1. General Purpose Lanes on I-77 The Plan… February, 2015

2. Overview  Project Overview  Status  Actions  Q&A

3. The Problem Congested stretch of four lane road from mm21 to exit 36… with “no money” to widen it

4. A Solution Add a general purpose lane in both directions 13 miles $80- 130M (est) Source: “I-77 Feasibility Study,” December 7, 2009

5. The Current Plan Privately Operated Toll Lanes 27.5 Miles $655 M Source: NCDOT Press Release, April 11, 2014

6. How Toll Lanes Work  Built and operated under an exclusive 50 year contract  Vehicles with 3+ occupants use lane for free  Electronic Tolling- no toll booths  Guaranteed minimum speed No limit on tolls  “Congestion pricing” More congestion in “free” lanes = higher price to use toll lanes Business Model Ensures Congestion

7. Difference  ~13miles27.5miles  ~$100 million$655 million  2-4 lanesAll of RoW  Able to expandU.R.I.F. Toll Lanes General Purpose Lanes No improvements for 50 years

8. Why the difference? Source: RFP Majority of travel time savings Majority of Cost

9. Example: Toll Lane Flyover Source: NCDOT

10. The Cost Of Toll Lanes Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

11. Taxpayer Obligation  Taxpayer Contribution$88M For private tolling lanes  Taxpayer Subsidy$75M To cover potential revenue shortfalls  Taxpayer Bonus Allocation$30M For improving private toll lanes Substantial Taxpayer Involvement for Having “No Money” Source: I-77 JLTCO Report, 4-25-14, WI77 analysis Total: $193M

12. Toll Rates 2015 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 $20 Round Trip When Toll Lanes Open

13. Toll Rates 2035 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 $40 Round Trip In Twenty Years ???

14. Cintra’s Answer Source: “How much will I-77 tolls cost?”, WCNC, August 21, 2014

15. Congestion On General Lanes 20152035Difference AM Commute (Minutes) 39.471.632.3 PM Commute (Minutes) 41.569.327.8 Total (Minutes) 80.9140.960.0 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 Commute Time Lengthens By An Hour per Day Average Commute Time- Charlotte to Mooresville

16. Typical Access Point Source: Executed Comprehensive Agreement

17. Access Points South of Exit 33 South of Westmoreland At Hambright South of WT Harris Exits 23, 25, 30, 31 Bypassed Source: Transportation Funding Update, Huntersville Town Board, Oct 20, 2014

18. Where Would You Locate Your Business/Home? Lake Norman? Guaranteed congestion and increased travel costs Gastonia? I-85 to be widened with GP lanes/CLT Proximity Gastonia? I-85 to be widened with GP lanes/CLT Proximity Concord? I-85 widened with GP lanes/New Interchanges Concord? I-85 widened with GP lanes/New Interchanges Rock Hill? I-77 No Tolls/Low Taxes/CLT Proximity Rock Hill? I-77 No Tolls/Low Taxes/CLT Proximity LKN: A Uniquely Poor Position

19. Debt Service Source: Financial Plan, Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012 Historically high tolls required from second smallest metro area CA 91 I-95 MIA HOU, DEN, MSP, SAN + 6 OTHERS

20. Why would our government fund such a project? We cannot assume the bond markets will come to their senses

21. Status  “Commercial Close” Contract signed June 26, 2014  Lawsuit Filed January 20, 2015  “Financial Close” Deadline Missed Was supposed to be January 22, 2015 What happened?

22. Financial Close  Cintra posted a $15 million “Financial Close Security” bond at contract signing  Financial close deadline:210 days from contract signing  Contract allows extension in the case of… A “Relief Event” A “material adverse change” in the bond terms Cintra posts a $50 million bond Source: Executed Comprehensive Agreement, June 26, 2105

23. So what happened?  Jan 19: NCDOT and Cintra amend the contract Extends financial close to April 19, 2015 “By mutual agreement” No penalty for Cintra, and…  The taxpayer pays for re-financing fees Source: Executed Comprehensive Agreement Amendment 1, January 19, 2015 $2.3M in legal fees to craft an unenforced contract

24. Now What?

25. A New Funding Paradigm: STI  Passed last summer HB 817  Replaces Equity Formula Favored rural over urban areas  More data-driven Supposed to remove pork politicking

27. NCDOT STI Scores for I-77 Project How Does This Rank Against Other Statewide Projects? Source: “STI & I-77” press release, NCDOT

28.  I77 General Purpose Lane Project I77 scores higher than 33 funded projects Projects to be funded Projects unfunded I-77 GP project through Lake Norman 73 “Statewide” funded projects 377 Unfunded Projects Highest scoring funded project Lowest scoring funded project A General Purpose Lane Project Would Likely Be Funded… Source: STI 9-24-14 STI 3.0 Total Score

29. The “Bad” News: STI Corridor Cap  “No more than 10% (or about $200 million) may be assigned to any one project or group of projects within the same corridor during a five year period.”  …”I-77 South projects would out score, and use all of the corridor funds available for at least the next ten years….”  “Right of way purchase for the I-77 South projects begin in 2024, with actual construction still further out.” Rather than a 10 year wait, we have a 9 year window to widen I-77!!!! Source: “STI & I-77” press release, NCDOT, July 24, 2014

30. The Better News…  “Under the STI law all projects that were projected for construction after July 1, 2015 are subject to scoring under the new funding formula.”  “Because the I-77 North Managed Lanes (North of I-277) project is scheduled to begin construction before July 1, 2015 it is not subject to the new law and was not scored under STI.” It’s now 2015…. Source: “STI & I-77” press release, NCDOT, July 24, 2014

31. Why would NCDOT rank a GP project?  “I-77 is …a critical, north-south transportation corridor for the Charlotte- metro region and beyond.”  “Because the project is designed to address an immediate need…”  “…the (toll lane project) enables NCDOT to address a critical need…” Sources: I-77 HOT Lanes EA, July 2013; Fix I-77 Now! Blog, NCDOT, June 26, 2014 Because NCDOT is on record as saying widening I-77 is critical

32. What’s next?  Continue with the lawsuit  Rank a GP project starting July Simply follow the process Requires political support

33. What can you do?  Contact your state representative Rep Charlie Jeter: Charles.Jeter@ncleg.netCharles.Jeter@ncleg.net Rep John Bradford: John.Bradford@ncleg.netJohn.Bradford@ncleg.net Rep John Fraley: John.Fraley@ncleg.net John.Fraley@ncleg.net Sen Jeff Tarte: Jeff.Tarte@ncleg.netJeff.Tarte@ncleg.net Sen David Curtis: David.Curtis@ncleg.netDavid.Curtis@ncleg.net  Address each individually Be respectful- remember, we can’t do this without them! Use titles Tell them we want a GP solution scored under STI

34. What else can you do?  Tell your friends and neighbors  Fliers for business  “Like” us FB  Raleigh road trip  Donate!

35. How can businesses help?  You run a “special” and donate a portion of the proceeds  We promote your business 5,000+ FB “likes” 20-30000 weekly reach  Locals  Support our issue Zero cost  Honor system  A win-win!

36. About Widen I-77  A 501(c) (3)organization  Donations are tax deductible  Subject to IRS reporting and auditing Your best shot at widening I77 without tolls!

37. Thank You WidenI77 PO Box 792 Cornelius, NC 28031 wideni77@hotmail.com wideni77.org

38. Appendix

39. Bonus Allocation- All Projects Source: CRTPO Agenda, Feb 18, 2015

40. Bonus Allocation- New Projects Source: CRTPO Agenda, Feb 18, 2015

41. Bonus Allocation- LKN New Projects Source: CRTPO Agenda, Feb 18, 2015

42. How Did We Get Here? “We have $70 billion in identified and ranked transportation projects with only $11 billion to pay the bill.”

43. Some NC Transportation “Needs”  $6.4 Billion for toll roads 9 out of 10 most expensive projects are tolled $4.6 billion “cost to NCDOT”  $717 million for new 4-lane From Lenoir (pop 19,000) to Tarleton (pop 11,000)  $306 million to widen NC-33 From Grimesland (pop 400) to Aurora (pop 500)  $600 Million for Urban Loops Wilkesboro, Red Springs, Lillington et al Source: NCDOT 9-24-14 Priority 3.0 Final Scores With these “needs”, no wonder NCGA really wants to build tolls…

44. North Carolina’s First Toll Road Revenues: $24M Operating Exp: $21M Debt Service: ~$50M $47M Annual Shortfall Source: NCTA Annual Report, WI77 analysis Triangle Expressway Financial Results Who pays the difference?

45. Reprioritizing Transportation Funding Statewide (40%) ~$2.4B Regional (40%) ~$2.4B Division (20%) ~$1.2B Per capita by region Equally to Divisions Project Merit (Data) 567 8910111213 4321 14 A B C D E F G Interstates/ NHS/STRAHNET /Tolls/Etc (S) + Hwys, Airport, Rail, Transit (S) + (R) + Local Three-Plus Chances for Funding GP Lanes HB817, Strategic Transportation Investments,

46. Strategic Mobility Fund- Criteria Benefit/Cost Congestion Economic competitiveness Freight Multi-modal Pavement condition Lane width Shoulder width 100% Statewide (40%) ~$2.4B Regional (40%) ~$2.4B Division (20%) ~$1.2B Benefit/Cost Congestion Economic competitiveness Freight Multi-modal Pavement condition Lane width Shoulder width 70% Local considerations 30% Benefit/Cost Congestion Economic competitiveness Freight Multi-modal Pavement condition Lane width Shoulder width 50% Local considerations 50% Much Greater Emphasis on Project Merit

47. NDOT Divisions