HOT Lanes on I-77

1. HOT Lanes on I-77 What we don’t know… Sept 9, 2014

2. Overview • Project Scope • Toll Rates • Congestion • Ingress/Egress • Confidential Information

3. The Problem Congested stretch of four lane road from mm21 to exit 36… with “no money” to widen it

4. A Solution • Add a general purpose lane in both directions • 13 miles • $80- 130M (est) Source: “I-77 Feasibility Study,” December 7, 2009

5. The Current Plan • Privately Operated Toll Lanes • 27.5 Miles • $655 M • 50 year contract • Cintra, a Spanish company Why the difference? Source: NCDOT Press Release, April 11, 2014

6. Example: Toll Lane Flyover Source: NCDOT

7. The Cost Of Toll Lanes Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

8. Taxpayer Obligation • Taxpayer Contribution $88M • For private tolling lanes • Taxpayer Subsidy $75M • To cover potential revenue shortfalls • Taxpayer Liability $215M • Government-backed bonds Substantial Taxpayer Involvement for Having “No Money” Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

9. How Toll Lanes Work • Built and operated under an exclusive 50 year contract • Vehicles with 3+ occupants use lane for free • Electronic Tolling- no toll booths • Guaranteed minimum speed • “Congestion pricing” • More congestion in “free” lanes = higher price to use toll lanes • No limit on tolls Business Model Ensures Congestion

10. Toll Rates 2015 $20 Round Trip When Toll Lanes Open Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

11. Toll Rates 2035 $40 Round Trip In Twenty Years ??? Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

12. Cintra’s Answer Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014

13. Congestion On General Lanes Average Commute Time- Charlotte to Mooresville Commute Time Lengthens By An Hour per Day Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

14. Typical Access Point Source: Executed Comprehensive Agreement

15. Ingress & Egress Mooresville Exit 36 (NC 150) 35 33 Exit 31 (Langtree) 30 ? 28 Exit 27 (Westmoreland) ? 25 23 Exit ~20 (Hambright) Exit 18 (WT Harris) ? Exit 13 (I-85) Charlotte Existing LKN Exits Bypassed (23, 25, 28, 30) Source: RFI for Senator Tarte, 6-17-14; NCDOT “Managed Lanes” FAQ

16. Patron Confidential Information • Foreign company could collect: • Name, Address, Tel #, email, credit card info • Drivers license number • Vehicle registration information • Social Security Number • Law enforcement records • Financial profiles • Medical data • Information shared with: • NCDOT (upon request) • Authorized employers or contractors • Authorized collection agencies • North Carolina Public Safety agency (for toll enforcement) • Any other public law enforcement agency (for toll enforcement) • Any governmental entity (under applicable law) Source: Executed Comprehensive Agreement, Sect 8.7, June 26, 2014

17. Private toll lanes… • Are Expensive • $20 daily tolls • Ensure Congestion for 50 years • Commute times nearly double • Bypass local businesses • Could collect significant personal data • Can be shared widely • Siphon millions out of our local economy and send it to Spain Private Toll Lanes Are Not the Answer

18. Status • “Commercial Close” • Signed June 26, 2014 • “Financial Close” • Q4 2014 Time Is Short

19. Now What?

20. A New Funding Paradigm: STI • Passed last summer • HB 817 • Replaces Equity Formula • Favored rural over urban areas • More data-driven • Supposed to remove pork politicking

22. NCDOT STI Scores for I-77 Project How Does This Rank Against Other Statewide Projects?

23. Highest scoring funded project 73 “Statewide” funded projects  I77 General Purpose Lane Project Projects to be funded Projects unfunded I77 scores higher than 33 funded projects I-77 GP project through Lake Norman Lowest scoring funded project 377 Unfunded Projects A General Purpose Lane Project Would Likely Be Funded…

24. The Bad News: STI Corridor Cap • A maximum of 10% of projected funding in the “statewide” category • A “corridor” is defined as “any contiguous projects or group of projects” • Since I-77 South (i.e. Charlotte) scores higher it would use all corridor cap money • NCDOT says corridor cap applies... we disagree, but…

25. The Good News… • Corridor cap only applies to STATEWIDE Category • I-77 LKN could still be funded under Regional and Division categories • 60% of total fundng • ~$9B dollars • I-77 general use project eligible to be ranked as early as July 2014! Six Month Wait vs 50 Years of Tolls

26. What do we do now? • Apply pressure to rank the general use project under STI • Local elected officials • State representatives • CRTPO • Seek to null the contract

27. About Widen I-77 • A 501(c) organization • Donations are tax deductible • Subject to IRS reporting and auditing Our only shot at avoiding 50 years of tolls…

28. Thank YouWidenI77PO Box 792Cornelius, NC 28031wideni77@hotmail.comwideni77.org

29. Appendix

30. Reprioritizing Transportation Funding A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 E D F G Division(20%) ~$1.2B Regional (40%) ~$2.4B Statewide (40%) ~$2.4B Project Merit (Data) Per capita by region Equally to Divisions Interstates/ NHS/STRAHNET /Tolls/Etc (S) + Hwys, Airport, Rail, Transit (S) + (R) + Local Three-Plus Chances for Funding GP Lanes HB817, Strategic Transportation Investments,

31. Strategic Mobility Fund- Criteria Division(20%) ~$1.2B Regional (40%) ~$2.4B Statewide (40%) ~$2.4B • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 100% • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 70% • Benefit/Cost • Congestion • Economic competitiveness • Freight • Multi-modal • Pavement condition • Lane width • Shoulder width • 50% • Local considerations • 50% • Local considerations • 30% Much Greater Emphasis on Project Merit

32. NDOT Divisions