BR loop funding, tolls studied

• By SCOTT DYER
• Advocate staff writer
• Published: Jun 17, 2008 - Page: 1A - UPDATED: 12:05 a.m.

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Even with a 15-cent per mile toll and a partnership with a private developer, the proposed Baton Rouge loop will need at least $1.4 billion in public funding to become a reality, according to a report created by plan implantation consultants.

Private developers would save money in construction and operations, but would build a 12 percent return on their investments.

To build the 80-mile loop with traditional financing using the same 15-cent per mile tolls would increase the need for public funding to $1.8 billion, the consultants’ report said. Total cost of the loop — which would branch out north and south of Interstate 12 east of Walker and reconnect at I-10 west of Port Allen — is estimated at between $3.6 billion and $4.5 billion.

Mike Bruce, principal with ABMB Engineers that is part of the team of consultants working on the loop project, said the $1.4 billion will translate into payments of about $100 million per year to retire the 30-year bonds that would be issued for the project.

“I think we all knew going into this that there would have to be some public money involved,” Bruce said Monday.

The state traffic mobility fund was created to help finance toll-supported projects like the loop, and now has a revenue stream from sales taxes collected on vehicle purchases. Other possible sources include federal earmarks and appropriations in the next federal highway bill that are likely to be considered in 2009, the report said.

The report, compiled by ABMB, HNTB, URS and other firms, concluded that it would be counterproductive to charge tolls greater than 15 cents per mile. Computer models were run using a 10-cent per mile toll, along with scenarios using 15-cent, 20-cent and 25-cent scenarios.

“The results indicate that total revenues increase as the toll rate increases up to a level of 15 cents,” the report said. “At higher rates, total revenues decrease since the toll increase is not great enough to compensate for the revenue loss due to the shift of traffic to alternate routes.”

Bob Schmidt, associate vice president of HNTB Corp., said the 15-cent per mile toll level is a national standard, but noted that there are some urban areas that charge higher tolls.

The report also strongly recommends the use of Electronic Toll Systems to collect the loop tolls.

“The major advantage of ETC is that users are able to drive through the toll plaza without having to pay the toll,” the report said.

Instead of toll booths, ETC features technology that can read special decals on vehicle windshields.

The report said that the disadvantage of ETC is the possibility that some motorists may not pay the tolls. When a vehicle without a decal goes through a toll-reading area, the license tag is photographed and a bill is sent to the vehicle owner.