HOT Lanes on I-77

1. HOT Lanes on I-77 More Questions Than Answers Feb 22, 2013

2. The Problem Congestedstretch of four lane road from exit 23 to exit 36

3. The Latest GP Lane Estimate A ballpark cost for two GP lanes from exit 23 to exit 36: $80- $130M Four lanes from 23- 28; two from 28- 31: ~$75M Source: “I-77 HOT Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, Oct. 10, 2012

4. The Current HOT Lane Proposal 27.5 Miles of HOT Lanes Cost: $550 Million Source: “I-77 HOT Lanes Project Overview NCSITE Lunch N’ Learn”, August 21, 2012; “I-77 Widening Update”, MUMPO (Bill Coxe), Sept 19, 2012; “Billions invested in Roads”, Charlotte Observer, Jan 14, 2013

5. GP vs HOT GP HOT 13 Miles $80- 130M (est) 27.5 Miles $550M

6. Cost Breakdown -$M Source: “Billions invested in Roads”, Charlotte Observer, Jan 14, 2013

7. HOT Lane Funding- Public* *Maximum contribution of public funds Source: NCDOT

8. Mobility Funding I-77 GP Lanes- 20pts less, but still ~#4 out of 95 projects (top 5%) I-77 GP Lanes Still A Good Candidate for Mobility Funds Source: “Mobility Fund Project Scoring,” NCDOT, 2012

9. HOT Lane Funding- Federal Looking at the largest bucket of money… Source: NCDOT

10. From the NCDOT- Part I Q: Do GP lanes qualify for NHPP funding? A:“Building general purpose lanes on I-77 would be an eligible expenditure of NHPP funds.” Source: NCDOT

11. From the NCDOT- Part II Q: “Is there some advantage to obtaining funding for HOT lanes vs GP lanes under NHPP?” A:”There are many factors that would be included in an analysis to determine whether it is better to build general purpose lanes or HOT lanes.  The type of funding (funding source) would not be one of them.” Source: NCDOT

12. From the NCDOT- Part III Q: “Does Federal funding (NHPP) receive a higher priority due to HOT lanes?” A:”Each state is appropriated a specific amount of NHPP funding. ...we are going to get the same amount of NHPP from the feds funding regardless of what projects we build.  The feds play no part in the selection process for projects that use NHPP funding.” So Federal Funds are NOT tied to HOT lanes! Source: NCDOT

13. A Recent $1B Road… • Triangle Expressway • First toll road in NC • Connects Durham to Holly Springs • Initial traffic project: 20K VPD • Actual traffic: 6K VPD Source: Hartgen & Associates

14. HOT Lanes and Congestion • HOT lanes rely on congestion • “Congestion Pricing” means more congestion = more toll revenue

15. HOT Lanes & Congestion- County HOT lanes are expected to have “minimal impact to the travel speed in the existing general purpose lanes.” Source: “Comments on Environmental Documents for TIP Projects I-3311 C and I-4750 HOT”, MUMPO memo dated October 4, 2012

16. HOT Lanes & Congestion- State For the long term, “congestion returns only to the general purpose lanes.” Source: “Managed Lanes: More than a Revenue Tool”, Parsons Brinkerhoff, 2013

17. HOT Lanes and Congestion - Federal “No one wants congestion in the GP lanes. So the express lane provides an option, not a full solution. Indeed, if congestion in the GP lanes ever dissolves, than (sic) the incentive to use an express lane would dissolve too.” HOT Lanes Do Not Relieve Congestion- They Ensure It Source: FHWA, Feb 4, 2013

18. HOT Lanes & the Future Unplanned Revenue Impacting Facility Compensation Event Physical Constraint HOT Lanes on I-77 for 50 years… Source: “I-77 HOT Lane Project Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, October 15, 2012

19. Some Existing HOT Lanes CA 91 ORANGE COUNTY I85 ATLANTA US 290 HOUSTON I 15 SAN DIEGO

20. I-77 HOT Lanes Mooresville Davidson Cornelius Huntersville Combined Population: ~150,000 Source: US Census Bureau, 2010

21. Economic Burden Approx Population Supporting One Mile of HOT Lane People (Thousands) LKN Citizens Bear >15x the Burden of Other HOT Lanes Source: “A Guide for HOT Lane Development,” FHA, 2003

22. HOT Lane Revenues Estimated Required Revenue for I-77 HOT Lanes: $25-30M Large gap between required revenues and revenues from population I-15 UT (Similar Population to CLT): $600K Source: “Managed Lanes: More than a Revenue Tool”, Parsons Brinkerhoff, 2013

23. SC vs NC: Tax Comparison Stepping Up to the Plate with Two Strikes Against Us… Source: NC Fast Facts 2013, John Locke Foundation; tax-rates.org; sctax.org; taxfoundation.org

24. LKN vs Rock Hill (York County) LKN York- Since 1997 • 93 miles of highway improvements • 87 miles of County gravel roads upgraded and paved • 16 bridges repaired, replaced or widened • 84 major intersections improved “There’s No Money!” “What Do You Need?” Source: “Pennies for Progress” website, Phase I and Phase II

25. Location HOT Lane 6 Lanes 8 Lanes 6 Lanes 6 Lanes 8 Lanes

26. From a business perspective, HOT lanes… Are a red flag the road is congested Indicates the state/municipality is unwilling or unable to invest in infrastructure Siphons discretionary income out of the local economy

27. HOT Lanes on I-77: • Cost much more than GP lanes • Ensure congestion instead of relieving it • Eliminates or at least limits our ability to make future I-77 improvements • Locks us into an agreement with a private company for 50 years • Will negatively impact our economy

28. I-77 HOT Lanes An Expensive, Non-Solution That Limits Future I-77 Improvements and Negatively Impacts Our Economy Wideni77.org wideni77@hotmail.com