Project Profile: Midtown Express (SH 183 Managed Lanes)

Midtown Express (SH 183 Managed Lanes)

photo credit: DriveMidtown Website

Location

Dallas-Fort Worth Metroplex

Project Sponsor

Texas Department of Transportation (TxDOT)

Program Areas

Alternative Project DeliveryTolling and PricingValue Capture

Mode

Highway / Express Lanes

Description

The Midtown Express, formerly the SH 183 Managed Lanes Project, will increase the capacity and reconstruct portions of State Highway (SH) 183, SH 114 and Loop 12, which intersect one another southeast of Dallas-Fort Worth International Airport and northwest of Downtown Dallas. SH 183 is a critical east-west route between Dallas and Forth Worth originally built in the 1940s. The current roadway dates back to 1959, and has remained relatively unchanged since 1973 when one additional lane was added in each direction. Today, the highway serves as a primary connection between Dallas and Fort Worth, but it can no longer adequately meet the demand of 150,000 to 170,000 vehicles a day.

The project will increase the capacity of the three roadways with the addition of one TEXpress (toll managed) Lane in each direction:

  • SH 183 - 14.8 miles from SH 121 to I-35E
  • SH 114 - 10.5 miles from SH 183 to International Parkway (westbound only from SH 161 to International Parkway)
  • Loop 12 - 2.5 miles from SH 183 to I-35E

The project will be delivered using an innovative public-private partnership. TxDOT will provide $600 million in progress payments throughout the estimated 3.5-year construction period to the private partner. The remaining $247.6 million will be financed by the private partner and paid in five installments over five years following substantial completion. TxDOT will collect all tolls on the express lanes and compensate the private partner for operating and maintaining a portion of the project for 25 years after substantial completion.

Additional plans for further expansion are also envisioned pending future funding availability.

Cost

Total project cost - $1,415.1 million (YOE, based on Initial Financial Plan)

  • $847.6 million (design and construction)
  • $567.5 million (preliminary engineering and environmental, right-of-way acquisition, tolling systems, project management and oversight, professional services, contingency, risk mitigation)

O&M payments over 25 years (present value)

  • $171.8 million
Funding Sources

Federal funds - $680.5 million

State funds (motor fuels taxes, state vehicle registration fees, tolls/user fees, state and local bond programs, local governments' general funds) - $387.1 million

Federal/state funds (expenditures incurred as of May 2014) - $347.5 million

Project Delivery / Contract Method

DBF (design-build-finance) with O&M contract

Private Partner

Southgate Mobility Partners (project developer/equity members)

  • Kiewit Development Company
  • Kiewit Infrastructure South Co.

Southgate Constructors (design-build contractor)

  • Kiewit Infrastructure South Co.
  • Austin Bridge & Road LP

Parsons Transportation Group (design)

Southgate Mobility Partners, Infrastructure Corporation of America (operations and maintenance)
Project Advisors / Consultants

ARS Engineers Inc.

Burgess Engineering and Testing Inc.

Corsair Consulting LLC

CP&Y Inc.

Lamb-Star Engineering LP

Innovative Engineering Associates Inc.

Plenary Group

The Transtec Group

Lenders

To be determined pending financial close by the private partner

Duration / Status

TxDOT and Southgate Mobility Partners executed a development contract on November 20, 2014 and Notices to Proceed were issued on December 2, 2014 and February 5, 2015.

Construction began in April 2015.

Estimated Substantial Completion in 2018.

Financial Status

TxDOT has identified $600 million in public funds to compensate the private partner during construction. The remaining $247.6 million in project cost will be financed by the private partner and repaid by TxDOT from toll revenue and additional public funding sources as necessary in five installments over five years following substantial completion. No public debt or private equity is involved in the transaction.

Innovations
  • The project uses an innovative P3 structure combining design-build with a short-term receivables (gap) financing and no private equity, as well as long-term O&M.
  • The private partner's responsibility includes routine and lifecycle operations and maintenance over 25 years with specified handback requirements.
  • Upon substantial completion, TxDOT will begin compensating the private partner using "pass-through tolls." This compensation includes the remaining $247.6 million in deferred construction costs and 25 years of O&M costs.

    Pass-through tolls
    are a form of availability payments based on an agreed-to per-vehicle/vehicle mile fee. To establish a design and construction bid price, the private partner submitted a per-vehicle fee, which when multiplied by TxDOT's predefined, estimated traffic volume, was converted to the bid price of $847.6 million.

    Toll revenues will be TxDOT's first source of funds for the pass-through payments. If they are insufficient, TxDOT will use other revenues to make up the difference. If actual toll revenues exceed the pass-through payments, a revenue-sharing arrangement will be applied.
Related Links / Articles

Drive Midtown Project Website

TxDOT Project Tracker

TxDOT Project Website

Executed Development Agreement

Financial Public Hearing Presentation

Contacts

Tony Hartzel
TxDOT Dallas District
Public Information Supervisor
Tel - (214) 320-4481

back to top
back to top