April 11, 2007

McKinney Courier-Gazette

The North Texas Tollway Authority on Wednesday took the first step that could lead to its submission of a proposal for the State Highway 121 tolling project in Collin and Denton counties.

The move comes one day after the state House of Representatives passed a bill establishing a two-year moratorium on toll-road contracts for the entire state except the four-county area served by the NTTA - Collin, Denton, Dallas and Tarrant counties.

At a special called meeting of the NTTA board of directors, chairman Paul Wageman said, "Based on the clear consensus expressed by the board today and absent any objection, I am directing staff to prepare a proposal for the NTTA's construction and operation of SH 121, with the understanding that the proposal staff prepares will not be delivered or released to any party unless and until the board subsequently reviews, approves and authorizes its delivery."

This action is in response to a written request from the North Texas Regional Transportation Council, dated March 26, offering to the NTTA board of directors the opportunity to “Submit a Binding Commitment for the SH 121 project in Denton/Collin Counties to the Regional Transportation Council.” The RTC asked that the NTTA's proposal be submitted no later than 5 pm May 25.

On Feb. 27, the state awarded a conditional contract to the Spanish firm Cintra Concesiones de Infraestructuras de Transporte, which has promised to pay $2.1 billion up front and another $700 million in concessions to build and operate SH 121 for 50 years. The upfront money would be used to pay for other road projects in Collin and Denton counties.

The portion of SH 121 in question extends from U.S. 75 in McKinney/Allen to the merge with Business 121 near the Lewisville/Coppell border. The portion from the western origin to FM 544 west Carrollton is operational; the part from FM 544 to the Dallas North Tollway on the Plano/Frisco line is under construction; and the portion from the tollway to U.S. 75, along with full interchanges at the tollway and U.S. 75, is planned. Based on preliminary analysis by key financial consultants and staff, an NTTA proposal to acquire and develop SH 121 is expected to generate a positive net financial impact. Jerry Hiebert, the NTTA acting executive director, stated that “the NTTA's undertaking of SH 121 is not expected to adversely affect the NTTA's project delivery capabilities on existing and future projects."