Private firm to operate Hwy. 121 toll road
for 50 years

February 27, 2007

By GORDON DICKSON, Star-Telegram Staff Writer

ARLINGTON -- The Spanish firm Cintra has been selected to build and manage the Texas 121 toll road in Denton and Collin counties, in a $5 billion, 50-year deal that includes payment of $2.8 billion into North Texas coffers for other highway work.

Cintra is also the majority partner in Cintra Zachry, which is planning the controversial Trans-Texas Corridor.

Cintra operates toll roads and parking areas worldwide, and often uses private investment funds to make large, up-front payments to public agencies in exchange for the right to collect tolls for many years.

Metroplex officials on Tuesday stood side-by-side with Gov. Rick Perry, who visited the North Central Texas Council of Governments’ Arlington office to announce the plan.

“I think we can boil it down to five words,” said Michael Morris, council of governments transportation director. “Austin: We have a solution.”

Under Perry’s administration, decisions about where to spend much of the state’s highway funding have been transferred to a group of 40 mostly elected leaders known as the Regional Transportation Council. Those regional leaders backed the concept of using private funds to build and manage roads, to make up for a lack of tax-supported highway funds.

“It seems to me it’s working as advertised,” Perry said. “It seems to me the power has devolved away from Austin to the local officials you see behind me. If the folks in Austin want to take away the power of the RTC, I will let them have that fight with y’all.”

If, as expected, the selection by the Texas Department of Transportation’s Dallas district office is approved by the Texas Transportation Commission on Wednesday, Cintra will collect tolls on Texas 121 from Lewisville to McKinney for 50 years. The deal is also contingent upon completion of an environmental study.

The total value of Cintra’s bid is just over $5 billion, TxDot Dallas engineer Bill Hale said.

It includes:

$2.1 billion up-front for regional leaders to spend as they see fit.

$716 million paid in annual installments over 49 year, also for regional needs.

$560 million to extend Texas 121 main lanes in Collin County.

$1.7 billion to maintain and rehabilitate the road over 50 years, including any future lane additions.

Tarrant County will likely receive several hundred million dollars in benefit, which will help ensure that Interstate 35W, Loop 820, Airport Freeway and the Grapevine Funnel are improved, North Richland Hills Mayor Oscar Trevino said. However, the bulk of the funding will go toward projects closer to Texas 121, including improvements to Interstate 35E.

No additional public dollars will be used on the Texas 121 project. However, public money was already used to build the Texas 121 frontage roads in Denton and Collin counties, and main lanes in Denton County.