Transportation chief gets an earful over tunnel tolls

RICHMOND

Reflecting anger among their constituents over the impending reimposition of tolls on two Hampton Roads tunnels, local lawmakers peppered Virginia's transportation chief with critical questions Monday.

What had been planned as a PowerPoint presentation on public-private partnerships by Transportation Secretary Sean Connaughton turned into an hourlong give-and-take with Hampton Roads legislators over the state's $2.1 billion deal with a private company to expand the Midtown Tunnel and rehabilitate the Downtown Tunnel.

Under a 58-year agreement signed in December with the company, Elizabeth River Crossings, the state plans to begin charging tolls - $1.84 each way for cars at peak hours - on both tunnels during the third quarter of this year.

Under questioning from Del. Johnny Joannou, D-Portsmouth, during a meeting of the budget-writing House Appropriations Committee, Connaughton acknowledged that the Downtown Tunnel will be the only transportation facility in the state where the state will charge a toll without adding any capacity to accommodate more vehicles.

"You're not adding any new lanes to the Downtown Tunnel, are you?" Joannou asked.

"We're looking at this as a system," Connaughton said, noting that the project includes the addition of two traffic lanes to the Midtown Tunnel, which he said will relieve congestion in both tunnels.

And while this is the first time the state has tolled an existing facility, he added, it won't be the last.

"We're going to be looking at tolling facilities in other parts of the state on existing infrastructure in order to rehabilitate and reconstruct," he said.

Connaughton acknowledged under questioning from Del. Chris Jones, R-Suffolk, that in the case of the Midtown Tunnel, this will be the first time the state has levied a toll to pay for additional capacity before constructing the expansion. The state estimates that the two new lanes at the Midtown won't be completed until four years after the tolls are imposed.

Citing "a level of frustration" in Hampton Roads about the project, Jones said he believes there are "inherent flaws" in the way it was put together.

Connaughton said that given the state's current revenue picture, partnering with the private sector is the only way to get large, critically needed transportation projects built.

"Those projects are becoming more and more problematic as our financial issues continue to grow," he said.

Connaughton drew supportive comments from some members of the panel.

"Somebody has to provide the money," said Del. Joe May, R-Loudoun County. "There aren't any free lunches."

Del. Jimmie Massie, R-Henrico County, agreed, saying there is no chance the Republican-controlled General Assembly would agree to higher taxes for transportation.

"We don't have the resources to build all the projects people want," he said. "We have two choices: Don't build the projects, or partner with the private sector."

No one has suggested trying to undo the agreement.

Critical lawmakers bore in on the fact that the tunnel deal allows the tolls to be increased up to 3.5 percent a year for 54 years.

Connaughton said Elizabeth River Crossings will be allowed a profit margin up to 13.5 percent on its investment. "To sort of put that in perspective, we make as a state 17.5 percent profit on the ABC stores," he said. "So we're actually well below what we're making selling liquor."

That drew this rejoinder from Jones: "The difference is, we put that money back into core services."

Bill Sizemore, 804-697-1560, bill.sizemore@pilotonline.com