Private highways in the United States

There are relatively few private highways in the United States, compared to other parts of the world.

The Chicago Skyway is privately owned by the Skyway Concession Company

The Philadelphia and Lancaster Turnpike, opened in 1795 between Philadelphia, Pennsylvania and Lancaster, Pennsylvania, was the first major American turnpike. According to Gerald Gunderson's Privatization and the 19th-Century Turnpike, "In the first three decades of the 19th century, Americans built more than 10,000 miles [16,000 km] of turnpikes, in New England and the Middle Atlantic states. Relative to the economy at that time, this effort exceeded the post-World War II interstate highway system."^[1] Because electronics did not exist in that era, all tolls had to be collected by human cashiers at toll booths, creating high fixed costs that could only be covered by a large volume of traffic. As railroads and steamboats began to compete with the turnpikes, less profitable highways started to shut down or be turned over to governments. (See Category: Pre-freeway turnpikes in the United States for a listing.)

The National Bridge Inventory lists roughly 2,200 privately owned highway bridges in 41 states and Puerto Rico.^[2]

Alabama

The Foley Beach Express is one of four toll roads privately owned and operated by American Roads LLC in Alabama. The company declared bankruptcy in 2013.^[3][4] Syncora Guarantee, Inc., became the owner.^[5]

Alaska

Dalton Highway

Main article: Dalton Highway

The Dalton Highway in Alaska was built in 1974 to allow construction of the Trans-Alaska Pipeline System. It runs 400 miles (640 km) from near Fairbanks to Prudhoe Bay on the Arctic Ocean. Rather than relieving congestion, the highway was built to allow access to the previously-inaccessible Prudhoe Bay Oil Field. Until 1995, permits were required to drive on the highway. Currently, it is owned by the state of Alaska and open to the public.^[6]

California

AB 680, passed in 1989, allowed up to four private highway franchises to be granted.^[7] The 91 Express Lanes in the median of the Riverside Freeway were privately owned and operated by a private consortium (one of the members of which was Cofiroute, France's largest private highway operator) from 1995 to 2003.^[8]

Colorado

The Colorado legislature considered a bill to ban the use of eminent domain to condemn private property for private highway construction.^[9][10][11] Such legislation was vetoed in 2005, but a compromise bill was enacted into law in 2006. The new law requires toll road developers to get approval from cities and counties affected by a proposed road and requires projects to go through a transportation department approval process, complete with an environmental assessment.^[12]

Super Slab

The Super Slab is a proposed private highway that would run from north of Fort Collins to south of Pueblo. It sparked a debate on the use of eminent domain for such purposes. proposed the Castle Rock Alternative Parkway, which would run through the home of Super Slab developer Ray Wells.^[13]

Florida

Orchard Pond Parkway

 

The Orchard Pond Parkway, located north of Tallahassee, Florida.

Main article: Orchard Pond Parkway

Regarded as "the first privately built toll road in Florida,"^[14] the Orchard Pond Parkway is a 5.2-mile (8.4 km) route north of Tallahassee, Florida, acting as a northwestern partial bypass of the city, that opened on April 18, 2016.^[15]

Reedy Creek Improvement District

Main article: Reedy Creek Improvement District

The Reedy Creek Improvement District (RCID), established in 1967 by the Reedy Creek Improvement Act, operates six-lane freeways in the Walt Disney World area near Orlando, Florida. Technically, the RCID is a public corporation administered by a five-member Board of Supervisors elected by area landowners.^[16] However, through a carefully constructed legal framework, Disney operates the roads and utilities as wholly owned subsidiaries, rather than as a public-private partnership.^{[citation needed]}

Disney is the primary landowner and controls the remaining land through contractual arrangements. In this way, the company is able to hand-pick the landowning electorate. An Associated Press article notes, "Board members are non-Disney business people from central Florida and must own at least an acre [4,000 m²] in the district."^[17] An Office of Program Policy Analysis and Government Accountability report explains the contractual arrangement as follows: "Historically, each board member has been deeded approximately five acres [20,000 m²] of land by an affiliate of the Walt Disney World Co. . . . According to RCID officials, a Walt Disney World Co. affiliate has the exclusive option to purchase land back from board members at any time."^[18] Landowners also have a right to recall board members before the completion of their four-year terms.^{[citation needed]}

Financial arrangements are also circular. According to the RCID Finance Department, Walt Disney Co. is RCID's largest taxpayer, paying about 86% of the district's taxes in 2004. The remaining taxpayers are board members and lessees of property owned by Disney affiliates (e.g., House of Blues, Travelodge, and Hilton) paying ad valorem taxes. An American Prospect article notes, "Disney pays taxes to Reedy Creek, which gives the money straight back to Disney, and the circle is closed".^[19]

Illinois

Chicago Skyway

Main article: Chicago Skyway

In 2006, Mayor Daley leased out the Chicago Skyway for 99 years for $1.8 billion.^[20] The road had lost money for decades and only recently turned a profit.^[21]

Indiana

Indiana Toll Road

Main article: Indiana Toll Road

On June 29, 2006, in what may serve as a "test case" for the privatization of other major highways in the United States, the state of Indiana received $3.8 billion from a foreign consortium made up of the Spanish construction firm Cintra and the Australian Macquarie Infrastructure Group, and in exchange the state ceded operation of the 157-mile (253 km) Indiana Toll Road for the next 75 years to these outside corporations. The consortium will collect all the tolls.^[22] In 2014 the operators sought bankruptcy protection with a creditor-supported restructuring plan after dwindling traffic soured a $3.8 billion bet on a 75-year lease.^[23]

Texas

In early 2007, there were plans for a private developer, Cintra-Zachry, to invest $1.3 billion to build a 40-mile (64 km) toll-funded southward extension to complete the "Trans-Texas Corridor."^[24][25] However, also in 2007, the Texas legislature enacted legislation placing a two-year moratorium on private equity toll concessions.^[26][27] Texas State Highway 130 was largely funded and operated by private developers but has been criticized for its poor quality and lack of use.^[28][29]

Virginia

Dulles Greenway

Main article: Dulles Greenway

The Dulles Greenway, Virginia's first private toll road since 1816, is a 14-mile (23 km) highway connecting Washington Dulles International Airport with Leesburg, Virginia. In 1988, the Virginia General Assembly authorized private development of toll roads. To take advantage of this opportunity, the Bryant/Crane family of Middleburg, Virginia, AIE, L.L.C., and Kellogg, Brown and Root of Houston, Texas joined together to form Toll Road Investors Partnership II (TRIP II). Brown & Root constructed the road with private funds, opening it for traffic on September 29, 1995. Autostrade International, a company with over 30 years of experience in the development, construction, maintenance, and operation of Italian toll road networks, formed an American subsidiary to take over operation of the Greenway.^[30]

The Greenway has several methods of expediting traffic flow. Six traffic lanes, a uniform 65 mph (105 km/h) speed limit, and a complete absence of traffic lights keep traffic moving at a steady pace. In addition, electronic toll collection, using the Virginia Department of Transportation's Smart Tag system, enables Smart Tag lanes to "process five times as many vehicles per hour as conventional cash payment lanes".^[31]

The Dulles Greenway charges a fixed amount for use of the road, regardless of whether the driver exits before driving the complete length of the Greenway. In 2004, the operators won approval from the State Corporation Commission to increase tolls from $2.00 to $3.00 per car.^[32] In 2005, Tom Sines of TRIP II announced plans for widening the highway, adding two new exits, expanding the main toll plaza, building a ramp to the airport, and reconfiguring an exit as a cloverleaf interchange.^[33]

Toll roads to serve development

In addition to many private toll roads built to serve ordinary travel needs, some have been built to serve new housing developments. Those include the following:

• Adams Avenue Parkway, Ogden, Utah
• Alabama River Parkway, Montgomery, Alabama
• Emerald Mountain Expressway, Montgomery, Alabama
• Foley Beach Express, Orange Beach, Alabama
• Western Bypass, Tuscaloosa, Alabama

References

1. Gunderson, Gerald: Privatization and the 19th-Century Turnpike January 14, 2008, at the Wayback Machine, Cato Journal, Vol. 9, No. 1, Spring/Summer 1989.
2. "Questions and Answers on the National Bridge Inspection Standards 23 CFR 650 Subpart C - National Bridge Inspection Standards - Bridge Inspection - Safety - Bridges & Structures - Federal Highway Administration". Fhwa.dot.gov. Retrieved December 4, 2015.
3. Benman, Keith. "When good toll roads go bad". nwitimes.com. Retrieved August 10, 2018.
4. "American Roads LLC Files for Bankruptcy". Transport Topics. August 2, 2013. Retrieved August 10, 2018.
5. Benman, Keith (December 27, 2014). "When Good Toll Roads Go Bad". The Times of Northwest Indiana. Munster, IN. Retrieved December 19, 2016.
6. Aurora WebMasters (December 20, 2014). "Dalton Highway, otherwise known as the Haul Road". Fairbanks-alaska.com. Retrieved December 4, 2015.
7. (PDF). Archived from the original (PDF) on October 7, 2008. Retrieved January 20, 2008.
8. [1] July 25, 2008, at the Wayback Machine
9. "An Act : Senate Bill 06-078" (PDF). Leg.state.co.us. Retrieved December 4, 2015.
10. "Toll Road Controversy Changes Colorado Law On Private Takings | Planetizen: The Urban Planning, Design, and Development Network". Planetizen. September 22, 2006. Retrieved December 4, 2015.
11. . Northfortynews.com. June 30, 2005. Archived from the original on March 3, 2016. Retrieved December 4, 2015.
12. Henley, Kyle (February 1, 2006). "Toll-road decision a victory, not end, for critics". The Gazette (Colorado Springs).
13. . Archived from the original on January 24, 2007. Retrieved January 20, 2008.
14. Ensley, Gerald (March 9, 2015). . Tallahassee Democrat. Tallahassee, FL. Archived from the original on December 4, 2015. Retrieved December 4, 2015.
15. Waters, TaMaryn (April 18, 2016). "Orchard Pond Parkway opens to grand fanfare". Tallahassee Democrat. Tallahassee, FL. Retrieved November 18, 2017.
16. . Archived from the original on March 11, 2007. Retrieved January 20, 2008.
17. . Archived from the original on September 29, 2007. Retrieved January 20, 2008.
18. Central Florida's Reedy Creek Improvement District Has Wide-Ranging Authority, Office of Program Policy Analysis and Government Accountability, Report No. 04-81, December 2004.
19. Wolf, Joshua: Hidden Kingdom: Disney's Political Blueprint January 13, 2008, at the Wayback Machine, The American Prospect, Inc., Volume 6, Issue 21, March 21, 1995.
20. . Ncpa.org. March 23, 2009. Archived from the original on October 24, 2008. Retrieved December 4, 2015.
21. "Toll Roads With A Cash-Out Option". Ncpa.org. Retrieved December 4, 2015.
22. Schulman, Daniel (January 1, 2007). "The Highwaymen". Mother Jones. Retrieved April 30, 2007.
23. Bathon, Michael (September 22, 2014). "Indiana Toll Road Seeks Bankruptcy as Traffic Declines". Bloomberg.com. Retrieved May 18, 2018.
24. "Tackling The "Time Tax"". Ncpa.org. Retrieved December 4, 2015.
25. "Long-Term Concessions Paying Off". Ncpa.org. March 23, 2009. Retrieved December 4, 2015.
26. "Texas Toll Road Moratorium Proceeds". Thenewspaper.com. Retrieved December 4, 2015.
27. . Toll Roads News. March 13, 2007. Archived from the original on February 8, 2012. Retrieved December 4, 2015.
28. "Texas' seldom traveled toll road". San Antonio Express-News. October 6, 2016. Retrieved April 24, 2017.
29. "Private Toll Road Backed By $430 Million in Federal Funds Goes Bust". Streetsblog USA. October 18, 2016. Retrieved May 18, 2018.
30. . Archived from the original on September 28, 2007. Retrieved January 20, 2008.
31. [2] January 8, 2008, at the Wayback Machine
32. [3] September 30, 2007, at the Wayback Machine
33. . Archived from the original on March 11, 2006. Retrieved January 20, 2008.