I-77 Toll Operator Expects Revenues of $34M by 2020
FOR IMMEDIATE RELEASE
email: [email protected]
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 . “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: