City’s Share of Proposed Tollway Costs Will Depend on Variables Undertaken

6/17/02

The proposed 8.4-mile Southwest Tollway portion of the planned State Highway 121 (SH 121) is entering a most crucial stage: determining the city’s share of the project’s cost.

State Highway 121 is being developed under a tri-party agreement of the North Texas Tollway Authority (NTTA), the Texas Department of Transportation (TxDOT) and the City of Fort Worth. The NTTA is responsible for the design and construction of the tollway portion of SH 121.

The proposed 8.4-mile tollway is being planned as a parkway to provide limited access between downtown and the Dirks Road/Altamesa Boulevard intersection in southwest Fort Worth. South of the Dirks Road/Altamesa Boulevard intersection, SH 121 will continue south to Cleburne as a controlled access freeway, rather than a tollway.

Although tolls collected from drivers using the tollway will pay for the road, the city agreed to pay for acquiring the right of way and any design enhancements.

Depending on which route and design that the city agrees to undertake, as estimated by Austin-based Prime Strategies Inc. — the city’s consultant on the project — SH 121 could cost from $86 million to $99.3 million.

Regardless of which of the proposed three designs emerges as the locally preferred alternative design for the project, the city will be responsible for certain project components as outlined in the tri-party agreement.

Among these components to be paid for by the city are:

• acquisition of right of way, other than the highway interchanges and frontage roads to be acquired by TxDOT
• relocation of city-owned utilities in the path of the project
• utilities to the toll booths and other facilities to be used for the operation of the toll road
• easements or other work needed for any storm-water drainage systems

Among the negotiable city obligations are:

• the limits of interchanges and additional median and buffer needed for the rights of way
• potential cost-sharing for utilities not owned by the city
• maintenance and operations costs of any architectural and landscaping enhancements, law enforcement for the project and a toll-tag store, from which drivers could purchase toll tags

Among the variable/negotiable obligations to be paid for by the city are:

• the construction of city streets over the tollway
• the reconstruction of existing city streets
• enhancements around the tollway

The city’s right of way acquisition costs would vary, depending on which design is chosen as the locally preferred alternative. For example, acquiring the right of way from University Drive to Bellaire Drive would cost an estimated $37.5 million under Alternative A, and $35.6 million under Alternative C. Another right of way expense for the city would be the cost of relocating residents and businesses in the path of the project.

Local road construction would be another varying cost undertaken by the city, estimated as much as $4.6 million for the construction of Stonegate Boulevard.

At public meetings held in May, many residents expressed their desires to see the tollway designed to blend with, rather than detract from, their neighborhoods. Parkway enhancements such as distinctive architectural detailing, landscaping, preservation of the natural environment, signage, lighting and public art opportunities could add more project costs, but could be shared by the city and the NTTA.

The city’s estimated project costs are:

• $57.3 million to $59 million — right of way acquisition
• $11.1 million to $18 million — utilities
• $14.4 million — street construction
• $3.2 million to $8 million — enhancements
• Total: $86 million to $99.3 million

Among the financing options that the city could tap for its share of the SH 121 project costs are:

• $11 million — city utility revenue bonds/funds
• $3 million — Bellaire Drive capital improvement project funds
• $20 million — North Central Texas Council of Governments grant
• $15 million to $20 million — State Infrastructure Bank (SIB) loan
• $20 million to $30 million — Tax Increment Financing or Public Improvement District funds
• $1 million to $2 million — TxDOT Enhancement Grant
• Unknown amounts from — federal funding earmarked for the project; city general obligation bonds or certificate of obligation bonds; naming rights or art in public places agreements for the parkway; Texas Parks and Wildlife or Texas Utilities funding; tax abatements; developer agreements; and relocation or redevelopment opportunities with private sector partners.

Originally conceived as the Southwest Freeway in the early 1960s, the SH 121 project was redesigned as a tollway in the mid-1990s.

For more information, visit the Internet Web site www.sh-121t.org, or call Doug Rademaker of the city’s Transportation and Public Works Department, 817-871-6157.

Proposed SH 121 Project Timeline

• Through Construction — ongoing public meetings on the project with neighborhood groups and other interested parties
• July — draft of environmental impact study released by TxDOT for public review
• By late July — City Council to approve financing plan
• August — city-sponsored public meeting
• Late August — city presents its locally preferred alternative for the project at TxDOT-sponsored public hearing
• By late December — tri-party funding agreement must be in place
• Winter 2003 — right of way acquisition for the project begins
• Spring 2004 — construction begins
• Spring 2006 — tollway opens