Millions of Texans rely on toll roads daily in a state that has built more paid thoroughfares over the past two decades than almost all U.S. states combined. The affordability, safety and management of these roads impact us all, especially as some leaders admit more are likely coming to handle substantial growth through the state and in North Texas.
As was often the case, country music played softly through the speakers of her 2018 Hyundai Santa Fe. At 6:05 a.m., she passed the 28th Street bridge near downtown. Her SUV then came upon a small hill.
That’s when it happened.
She felt her SUV wiggle. She tapped the brakes and slowed down to 45 mph. The SUV turned sideways and began to slide. She pulled the emergency brake and came to a stop against an unknown object, likely a concrete barrier.
The worst, though, was still to come.
Zero: Money owed taxpayers for SH 130 toll road erased by bankruptcy court
By Terri Hall
July 8, 2017
The defunct SH 130 tollway just emerged from bankruptcy court and the news isn’t good for taxpayers. In 2007, the Texas Department of Transportation (TxDOT) entered into a Comprehensive Development Agreement, or public private partnership, with SH 130 Concession Company, a subsidiary of Spain-based Cintra and Zachry Toll Road 56, which had ownership dispersed among Australian and many other foreign entities. The 41-mile southern stretch of SH 130 opened in November 2012, designed to be a bypass around congested downtown Austin. But the traffic never materialized and the private concession company sought bankruptcy protection in March 2016. According to the terms that emerged from bankruptcy court, all of the private entity’s $1.4 billion debt was wiped away, leaving federal taxpayers left holding the bag for the $430 million federally-backed Transportation Infrastructure Finance and Innovation Act (TIFIA) loan given to the private entities.
Texas taxpayers feel betrayed. Former Texas Transportation Commission Chairman Ric Williamson swore under oath before the Senate Transportation Committee on March 1, 2007, that if the private entities went bankrupt, the Texas taxpayers would get the road back free and clear of any debt. Free and clear means no debt obligations, and therefore no need to continue to charge tolls for usage. However, that didn’t happen. Instead, new owners were brought in, Strategic Value Partners, $260 million in new debt was issued, and the new private company will continue to charge tolls until the contract is up in 2062 — for a road that now owes virtually no debt compared to its original $1.4 billion.
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