Today the North County Times printed a pretty hard hitting piece I wrote in response to their editorial published last Sunday, November 27. Below please find their original (misguided) editorial as well as my (educational) response which to the credit of the N.C. Times they published. Frankly, I’m impressed.
NC Times Editorial from 11/27/2011:
No public rescue for private road
The latest bit of profligacy from the San Diego Association of Governments makes us wonder whether there is any transportation project in and around the city of San Diego that is so unnecessary, so out of line with larger regional needs that SANDAG won’t fund it at the expense of more critical North County projects.
While North County commuters continue to wait for improvements to the ridiculously outdated Interstate 5-state Route 78 interchange, among many other transportation needs, SANDAG is now looking to spend some $344.5 million to buy a bankrupted toll road from Chula Vista to the border.
Read the editorial in its entirety.
My response:
Re: 11/27/11 editorial: No public rescue for private road (link)
In the NC Times’ poorly researched editorial (11/27/11 editorial: No public rescue for private road) opposing SANDAG’s potential acquisition of the lease to operate the SR 125 toll road, the editorial failed to grasp a few facts which I believe are important for your readers and your Editorial Board to understand.
First off, the SBX does not “run along” the 125, it is the125.
Secondly, there is no Eminent Domain or condemnation of private property associated with the purchase of the SBX operating lease by SANDAG because the 125 already exists. In fact, the SANDAG plan will eliminate the need to exercise Eminent Domain to condemn homes and properties along the I-805 as the traffic demand can be moved to the now underused 125 rather than expand the 805 beyond its current right of way.
Thirdly, when you write “Let South Bay Expressway LP go into default, and buy the toll franchise at auction” you fail to understand that the SBX already emerged from Chapter 11 reorganization and is currently a viable operating entity. The SBX is not in or facing default or bankruptcy.
And finally, your perspective regarding SANDAG’s purchase of the SBX fails to mention the most important aspect of this transaction: As stated above, the purchase of the 125 will mean that we don’t need to expand the 805 beyond its current right of way which will save taxpayer’s $268 million. These saved tax dollars will then be available for investing on other future projects, including projects in North County.
If the SANDAG Board chooses to go forward with the acquisition, it will enable us to deliver congestion relief in South Bay decades ahead of schedule and reduce tolls on the 125, giving the travelling and commuting public some price relief, but just as importantly it will also attract traffic from congested arterial streets and the congested 805 better distributing traffic, reducing traffic congestion, and therefore reducing air pollution in that corridor.
The private concern and consortium of lenders that constructed the SR125 and created the South Bay Expressway (SBX) spent about $900,000,000 (nine hundred million dollars) to build it. The recession hit and the planned / anticipated residential and commercial projects anticipated east of the 125 did not materialize, meaning the traffic demand also did not materialize as projected.
SBX then filed for Chapter 11 reorganization, got concessions from their lenders, and recently emerged as an operating business with a new financing structure and business plan.
SANDAG now has the opportunity to purchase the roadway for less than $350,000,000 (three hundred fifty million dollars), or roughly one third the cost of construction. Add to that SANDAG’s ability to obtain financing at lower rates than the private sector, SANDAG’s ability to swap the future planned expansion of the 805 with the existing 125, thereby saving hundreds of millions of dollars and SANDAG’s interest in maximizing traffic flow in that corridor rather than maximizing a return on investment, and it all adds up to a huge win for our region and the public.
Far from “bailing out” the operators of SR 125, SANDAG has the historic opportunity to acquire additional highway capacity and gain a valuable asset at a deeply discounted price, which will benefit everyone in the region – including the residents of North County.
Jerome Stocks
Deputy Mayor, City of Encinitas
Chairman, SANDAG Board of Directors
Comments 1
Jerome, I’m glad you set the record straight. I was talking with San Marcos Mayor Jim Desmond yesterday and he was upset the North County times had gotten their facts wrong in their editorial and doubtful they would correct the story if given the background. It’s a shame their own reporter couldn’t or wouldn’t provide them the same information you’ve given. I understand he attends the same meetings. Good job…and ditto to the North County Times for printing SANDAG’s side of the argument.