If a developer is unable to make
payments to its lien holders, the road would be shut down and the state
would have to bail out the developer.
TxDOT’s
Response:
No. TTC-35 is a state-owned project and would remain open regardless of
a developer's ability to make payments to the bondholders. All financial
obligations are between the developer and the bondholders. By law, the state
cannot be held responsible for a private developer's financial obligations.
CorridorWatch: No. Of course there are all kinds
of complications that would arise in the unlikely event of financial a
failure. There are already examples of failures occurring during the
construction phase of highways in Texas that caused substantial project
delays.