i69 Alliance Brief for TxDOT

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Communities Working Together to Meet Growing
Demand Bring An Interstate Highway to
Underserved Regions of Texas
Encouraging Cooperation and Seeking Solutions
Since 1994
July 2008
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Who is the Alliance for I-69 Texas?

• Mission Actively advocate the construction of
  an interstate highway in Texas from Texarkana to
  the Lower Rio Grande Valley and Laredo by
  upgrading existing highways where possible
• The Alliance is a 501 (c) (6) non-profit
  organization made up of local governments,
  economic development groups, port authorities and
  private-sector associate members

TEXAS CORRIDOR
Board Chairs of Alliance for I-69 Texas John
Thompson, Polk County Judge (Current) Robert
Eckels, Former Harris County Judge
(2004-2007) Helen R. Walker, Former Victoria
County Judge (1998-2003) Louis Bronaugh, Former
Mayor of Lufkin (1993-1998)
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www.I69texas.org
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History of I-69 Initiative

• Federal
• 1991 - Congress gave interstate designation to
  I-69 specifying a corridor through Indiana,
  Kentucky, Tennessee, Mississippi, Arkansas,
  Louisiana and Texas
• 1995 Funding of first feasibility study
• 1999 -2008 Federal funding total for I-69 in
  Texas just over 60 million
• State
• 2002 TxDOT designates I-69 as one of four
  priority corridors
• 2003 Alliance for I-69 supports legislation to
  expand TxDOT authority to use alternative
  financing tools
• 2004 - 2005 Environmental scoping meetings
• 2006 TxDOT issues request for qualifications
  from potential Comprehensive Development
  Agreement (CDA) partners
• 2007 Draft Environmental Impact Statement
  published on Tier 1

I-69 is a Multi-State Corridor
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www.I69texas.org
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Progress Made in 2008

• Transportation Commission appointed 24-member
  I-69 Corridor Advisory Committee
• Commission adopted guiding principles
• TxDOT to approve toll rates
• Only new lanes to be tolled
• No non-compete clauses
• Follow existing ROW when possible
• TxDOT recommended I-69 study area be confined to
  upgradeable existing highways
• ZAI/ACS selected to create master development and
  financial plan for I-69 Texas and a specific plan
  for upgrading U.S. 77 south of Corpus Christi

TxDOT Recommendations

• Narrow Study Area to Existing US 59, US 84,
  US 77, US 281 and SH 44 Upgradeable Corridors

TxDOT POLICY If additional travel lanes are
added to existing highways, only the new lanes
will have tolls.
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Zachry/ACS Proposal

• Anticipates 2.5 billion in near-term
  transportation construction projects in I-69
  vicinity
• Anticipates no fuel tax dollars for construction
  of US 77 upgrades and other near-term projects
• Identifies opportunities for long-term
  improvements including a total of 60 near, mid-
  and long-term possible projects (not all of which
  will go forward)
• Anticipates multimodal solutions to
  transportation challenges
• ZAI/ACS will work with local communities to plan
  projects that are needed and viable. The
  Alliance will facilitate this process.

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www.I69texas.org
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ZAI Conceptual Plan for US 77

• Anticipates system financing of US 77
  improvements
• Other toll projects would generate revenue to
  develop US 77
• CC Southside Mobility Corridor
• CC SH 358 managed lanes
• CC SH 286 managed lanes
• Driscoll bypass
• Riviera bypass
• 5-Mile Spur Cameron County
• West Loop Cameron County
• Proposes no tolls on US 77 except on the relief
  routes at Driscoll and Riviera
• Proposes complete local and county government
  coordination
• Includes upgrading 110 miles to interstate
  standard to connect to Interstate 37 at Corpus
  Christi

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www.I69texas.org
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Why is I-69 Needed Texas is Growing

• The Texas population is growing at more than
  1,000 people each day
• Texas population
• 1980 - 14.2 million
• 2006 23.5 million
• 2025 More than 30 million (est)
• Strong growth along I-69 corridor
• Percent Growth Since 2000 Census
• 27 - McAllen-Edinburg SMA
• 18 - Brownsville-Harlingen SMA
• 23 - Laredo SMA
• 18 - Houston-Sugar Land SMA
• 13 - Polk County
• 7 - Nacogdoches County
• 6 - Longview-Marshall SMA
• 5 - Texarkana SMA
• Texas has created 1.6 million new jobs in the
  past 10 years

The Texas Data Center and the Office of the State
Demographer project that the Texas population
will increase by 71.5 from 2000 to 2040, from
20.9 million to 35.8 million people.
Source Texas State Data Center
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Ready or Not, Freight is Coming (and Going)

• The I-69 corridor is already a major freight
  corridor.
• Rail truck traffic will increase in Texas
  whether or not we build new transportation
  capacity.
• Texas gained 36,000 new manufacturing jobs since
  2004. Increased manufacturing means more
  freight.
• Texas leads the nation in exports. Imports and
  exports are doubling every 10 years.
• Panama Canal expansion will change world freight
  flow patterns, increasing the amount of goods
  movement on Texas highways and railroads.

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www.I69texas.org
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ZAIs Proposed Freight Shuttle System
Improving the Supply Chain
Elevated Guideways in Existing Right-of-Way
20 feet
16 feet
Containers or Trailers
Universal Shuttle
Drive-on/Drive-off loading of rotating cargo bay
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www.I69texas.org
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Dallas
Conceptual Routing of Initial Freight Shuttle Netw
ork in ZAI Proposal
San Antonio
Texas City
Houston
Freeport
Victoria
Corpus Christi
Laredo
Harlingen
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www.I69texas.org
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I-69 Will Support Texas Industry Jobs
Examples of Industries That Will Benefit
Manufacturing Tubular products manufactured by
hundreds of employees in the Houston area are
shipped worldwide through the Port of Houston and
over the road to Canada and Mexico. About
900,000 Texans work in manufacturing. Along I-69
they make things as diverse as offshore drill
rigs, plastics, beef steaks, lumber, bricks, jet
fuel, sugar, pharmaceuticals, auto parts and
furniture.
Agriculture/Forestry 90 of the cotton grown by
Texas farmers is sold for export. I-69 will
lower transportation costs paid by growers who
send cotton and grain to Texas ports and to
Mexico. I-69 will improve the productivity of
Texas forestry industries.
Wholesale/Retail More than 1.5 million Texans
work in wholesale and retail trade activities
supported by highway goods movement.
Construction I-69 will improve the efficient
movement of materials that go into Texas
construction projects of every kind.
Source Employment Statistics Texas Workforce
Commission
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www.I69texas.org
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New Highways Bring New Jobs Tax Base

• SH 130 Case Study Williamson
  Travis Counties
• Orthopeutics LP moves its spinal treatment
  company from San Diego, CA, to Georgetown
• Joe Vining of Round Rock EDC reports their 11
  miles stretch of SH 130 has put them in the hunt
  for several companies currently located in San
  Jose, CA
• Atlantic Coast Developers LLC brings a mixed use
  project to SH 130 including 1.45 million sq.ft.
  of office, hotels, entertainment and apartments
• Endeavor Real Estate Group LLC is putting in 2.3
  million sq.ft. of retail, multi-family, office
  space and a hotel at SH 130 and US 290
• Retail West Properties is building 1.4 million
  sq.ft. of retail space and 1,200 residential
  units on the corridor
• SCC Development Co. and Eastborne Investments
  Ltd, both NY developers, are putting in 1 million
  sq.ft. of retail at SH 130 and US 290

Georgetown
Hutto
Round Rock
Pflugerville
Manor
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Doing Nothing is Not an Option
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Project Funding

• 10 years ago the Texas portion of I-69 was
  estimated to be a 6 billion project. Today the
  estimate is 12 to 15 billion due to inflation
  in construction materials, fuel and environmental
  regulation.
• Since 1991 federal funding for the multi-state
  1,700-mile I-69 corridor has been 300 million.
  The Texas portion of federal funding has been 60
  million.
• The State has invested about 48 million in the
  I-69 environmental review process.
• Federal and state funding of ongoing studies has
  been critical to bringing us to near completion
  of the Tier 1 EIS process.
• The current cost of interstate highway
  construction is in excess of 30 million per
  mile. Additional tools and funding sources from
  both Washington and Austin are needed as we
  approach actual design and construction of I-69
  in Texas.

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What I-69 Needs From Washington

• Over the history of the project, I-69 has
  consistently received support to advance
  development
• Designation as high priority corridor
• Included in Environmental Streamlining Executive
  Order
• Designated Corridor of the Future
• Consistent annual federal funding
• As we move toward I-69 construction we need to
• Capitalize on the toll pilot project program
  included in SAFETEA-LU to enhance the ability of
  Texas to attract project funding
• Define the Corridor of the Future Program to
  serve as a template for dedicated funding
• Use the opportunity of the next federal
  transportation reauthorization bill to advance
  I-69 through funding flexibility and creative
  financing provisions
• Further reduce the donor/donee disparity against
  Texas
• Continued federal funding.

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What I-69 Needs From Austin

• The Alliance for I-69 Texas supported HB 3588 in
  2003, HB 2702 in 2005 and SB 792 in 2007 in order
  to create and preserve the tools needed to build
  I-69
• As we move toward I-69 construction we need to
• Reverse the diversions from Fund 6 for purposes
  other than construction and maintenance
• Index the state fuels tax to continue adequate
  maintenance of the existing highway system
• Pass enabling legislation allowing TxDOT to
  utilize a portion of the 5 billion Prop 12
  general revenue bond on projects in the I-69
  corridor
• Preserve the tools already provided by the
  Legislature including bonding, tolls and private
  equity participation
• The Alliance supports
• Tolling for new capacity only
• Use of existing right of way wherever possible on
  I-69
• Dedicated freight components, such as freight
  shuttle, that separate freight movers from
  passenger vehicles
• Comprehensive Development Agreements (CDAs) for
  private equity

www.I69texas.org
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Alliance Board Members for 2008
COASTAL BEND Judy Hawley, Commissioner, Port of
Corpus Christi Authority Alliance 3rd Vice
Chair Loyd Neal, County Judge, Nueces
County Terry Simpson, County Judge, San Patricio
County Tom Niskala, Corpus Christi MPO Chamber
of Commerce Nelda Martinez, Council Member,
Corpus Christi Berdon Lawrence, South Texas
Property Owners Assn.
NORTHEAST Charles Thomas, Carthage Economic
Development Corp. Alliance Executive
Committee Member Brenda Samford, Carthage City
Manager Ed Smith, Mayor of Marshall James Carlow,
County Judge, Bowie County James Greer, County
Commissioner, Harrison County David Anderson,
County Judge, Panola County
EAST SPUR SOUTH TEXAS Bill Summers, President,
Rio Grande Valley Partnership Alliance Vice
Chair J. D. Salinas, County Judge, Hidalgo
County Pete Sepulveda, International Bridge
System, Cameron County Alan Johnson, Texas State
Bank, Harlingen Ben Medina, Planning Director,
City of Brownsville Pat Townsend, Mission
Economic Development Corp. Mike Allen, McAllen
Economic Development Corp.
EAST John Thompson, County Judge, Polk County
Alliance Board Chair Jack Gorden Jr., Mayor of
Lufkin Alliance Executive Committee
Member Jim Jeffers, Nacogdoches City Manager Brad
Browder, Cleveland Economic Development
Corp. John Windham, Mayor of Center
NORTH CENTRAL Jim Edmonds, Chairman, Port of
Houston Authority Alliance 2nd Vice
Chair Jeff Moseley, President, Greater Houston
Partnership Ben White, Mayor of College
Station Norman Brown, County Commissioner,
Liberty County
WEST SPUR SOUTH TEXAS J. Jorge Verduzco,
International Bank of Commerce, Laredo
Alliance Secretary/Treasurer Danny Valdez, County
Judge, Webb County Harold Gleinser, County Judge,
Goliad County Raul Salinas, Mayor of Laredo David
Silva, County Judge, Bee County Ray Miller,
Victoria MPO
CENTRAL Billie Jones, Wharton Chamber of
Commerce Buck Boettcher, Mayor of East
Bernard Mickey Reynolds, County Commissioner,
Wharton County Perri DArmond, Greater Fort Bend
Economic Development Council
Ex-Officio Members Louis Bronaugh Helen
Walker Robert Eckels Michael Behrens
July 2008
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