|| Print ||
|Articles - May 2013|
|Monday, April 29, 2013|
BY JOHN PINKSTAFF
Traffic congestion from Portland to the Oregon Coast along the Highway 99W corridor is steadily increasing. I vividly recall sitting in traffic on the way to the wine country or the beach, thinking there must be a cost-effective way to complete transportation projects in tight economic times.
Traffic congestion has substantial environmental and economic costs, and failure to invest adequately in transportation improvements will lead to travel delay and associated reductions in market access. In addition, it may result in a potential income loss valued at $1.7 billion annually in Oregon by 2025, with a loss of 16,000 ongoing jobs, according to “The Cost of Highway Limitations and Traffic Delay to Oregon’s Economy,” a 2007 study prepared by the Boston-based Economic Development Research Group, Inc.
Transportation-budget shortfalls have prevented traditional government funding for major infrastructure projects. The Newberg-Dundee Bypass that the Oregon Department of Transportation (ODOT) designed to improve mobility and reduce congestion would cost nearly $1 billion. There is $192 million in stimulus funds for phase one but no current or projected funding source for phases two or three.
However, there is a possible solution to this problem: a public-private partnership to deliver a limited-access highway from I-5 to the west end of McMinnville, paid for with private funds and given to the state after the private debt is paid for with user fees.
Public-private partnerships are not a new concept. They consist of an agreement between a private entity and a governmental agency for the development, financing, maintenance or operation of public infrastructure such as transportation facilities (e.g., bridges, highways, airports, seaports). A partnership infrastructure project typically provides for acceptance of a private investment in the project, sharing of resources and the means of providing the project, and cooperation in designing, developing and implementing the project. Partnerships are commonly used for private-sector delivery of on-time, on-budget, commercially viable transportation facilities in Europe, Latin America, Australia, Canada and the U.S.
State laws have authorized partnerships for transportation projects since 2003 (Oregon Innovative Partnerships Program, ORS 367.800 to 367.826), and for tollway projects since 1995 (ORS Chapter 383, and OAR 731-070-005 to 731-070-0360).
Building upon existing law, House Bill 2696, currently before the Oregon legislature, would establish partnership methodology to deliver a specific transportation project: the “Coastal Parkway.” This parkway would be a 12- to 14-mile limited-access, high-safety standard highway from I-5 to McMinnville, paid for with private funds and tolls over a 30-year period, after which parkway ownership would be transferred to the state.
The estimated construction cost of the Coastal Parkway is $280 million to $340 million, using private financing and design-build with Oregon-based contractors and designers. Construction could begin as early as 2015 and finish as early as 2016.
The private entity must establish financial capacity; conduct environmental studies; design, construct and operate the facility paid for by user fees (tolling); reimburse ODOT’s expenses and transfer ownership to the state within 30 years, after which tolling will be eliminated. ODOT would use its condemnation power, if necessary, for right-of-way acquisition, and it will be an ODOT project for purposes of compliance with laws.
This is not forced tolling. Motorists would be able to choose between the tolled Coastal Parkway and the current non-tolled Highway 18 and 99W routes. No existing highways would be tolled.
Building state highway infrastructure through a partnership provides an option for bringing private investment into the transportation system to help offset shortfalls in governmental resources by shifting elements of funding, management, operations and financial risks to the private sector. At the same time, the state continues to play an important role through project evaluation, selection, permitting and oversight, and, in the end, receives public ownership of the project.
|OHSU researchers work on AIDS vaccine|
|Lean in? Not Sabrina Parsons.|
|Oregon agriculture - not just a commodity|
|The cable guy|
|Outside the box|
|20,000 apply for 400 jobs at Ikea in Spain|
|Twitter names first female board member|
|U.S. fast food workers strike|
|WalMart pays legal fees for bribery probe|
|Google ramps up plan to make robots|
|Sales on Cyber Monday reach new heights|
|CNN plans major changes|
Produced by the Oregon Business marketing department
When the Portland-based manufacturing company Glass Alchemy, Ltd. was first nominated for an Oregon State University Austin Family Business Excellence in Family Business award in 2004, husband-and-wife team Henry Grimmett and Susan Webb-Grimmett, were honored and optimistic about their chances of winning.
Some employers have embraced the use of employment arbitration agreements as a way to manage and mitigate the rising costs, risks and liabilities associated with employment-related claims. Historically, employment arbitration agreements require employees to present employment-related claims, such as employment discrimination, wrongful discharge, harassment, or claims for wages or compensation to an arbitrator, in lieu of proceeding to court.
Produced by the Oregon Business marketing department
Boly:Welch was founded in 1986 based on a close connection between Diane Boly and Pat Welch. The two had worked together at another recruitment firm and shared certain core values: passion for their work, a sense of humor, a commitment to their community and a desire to create a healthy, nurturing work environment.
Dunn Carney will host its annual Ag Summit on Jan. 10, 2014 at the Holiday Inn in Wilsonville, OR. We are very pleased to welcome Dr. Sherri Noxel, Director of the Austin Family Business Program at Oregon State University College of Business as our Keynote speaker.
The Naa Amerley Palm Education ("NAPE") Foundation recently awarded two more Lane Powell/Lee Nusich Scholarships to deserving students attending institutions of higher learning in Ghana. Including the most recent recipients, a total of 48 scholarships have been awarded to Ghanaian university students since the scholarship foundation started in January 2009.
Unitus Community Credit Union, a Portland-based credit union with more than 80,000 members, has announced the addition of Brian Alfano as Vice President of Member Services. Alfano will provide strategic leadership over Unitus’ member experience to ensure consistency across delivery channels, including branch operations, member support, and products and services.