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I don't remember where I read this, but I do remember reading that the tolled portion of 540 was privately owned. Not saying it's true, but I did read it somewhere. Possibly this forum.
Anyhow, the way I look at it is, I pay a premium to live close to the large employment centers in the area. If people want to live further away and have a nice shiny new expressway to get them to those same areas, then they should pay as well. I see nothing wrong with that. The difference is, my house will appreciate quicker than theirs. Don't tell them though.
I don't remember where I read this, but I do remember reading that the tolled portion of 540 was privately owned. Not saying it's true, but I did read it somewhere. Possibly this forum.
NCTA has contracted the toll collection out to other companies, but they own and maintain the road.
Quote:
Anyhow, the way I look at it is, I pay a premium to live close to the large employment centers in the area. If people want to live further away and have a nice shiny new expressway to get them to those same areas, then they should pay as well. I see nothing wrong with that. The difference is, my house will appreciate quicker than theirs. Don't tell them though.
Your secret is safe with me and hundreds.
Even outside of commuting, 540 has helped me tremendously with trips from W Cary to Apex, Holly Springs, and even Cary Towne Center during evening rush hour. I've gladly paid a couple of bucks a pop to not sit in traffic on Davis, 54, and I-40, and I'll keep doing so.
The Toll road(s) in the Triangle area have never been privately owned. Initially, they did break the NC Turnoike Authority out from DOT as a separate entity (though this came with a transfer of DOT owned land and previous improvements such as 540 from 54-55), but after a few years they rolled it back in. But either, way, it's never been privately owned. To suggest otherwise is simply making things up.
The money for the project comes from $625 million in bonds and a $387 million loan from the federal government.
...area governments concluded the road would have taken 15 more years to complete any other way, so the decision to charge tolls came in 2005.
Toll rates change almost annually as required by the bond covenant created for the funding of the Expressway. Since its initial rate set at 2012, it has increased in 2013, 2015 and 2016
The money for the project comes from $625 million in bonds and a $387 million loan from the federal government.
...area governments concluded the road would have taken 15 more years to complete any other way, so the decision to charge tolls came in 2005.
Toll rates change almost annually as required by the bond covenant created for the funding of the Expressway. Since its initial rate set at 2012, it has increased in 2013, 2015 and 2016
So, the covenant was set up to sucker in users by a low introductory rate, then bend them over with planned increases every year.
This is how we treat our citizens when making contracts?
In 2009 they were lucky to sell the bonds under any terms. There was a crisis then. The bond issue was a competitive procurement.
Buyers of bonds are not stupid. They've been burned by governments who cannot service the debt over the long run because of political pressure not to raise tolls as wear and tear on the highways drives up annual maintenance costs. (When a road is new, it doesn't cost much to maintain it. 15 years later, the story is different.) Thus there's a requirement to raise tolls every year or else you breach the terms of the bond issue. There's an assumption that the constant-dollar increase in tolls is less than the apparent increase because of inflation.
If you don't want to agree to their terms, don't ask to borrow their money.
This gets back to why politicians in western and south Wake would not wait another 10-15 years for their turn under the standard funding mechanism for NCDOT highway construction. They wanted 540 out of turn, and they got it.
So, the covenant was set up to sucker in users by a low introductory rate, then bend them over with planned increases every year.
This is how we treat our citizens when making contracts?
Protect is from our rotten legislators.
Exactly!!! Bingo! Govt for the govt, by the people. At this point it's just blatant, they don't even try to hide it anymore. "Every year we will reassess. Oh sure standard stuff that's just how it works" - of course "thats how it works", print your own money, govt, we got you, all good! Pretty nuts.
In 2009 they were lucky to sell the bonds under any terms. There was a crisis then. The bond issue was a competitive procurement.
Buyers of bonds are not stupid. They've been burned by governments who cannot service the debt over the long run because of political pressure not to raise tolls as wear and tear on the highways drives up annual maintenance costs. (When a road is new, it doesn't cost much to maintain it. 15 years later, the story is different.) Thus there's a requirement to raise tolls every year or else you breach the terms of the bond issue. There's an assumption that the constant-dollar increase in tolls is less than the apparent increase because of inflation.
If you don't want to agree to their terms, don't ask to borrow their money.
This gets back to why politicians in western and south Wake would not wait another 10-15 years for their turn under the standard funding mechanism for NCDOT highway construction. They wanted 540 out of turn, and they got it.
Well I won't go quite that far. The road had been promised and the land tied up for 15 years already while the state played games with highway trust fund money for decades, partially paying lots of money to run 4 lane highways by land owned by some legislators and their buddies which made their land way more valuable and partly, just the fact that this area and Charlotte are have for years been drained to pay for the rest of the state's roads. To some extent much of the shortage of money was a manufactured crisis and the way the toll authority was put together in some last minute back room deals, plus stealing $50-$60 million in tax paid improvements to make the toll numbers work out is pretty shady (look, ma, Democrats can be shady back room dealers too!).
But, I will add that much of the "empty road" knock is simply due to planners, for once, doing a smart thing and building a road for traffic volumes anticipated years down the road instead of for projections from 5 years ago. Had it been two lanes on a side instead of three, the feeling of the number of cars on it would be much more palpable and we'd need a major widening in a few more years. Now, why those people couldn't see a 90 degree turn at the end of a 70 mph cruise for 15 minutes was a bad idea...
I think we see it the same way. 540 across North Raleigh took forever. But the back room deals accelerated the western arc of 540 by at least 5 years and possibly 10. Of course we will never know exactly when the western arc of 540 would have been built without tolls.
After the 2010 census, the General Assembly became a bit more accommodating of metros and it should get even more accommodating after 2020.
But, I will add that much of the "empty road" knock is simply due to planners, for once, doing a smart thing and building a road for traffic volumes anticipated years down the road instead of for projections from 5 years ago. Had it been two lanes on a side instead of three, the feeling of the number of cars on it would be much more palpable and we'd need a major widening in a few more years.
Well said, totally agree. Right on. Not a knock from my perspective, I love it now, and will love it later when volume grows and the longevity of the open road is extended by their proper planning efforts.
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