Virginia earmarks $500M to rebuild U.S. 460

State officials moved a step closer to a new U.S. 460 on Thursday by announcing that Virginia will put as much as $500 million toward a public-private partnership to rebuild the road to interstate quality between Suffolk and Petersburg, a $1.44 billion to $1.8 billion project.

The four-lane divided highway is Gov. Bob McDonnell's top transportation priority, one he hopes will serve as a public-private model for building roads in Virginia.

The Virginia Department of Transportation has already received three private proposals, which would require tolls from $5.50 to $11 for cars and as much as $75 for tandem tractor-trailers.

VDOT accepted all three conceptual proposals earlier this year. They would require varying state aid, from $52 million to $1.18 billion.

The state's Independent Review Panel, which examined the proposals, concluded that none of them is financially viable without "a sizeable public contribution" and urged highway officials to consider ways to "substantially" reduce the cost.

By establishing a maximum public subsidy of $500 million, state officials hope to get detailed proposals that will make it easier to compare one offer with another. The technical proposals are due in January; financial proposals are due in February.

The state contribution would come from a $1.4 billion fund the governor established to help support about $6 billion worth of public-private projects across the state, including U.S. 460 and the proposed parallel Midtown Tunnel.

Last week, the state announced it's close to finalizing an agreement with a consortium of private companies to build a parallel Midtown Tunnel, extend the Martin Luther King Freeway and improve the Downtown Tunnel, a $1.9 billion transportation package. The state will contribute $395 million toward those projects from the public-private fund.

As for the new U.S. 460, VDOT's goal is to have an agreement with one of the proposers by May to build the 55-mile road south of the existing U.S. 460.

The bidders are Cintra Infraestructuras S.A.U., 460 Partners Inc. and MultiModal Solutions LLC. Each proposal calls for electronically collected tolls and toll rates that would increase over time, between 2 and 3 percent a year.

Among the ideas in the different plans are: setting the speed limit at 75 mph, building five interchanges instead of the nine originally envisioned, and creating a regional economic development authority to attract investment to the corridor.

"This project is a top priority of the Commonwealth and will provide substantial benefits related to emergency evacuations and enhance the movement of freight to and from the ports," VDOT Commissioner Greg Whirley said in a news release. "Additionally, the new Route 460 will provide greater connectivity between the Richmond/Petersburg and Hampton Roads regions, increasing economic development opportunities and job creation."

It's the state's second attempt at securing a partner for U.S. 460.

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com