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BREAKING: Federal Money Could Stave Off Dulles Toll Road Toll Hike -- If the Loan Comes Through

Tuesday, September 18, 2012 - 11:42 AM

Construction crews work on the Silver Line to Dulles International Airport in Virginia. (Photo CC by Flickr user Wayan Vota)

The federal government may provide a substantial loan to the agency running the Silver Line rail project to Dulles International Airport, enabling the Metropolitan Washington Airports Authority (MWAA) to lower projected toll rate increases on the Dulles Toll Road that are expected to cover 75 percent of the rail project’s estimated Phase 2 cost of $2.7 billion, a Virginia congressman said.

MWAA, along with Fairfax and Loudoun Counties, plans to submit a letter of interest by September 30 to the federal government for a loan under the Transportation Infrastructure Finance and Innovation (TIFIA) Act, which established a program that lends money for major transportation projects throughout the country.

Based on recent discussions with Transportation Secretary Ray LaHood, Representative Gerry Connolly (D-Va.) said he expects a loan to come through soon

“I’m very confident we’re going to be able to lock down a TIFIA loan for a fairly substantial percentage of the cost of the construction of Phase 2 by the end of this year,” Connolly said. “We know that [the loan] can’t exceed 33 percent of the cost of the project. It is my hope that it will be somewhere between 25 and 30 percent, but we have to see. We are in competition with other projects around the country as well.”

Effective January, the cost of a one-way, full toll is projected to rise to $2.75. In 2015, it increases to $4.50, with scheduled increases of $2 every five years.

“One of my goals is to move us from zero federal assistance to a substantial federal assistance so we can get the pressure of the toll users and the toll rates,” Connolly said.

There is currently no federal funding for Phase 2 of the Silver Line, which is expected to begin construction next year. The state of Virginia is providing $150 million.  Fairfax and Loudoun Counties have allocated substantial sums, but three-quarters of the cost is expected to come from Dulles Toll Road users.

Because the project, which will extend to the airport and beyond into Loudoun County by the end of the decade, did not meet Federal Transit Administration criteria for expected ridership, the federal government was reluctant to provide any funding at all. After the project was split into two phases the government allocated $900 million for Phase 1, which will end at Wiehle Avenue in Reston, Va.

“One of the flaws in the financing of this project is that the Commonwealth of Virginia really hasn’t put up its own money. It has used our money in the form of toll revenue to finance its share and airports' [authority’s] share of this project, and that puts real upward pressure on toll rates,” Connolly said.

The Reston Citizens Association, which says it represents 58,000 Fairfax County residents, sent a letter on Monday to the MWAA’s chief executive officer, calling the recent public hearings the agency held “inadequate” considering the anticipated impact of higher tolls. The association is asking the MWAA to reduce the toll burden to 25 percent of the Silver Line’s Phase 2 cost.

The letter “details the harm the proposed toll hikes will do to the well being of toll road users, to the already serious congestion on local roads, and to the potential economic and tax revenue growth in the Dulles Corridor.” Opponents of the current financing structure say drivers attempting to avoid the higher tolls will seek alternate routes to work, further congesting already jammed secondary roads.

“[The] MWAA has a responsibility to address the variety of community concerns we enumerate and more.  It is a far broader responsibility than building a 16-mile railroad. We are anxious to help you find new funding sources,” the RCA writes.

“The public needs to be heard. I think the Reston [Citizens] Association is absolutely correct,” Connolly says.  “I share the Reston Association’s concern about the lack of accountability at MWAA.”

The MWAA's proposed toll hike is also the subject of a recent class action lawsuit, which argues that the agency does not have the legal right to raise tolls on drivers to pay for trains.

In recent months the embattled MWAA has publicized measures it has taken to improve transparency after reports of profligate spending and unethical practices by some members of its board of directors.

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Comments [2]

No Toll Increase

That's all fine and good, but this still doesn't get to the root of the problem: we still have an unaccountable board committing highway robbery. They will continue to drive up the costs of commuting on the Dulles Toll Road unless Virginia takes control back.

Virginia State Senator Richard Black is asking Gov. Bob McDonnell to have VDOT take the DTR back from MWAA- this is a huge step towards slowing or stopping toll increases. https://docs.google.com/open?id=0B64IfZTFiYIAeGo1dmpWVjlhMUE For more information, visit www.NoTOLLincrease.org

Toll Road users should ask Governor McDonnell to take the road away from MWAA:
http://www.governor.virginia.gov/AboutTheGovernor/contactGovernor.cfm
(804) 786-2211

Sep. 19 2012 03:33 PM
Bob Bruhns

Phase II costs almost two times what it should cost, and Phase I overcost was almost as bad.

It's too late to do anything about Phase I - but if we are competing for the Tifia loans, then I suggest the cost of Phase II should be brought down to earth NOW.

We have been told before that we are asking for too much. In 2011, Secretary LaHood of US DOT told us that our request for $1.7 Billion in Tifia fund was FIVE TIMES the average request, and it was rejected. That means the average request was about $320 million. If we are asking for 25% to 33% of this supposed $2.8 Billion cost now, we are asking for about $700 to $933 million in 2012 - roughly 2 to 3 times as much as the average request.

We are asking for too much, because we are paying too much. WE may be happy to pay nearly two times what this rail project should cost, but the rest of the country isn't too interested in agreeing to fund our foolishness - especally if it takes away money for their projects.

Soon it will be too late to do anything about the cost of Phase II. The requests for bids are out, and bids and quotes will be reviewed and accepted by none other than MWAA - the same group that handed us the Phase II prices that are almost two times what they should be, in the first place. We need cost analysis implemented IMMEDIATELY, we need to ask the estimators why their estimates are nearly two times what they should be, and we need to reject ridiculous bids. I think we know that MWAA will not do that - they have already approved prices for Phase II (and Phase I) that are nearly two times what they should be. So MAKE MWAA control costs, or take Phase II away from them NOW.

The old story that taxpayers would not be burdened with the cost of this rail extension, was simply a lie. Clearly this was the plan all along - string us talking about how the business districts and toll road drivers would pay for this, and then get a taxpayer-backed Tifia loan, and dump the costs onto the taxpayers.

But whether we get a loan or not, the plan now is to string us along a little more, until the Phase II costs can not be reduced. By suggesting that a very unlikely Tifia loan may be coming, any day now, any day now, our so-called 'leaders' are trying to get taxpayers to wait, giving MWAA time to approve and lock us into the excessive bids that they have set up.

Unless they wake up now, taxpayers will not be able to stop this robbery. I fear that by the time taxpayers understand and remember what people like Gerry Connolly, Sharon Bulova, Tim Kaine and the MWAA Board did to them, those people will have retired and left this area. Why would THEY stick around and pay the taxes? Heck, several MWAA Board members don't even live around here now.

Sep. 19 2012 11:05 AM

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