP 13 117
Total 42 128
Source ($M)
Looking at the largest bucket of money…
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From the NCDOT- Part I
Q: Do GP lanes qualify for NHPP funding?
A:“Building general purpose lanes on I-77 would be an eligible expenditure of NHPP funds.”
Source: NCDOT
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From the NCDOT- Part II
Q: “Is there some advantage to obtaining funding for HOT lanes vs GP lanes under NHPP?”
A:”There are many factors that would be included in an analysis to determine whether it is better to build general purpose lanes or HOT lanes. The type of funding (funding source) would not be one of them.”
Source: NCDOT
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From the NCDOT- Part III
Q: “Does Federal funding (NHPP) receive a higher priority due to HOT lanes?”
A:”Each state is appropriated a specific amount of NHPP funding. ...we are going to get the same amount of NHPP from the feds funding regardless of what projects we build. The feds play no part in the selection process for projects that use NHPP funding.”
Source: NCDOT
So Federal Funds are NOT tied to HOT lanes!
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A Recent $1B Road…
• Triangle Expressway•First toll road in NC•Connects Durham to Holly Springs
•Initial traffic project: 20K VPD
•Actual traffic: 6K VPD
Source: Hartgen & Associates
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HOT Lanes and Congestion
HOT lanes rely on congestion
“Congestion Pricing” means more congestion = more toll revenue
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HOT Lanes & Congestion- County
HOT lanes are expected to have “minimal impact to the travel
speed in the existing general purpose lanes.”
Source: “Comments on Environmental Documents for TIP Projects I-3311 C and I-4750 HOT”, MUMPO memo dated October 4, 2012
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HOT Lanes & Congestion- State
Source: “Managed Lanes: More than a Revenue Tool”, Parsons Brinkerhoff, 2013
For the long term, “congestion returns only to the general
purpose lanes.”
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HOT Lanes and Congestion - Federal
“No one wants congestion in the GP lanes. So the express lane
provides an option, not a full solution. Indeed, if congestion in the GP lanes ever dissolves, than
(sic) the incentive to use an express lane would dissolve too.”
Source: FHWA, Feb 4, 2013
HOT Lanes Do Not Relieve Congestion- They Ensure It
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HOT Lanes & the Future
Unplanned Revenue Impacting Facility
Compensation Event
Physical Constraint
Source: “I-77 HOT Lane Project Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, October 15, 2012
HOT Lanes on I-77 for 50 years…
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Some Existing HOT LanesCA 91 ORANGE COUNTY
I 15 SAN DIEGO
I85 ATLANTA
US 290 HOUSTON
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I-77 HOT Lanes
Mooresville
Davidson
Cornelius
Huntersville
Combined Population:
~150,000
Source: US Census Bureau, 2010
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Economic Burden
Approx Population Supporting One Mile of HOT Lane
People
(Thou
sand
s)
LKN Citizens Bear >15x the Burden of Other HOT Lanes
Source: “A Guide for HOT Lane Development,” FHA, 2003
150
115
8575
5
0
20
40
60
80
100
120
140
160
SR 91 US 290 I-85 I-15 I-77
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HOT Lane Revenues
Source: “Managed Lanes: More than a Revenue Tool”, Parsons Brinkerhoff, 2013
Estimated Required Revenue for I-77 HOT Lanes: $25-30M
I-15 UT (Similar Population to CLT): $600K
Large gap between required revenues and revenues from population
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SC vs NC: Tax Comparison
Source: NC Fast Facts 2013, John Locke Foundation; tax-rates.org; sctax.org; taxfoundation.org
Stepping Up to the Plate with Two Strikes Against Us…
Rock Hill (SC)Lake Norman
(NC)Corporate Income Tax 5.00% 6.90%Gas Tax (c/gal) 16.8 39.2Gas Tax + State Excise Tax 35.2 57.8Gas Tax Rank 47 6Sales Tax 7.00% 8.75%
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LKN vs Rock Hill (York County)
• 93 miles of highway improvements
• 87 miles of County gravel roads upgraded and paved
• 16 bridges repaired, replaced or widened
• 84 major intersections improved
“What Do You Need?”“There’s No Money!”
York- Since 1997LKN
Source: “Pennies for Progress” website, Phase I and Phase II
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6 Lanes
8 Lanes
HOT Lane
6 Lanes
Location
8 Lanes
6 Lanes
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From a business perspective, HOT lanes…
Are a red flag the road is congested
Indicates the state/municipality is unwilling or unable to invest in infrastructure
Siphons discretionary income out of the local economy
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HOT Lanes on I-77:HOT Lanes on I-77:
1. Cost much more than GP lanes
2. Ensure congestion instead of relieving it
3. Eliminates or at least limits our ability to
make future I-77 improvements
4. Locks us into an agreement with a private
company for 50 years
5. Will negatively impact our economy
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I-77 HOT Lanes
An Expensive, Non-Solution That Limits Future I-77
Improvements and Negatively Impacts Our Economy