1. HOT Lanes on I-77 Widen I-77 March 3, 2015

2. The Purpose of P3 Legislation Source: I-77 Mobility Partners Brief in Favor of Motion to Strike and In Opposition to Preliminary Injunction, p17. Problem: Congested roads. Limited funding. A Solution: Tolls.

3. I-77 Corridor is Heavily Congested “Plaintiff does not dispute the facts that I-77 suffers from severe traffic congestion or that increased lane capacity is needed to improve mobility in the Project Area.” --- I-77 Mobility Partners Brief in Favor of Motion to Strike and In Opposition to Preliminary Injunction, p3 (emphasis added)

4. Stantec Memos

5. NB Afternoon Commute- Oct 2011 Charlotte Segment Travel Speed (mph) Mooresville Davidson Huntersville Cornelius Source: I-77 HOT Lanes Technical Memorandum #1, p. 11, Stantec, Mar 8, 2012

6. SB Morning Commute- Oct 2011 Huntersville Cornelius Charlotte Segment Travel Speed (mph) Mooresville Davidson Huntersville Cornelius Source: I-77 HOT Lanes Technical Memorandum #1, p. 11, Stantec, Mar 8, 2012

7. The Problem Congested stretch of four lane road from ~mm21 to exit 36 “In both the Northbound and Southbound directions, congestion is attributable to high demand for the two-lane sections of I-77.” Source: I-77 HOT Lanes Technical Memorandum #1, Stantec, Mar 8, 2012; p.11.

8. A Solution Add a general purpose lane in both directions 13 miles $80- 130M (est) Source: “I-77 Feasibility Study,” Parsons Brinkerhoff, December 7, 2009

9. The Current HOT Lane Solution Privately Operated Toll Lanes 27.5 Miles $655 M Source: NCDOT Press Release, April 11, 2014

10. Difference  ~13miles27.5miles  ~$100 million$655 million (All taxpayer funds)($118M taxpayer funds)  2-4 lanesAll of RoW  Able to expandU.R.I.F. Toll Lanes General Purpose Lanes No improvements for 50 years

11. Why the difference? Source: RFP Majority of travel time savings Majority of Cost

12. The Cost Of Toll Lanes Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

13. Taxpayer Obligation  Taxpayer Contribution$88M For private tolling lanes  Taxpayer Bonus Allocation$30M For improving private toll lanes  Taxpayer Subsidy$75M To cover potential revenue shortfalls Private Project Likely Costs Taxpayer More Than Public Project Source: I-77 JLTCO Report, 4-25-14; CRTPO Meeting Agenda, Feb 18, 2015 Capital Contribution: $118M Taxpayer Exposure: $193M

14. How the HOT Lanes Work  Built and operated under an exclusive 50 year contract  Vehicles with 3+ occupants use lane for free  Electronic Tolling- no toll booths  Guaranteed minimum speed No limit on tolls  “Congestion pricing” More congestion in “free” lanes = higher price to use toll lanes Business Model Ensures Congestion

15. Toll project ensures congestion- 1  “One inherent but sobering assumption in all this is that the GP lanes (in any project) are/were congested and for the most part, would remain congested, for this is why the justification for an express lane exists in the first place. No one wants congestion in the GP lanes. So the express lane provides an option, not a full solution. Indeed, if congestion in the GP lanes ever dissolves, than (sic) the incentive to use an express lane would dissolve too.” Neil Spiller Program Manager, Access Management FHWA Office of Operations- Office of Travel Management email communication approved by FHWA Public Affairs Office, Feb 4, 2013 (emphasis added)

16. Toll project ensures congestion- 2  “The analysis included in the (toll project) indicated modest improvements to average travel speed (all vehicles) and person trips processed with minimal impact to the travel speed in the existing general purpose lanes.” -- MUMPO TCC I-77 Task Force Meeting August 8, 2012 RFP Issues memo, August 13, 2012 Bill Coxe, Chair, Technical Coordinating Committee, Mecklenburg-Union Metropolitan Planning Organization

17. Toll project ensures congestion - 3 20152035Difference AM Commute (Minutes) 39.471.632.3 PM Commute (Minutes) 41.569.327.8 Total (Minutes) 80.9140.960.0 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 Commute Time Lengthens By An Hour per Day Average Commute Time In GP Lanes- Charlotte to Mooresville

18. Toll project ensures congestion- 4 “A result of increasing tolls with the objective of maximizing revenue is that the HOT lanes would operate under a condition where their utilization would be well below capacity thus by definition, not providing the maximum congestion relief in the corridor.” Source: I-77 HOT Lanes Technical Memorandum #4, p 12, Stantec, May 21, 2012 (emphasis added) Private Toll Lanes Are Not a Solution for I-77

19. Project Purpose “2.2 Summary of Project Purpose The purpose of the proposed action is to provide immediate travel time reliability along I-77 from Uptown Charlotte to the Lake Norman area. Because the project is designed to address an immediate need, the opening and design years are both proposed for 2017.” (emphasis added) I am unable to find “travel time reliability” in any NCGS

20. Toll Rates 2015 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 $20 Round Trip When Toll Lanes Open (2011 dollars)

21. Toll Rates 2035 Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012 $40 Round Trip In Twenty Years (2011 dollars)

22. Total Toll Revenue (50 Yrs) $13,688,380,000 Or $91,250 for every LKN resident Source: I-77 HOT Lanes Technical Memorandum #7, Stantec, Sept 5, 2012

23. Debt Service & Operating Expense Source: Financial Plan, (Comprehensive Agreement),Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012 Historically high tolls required from second smallest metro area CA 91 I-95 MIA HOU, DEN, MSP, SAN + 6 OTHERS

24. A New Funding Paradigm: STI  Passed summer 2013 HB 817  Replaces Equity Formula  More data-driven Using objective criteria

26. The Legislature has determined congestion mitigation is a priority  GS 136-189.11.1 Transportation Investment Strategy Formula The P3 Toll Project Fails This Priority

27. NCDOT STI Scores for Hypothetical I- 77 GP Projects How Does This Rank Against Other Statewide Projects? Source: “STI & I-77” press release, NCDOT, July 24, 2014

28.  I77 GP Project Lowest I77 scores higher than 25 funded projects Projects to be funded Projects unfunded I-77 GP project through Lake Norman 73 “Statewide” funded projects 377 Unfunded Projects Highest scoring funded project Lowest scoring funded project A General Purpose Lane Project Would Likely Be Funded Under STI… Source: STI 9-24-14 STI 3.0 Total Score  I77 GP Project

29. Short time to wait for answer  “Under the STI law all projects that were projected for construction after July 1, 2015 are subject to scoring under the new funding formula.”  “Because the I-77 North Managed Lanes (North of I-277) project is scheduled to begin construction before July 1, 2015 it is not subject to the new law and was not scored under STI.” NCDOT has discussed tolling I-77 since 2007. Source: “STI & I-77” press release, NCDOT, July 24, 2014

30. Conclusions  The I-77 HOT Lane Project Does not solve the congestion problem Burdens middle and low income commuters with high tolls or excessive, increasing congestion- it’s a rich man’s road Siphons $13.6B out of our local economy Essentially eliminates the possibility of improvements for 50 years Involves substantial taxpayer obligation for a private project from which a private company will profit Costs the taxpayer more than a public project Carries significant risk of default Does not serve the public interest 50 years of tolling can wait another four months.

31. In Summary  The private toll lane project does not serve the public interest  It does not alleviate congestion… it ensures it. 50 years of tolling can wait another four months.

32. STI Corridor Cap  “No more than 10% (or about $200 million) may be assigned to any one project or group of projects within the same corridor during a five year period.”  …”I-77 South projects would out score, and use all of the corridor funds available for at least the next ten years….”  “Right of way purchase for the I-77 South projects begin in 2024, with actual construction still further out.” Rather than a 10 year wait, we have a 9 year window to widen I-77 Source: “STI & I-77” press release, NCDOT, July 24, 2014