Below is an e-mail from Vince Winegardner:
Please forward to business owner and others who need to take action – Everyone in Lake Norman!
ACTION NEEDED BY YOU. PLEASE REVIEW THIS INFORMATION AND CONTACT GOVERNOR McCRORY BY TUESDAY AND TELL HIM “NO TO TOLLS ON I77!” CONTACT INFO IS LISTED BELOW.
Dear Northcross Master Association Business and Property Owners/Lake Norman Business Owner,
The I77 toll lane project continues to reveal how damaging it will be to our businesses, economy and quality of life.
The “Financial Close” is the final document required for the Cintra/NC DOT project to proceed. That document cannot be signed until financing has been arranged. A major portion of that financing is taxpayer backed “TIFIA” bonds and tax free “PAB” bonds. To sell these bonds, an independent rating agency rates them. Fitch rated these bonds at BBB- (report attached). This is the lowest investment grade possible and just above “junk” status. This rating is provided to the financial markets thru a major bond processing house like Goldman Sacks. They produce a bond sales prospectus (attached DBRS flyer) which is provided to institutional investors such as pension funds, etc. DBRS rated the bonds at BBB. This is the lowest rating allowed by the federal government to participate in the tax payer backed “TIFIA” and Private Activity Bonds program which will fund $289 million of the project. Keep that in mind as your read the report. It is overly optimistic and relies heavily on NC DOT’s willingness to subsidize the private company. If these two conditions did not exist, the bonds would not qualify for Federal backing since they would be “junk” status.
Much of the DBRS report is technical but as you read it, a clear theme emerges. This project is high risk for the investor but the stage is set to make money from Lake Norman drivers. The report focuses on I77 being a “choke point” and that congestion after 2035 will be bad enough in the non-tolled roads to force drivers into the tolled lanes. The report also notes that the tolls rates have no cap. There is a lot more that should concern those who have invested in Lake Norman.
What disturbs me is how this report supports the adverse impact which have been reported by opponents for the last several years and still political and business leaders defend it or remain silent. Leadership of the Lake Norman and Mooresville Chambers have been privately opposed but collectively silent. The Charlotte Chamber has been actively supporting the tolling concept as a way forward for Charlotte and the State. This tolling agenda has a strong ally in Ned Curran. Mr. Curran is the CEO of Bissell Corporation, Chairman of the NC DOT Transportation Board and next year’s President of the Charlotte Chamber. I believe his support is heavily influenced by managed lane concepts that have been applied to cities like Los Angeles, Miami, and Washington DC. A “successful” Los Angeles example earns annual toll revenue of a little over $40 million from a population that is nearly greater than all of North Carolina! Lake Norman has about 150,000 citizens and, according to the DBRS sales brochure, Lake Norman commuters are estimated to pay $34 million in tolls in 2020! These projects are historically overestimated for what they will generate and what benefit they bring to the community. Regardless of the intent, these toll projects do not solve the problem of congestion. The profit motive will ensure they make congestion worse.
Is this a done deal? Maybe … but still there is hope to stop it. Several local governments are waking up or at least recognizing that voters are watching. A delay is important to allow the truth of what is happening to emerge. That delay will also be important to the taxpayer should the lawsuit filed in January by the citizen’s group, WidenI77, be successful later this year. If the lawsuit is successful and the Financial Close has already been signed, the cost to exit the contract may be as much as it would cost to have solved the congestion problem without tolls! The best case is for the Governor to stop this now before the contract is signed.
With all of the data saying this is a bad idea, surely the right thing will be done right? There is a lot of money in this and there are powerful people who will benefit one way or the other. The only reasonable way to stop this privatization of our roads, is for businesses and leaders to stand up and say “No!” Do you like your elected leaders and their Party? Tell them you will not support them in the next election if this happens to our community. A list of elected leaders is attached along with their emails. Let them know now that you want a real solution that reduces congestion and protects our economy.
Want to help with the legal fight? Visit www.WidenI77.org and donate! Want to donate more than $1000 and would like a private presentation? Contact me at[email protected].
Respectfully,
Vince Winegardner
Northcross Master Association President
Huntersville NC
PS – There are no exits from the toll road between Westmoreland and Hambright roads – e.g. bypasses exits 23, 25, and 28. If you depend on transient traffic and they are in the toll road, it is unlikely they will figure out how to get to your business from the toll lanes. Consider the impact you may have from the growing congestion in the general purpose lanes and secondary roads.
These toll lanes are the most corrupt and discriminatory thing to happen in the state since segregated bussing. $655 million is intended to be spent to provide an expensive opportunity for drivers who have lots of money to opt out of the congested lanes and leave everyone else to suffer in continued traffic jams. NO new lanes are being built for the masses. $655 million for the well-to-do. $0 for everyone else. And every single government official knows this and those who support this toll lane construction are guilty of promoting discrimination and segregation of one of our most important public amenities, our roads.
Nice open free flowing roads for the wealthy. Crowded slow paced roads for you. Almost entirely paid for with tax dollars,
When McCrory states, “the financial model for the project depends on the noncompete clause” what he means is….poor people have to suffer for this to work. How disgusting!!!!!
https://www.flickr.com/photos/133260078@N08/17637145805/in/dateposted-public/
If they are going to build a toll road, they should build it AWAY from 77-maybe connect somewhere on Brookshire Blvd or 85-There will only be more congestion added to 77 if the road is next to the existing one. Charge everyone 250.00 for a yearly pass-or a daily charge of 5.00 for one segment (like they do on other “turnpikes”). But it shouldn’t be part of 77-If you are going to have another freeway built go big or go home-build it OVER 77-with connections at every exit. It should be in writing that once this thing is paid for it will no longer be a toll road and all proceeds will go to the public/charter schools. (And maybe you can eliminate Raleigh).
Every city has lots of traffic, especially around rush hour-with the added population growth it is only going to get worse. You are fool hardy if you think you will ever build a road big enough. You just have to build more of them and PLAN for the future so that they make sense monetarily. I think taxing guns and gasoline might be the way to go. Especially high performance vehicles that are for business use or recreation-hummers and porches, should pay a tax at purchase point for the vehicle and ongoing at the pump. To eliminate the complaint about waiting in traffic then just go earlier or later. (it’s less expensive).