I-77 Toll Operator Expects Revenues of $34M by 2020

FOR IMMEDIATE RELEASE
email: Wideni77@hotmail.com

 

Cornelius, N.C. – May 6, 2015 –  Ratings agency DBRS disclosed a portion of  I-77 Mobility Partner’s revenue forecast in their pre-sale bond report of April 29, 2014.

The report lists the expected toll revenues for the first three years as follows:

2018  $5.0 million (partial year)

2019  $24.6 million

2020 $34.5 million

I-77 Mobility Partners, the project developer, is a wholly owned subsidiary of Spanish-based Cintra. The traffic and revenue study was performed by C&M Associates. Despite multiple FOIA requests, I-77 Mobility Partners’ revenue forecasts have been kept from the public until this report.

The project is scheduled to open in 2018.  Under the terms of the contract between I-77 Mobility Partners and NCDOT, I-77 Mobility Partners will finance, design, build, and operate private toll lanes along a congested stretch of I-77 north of Charlotte. The contract is for 50 years.

The highest grossing toll lane in the U.S. is currently CA 91 with revenues over $40 million. I-77 would be the second highest grossing.

“These numbers average out to every person living in the Lake Norman region paying $200+ to Cintra in 2020,” said Kurt Naas, a spokesman for Widen I-77. “Either we are going to be gouged or the analysis is seriously flawed.”

DBRS rated the project an investment grade of BBB Stable.  The report cites the availability of public subsidies to allay concerns about possible revenue shortfalls.  Under the terms of the agreement the taxpayer will subsidize up to $75 million if toll revenues fall short.

A copy of the report:

i-77-mobility-partners-llc-presale-report

5 Responses to I-77 Toll Operator Expects Revenues of $34M by 2020

  1. Carl Leatherman says:

    If this contract is pushed through the doj needs to launch a full scale investigation and any politician who has taken so much as $5 from these people should be arrested on corruption charges.

  2. Ken Tilley says:

    please tell me that we can stop this nonsense.
    We just found out that they have a non compete
    Clause in their contract. What will be Cintras motivation
    To add extra lanes in the future? Absolutely non…
    Can you imagine this place in 20 to 30 years when we
    Will need more lanes and Cintra has us over a barrel
    And will refuse to let us build until 50 years later.
    This is only a good idea from someone who will almost never
    Use I77. Rant off……

  3. vince winegardner says:

    Look at their forecast for growth in Lake Norman after 2018 (the year they complete construction in LN), it drops significantly! That drop can only be due to LN being less desirable due to congestion, increased cost of living and reduced quality of life. LN LEADERS. -. WAKE UP! TAKE THIS THREAT SERIOUSLY AND ACT NOW TO STOP THIS!!!!!!,

  4. Similarly, the privately operated Indiana Toll Road never has taken in more money, but has been unable to keep up with bond payments that anticipated even higher revenues.

  5. […] of $32M in 2012 dollars. Adjusting for inflation, this would be around $34M.  (You may recall we reported this number in an earlier post.)  By the contract’s end, Cintra estimate annual revenues will be $147million(2012 dollars) […]

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