NCDOT and their Spanish partners at Cintra have some splaaaynin' to do...

On Friday, WidenI77.org put out this piece which pretty clearly shows how the contract with Cintra is structured to avoid NC law.

The activists at WidenI.77.org lay out how the contract basically allows Cintra to get around ever paying anything to the state in revenue sharing as required by the P3 authorizing legislation.  This is due to the thresholds being set at levels likely never to be reached before the state would receive a dime from any excess toll payments.

What's even more egregious is that this wasn't made clear by the state until citizen activists essentially forced them to admit to it prior to signing the financial close with their partners at Cintra/I77 Mobility Partners.

...and remember, after all of this numeric tomfoolery, the debt for the HOT lanes still only came in one level above junk bond status.  If the contact was written fairly for NC taxpayers and forced them to give up any revenues, what does their rating likely look like?  Not good is the likely answer.

But that was just the first of a one-two punch combination with the second hitting the wires Saturday night.

In a press release sent out Saturday evening by Vallee Bubak and Diane Gilroy separate from WidenI77 and the story mentioned above, another potential bombshell is dropped.  Gilroy is the wife of Cornelius, N.C. Commissioner Dave Gilroy, and recently traveled to Spain to research Cintra's parent company Ferrovial and its subsidiaries.  She has become a real thorn in the side of Javier "Mr Who Knows" Tamargo and the folks at Cintra.  She has also been the target of some of the company's pushback.

The information in the press release is said to come from a 198 page Spanish language document received on Friday.

Press release below.

Charlotte, N.C. – September 6, 2015 – Opponents of the I-77 toll project may have just gotten a needed break as a result of documents revealing that Cintra, the subsidiary of parent company Ferrovial, failed to disclose in required contractual documents that its affiliate was being investigated for breaking Spain’s anti-trust laws. Ferrovial’s waste management subsidiary called Cespa had their offices raided in 2012 and 2013, yet failed to disclose those investigations as required by the NCDOT’s Request for Proposal (RFP) process in 2014. As a result of those investigations, Cespa (Ferrovial) was fined more than 13.6 million Euros (approximately $15 million USD) for engaging in market sharing and collusive activity.

Journalist Baltasar Montaño explained in Spain’s January 28, 2015 digital publication Vozpópuli how the “garbage cartel” was rigged. He explained, the CNMC [Comisión Nacional de los Mercados y la Competencia – Spain’s National Commission of Markets and Competition] went through thousands of emails from companies like Ferrovial, FCC, ACS, and Sacyr in which they divided contracts, clients, territories, and they expelled possible competitors among other illegal practices.

“A 198-page document by Spain’s CNMC dated January 8, 2015 details the investigations, scandalous emails and documents showing collusive joint agreements between Cespa (Ferrovial) and others,” said Diane Gilroy, a local Spanish professor who recently traveled to Spain and researched Cintra’s parent company Ferrovial. “Because Cintra failed to disclose this serious anti-trust investigation that Ferrovial/Cespa was notified of by the CNMC in 2012 and 2013, the toll contract

documents signed in 2014 between Ferrovial and the NCDOT are likely invalid and the so-called $100 million penalty is baseless.”

As more and more of these revelations start to pile up, everyone looking at this situation should channel their best Ricky Ricardo and say...

"NCDOT and Cintra, you got some splaaaaynin' to do!!!"

Mike Angell, Davidson's newest candidate, on CRTPO vote and tolls

I had the chance to speak with Mike Angell for the first time this evening.  Angell is the sole non-incumbent running for Davidson's Board this November.

Here's what he had to say on the issues of a directed vote and how he would vote if he was on the Board currently.

Angell said he opposed the idea of a directed vote, taking the position that if you can't trust the person to vote the way the Board wants, then you have the wrong person in that position to represent the Board.

When asked how the public would know a representative had voted the way a majority of the Board wanted, Angell said he'd be open to a non-binding vote of the Board on the issue of accepting the current TIP.  If the CRTPO rep (Brian Jenest) then voted against the Board's wishes, that would be clear.

Finally, when asked how he would vote in such a non-binding resolution if he was a Commissioner, he said he would vote against supporting the current TIP if it included the current HOT project.

Angell clarified that he's not totally opposed to the idea of tolls.  However, he does oppose the current P3 HOT plan.  He does not like the dynamic tolling process, the use of a foreign company in the P3 which takes money out of the state, the increase in passengers required from HOV-2 to HOT-3, and the use of a 50 year P3 contract for I77 versus the state managed toll proposals for other interstates in the Charlotte area.

So, there you have it.  Davidson's newest person on the political scene would support efforts to stop the current I77 proposal while not being completely anti -toll.

ALEC: The best connected toll road lobbyist in North Carolina

If last week's post on lobbyists surrounding the I77 HOT lanes project with links to Governor Pat McCrory gave you an upset stomach.  This one is likely to make your blood boil.

Many readers who follow the HOT lanes issue or politics generally are familiar with ALEC.  For those who are not, the American Legislative Exchange Council is a policy generating body made up of corporations across all types of industries and state legislators from across the country.  The organization generates model legislation to help corporate interests and then pushes that legislation through its membership at the state level.

The body gained some notoriety locally over the past few years because Senator Thom Tillis was honored as one of its "legislators of the year" while he was the Speaker of the House in the North Carolina General Assembly.

Before, during, and after that time, ALEC has had a seat at the table at the highest levels of our state government.  The story about how that has driven the implementation of HOT lanes on I77 provides a  clear window into how this organization gets things done.  Read all the links if you have time.  The entire picture is a real eye-opener.

Our small part of the story starts at the August 2011 ALEC meeting in New Orleans.

At this meeting In 2011, NC Speaker Thom Tillis received the ALEC Legislator of the Year award.  On this boondoggle trip to New Orleans he was accompanied by several members of the NC General Assembly.

That meeting also happened to feature presentations and sample legislation around Public Private Partnerships - presentations delivered by Cintra and Macquarie.  Cintra of course is the I77 contractor and Macquarie was mentioned in last week's post as having connections to a former NCGOP Executive Director's lobbying firm.

Almost immediately after returning from the August ALEC meeting, Speaker Tillis established the House Select Committee on Public-Private Partnerships.  See this document issued September 15, 2011.  Notice who is on this committee.  It is Co-Chaired by Matthews Rep Bill Brawley.  It also contains a name less familiar in the Mecklenburg County area - one Fred Steen.

Who is Fred Steen?

At the time, Rep Steen from Rowan County was the State Chair of ALEC in North Carolina.  His current job is serving as Governor Pat McCrory's liaison to the General Assembly - making him effectively the governor's chief internal government lobbyist.

The House Select Committee on Public Private Partnerships soon had a visitor from the firm McGuireWoods Consulting for a discussion on the benefits of  P3s.  In January 2012, this presentation was given to the committee.  Similar presentations to the one at the previous link have been delivered around the country to various state bodies.  If you google "McGuireWoods Consulting American Legislative Exchange Council" it is clear these two organizations cross paths very regularly.

Then in may of 2012 comes House Bill 1077.  The short title of the bill is "Increase DOT Public Private Partnerships".  However, this would soon change to be I77 specific.

On June 26th, in the House Finance Committee a Proposed Committee Substitute or PCS was passed.  PCS30660  had the title "An Act to Establish a Pilot Project for Tolling the I-77 High Occupancy Toll Project."  According to the NC Legislative Library, the motion to submit this PCS was made by Harry Warren of Rowan (just like Mr Steen)

Who is Harry Warren?

In 2011, he was a freshman legislator.  He had come to Raleigh after the 2010 wave election where the Republicans gained control.  Warren won by a razor thin margin, defeating a Democrat incumbent by only 166 votes.  He was then put on the influential finance committee.  Warren also attended the 2011 ALEC meeting in New Orleans where then Speaker Tillis received his legislator of the year award.

Now, if you know how the legislature works, a junior member like Warren certainly did not propose tolling a highway in another district without being told to do so.  There are not typically any recorded votes in committees and PCSs do not have "sponsors" like the original bills, so more detail is not easily available.  However, one can say this committee is where the sausage of tolling I77 was made.

Incidentally, there was another freshman member of that same committee - Rep Jason Saine of Lincoln County.  Saine has risen rapidly in the ranks at ALEC.  He now serves on its national Board of Directors.

Once H1077 passed by mid-July 2012, the project's fate was sealed so to speak.

So, in less than a year, all of the following happens.  Cintra makes a presentation at an ALEC meeting in New Orleans where Speaker Thom Tillis receives an award with several NC legislative members in tow.  A House Select Committee is then setup for Public Private Partnerships.  A consultant with numerous connections to ALEC gives a presentation to that committee giving the appearance of actually doing some research.  A bill is submitted.  A freshman member who owes the Speaker his seat in a very tight election proposes a change to the bill targeting I77.  The bill passes.

Cintra ultimately gets the contract for I77 as the single bidder.

Add to that these facts.

Another member of the same committee which specifically targeted I77 is now on the ALEC national board (Rep Jason Saine).  Also, a former ALEC state chair served on the PPP Select Committed and also serves as the Governor 's legislative liaison (Rep Fred Steen).  He is in a position to help ram this all through.

And there you have it - an unparalleled list of connections, leading to unparalleled power!

String all of that together and the I77 HOT Lanes project leads right to ALEC's doorstep.

Again, all this took was a little googling, and someone with more time on their hands should really look into these things.  North Carolina will be a center of gravity during the 2016 elections.  The NC Governor's race is regularly ranked as one of the top five in the country.  North Carolina will be a swing state in the presidential race.  These kinds of stories matter.


Major hat tips to the following sites for pulling some of this information together.  Strongly recommend checking them out if you want to learn more.

http://ashevillewater.blogspot.com/p/privatization.html
https://friendsofthecoloradopuc.wordpress.com/what-is-alec/
https://alecinnc.wordpress.com/tag/north-carollina-alec-members/

How close does Cintra's road get to Governor Pat McCrory?

Whether one calls it lobbying, public relations, business development, or crisis management, what you are really hiring when you employ somebody for any of the above functions is a "fixer".  That's someone who gets things done that might not be do-able otherwise.

Lobbying is big business.  There is lots of money involved.  Lots of connections to work.

It is also one of the stops many people in politics take in between campaigns while working their way up the ladder in the political world.

Recently, a poster over at the Exit 28 Ridiculousness Facebook page posted something about Cintra having their own registered lobbyists in North Carolina, so that seemed like a good place to start looking into how that part of the proposed $650 million I77 HOT lanes project has panned out.

WARNING!  The rest of this post is a bit stomach churning.  Reading any further may require some Pepto Bismol.  Get some now if necessary.

The interconnected names that come up when looking at the people and firms involved in the past and present lobbying efforts employed by Cintra and related firms will make your head spin.  Official "lobbyists" are required to register as such with state and federal authorities.  However, as mentioned above, influential people working in the firms involved in lobbying are not always officially lobbyists.  They don't have to register as such.

In Cintra's case this story starts with someone who is a lobbyist.  According to the NC Secretary of State website, Cintra employs three lobbyists in North Carolina from a law firm named Brooks Pierce.   One of those lobbyists is a man named Chris McClure.  McClure was hired by the firm in January of 2013.

Who is Chris McClure?

Well, one of his previous jobs was as the Executive Director of the North Carolina Republican Party.  That is the top staff position within the state party. McClure held that position from 2007-2009.  McClure has also done work for Texas Governor Rick Perry according to his bio.  (That will be important later.)

During the 2008 campaign as head of the state party staff, McClure certainly would have crossed paths with the next person in this story, one Russell Peck.

During the 2008 election cycle, Russell Peck, was in charge of the North Carolina operation for the McCain-Palin campaign.  That also was the cycle where McCrory was on the ticket in his first run for governor.

The connections between McMclure and Peck go further than this however.  In 2009 Peck took over from McClure as the next Executive Director of the NCGOP.  They also both serve on something called the NC Advisory Committee of the US Global Leadership Commission.  (There are a number of interesting names on this list.)

During 2012 Russell Peck surfaces again as Pat McCrory's campaign manager during McCrory's second run at the governor's mansion.

After managing MCCrory's successful campaign, Russell Peck went to work for a firm named Mercury LLC.  Mercury's LinkedIn profile describes its business with this.

Mercury is a high-stakes public strategy firm.

We use our expertise and reach to gain competitive advantage for clients. Our expertise comes from extensive must-win campaign experience and operating successfully at the highest rung of business, government, politics and media. Our reach is the ability to use strategic intelligence to mobilize the message and persuade the toughest audiences.

We have proven results for prominent figures, leading advocacy groups and the world’s most successful companies.

That's a long winded way of saying lobbyist.

Russell Peck is listed as the point of contact for Mercury in North Carolina on the firm's website.  Peck is only registered to lobby for one firm in North Carolina.  That firm has nothing to do with
with transportation, but it would seem to be a limited work load for someone in the lobbying biz who has worked so closely to the governor.

Interestingly, according to opensecrets.org, Mercury appears to have done work in the past for a company called Macquarie.  Macquarie has been a business partner with Cintra on multiple toll projects in the US and Canada, including some work in Texas.

Then of course there is Moore & Van Allen.

Readers may remember when Mecklenburg County Commissioner Dumont Clarke recused himself during the vote on a resolution by the county asking the state to delay financial close.  This was on May 19th.  Clarke sited a potential conflict of interest with a client and the project.

Moore & Van Allen happens to also be the firm where Governor Pat McCrory himself passed the time as an employee between his gubernatorial runs.  According to this article McCrory was hired because he could "add value to what lawyers could do."

The firm has also hired a close McCrory aid, Brian Nick, after McCrory became governor in 2012.

So to sum it all up, here you have two former heads of the NCGOP staff working as lobbyists.  One works directly for Cintra the other for a firm that has done work for a close Cintra business partner in the past.

Both of these men worked closely with Governor McCrory.

Then you have the firm where McCrory himself worked as a non-lobbying lobbyist having an employee having to recuse from a County Commission vote because of a conflict of interest somehow related to the project.

Remember the comment earlier in this post about Cintra lobbyist Chris McClure working for Governor Rick Perry in Texas?

Well, this whole twisted tale sounds eerilly like this article outlining lobbying efforts with close ties to the governor, including Cintra's, in Texas.

This all took about two hours of googling to pull together.  Someone with more time on their hands and resourses available should really look into this.

Who knows what you might find?

I77 Activism Blurs Political Lines...Precedent for Success in North Carolina

As someone who has been active in politics for a while now, one of the most interesting aspects of the activism surrounding the I77 HOT Lanes is how much it crosses political boundaries when it comes to the people involved.

It is clear from knowing some of the people personally and from reading comments in cyberspace from a wide variety of others that no one political label would cover the entire group.  If everyone who is actively working against this proposed plan were all in a room and someone asked people to raise their hands for the labels Democrat, Republican, liberal, conservative, moderate progressive, libertarian, or any other label, it is clear that numerous hands would go up for each one.

The opposition to this covers so many sub-groups it is hard to overstate how widespread it had become.  Rarely will you see this kind of teamwork across political lines, but there is precedent for it in North Carolina.

In eastern North Carolina there was a widespread effort that stopped the most powerful force on the planet from doing what it wanted.  That was the effort in the late 2000's to stop the US Navy from building a facility called the "Outer Landing Field" or OLF.

Here's an excerpt on the OLF from a piece I wrote back in 2012.  Unfortunately, the links don't work. The NOOLF site went dark - because it was no longer needed.

From April 2012...

Ever heard of the OLF?  If you've ever driven through some of the counties in eastern NC or Virginia, you would.  NOOLF.org signs dot the roadsides, and some have obviously been there for years.  Last year, the organization won a major battle in its long-running war of attrition.  Here's a quote from the most recent news item posted on the NOOLF.org website.

"The U.S. Navy called a Jan. 27 truce in its 10-year battle to build a practice airfield in North Carolina or Virginia.

The proposed Outlying Landing Field (OLF) for practice landings and takeoffs by carrier-based jets from Norfolk, Va., stirred strong opposition in both states, but none more than in North Carolina, where the Navy first attempted to obtain land for the field a decade ago.

'The Navy made the right decision,' said Vance Aydlett Jr., chairman of the Currituck County Board of Commissioners, 'The Navy promised that it would not build an OLF in a community that did not want it, and today it followed through on the promise.'"

NOOLF is a successful activist driven effort to stop government overreach, and it provides a prime example of how diverse groups can come together to stop such efforts - even as they attack the issue from totally different perspectives.  Take a look at the site's "allies" page and you will see groups as diverse as the Sierra Club and FreedomWorks.

You would never expect to see that would you?  Those groups could not agree on anything could they?  The answer to both questions is "No".  However, on this effort they come at the issue from different perspectives and end up in the same place, and that place allows them to agree.  The OLF is bad for the community for environmental reasons and  property rights reasons.  So, they agree to fight it together.

Fast forward to today and the fight against the toll lanes.  One can certainly see a lot of parallels to the efforts of WidenI77.org and Facebook groups like "Exit 28 Ridiculousness".

Always remember, no challenge is too big when "the people" work together.

Funding I77: A question of political will, not money

Interesting numbers on transportation in the just released Senate budget proposal...

From the Carolina Journal...

The Senate proposal also eliminates a $215 million annual transfer from the Highway Fund to the General Fund to pay for the Highway Patrol. Senate leaders say this change, plus the additional $100 million a year additional income from DMV fees would provide sufficient funds for highway construction, thus eliminating the need for a $1.5 billion transportation bond package proposed by McCrory.

“The idea on transportation is that rather than borrow a billion or billion-and-a-half dollars, we could put $300-plus million annually — additional dollars — into transportation,” said Senate leader Phil Berger, R-Rockingham. “The feeling was we could build the projects that are not being built presently and do it without borrowing money.”

Now, Governor Pat certainly can't like that at all.  He and his team have been running around the state giving the hard sell on his bond package.

Hardly a day goes by where some email blast lands in the ol' inbox talking about the virtues of his bond propisal, but it appears the NC Senate doesn't see it that way.

What the Senate proposal does show is that transportation funding can be achieved if the correct priorities are in place and there is the political will to implement those priorities.

Through a few strokes of the budget pen, they came up with $315 million per year in new money.

Now let's look at that from the perspective of the I77 HOT Lanes project.

How much is $315m/yr over the 50 year life of  the HOT lanes?

Answer: Over $15 billion.

How much is the true funding gap if the current HOT Lanes plan was converted to general purpose lanes or even one new GP lane and an extension of the current HOV lane while still spending the state dollars committed directly to the HOT project?

Answer:  $655m total cost - $95m direct state input - $75m DRAM committment - roughly $80m in "bonus funds" being spent to directly help the HOT lanes project - $50m in toll collection costs not needed for a non-toll project leaves a $355m funding gap.

The Senate's proposed new budget just found nearly that much in the couch cushions.

And the State means to tell one of the areas that is a major economic engine the only way to widen the road is to suck billions of dollars out of the local economy over the next 50 years rather than using a tiny percentage of the billions they just "found" to achieve the same thing?

That's not a money problem.  That's a political will problem.

Update: A reader sent in this comment...

"We need to stop the apples-to-apples comparison because we don't need an apple, we need a grape."

That's a good point.  What has been proposed by NCDOT is a "kitchen sink" type of project.  It's  more than what's needed to solve the problem with goodies like new bridges and new exits thrown in to jack up the cost to attract companies like Cintra and buy political support from some local politicians.

The point of this piece is that even when you accept those unnecessary pre-conditions this is not as much of a money problem.

Does Governor Pat care about North Meck's opinion on transportation?

There have been recent reports of Governor Pat's office soliciting support in various parts of the state for his multi-billion dollar "Connect NC" bond package.

Various local bodies from municipal and county elected boards to local chambers of commerse are being asked by Governor Pat to pass resolutions supporting his proposal.

Incidentally, that's not unlike the resolutions Senator Tarte is asking local boards to pass opposing the HOT lanes contract with Cintra - resolutions Huntersville Mayor Jill Swain sees as unnecesary.  

We here at aShortChronicle thought it was worth seeing if the same effort was taking place here in North Mecklenburg by the Governor's office.

According to the town clerks from Huntersville, Cornelius, and Davidson, no such request for support of the Connect NC bonds has come into the towns.

Makes sense in a warped way.

Since Governor Pat is committed to sticking the area with 50 years of tolls, he is probably pretty sure asking for support from this area on just about anything is a waste of time?

Does he care about this area's opinion?

Nope.  No he does not.

But, the fact that he's going elsewhere around the state asking for resolutions shows that such things carry weight with the General Assembly when its being asked to pass some sort of controversial bill.

That fact may be lost on Huntersville Mayor Jill Swain.  Let's hope tonight it is not lost on a majority of the Huntersville Board as they vote on a resolution asking the NCGA to pull the plug on the I77 HOT lanes project.

Pressure amps up for Huntersville HOT lanes resolution

The Huntersville Board meets Monday, and some sort of  anti-HOT lanes resolution will most likely be on the agenda unless some serious shenanigans occur.

The biggest question is will it be a strong resolution like the one Cornelius passed that explicitly asks NCDOT to negate the contact with Cintra/I77 Mobility Partners OR will it be a watered down resolution like the one passed by Davidson which only asked for "fair" alternatives.

There could also be some drama as the pressure amps up a bit over the whole idea of a resolution being needed in the first place - at least that's the perspective of Huntersville Mayor Jill Swain.

In some recent Facebook back-and-forth on the issue, Swain has been questioning why Senator Jeff Tarte is asking for resolutions from local municipalities prior to filing any legislation to stop the toll project.  Swain points out that Tarte has submitted dozens of other bills without requiring resolutions - including sometimes things the towns actively oppose.  Tarte's response is that going to the General Assembly and asking the legislators to undo a proposal that has gotten to this point realistically requires obvious support from local elected officials.  Otherwise, the bill would not go anywhere.

Tarte is right in this instance.  If he walked into the General Assembly without a stack of resolutions, any bill very likely would not go forward.  That would most likely be true even if he has a few resolutions, but not a complete set. That's just reality.

That's also why the Huntersville resolution is so important and why Swain's opposition to the idea could be so damaging.   In Davidson and Cornelius, there are odd numbers of commissioners.  In Huntersville, there is an even number and thus the Mayor is more likely to vote in the event of a tie.

What Swain does Monday will matter.

If  a strong resolution is presented, Swain's recent comments indicate she might vote against it in a tie situation.  If a weak resolution is presented and that were to end in tie, she might also vote against it because she thinks it is not needed.

Swain's former opponent for Huntersville Mayor, County Commissioner Jim Puckett, had this to say on Facebook in recent days regarding the upcoming Huntersville vote on a resolution...

"We need to make sure the folks in Huntersville know this is NOT just a resolution asking for an alternative to tolls IT IS MUCH BROADER. This is a referendum on the future of the moderate to large business community in our region. Either our boards stand with us (Cornelius and Davidson Commissioners do) or they stand against this community. If our elected officials will not at the LEAST take a stand to send the message we want an alternative, then we cannot trust that they will stand for us the next time needed. I for one will not support anyone who will simply roll over or give up because the odds are against them. Real leaders do not take the temperature, they determine the temperature. As for me I want to be known not as a thermometer, a thin fragile instrument shoved up a posterior to gauge what's going on, but a thermostat that makes the machine give me the environment the people want."

Which is it gonna be - thermometer or thermostat?

After "washing his hands" of I77, #NCSEN Tillis proposes new interstate

Just last week we brought you word how Senator Thom Tillis washed his hands of responsibility for tolls on I77 by pawning it off as a "state" responsibility.  This week he's proposing a new interstate for Eastern North Carolina.

What do you bet this one won't involve tolls?

From Senator Tillis's website...

WASHINGTON, D.C. – Today, Senator Thom Tillis (R-NC) introduced The Road to Opportunity and Development (ROAD) Act of 2015. The bipartisan legislation amends the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991, designating the Raleigh-Norfolk Corridor as a future part of the interstate system, while creating opportunities for increased commerce and investment in infrastructure and jobs.

Tillis’ Senate bill is co-sponsored by Senators Richard Burr (R-NC), Tim Kaine (D-VA) and Mark Warner (D-VA), and Congressman G.K. Butterfield (D-NC-01) introduced a companion bill in the House.

The ROAD Act of 2015 would designate the following as a high priority corridor:

•         U.S. Route 64 from its intersection in Raleigh, North Carolina, through Rocky Mount, Williamston and Elizabeth City, to U.S. Route 17 at its intersection in Norfolk, Virginia

The designation of these two highways as high priority corridors ensures the two portions of the roads will become part of the Interstate system once they’re fully built and upgraded to interstate standards. Such designation would easing traffic congestion among Norfolk, Raleigh and the North Carolina coast. 

“I am pleased to introduce yet another bipartisan bill that focuses on improving our state’s infrastructure, reducing traffic congestion, and supporting the creation of good-paying North Carolina jobs,” said Senator Tillis. “The ROAD Act will prove essential in enhancing interstate commerce between North Carolina and Virginia, and promoting economic growth for local communities along the Raleigh-Norfolk corridor.” 

“The ROAD Act will open up new opportunities in North Carolina,” said Senator Burr. “Legislation like this is vital to our state's infrastructure, benefiting all of those who use our roads and highways and encourages economic expansion by connecting some of the east coast’s largest ports to North Carolina’s cities and towns. I’m excited to see the possibilities the ROAD Act will open for all North Carolinians.”

“This bill is a bipartisan step toward integrating the Hampton Roads region of Virginia with North Carolina’s Research Triangle,” said Senator Kaine.  “Hampton Roads has so much to offer, including a skilled maritime workforce, top-tier academic institutions, a robust tourism sector, and one of the East Coast’s leading deepwater ports.  The benefits of interstate highway service to Raleigh will benefit people and businesses in both states and strengthen regional commerce throughout the mid-Atlantic.”

“I am proud to join Senator Kaine and our colleagues from North Carolina in introducing this bipartisan bill,” said Senator Warner. “Designating this corridor as part of the interstate system will help facilitate commerce, boost tourism and improve the quality of life in and around Norfolk and the entire Tidewater region.”

The ROAD Act is the second piece of legislation Sen. Tillis and Rep. Butterfield have introduced to improve North Carolina’s infrastructure, after introducing the Military Corridor Transportation Improvement Act of 2015 two weeks ago. Both bills will help to advance the North Carolina Department of Transportation’s Strategic Transportation Corridors Vision, which aims to provide North Carolina with a network of high priority corridors that promote economic development and enhance interstate commerce.

Politicians comment on I77 from cyberspace

Politicians at all levels of government had something to say last week on the I77 HOT lanes.  Here are a few of the gems collected from cyberspace before and after the project’s financial close amid swelling opposition.

In an email to one area residents posted to the Exit 28 Ridiculousness Facebook page, US Senator and former Speaker of the NC House, Thom Tillis had this to say regarding the project.

From US Senator Thom Tillis - May 19th, 1:18pm-

“I understand your concerns about the NCDOT I-77 Express Lanes project.  However, the responsibility for this issue falls under the jurisdiction of the state, not the federal, government.  Therefore I would recommend that you contact your State Senator and State Representatives and share your concerns with them.”

It takes an impressive amount of chutzpah to send that to a constituent when you yourself had been the state Representative just a short time ago who had the most influence to actually stop the project.

One of my early blog posts on the HOT lanes project from way back in March 2013 was titled “HOT Lanes: The Empire Strikes Back”.  It recounts WidenI77.org activists trekking to Raleigh to do exactly what Senator Thom Tillis suggests in this email.  They went to meet their then-Representative, Thom Tillis, to discuss their concerns.  Instead of a meeting with their Representative, they were met by a room full of people including, NCDOT staff, consultants, and even media listening on the phone.

As you can imagine that meeting didn't go well.

Also last Tuesday, former Cornelius Mayor Lynette Rinker posted the below to County Commissioner Matthew Ridenhour’s Facebook page.  The post came as the County Commission prepared to vote unanimously asking for a delay in the project.

From former Mayor Lynette Rinker May 19th 6:18pm -

“Matthew If it were as easy to get money as the opponents say don't you think this would have gone away long ago. Also just putting GP lanes to exit 28 or 30 solves nothing. This is about winning for the sake of winning.‬‬”

As Mayor, Rinker cast the tie breaker in favor of tolls when it came before the Cornelius Board in a surprise vote in May of 2013.  She knows a little about “winning for the sake of winning”.  Ms Rinker now serves as the MeckGOP Vice Chair where that skill-set will likely come in handy.

The next day, the below appeared on Governor McCrory’s Facebook page after a speech to the Republican Governors Association.  It came just hours after the deal with Cintra was inked.

From Governor McCrory May 20th 2:43 pm –

“It was great to join fellow governors and leaders from across the country to discuss the need to invest in our state's infrastructure and transportation to prepare for the future. North Carolina is leading the way in finding innovative ways to fund those generational investments without raising taxes through initiatives like our Connect NC bonds.”

It is telling that the Governor specifically mentions the Connect NC Bonds while keeping mum on the HOT lanes.  If he was proud of what his NCDOT had done earlier that very day by signing a 50 year contract with Cintra, don't you think he would have mentioned it?

Finally, there’s this from District 1 County Commissioner, Jim Puckett.  His comments are a breath of fresh air in their directness after so much political double-talk.

In an email from Puckett posted on Facebook by former Cornelius Commissioner William Rakatansky, Puckett unloads and says what many in this area are thinking.

From Commissioner Jim Puckett on May 20th 5:02pm –

“I have been informed NCDOT has signed the final documents for I-77. I find this impossible to believe. To ignore the request to delay of five elected bodies and instead accelerate the signing of the contract that further obligates the State of NC to $80 mil. is the single most insulting and arrogant act of governance I have witnessed in my 18 years of politics. For the first time in my life I am ashamed of being part of the political process, Watergate, Clinton’s affair, Easley’s shady land deals Patrick Cannon’s bags of cash were all driven by personal gain, this however was government acting against the request of the governed without even the decency of a response.”


Puckett’s strong words call out perfectly everything that is wrong with this situation in particular.  At the same time, the other three comments offer up a trifecta of what’s wrong with our government at the Federal, State and Local levels in general.  It's government where politicians refuse to take responsibility for what they've done to those they supposedly represent

This post first appeared in the Herald Weekly at huntersvilleherald.com

I77 HOT Lanes debt should be 'Junk'

Once again, the I77 HOT lanes project has been in the news and not for good reasons.

This past week, local elected boards one after the other passed resolutions demanding answers to new questions or asking for outright delay prior to financial close of the contract.  On Monday evening, Rep John Bradford posted on Facebook that members of the North Mecklenburg delegation to the General Assembly asked Governor McCrory if it is “possible” to delay and assess other funding options.

All of this activity takes place in the final days of the re-re-rescheduled financial close date now slated for May 27th – an event which gained momentum with the recent approvals of Federal TIFIA loans and State Private Activity Bonds.  As part of the run-up to this event the public is finally getting see what the ratings agencies have to say about the project.

The results explain a lot and leave a lot to be desired at the same time.

Two agencies were required by the State to rate the project’s debt.  One of the big three agencies, Fitch, provided one rating, and a lesser known Canadian firm, DBRS, provided the other.  Those ratings were BBB- from Fitch and BBB from DBRS.

To put it another way, both firms rated the project one ratings step above “junk bond” status on their respective ratings scales.

Think about this for a minute.

A road project this important intends to be built using financing that can barely make investment grade status.  Investment grade status is required for many institutions such as pension funds and large endowments to invest in the bonds.

We can presume the I77 debt barely achieved these ratings because of a number of things that happened along the way to setting them.

• Of the four short-listed companies initially looking at the project, only Cintra submitted a bid – a strong indication the others could not make the numbers work.
• Cintra and NCDOT started with low expectations on bond ratings.  According to an April 2014 report from the State Chief Financial Officer and NCDOT to the General Assembly (a full year before the agencies presented their preliminary ratings), the General Assembly was told that Cintra expected exactly the mediocre ratings they ultimately received.
• The State and Cintra have had to put in more capital than originally planned and reduced the initial request for TIFIA debt.  One can reasonably assume both entities put in just enough capital to get over the hump.
• DBRS specifically sites the “compensation event” clause regarding the addition of new general purpose lanes in the future as a supporting justification for its BBB rating.  This is the issue that has been getting a lot of attention the past two weeks at local town halls because it is now known the State would have to pay penalties to Cintra if they build any more free lanes.
• Both Fitch and DBRS site the “unique” nature of the so-called DRAM facility in the contract with NCDOT.  This chunk of up to $75 million from the State serves as a backstop in early years if toll revenue comes in low.  In fact, Fitch estimates $47 million of this facility will need to be used.

Again, all of these red flags must be ignored, and all of these special provisions must be accepted to support a barely not-junk rating.

However, to the general public the most interesting information revealed in these preliminary ratings documents has to do with proposed toll rates.  From the Fitch press release it says the following:

“The initial proposed tolls in the sponsor case are reasonable for this type of asset (between $0.14/mile and $0.40/mile in 2012$)”.

“Reasonable” is relative to one’s ability to pay, but that works out to $3.84 up to $10.40 one way for a full-length 26-mile ride  - numbers surprisingly close to those presented by NCDOT consultant, Stantec.  When those numbers were made public last year, local officials did backflips trying to debunk and minimize them.

At a meeting arranged by local mayors,  NCDOT, and Cintra, a meeting initially intended to be closed to the public, then Cornelius  Commissioner John Bradford was caught on tape by WCNC saying “there is no one I have spoken to that believes an eleven dollar trip is reasonable in any way.”

In that same meeting  Cornelius Commissioner Dave Gilroy pushed Cintra’s point-man for the project, Javier Tamargo, regarding how high rates could go.  Tamargo’s response?

“Who knows?”

Based on the credit agency reports, somebody definitely knew.  They just didn't want that somebody to be you.

Multiple attempts to contact Fitch Ratings for more details for this story went unreturned.

This post originally appeared in the Herald Weekly at huntersvilleherald.com

A rough, but telling stretch, for toll road opposition

Since starting this column,, a concerted effort has been made to not write about the same topic two weeks in a row.  But for every rule, there is an exception.

This week is one of those exceptions.

The last column told you about a long-shot opportunity to stop the tolling of I77 with HOT lanes through a bill submitted at the General Assembly by local Senator Jeff Tarte.

Well, since writing that piece the project to build toll lanes has gained some momentum in its trek towards financial close of the deal between I77 Mobility Partners – the local offshoot of Spanish contractor, Cintra – and the NCDOT.

The first big piece of the financing puzzle that appears to have fallen in place is the apparent approval of $189 million in Federal loans to I77 Mobility Partners from the TIFIA Credit Council within the US Department of Transportation.

WidenI77.org – the group that has been fighting the toll project - actually broke the story on their website on Friday, April 17th.  Members were holding out some hope that their source had “jumped the gun” in providing that information, but it now appears that is only thing left to do is get the signature of the Secretary of Transportation.  That just happens to also be from former Charlotte Mayor, Anthony Foxx.

A second major financing event also occurring over the past two weeks.  This time the action took place at the state level in the office of the Local Government Commission which is part of the NC Department of State Treasurer.

After two “special meetings” called on the subject of I77 financing, this Tuesday the LGC approved an additional $105 million in bonds to be sponsored by the NCDOT on behalf of I77 Mobility Partners.

So, after multiple delays, special meetings, excused penalties, and more state money being thrown at the project it does now look like the toll road contractor is limping towards financial close on May 17th.

With all of that as backdrop, a few other events occurred over the past two weeks – both locally and nationally - which serve to rub salt in the wound for toll road opponents.  They provide a glimpse of the possible future as well as insight in how we got here in the first place.

The first event occurred in Atlanta on the I85 HOT lanes.

On a Monday, 4/21, the road hit a new record high for tolls – $10.50 for a one way trip on the 16 mile stretch of road.  That record lasted a single day.  On Tuesday the toll hit $11.

Readers may remember when WidenI77.org helped break the news that NCDOT’s own consultants predicted $11 tolls for the I77 project.  They helped pry that information from the state with repeated public records requests.  Project supporters and some local media decried publicizing those numbers as nothing short of scare tactics.  In one email between local mayors, Mayor Swain of Huntersville called the consultants’ report “old news”.

Tolls that high certainly aren't “old news” for those in Atlanta.  They are a current and very real hit to the pocketbook.

The second event that could foreshadow the local experience with HOT lanes took place in the Washington, DC area.  There, local HOT lanes users are suing toll rode operator, Transurban, for illegally gouging users.  In some cases, missed tolls of a few dollars have turned into fines of several thousand dollars once penalties are applied.

Are these events that occurred elsewhere in the country, the kinds of things I77 HOT lanes users can expect over the next 50 years if this project goes forward?  Maybe.

The final event getting attention over the past two weeks occurred locally and seems likely to generate more activity.

Last Wednesday, Rep John Bradford of Cornelius announced via his Facebook page that Mayor Chuck Travis of Cornelius had been appointed to the board of the North Carolina Turnpike Authority – the body responsible for rolling out toll roads across the state.

Cornelius has been a hotbed of opposition to the HOT lanes.  The irony of the town’s mayor being placed on a board to promote toll roads was not lost on members of another Facebook page – the 2400 member and aptly named “Exit 28 Ridiculousness” page which sees frequent posts about local roads.

Kurt Naas of WidenI77.org posted to the site calling the appointment a “Slap. In. The. Face.”

The appointment seems to have spawned a renewed outpouring of opposition to the project among the “Exit 28 Ridiculousness” community and some WidenI77.org activists.   This Friday, 5/1, they are organizing a protest from 430pm – 630pm at Exit 28 itself.

If you are interested in going, it promises to get interesting

A version of this post first appeared in this weeks's Herald Weekly.

A voter referendum to stop I77 tolls?

The answer to that question is a solid maybe – if the stars align correctly, the Legislature moves quickly, and voters decide that's what they would want in the face of what would surely be massive pressure to the contrary.

With all those qualifiers “solid” probably is not the correct way to describe the possibility of averting HOT lanes on Interstate 77, but at least it is a possibility that’s on the table with a bill recently submitted by NC Senator, Jeff Tarte (R-Mecklenburg) of Cornelius.

Readers may have seen the stories recently for a bond package being promoted by Governor Pat McCrory.  The Governor wants the General Assembly to approve putting a $1.2 billion bond package on a statewide ballot this November to fund a number of road projects that fall way down on the list of state priorities – projects that would otherwise not be funded for a very, very long time under the state’s Strategic Transportation Investments Law or STI

Well, that possibility does not sit well with Senator Tarte, in an email response to questions for this story Tarte had this to say about the projects included in the bond proposal.

“They are political choices, not based upon agreed criteria in the STI for establishing priorities. We said we would take politics out of ranking road priorities, then we turned around and did exactly that. Endless supply of stupid in state government.”

As for the likelihood the bond package makes it to the ballot Tarte had this to say.

“My belief from talking to various folks was the authority to bond would not be granted. It still may not. But the idea remains on the table.”

With that as the backdrop, in late March Senator Tarte introduced Senate Bill 639 titled the “Transportation Funding Bill”.

While this bill is primarily a revenue bill proposing tax and fee increases to generate more transportation infrastructure dollars, it also includes an interesting provision requiring a local referendum prior to implementing any new toll roads. The preliminary effective date of the bill is August 1st 2015 – a date Tarte confirmed was chosen to include the I77 HOT lanes project.

So, what could happen – emphasis on could – with this proposal relative to the HOT lanes project?

After assuming the Legislature moves with jackrabbit speed to pass a complex and controversial set of new tax increases prior to recessing this summer and assuming the bill’s referendum provision survives the editing process, then you have to assume the public would even vote to stop the project for this bill to have any effect on the project.
With as much negative press as this project has received, you would likely think that a referendum shooting it down would be a no-brainier.  However, historh and the setup of the referendum proposal itself would say otherwise.

We have seen this movie before here in Mecklenburg with the transit tax repeal effort in 2007.

In that effort, the special interests which benefited from the tax poured whatever it took into an the effort to defeat its repeal via referendum.  The same thing would surely happen here if there was a referendum on HOT lanes.

In the case of the I77 project, local transportation officials have already approved how the “bonus allocation” that came with accepting tolls will be spent.

You can hear the ads now supporting tolls  - ads funded by contributions from those who will build the road or benefit from its operations.

“Vote for tolls or lose $144 million in bonus allocation dollars.”

Add to that the fact that Tarte’s proposed legislation does not require any certain course of action in the event a project fails in a referendum.  What happens then?

If the answer is simply the road doesn't get built and the next project in line gets those dollars, why would most people not vote for tolls under those circumstances?

Of course, that would be setting up the referendum as a false all or nothing choice.

The proposed legislation could say something like “in the event a toll project is defeated in a referendum all state dollars previously committed to the project must still be spent in the same transportation corridor.”

For the I77 project, that would be close to $300 million including the bonus allocation as well as the other funds the state has committed for the project in the contract with Cintra.

That would be enough to make some serious improvements to the corridor without resorting to tolls.

Then again, presenting it that way would also expose that we never needed to resort to tolls in the first place, and that's not something those who have supported the project are likely to admit.

HOT Lanes Bonus Allocation Project Raising Eyebrows

It has been called a bribe, a sweetener, and an incentive, but its official name is the “bonus allocation”.

The word you use to describe this pot of money likely depends on whether or not you support the I77 HOT Lanes project.  Regardless, a lot of taxpayer money is in the process of being planned and approved if the HOT project overcomes financing and legal hurdles to move forward.

Earlier this month, a group called the Technical Coordinating Committee (TCC) provided a draft list of projects to the Charlotte Regional Transportation Planning Organization (CRTPO) for spending the “bonus allocation” from NCDOT for having the HOT lanes project instead of new general purpose lanes.

According to Bill Coxe, Huntersville’s transportation planner, the recent TCC action “was to forward the list of projects that would use either bonus allocation or direct attributable funding to CRTPO for ‘review and consideration’ and did not make a formal recommendation.  That will occur at the March 5th TCC meeting.”  Coxe also said he “would not be at all surprised to see changes at that time."

That's good to hear because the current list leaves a good bit to be desired.

Again, regardless of what you call this pot of money or whether or not you support the HOT Lanes project, since citizens are going to be stuck with toll lanes for 50 years under the current plan, one would think the money should go primarily to those who are going to be stuck paying the tolls.  Unfortunately, the current list seems to have lost track of that point.

Here is the breakdown of proposed project costs by municipality: Huntersville  $44.5m , Cornelius  $42.7m, Statesville $30m, Charlotte $23m, Mooresville $15.7m, Davidson $5.2m with a miscellaneous $5m thrown in for studies not attributable to any single town.

The total of $166.6m for the 22 projects on the list is greater than the expected available funding of something closer to $158m, so some trimming or changes are likely.

However, one of the projects on the list is definitely raising eyebrows.  That would be the $30m project to add direct access ramps to the HOT lanes from the bridge at Stumptown Rd in Huntersville.  The concern is that this project pprimarily helps tolling contractor Cintra rather than local residents.

I asked Huntersville Commissioner Rob Kidwell about his concerns on spending Bonus money for a HOT direct access ramp.

“It is my opinion that if we are getting this ‘Bonus Allocation Money’ for having the project in our area, we should be able to use it for projects that benefit all of our citizens, not just a few who ‘might’ use the HOT lanes.  The thought process of giving it back to the company to help them on the build out, is absurd and those are items they should of thought about when they bid on this project, not after.”

Commissioner Kidwell went on to say if Bonus money is spent on HOT access points “they should at least, at the very minimum, require that they build access points to both the general purpose lanes and the HOT lanes on these new bridges. By doing that, you now are serving the entire community, which is the responsible and right thing to do.”

I also checked with Cornelius Commissioner Dave Gilroy for his take on this proposed use of bonus funds.

Gilroy said “the logic of using ‘Bonus Allocation’ dollars to help build the toll lanes project itself is utterly asinine. In fact, such an allocation underscores the cynicism and thoughtlessness with which NCDOT has planned this tolling project from the beginning.

These "Bonus" dollars are meant entirely as an incentive to local citizens to help make-up for the tens of thousands of dollars in personal toll expenses which routine users of I-77 will incur in the coming years. NCDOT's consultant Stantec projects that local families, with at least one daily commuter to Charlotte, will incur over $400 per month in new expenses within the first few years of I-77 tolling. That's a body blow to working class families. For NCDOT to then apply "Bonus" incentive funds to the very same project helps nobody other than NCDOT and toll road operator Cintra.

This is insult on top of injury for local residents."

Strong words to be sure, but there is another project on the draft list that should maybe worry taxpayers even more.  That’s the $3m “feasibility study” for even more direct access points which would require further additional cost to taxpayers for the benefit of Cintra.

Before this HOT lanes project even gets the first shovel in the ground, it’s true cost is starting to balloon above its $655m price tag.

H267: Lost opportunity on toll road accountability

With the WidenI77.org lawsuit announced ten days ago, it's worth taking a few minutes to look back and think about that proverbial question – “How did we get here?”

The various issues the lawsuit seeks to address can be grouped into two main categories: constitutional questions around whether or not the North Carolina General Assembly delegated too much of its authority and responsibility to the NCDOT and questions about whether or not the specific setup of this project using Public Private Partnerships is in the “public interest”.

Said another way, did the General Assembly seek to avoid all of the politically uncomfortable aspects of the project by burying the details in the opaqueness of a government agency and a private enterprise?

Many people probably do not remember this, but the early HOT Lanes plan for I-77 back in 2009 was much different than what is being planned now.  Back then, it was a plan to simply extend the existing HOV lanes up to Exit 28 and convert them to HOT.  It would have remained free to riders with only two passengers, and it would have cost just $50-60 million in 2009 dollars.  If the State had received grant funding from the Federal stimulus in 2010, commuters would very likely already be riding on those lanes by now.

The plan back then was so different from what we have on the table now that even some of the current plan’s harshest critics supported the earlier version.  Cornelius Commissioner Dave Gilroy actually voted for a resolution supporting the 2010 grant request.  Now, he staunchly opposes the current plan that is headed to court.

Over the course of the upcoming legal proceedings the public should learn if the courts see tolls as a form of taxation or if they are strictly user fees.  We’ll also learn if handing off public infrastructure to private companies for potentially unlimited profits is something that’s considered in the “public interest” and good public policy.

One thing we do already know is that the General Assembly had the opportunity to pass a law during the last legislature that could have been used to address may or all of the legal questions the project now faces, and we also know lawmakers deliberately and repeatedly chose not to take that opportunity.

The tale of H267 in the NC House during the 2013-2014 legislature is the kind of thing that turns a lot of people off when it comes to how our government runs.  However, if the WidenI77.org lawsuit is successful in stopping the HOT Lane project, H267 could also be looked at as the point which made that victory possible.

In a nutshell, here's what happened with this bill.

In March of 2013, H267 was filed with the title “An act to prohibit the imposition of tolls on an existing interstate without prior approval of the general assembly.”    This bill sounds like it would require a vote by legislators on each individual toll road project.  However, when asked if this bill would apply to the I77 project, one of the bill’s primary sponsors,Rep John Torbett (R-Gaston), replied at the time:
“I feel I-77 has already been determined and changing it would be a step backward. This bill should take effect on any new thoughts relative to tolling additional Interstates.”

Strike 1 against open government.

Then the legislative sausage making begins.

In May of 2013, H267 went into the house Transportation Committee co-chaired by Mecklenburg County’s own Bill Brawley (R).  A bill that went into the committee requiring a vote on toll roads individually comes out as a bill about how to implement toll roads generally.  The bill has a bunch of provisions on how tolls will be collected, but any reference an “act of the  General Assembly” - meaning a vote – is removed.

Strike  2 against open government.

Before the bill is passed out of the House later that month, there is an attempt to re-insert the language requiring an “act of the general assembly” before the bill was sent to the Senate.  Only 16 brave souls in the entire NC House voted for the amendment.

Strike 3.  Open government goes down swinging.

Eighteen months later, this project is headed to court.  Many if not all of the issues raised in the the WidenI77.org lawsuit could have been addressed by an “act of the the General Assembly” if H267 had passed as originally worded.

However, that would require our elected officials to fully stand behind tolling projects in public and on the record.  For projects that few people want, it's much easier to let the unelected bureaucrats at NCDOT and the faceless money men at  companies like Cintra take the heat.
This is your government.

As the new legislature gets back to work this week in Raleigh, let's hope they do better than this in the future.

WidenI77 throws down the gauntlet! (Lawsuit Press Conference Pics)

Here are a few pics from Tuesday's press conference announcing the WidenI77.org legal challenge to the NCDOT/Cintra scheme to build HOT lanes on I-77 through Lake Norman.

It was well covered by local media as you can see.

If you are interested in listening to the audio, check out this link at PunditHouse.com.

If you are interested in reading the whole complaint, you can read it here at WidenI77.org.

There are a number of really interesting points in there, and it will be interesting to see how they play out.

Is a toll a fee or a tax?  Is a road that provides unlimited profit potential to a private company in the public interest?  Has the General Assembly delegated too much of its constitutional authority to the NCDOT?  Does the actual road plan which converts a portion of a general purpose lane to a HOT lane a violation of the law?

Those are all questions which this lawsuit will address.

At this point the lawsuit has not delayed anything.  Even though it appears likely the contractor will miss a Thursday deadline to secure financing, it is being reported NCDOT has said the deadline will be extended.

What's unknown is if this lawsuit may make it harder to get that financing if experts believe the points it raises have serious legal potential.

If you are interested in helping see this through, the main thing needed at this point is $$$.  Check out the WidenI77.org website and be on the lookout for their fundraisers next month.

WidenI77.org to file lawsuit today over HOT lanes

Monday evening, WidenI77.org sent our a press release announcing their intent to file suit on Tuesday to stop the HOT lanes project intended to add tolls to new lanes on the main artery through  the Lake Norman area.

This comes on the same week Cinta - the contractor who won the bid (as the sole bidder) - was scheduled to reach fancial close.  However, all indications are that the close date will not occur as required on January 22nd.

Is this a sign of problems getting the financing for the project?  Or, is it just a bump in the road towards beginning construction?  Who knows.

However, if a lawsuit gains traction, that could be a different matter all together.

Check back later today for more information. Here is the press release:

Cornelius, N.C. – January 20, 2015 – Widen I-77 and Matt Arnold of Arnold & Smith, PLLC, the legal counsel  retained by Widen I-77, filed a legal complaint in Mecklenburg County Superior Court this morning to preliminarily and permanently enjoin the I-77 toll project from moving forward.

The group will hold a 10:30am press conference to discuss the case at the Law Offices of Arnold & Smith, PLLC 200 North McDowell Street, Charlotte.

The project calls for Cintra, a Spanish company, to build private toll lanes on the remaining public right-of-way and operate them under a 50 year contract. Under the terms of the contract Cintra is required to secure financing by January 22, 2015 or forfeit a $15 million deposit to the North Carolina Department of  Transportation (NCDOT). The group anticipates NCDOT will extend the financing deadline.

“We hope the bond markets recognize the financial infeasibility of this project and decide against funding it,” said Kurt Naas, a spokesman for Widen I-77 “However, the bond markets have ignored the litany of recent tolling bankruptcies, so we are moving forward with the legal challenge.”

“We are confident in our position and look forward to having our day in court. Undeniably, this is a classic David versus Goliath battle, but we are ready for the fight” said Matt Arnold, Managing Partner with Arnold & Smith, PLLC.

Widen I-77 has begun the lawsuit by filing the Complaint. The group expects to have a hearing on its request for a preliminary injunction in the coming weeks. A full trial will likely happen a year or more from now. The group expects to incur significant legal expenses throughout the process.

“We have been able to take this step because our neighbors cared enough and donated generously,” added Naas. “Our opponents have retained two huge law firms- one with offices throughout the South and the other based in New York City. They have very deep pockets. We will take the case as far as our resources allow.”

To cover anticipated legal expenses the group has planned three Lake Norman area information sessions/fund raisers:

February 2, 7pm
Vinyl Pi 
15906 Old Statesville Road
Huntersville

February 17, 7pm
Charles Mack Center
215 North Main Street
Mooresville

February 19, 7pm
Waltrip Racing
20310 Chartwell Drive
Cornelius

Could toll-road protesters decide the fate of the US Senate?

Well, the honest answer to that question is “probably not”, and in the grand scheme of things we should all be glad that’s likely not the case.   With global crises like Ebola, ISIS, and a potentially sputtering world economy to put things in perspective, it is surely a good thing for the order of the cosmos that control of the upper chamber in the US Congress is not solely dependent on the outcome of what happens with 26 miles of interstate through the Lake Norman area.

As was mentioned here two weeks ago, events elsewhere in the country took this race off the critical path for the Republicans some time ago.  Even though the race between Tillis and Hagan has tightened in the past two weeks, North Carolina now looks like it will be a bonus seat if the Republicans take over the Senate rather than the critical linchpin it was at the beginning of this election cycle. 

None of that however changes the fact that the I77 HOT Lanes issue could still be critical in the outcome of the contest here in North Carolina.  In a contest like this where every vote counts, any issue that sways a few thousand votes one way or the other could be the difference.

In the case of the HOT Lanes, the credit (or blame) for making that difference goes to the WidenI77 activist group.  Led by Cornelius resident, Kurt Naas, along with several other dedicated volunteers, this group has been relentless in getting out their message about preventing tolls.  Recently, they have been cranking up the volume.  WidenI77.org signs have been popping up in North Mecklenburg at prominent intersections.  One was seen recently floating near the Exit 30 causeway on Lake Norman during Friday afternoon rush hour¸ and this past Saturday one of those signs along with about two dozen protesters were outside of a Thom Tillis campaign event at the Republican “victory center” on Catawba Avenue in Cornelius.

Two dozen protesters may not sound like much, but if that is what you focused on then you would be missing the point.  That small number of protesters held signs that said things like “honk if you oppose tolls”.  Standing there for a few minutes, one got a real sense for how this issue could impact this election.

The noise from those horns and the number of drivers honking them said all you need to know.

Over a five minute period that Saturday evening a good 40% - 50% of passing cars honked.  Some were a quick beep-beep.  Others gave a long angry blast.  Sometimes they came in flurries where every passing car laid on the horn.  At other moments it would be just one in a group.  There was also the person the scooter giving the protesters a fist pump as he rode by.   The most entertaining had to be the man on his bicycle in full cycling regalia giving the protesters a thumbs up as he pedaled past.

Assuming that not everyone who opposes tolls bothered to honk, it was pretty clear in this incredibly unscientific poll that tolls are incredibly unpopular.  That unpopularity could turn into consequences on election-day. 

Here’s why…

Mecklenburg and Iredell Counties have almost exactly 10% of the State’s registered Republicans.  They also happen to be the two counties where residents will be the most familiar with the tolling issue.  Anything that siphons off even a small percentage of those Republican votes from Thom Tillis could throw a monkey wrench into his campaign’s efforts to overtake Kay Hagan.

That siphon could come in the form of former North Mecklenburg legislator and conservative firebrand John Rhodes who is mounting a write-in campaign for the US Senate.  He is a familiar name in conservative circles and has garnered a respectable level of support among local tea party activists.  He is also opposed to tolls.

On the street last Saturday evening several of his supporters were seen holding those signs encouraging people to honk.  If enough of those honks turn into votes, it could spell trouble for Team Tillis.

This post was originally published in the Herald Weekly

Anti-Toll Effort Gets Some National Attention

While the race between Thom Tillis and Kay Hagan has been getting plenty of national attention (it may eventually be the most expensive Senate race in history) there has not been much attention from national media on a subject that is raging here locally - tolls on I77.

That changed with this story in the Washington Times.

Thom Tillis Senate bid imperiled by tea party toll-road disdain -Washington Times

We first reported on this issue possibility impacting this national election over a year ago.

The Electoral Politics of Widening I77 -June 2013

The anti-toll group WidenI77 has been ramping up their efforts lately sending out a fundraising letter for a possible legal challenge as well as becoming a more visible presence around the area with signs and protests.

More on this story here later this week.

As election day nears it will be interesting to see how this all plays out.

Community Outreach on Tolls: “Ministry of Truth-style"

One would be hard pressed to find a local issue in recent (or not so recent) memory that has caused more confusion, anxiety, and distrust of state and local government than the proposed HOT Lanes project for widening I77.  At the root of all that distrust has been the ineffective communication to the public all along the way.

In what would seem to be an effort to remedy this, last November NCDOT put out a job posting for a position called “Director of Outreach and Community Affairs” to cover the Charlotte region.  This past spring, former Charlotte City Councilman Warren Cooksey stepped into the job. 

The job title and hiring a local would seem to be a good thing, but reading the job posting may leave you with a different opinion.

“This position supports community relations and public affairs for all NC Department of Transportation activities in the Charlotte area, including highway, rail, transit, bike/pedestrian and aviation.  The position develops and implements communication strategies, programs, and initiatives designed to inform Congressional, State, and Local Elected Officials, Metropolitan Planning Organizations, Rural Planning Organizations, Chambers of Commerce, transportation associations, the media, and various stakeholders on how innovative projects and techniques help achieve Departmental objectives.  The Liaison serves as a senior staff member and responds professionally to internal and external issues, helping make decisions on the appropriate organizational response to the public and news media.  The position provides communication expertise supporting project delivery by crafting marketing materials on promotions and time sensitive campaigns.”

Under the “Skills” and “Experience” sections it lists managing relations with government agencies, private and public interest groups, and members of the media.  The position also requires a “thorough understanding of the political process and experience in the intergovernmental relations arena.”

Unfortunately, judging by the description and job qualifications, this Director of Outreach and Community Affairs position sounds like it would fit in just fine at the “Ministry of Truth” from George Orwell’s 1984.  Rather than a position designed to ensure the public is informed adequately and in a timely manner, the position appears focused on managing the information flow to ensure NCDOT gets what it wants.

Former Commissioner Cooksey with his connections and experience is the perfect man for the job.

In recent months, Mr Cooksey has covered all the bases the job description requires.  He has met with the Lake Norman Chamber to promote the project, and last week he was back at Charlotte City Council on the other side of the dais fending off questions from councilmembers.  He recently debated Cornelius Commissioner Dave Gilroy, a HOT Lanes opponent, at the Don Reid weekly breakfast in South Charlotte, and he is scheduled to debate members of WidenI77 at an upcoming meeting of the Bastiat Society on Public Private Partnerships.  These last two are interesting because they are conservative groups and some of the strongest opposition to the toll lanes and P3s has come from the political right. 

Mr Cooksey has also put his understanding of the political process and experience in intergovernmental relations to good use.

Emails show he was at the center of efforts to keep meetings closed to the public when HOT Lanes contractor Cintra came to town in August.  Mr Cooksey defended the use of a legal loop hole to do this – a loop hole that ensured no town board had a quorum of elected officials at any meeting.  On a separate occasion he offered to coach County Commission Chair Trevor Fuller on HOT lanes when Commissioner Fuller came to Davidson for a public forum.  Finally, this past week he oversaw the public open houses on the project – open houses scheduled well after NCDOT says there is nothing that can be done to stop the project.  The sessions were complete with the debut of a utopian video of the I77 HOT lanes in action with no mention of the real toll rates and no presence of any traffic on any lanes.

If all of this does not sound like “community outreach” to you, it gets even better.  One should not expect Mr Cooksey to be spending too much time on all those other transportation methods mentioned in his job description .

There is a reason why Charlotte is the only region in the state that actually has this position for NCDOT.  It was transferred to NCDOT’s Charlotte Division from the NCTA – the North Carolina Turnpike Authority.  The position is a toll road position transferred to the local NCDOT office because this is where the action is with the tolling – now and in the future.

George Orwell would be proud.

 

This post was first printed in the Opinion Section of this week's Weekly Herald.