Region gets $3.2 billion for highways

December 1, 2007

By GORDON DICKSON / Star-Telegram staff writer

CARROLLTON -- The North Texas Tollway Authority met today's deadline to pay nearly $3.2 billion as a concession fee to build Texas 121 north of Grapevine and then collect tolls on the road.

Regional officials say they'll decide by January where to spend that money in Tarrant, Collin, Dallas and Denton counties.

The Plano-based tollway authority hosted a ceremony Friday in Carrollton, midpoint along the controversial toll road, and presented a symbolic, oversized check for $3.197 billion to the Regional Transportation Council and Texas Department of Transportation.

Members of the RTC, the Metroplex's official planning body, and the Transportation Department had originally wanted private bidders to take over the toll road project, which is expected to generate far more revenue from tolls than its construction costs. But they said they were satisfied that the tollway authority, a state agency, was able to outbid private competitors.

New pattern?

Texas 121 is a test case for what is believed to be the future of road building in Texas and much of the rest of the country. Tolls will be collected to pay for the road work, and the region won't have to rely upon a dwindling supply of gasoline tax funds.

"Waiting 20 years for the funds to accumulate would have been devastating for the cities of Collin and Denton counties," said North Richland Hills Mayor Oscar Trevino, chairman of the RTC.

Now the question becomes whether the tollway authority has overextended itself to pay for Texas 121. The agency also has until Dec. 21 to agree on business terms for another toll road, Texas 161, parallel to Texas 360 in Grand Prairie and Irving. Texas 161 will likely require a significant up-front payment on the tollway authority's part.

The tollway authority has also pledged to build Southwest Parkway in Fort Worth, Texas 360 in Mansfield, Texas 170 near Alliance Airport and several other regional projects in the next five years.

Financing secure

Tollway authority chairman Paul Wageman of Plano assured the public that the agency can continue down its aggressive road-building path. He said Texas 121 in Denton and Collin counties would generate a total of $4.6 billion for the region, including the money paid to the Metroplex in the faux check, construction costs and more than $1 billion to use on other tollway system projects.

"State highway 121 now becomes not just part of our road system, but part of our financial system," Wageman said.

Texas Transportation Commissioner Ric Williamson of Weatherford attended the ceremony. He acknowledged that he would have rather had a private company handle the Texas 121 project, saying he preferred that the motoring public not accept the risk of a road project failure.

If Texas 121 doesn't reach traffic levels sufficient to pay off debt, the tollway authority could be forced to raise rates on its entire toll system. A private bidder would have been forced to keep tolls within the RTC's guidelines.

But, Williamson said, "It was a regional leadership decision to not use the private sector, and you know what? That's OK."

"You may think from listening to us that we're like cats -- you can't tell if we're playing or fighting -- but the reality is we're arguing and discussing and getting to a point where we agree on a path," he said. "We look forward to a long, profitable and exciting 20 years."

The details

To meet its Dec. 1 deadline with the Texas Department of Transportation, the tollway authority sold bond anticipation notes.

The notes, which carry 4 1/8 percent interest, can be issued as long-term bonds anytime in the next year, tollway officials said.

The notes carried the highest ratings available from Moody's and Standard & Poor's investment services, officials said.