The choice is easy, actually
June
24, 2007
EDITORIAL,
Fort Worth Star-Telegram
It's not the least bit hard to
describe the choice that Texas
Transportation Commission members will
face Thursday at their meeting in
Austin: (1) Agree with the overwhelming
preference of this region's elected
officials and allow the North Texas
Tollway Authority to build the Texas 121
toll road in Denton and Collin counties,
or (2) award the lucrative project to
the apparent favorite among state toll
road devotees, the Spanish company
Cintra.
From here, it's an easy decision:
Pick NTTA.
But there is reason to worry that in
the boiling pot of Austin politics, the
commission may see things differently.
Because of its ongoing efforts to build
sections of Gov. Rick Perry's proposed
Trans Texas Corridor, Cintra holds
special status in state transportation
circles.
Thirty-seven members of the Regional
Transportation Council, representing
cities and counties and transportation
providers in the Dallas-Fort Worth area,
studied the competing proposals from
NTTA and Cintra for weeks. With input
from transportation and financial
experts and after much debate, they
voted 27-10 on Monday that NTTA's
proposal offered greater financial value
for the region.
That's exactly the standard on which
this decision must be made, and local
officials are the best ones to judge it.
This is not a hard choice. The
Transportation Commission should make
short work of it on Thursday and award
the Texas 121 tollway project to NTTA.
Anything else would be substituting
state politics for local
decision-making.
In the
background
Three factors influenced Regional
Transportation Council members in
picking NTTA for the Texas 121 project:
NTTA offered more money up front
($2.5 billion) and more money over the
50-year life of the contract ($833
million in current dollars) for the
right to build the project and collect
the tolls. Those payments will be used
for other transportation projects across
Tarrant, Dallas, Denton and Collin
counties. Cintra offered $2.1 billion up
front and $700 million over the life of
the contract.
Over time, the NTTA proposal has
greater upside potential for the region.
Inevitable growth in Denton and Collin
counties reasonably can be expected to
push the traffic count on Texas 121
above current forecasts. Cintra would
hand the additional revenue from that
growth over to its investors. NTTA would
keep the money at home and use it on
other local projects.
Despite disagreements that some of
these officials have had with NTTA in
the past, on a long-term project like
this they'd still rather deal with a
local public agency led by a locally
appointed board than with a foreign
company. NTTA has plans to start work on
five other tollway projects in the next
five years, four of them crucial to
Tarrant County drivers: Texas 170 near
Fort Worth Alliance Airport, the
Southwest Parkway stretching into
Johnson County, a southern extension of
Texas 360 and (just over the line in
Dallas County) construction of Texas 161
between Texas 183 and Interstate 20.
Four years ago, the Transportation
Commission authorized planning
organizations like the Regional
Transportation Council to set priorities
and guide spending on road and transit
projects in the state's major
metropolitan areas. That policy included
-- even emphasized -- toll road
projects.
Ric Williamson, then a commission
member and now its chairman, called that
local decision-making "clearly the
thrust of the governor's instruction
about the metros" and said the emphasis
on local direction represented
"monumental steps" beyond the prior
procedure of centralized decision-making
from Austin and piecemeal funding of
projects across the state.
Local officials have made the big
decision on Texas 121. Now Austin should
back them up.
So what
about Cintra?
The Transportation Commission clearly
has the final authority to approve
projects in the state highway system,
including this one.
Two points could be used to try to
spin the decision in Cintra's favor:
State officials picked Cintra's
proposal in February as the best among
three private company bids on the Texas
121 project. Local legislators were
outraged that NTTA had been discouraged
from bidding at the time, and they
passed a law that reopened the bid
process.
Some Cintra backers have said that
the reopening violated federal
procurement rules and that the Federal
Highway Administration might require
that the $237 million that it has
invested in Texas 121 be returned to
Washington. Texas Sen. Kay Bailey
Hutchison objected to that
interpretation in a May 1 letter to
federal highway administrators.
Indeed, this one is a real stretch.
What the federal money paid for has
already been delivered: the main lanes
of the existing Texas 121 bypass around
Lewisville. North Texans are driving on
that road (also a tollway) and will
continue driving on it. The fact that
the new toll road would connect to it
should make no difference to federal
officials. NTTA plans to use no federal
money on the new project.
Some hand-wringers among the Cintra
backers say that the Spanish company,
having invested a lot of money in its
Texas 121 proposal since the state first
invited interested parties to take a
look at the project more than two years
ago and having been selected once as the
apparent best bidder, might sue if the
contract is given to NTTA instead.
Anybody can file a lawsuit, but it's
unlikely in this case. Cintra is
aggressively pursuing other Texas toll
road business, and taking the state to
court would be shooting itself in the
foot.
In addition, state law provides that
even unsuccessful bidders in cases like
this should be reimbursed for their
expenses by the state or the region.
That will cost a few million dollars,
but it would make Cintra whole again --
and the money is only a drop in the
bucket when compared with the $400
million in upfront money by which NTTA's
bid exceeds Cintra's.
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