Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How to pay for billion-dollar I-10 Bridge as Alabama turns to private sector
AL.com ^ | August 28, 2017 | John Sharp

Posted on 09/15/2017 12:13:36 PM PDT by Tolerance Sucks Rocks

With public funding options limited, Alabama transportation officials are turning to the private sector for advice and creative solutions in paying for the massive Interstate 10 overhaul in coastal Alabama.

John Cooper, director of the Alabama Department of Transportation, said Monday that state officials were interested in learning more about project plans from approximately 400 private sector attendees during the two-day Industry Forum at the Arthur R. Outlaw Mobile Convention Center.

That includes financing, which remains the biggest hurdle toward moving the project forward in the next year. At this point, no options have been settled including whether to institute tolls to pay for bridge.

"How we finance the project is, to some extent, what we will learn from in these meetings," said Cooper.

Since July 2014, when a draft environmental impact study was first released, a host of financing options have been tossed out. Few have gained traction, and scant answers have been revealed on how the structure will be funded.

Even the overall costs of the project are murky. Cooper said the 215-foot-tall, six-lane bridge over the Mobile River is estimated to cost around $850 million, which is the only estimate that has been publicized for more than three years.

That cost, Cooper said on Monday, does not include additional construction work needed to tie the bridge with I-10 near Virginia Street in Mobile County or with the existing Bayway.

The project could cost even more, depending on whether the 7.5-mile Bayway is expanded from four lanes to eight.

Cooper said he's seen estimates between $800 million to $1.8 billion, "depending on how much you do."

He promised, however, that the bridge, itself, would get built.

Also under consideration is a complete raising of the Bayway to an elevation above a 100-year storm surge event. The costs to elevate the Bayway are also unknown.

"I don't want to talk too much about that, because we are interested in seeing what these people think the cost is," said Cooper, referring to ALDOT's reliance on learning more from the private sector during the Industry Forum instead of issuing cost estimates.

ALDOT anticipates the project will be implemented through a public-private partnership in the form of a design-build-finance-operate-and-maintain model.

ALDOT intends to follow up the Industry Forum by issuing a Request for Qualifications (RFQ) this fall, with a Request for Proposals (RFP) scheduled for the second quarter of 2018. The state plans to work with three teams to develop, design and construct the bridge.

Construction is expected to begin by 2019, and last more than four years.

Cooper, though, said he's unsure how the process will unfold.

"You might see us engaged with an engineer, or an engineer-contractor or to make a deal with a concessionaire who would then put together a complete team to build a project in an all-encompassing proposal," said Cooper. "We just don't know where this will go."

He added, "What we do know is through one of these methods, we'll build the bridge."

Atop the funding considerations is for tolling, though exact fares or how motorists will be assessed the toll, remain unknown.

Approximately 60 percent of motorists who travel I-10 are from out-of-state, with the remainder of drivers commuting from Baldwin County to downtown Mobile.

"We have always thought tolls should be a portion of the financing of this project just by the nature of this corridor," Cooper said. "We have a huge out-of-state participating traveling through the corridor. We always believed those folks should help the people of Alabama, in a meaningful way, to help pay for the project."

Tolls haven't always been popular. Among the critics for a tolled bridge is U.S. Rep. Bradley Byrne, R-Fairhope, who has said motorists will look for ways to avoid tolls.

Vince Calametti, ALDOT's Southwest Region's chief engineer, said the I-10 project could be similar to the new Tappan Zee Bridge in New York City. That project, costing an estimated $4 billion, is being financed through $2 billion from bank settlements, $1.6 billion from a federal loan, and with tolls.

Calametti also said that ALDOT will continue exploring federal assistance, such as applying for the Infrastructure for Rebuilding America (INFRA) grants. Those grants are intended to go toward projects viewed as a critical infrastructure need, and I-10 seems to fit the description: The Hill newspaper listed I-10 as one of five infrastructure emergencies in the U.S. last year.

Other financing mechanism, aside tolls and private investment, include money from the Gulf of Mexico Energy Security Act (GOMESA). That money, which provides revenue to Alabama to compensate for environmental impacts of oil and gas exploration in the Gulf of Mexico, is supposed to go toward coastal conservation, restoration and hurricane protection.

Baldwin County Commission Chairman Chris Elliott said GOMESA could still be considered, but agreed with Cooper in that tolls are "the right direction."

"It's really all options on the table," said Elliott. "We are looking at a way that 60 percent of the traffic not from Mobile and Baldwin counties paying for a portion of this bridge through a tolling option. That will be much more palatable for our taxpayers."

Also unknown is whether an increase in Alabama's portion of the gasoline tax can be applied toward the bridge's funding. Alabama's 18-cents-per-gallon tax hasn't been raised since 1992.

Gov. Kay Ivey has stated that she supports a gas tax increase to help fund large infrastructure projects.

"The Legislature might pick up the gas tax this session, but I don't know how much that will play into this, quite honestly," said state Sen. Bill Hightower, R-Mobile.

Also unknown is whether President Donald Trump can usher through a nationwide infrastructure program which he promised while campaigning for the presidency last year. Trump's $1 trillion infrastructure program appears stalled as Congress has shifted its focus this year to overhauling health care and the federal tax code.

"In general, I think you would comprehend that you will need some form of participation from the federal government, which we expect to get," said Cooper. "We will need a commitment from ALDOT at some level, which we expect to be able to fund. It would be nice to have those (expenses) replaced by some form of additional funding from our standpoint, but that is not necessary for this project to go forward."


TOPICS: Business/Economy; Government; News/Current Events; US: Alabama
KEYWORDS: alabama; bayway; bridge; financing; funding; gastax; i10; infrastructure; mobile; p3; ppp; privatesector; spending; tolls; transportation; tunnel

1 posted on 09/15/2017 12:13:37 PM PDT by Tolerance Sucks Rocks
[ Post Reply | Private Reply | View Replies]

To: Tolerance Sucks Rocks

Every employer that hires a Dreamer should have to pay a 10% infrastructure tax, based on their wages.


2 posted on 09/15/2017 12:24:43 PM PDT by 11th_VA (Kudos to President Trump for denouncing ALL violence)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 11th_VA

And if they hire illegal non-Dreamers, it should be less than that, as a message to pResident Trump.


3 posted on 09/15/2017 12:27:06 PM PDT by Tolerance Sucks Rocks (April 2006 Message from Dan http://www.dansimmons.com/news/message/2006_04.htm)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Tolerance Sucks Rocks

Wish they could scrape together enough money to finish US 98 west of town. There’s about six or eight miles of it complete, but not tied in at either end. And it was built 10 years ago.


4 posted on 09/15/2017 12:30:05 PM PDT by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tolerance Sucks Rocks

Sounds like high polls are coming to Alabama.


5 posted on 09/15/2017 12:33:12 PM PDT by tennmountainman ("Prophet Mountainman" Predicter Of All Things RINO...for a small fee.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tennmountainman

The bridge will probably have all-electronic polling. With such a system, you can be polled at highway speed as you drive the bridge. No poll booths to cause traffic and accidents from weaving drivers.


6 posted on 09/15/2017 12:35:25 PM PDT by Tolerance Sucks Rocks (April 2006 Message from Dan http://www.dansimmons.com/news/message/2006_04.htm)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Tolerance Sucks Rocks

I-10 runs from Los Angeles to Jacksonville, Florida. The tunnel at Mobile is the most likely place to have an accident on that whole freeway route.

The traffic across to the east bay is often stopped or 'crawling'. There was a days long traffic jam there recently with evacuees returning to Florida. A real mess.

7 posted on 09/15/2017 12:45:50 PM PDT by blam
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb

I haven’t lived there in some time. Is US 98 not available since Katrina? I remember a wonderful seafood place on 98 near the USS Alabama. My elderly mother used to take that because she didn’t feel safe with all the drivers whizzing past her on the I-10 bridge back when she lived in Daphne.

Is 8 lanes really necessary? How are they going to make that work with the four-lane tunnel?


8 posted on 09/15/2017 12:46:17 PM PDT by OrangeHoof (Let Trump Be Trump. Would you rather have Hillary?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: OrangeHoof

I’m referring to the part of 98 from the MS/AL border through Wilmer and Semmes to I-65. Two lane part way, and lots of traffic. The part over the bay past the USS Alabama is still there.

http://blog.al.com/live/2012/03/road_to_nowhere_us_98_project.html

Road to nowhere: U.S. 98 project in Mobile remains unfinished


9 posted on 09/15/2017 12:50:43 PM PDT by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
[ Post Reply | Private Reply | To 8 | View Replies]

To: blam

That 25 MPH curve at the west end of the George C. Wallace Tunnel has been a problem ever since it was opened in the early 70s. A real engineering Charlie Foxtrot.

And back in June, they decided the Water Street exit onto I-10 eastbound needed to be closed. It’s only been there 45 years.


10 posted on 09/15/2017 12:54:31 PM PDT by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
[ Post Reply | Private Reply | To 7 | View Replies]

To: OrangeHoof

I believe that this new bridge is meant to either replace or supplement the tunnel. Therefore, they can have up to 8 lanes on it.


11 posted on 09/15/2017 1:01:42 PM PDT by Tolerance Sucks Rocks (April 2006 Message from Dan http://www.dansimmons.com/news/message/2006_04.htm)
[ Post Reply | Private Reply | To 8 | View Replies]

To: OrangeHoof; All
Is 8 lanes really necessary? How are they going to make that work with the four-lane tunnel?

Exactly my point as well; they could make the bayway 10 lanes wide each way and it wouldn't help at all as long as the Wallace tunnel is only two lanes each way. I've become convinced that this project will never get off the ground. Certain 'minority' communities have already declared that they will NEVER let it come to pass, as it will ruin their neighborhoods. Of course most of those neighborhoods need to be torn down as blighted anyway, but that is another issue. I live in Daphne, work in west Mobile, and drive the bayway every day, and it is a hot mess.
12 posted on 09/15/2017 1:06:55 PM PDT by notdownwidems (Washington D.C. has become the enemy of free people everywhere!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Tolerance Sucks Rocks
LAlso under consideration is a complete raising of the Bayway to an elevation above a 100-year storm surge event. The costs to elevate the Bayway are also unknown.

Then I thought of Carl Sagan saying "Billions and Billions."

13 posted on 09/15/2017 1:14:16 PM PDT by higgmeister ( In the Shadow of The Big Chicken)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OrangeHoof
Is 8 lanes really necessary? How are they going to make that work with the four-lane tunnel?

They'll use a whip...

14 posted on 09/15/2017 1:56:21 PM PDT by null and void (I don't expect to live in a safe world. I expect to live in a free country. Respect the Constitution)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Tolerance Sucks Rocks

How ‘bout killing the UNION\prevailing wage requirement(s)? Open the bidding to ALL parties and watch the Leftist hysterics.


15 posted on 09/15/2017 4:28:36 PM PDT by i_robot73 ("A man chooses. A slave obeys." - Andrew Ryan)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson