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Project Profile: Route 36 FourLaning

Route 36 FourLaning

photo credit: Missouri DOT

Location

Hannibal to Macon, Northeast Missouri

Project Sponsor / Borrower

Missouri Department of Transportation

Program Areas

Project FinanceValue Capture

Mode

Highway

Description

US Route 36 extends across northern Missouri from the City of Hannibal at the Illinois State Line to the City of St. Joseph at the Kansas State Line. The 52-mile segment from Hannibal west to Macon was the last to be expanded from two to four lanes. The purpose of project was predominantly to improve safety by transforming the roadway into a divided highway and adding a lane to make passing safer. The project also reduced congestion along the parallel I-70, approximately 50 miles to south.

The project's need had been identified for a number of years, but insufficient state funding prevented its construction. Four counties along the corridor turned to gaining voter approval to establish a Transportation Development District to collect an additional countywide half-cent sales tax dedicated to the project. Voters approved this sales tax district in 2005 and collection began in 2006. The District leveraged 15 years of anticipated tax revenue to secure a loan from the Missouri Transportation Finance Corporation, a state infrastructure bank, for roughly half the project cost. State funding would cover the remaining balance.

The Missouri Department of Transportation completed the project's construction in mid-2010. The project has reduced the corridor's crash rate despite a 50 percent increase in traffic volume over ten years. Increased economic activity along the corridor has also resulted in the opening of a number of new businesses. Stronger than forecasted tax revenue collection allowed the District to repay the loan 3.5 years early and end the half-cent collection in July 2017.

Cost

$75.5 million

Funding Sources

Federal and state funds - $41.2 million

Missouri Transportation Finance Corporation loan repaid with sales tax revenue and interest - $34.3 million

Project Delivery / Contract Method

Design-bid-build

Private Partner

None

Project Advisors / Consultants

Not available

Lenders

Missouri Transportation Finance Corporation

Duration / Status
  • Voters approved sales tax district in April 2005
  • Sales tax collection began in January 2006
  • Highway opened to traffic in July 2010
  • Sales tax collection ended in July 2017
  • Voters approved abolishment of sales tax district in April 2018
Financial Status / Financial Performance

The Missouri Transportation Finance Corporation loan was repaid in July 2017, 3.5 years early due to greater than anticipated tax collections.

Innovations
  • Local governments and residents capitalized on a value capture option permitted in state law and approved a Transportation Development District to collect additional sales tax dedicated to the project when insufficient state resources had delayed implementation of the critical corridor's safety and capacity improvements.
Related Links / Articles

Missouri Transportation Development Districts

Missouri Transportation Finance Corporation

"Why Missouri officials are celebrating U.S. 36 for its innovation" (The Missourian, April 9, 2018)

US 36 - I-72 Corridor Transportation Development District Audit (November 2017)

Contacts

Paula Gough. P.E.
Northeast District Engineer
Missouri Department of Transportation
Tel: (888) 275-6636

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