Public Information
FOR IMMEDIATE RELEASE - JUNE 25,2008 Florida Department of Transportation has Reissued a Request for Qualifications for the Proposed Long-Term Lease of Alligator Alley.. read more> |
Frequently Asked Questions (FAQs) * 05/27/08
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Q: When and where was the Industry Forum held?
A: Thursday, April 24, 2008, Buena Vista Plaza, 1900 Buena Vista Drive, Orlando, Florida.
Q: Is the Department planning on seeking public input on this Project?
A: Yes. The Department will be holding Public Workshops in Collier County on May 27, 2008 and in Broward County on May 29, 2008. In addition, presentations will be given to local Metropolitan Planning Organizations (MPOs) in June and July.
Q: Is there a website established for this project?
A: Yes, the website is www.Alligator-Alley.com
Q: Who is the primary media contact for this project?
A: Dick Kane, Communications Director, 850-414-4595.
Q: Why was Alligator Alley selected for leasing?
A: The Department selected Alligator Alley because it favorably fits the profile for lease of an existing toll facility to the private sector. It is 78 miles in length, it has an existing revenue stream (tolls) and it is being upgraded (resurfacing). It would appear to have value to a private Concessionaire, and provide significant upfront funds to the Department for other infrastructure improvements.
Q: How much could the state get for Alligator Alley?
A: It is uncertain at this time. This will be determined through the proposal submittal process.
Q: How much would tolls go up if the state leased the facility?
A: The details have not been determined. If the Department enters into a Public-Private Partnership, it will ensure that the agreement is cost-effective and in the best interest of the public. The Department will set the parameters of the toll rate increases, including the capping of toll rates and Department sharing in excess revenues.
Q: How long would the lease be?
A: Most likely 50 years; however if determined in the best interests of the public, the term could extend to up to 75 years with authorization from the Secretary.
Q: How would the money be spent from the initial lump sum payment from the concessionaire?
A: Existing statutory authority authorizes The Department to use any new funds from leasing to reimburse outstanding contractual obligations, operate and maintain the facility, contribute to the Everglades Fund of the South Florida Water Management District, and accelerate construction of much-needed transportation projects in Broward and Collier counties.
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Q: Would that money have to stay in South Florida?
A: Yes, under current law.
Q: Is there any executive or legislative oversight of the Department’s leasing agreement?
A: The Department periodically briefs the Governor’s Office on major Department initiatives and this project has and will remain part of that process. The Department will also be coordinating this solicitation with the Legislative Budget Commission (LBC), which consists of elected state legislators.
Q: If a lease goes through, would the concessionaire own Alligator Alley?
A: Absolutely not. This will be a lease agreement whereby the state will still own Alligator Alley. The private Concessionaire will maintain, operate and keep the facility in good condition. When the term of the lease is up, the roadway maintenance and operations will revert back to the state.
Q: What is your timetable for this initiative?
A: We have initiated the solicitation of proposals process and are currently planning to receive proposals in the Fall of this year.
Q: What becomes of the existing Asset Maintenance contract covering the Alley? What are the limits of the lease?
A: The successful Concessionaire will be expected to assume the existing asset maintenance contract as it relates to the project limits. The limits of the lease are just west of the toll plaza on the western end of the Alley and just east of the toll plaza on the eastern end of the Alley, approximately 78 miles.
Q: Why do we need to lease Alligator Alley?
A: The Department is looking for innovative ways to advance funding of transportation projects in the near-term that would otherwise not be possible for many years.
Q: What is the benefit (of leasing the Alley) to the motorists that use the Alley?
A: A return on investment of an existing facility that is in excellent condition and continues to be maintained in excellent condition, while also providing immediate funding for other transportation needs in the South Florida region in an accelerated period of time.
Q: Will the road be better?
A: Prior to the road being leased to a Concessionaire, the entire 78 miles will be resurfaced along with implementation of some Intelligent Transportation System (ITS) projects. The Concessionaire will be responsible for operating and maintaining the road to this same level throughout the lease term.
Q: Will you build a restaurant and more rest areas along the Alley?
A: The Concessionaire will not be allowed to build any new restaurants along the Alley. The Department may build another rest area within the limits of Collier County.
Q: Will the money just go into the pockets of the private Concessionaire?
A: No, the Department will have specific requirements in the concession agreement for the Department to receive excess revenues from tolls collected.
Q: Will the private company that you lease the Alley to be American?
A: Possibly. Any Concessionaire that meets all the Department requirements will have an opportunity whether American or multi-national.
Q: If the state is already making a profit off the tolls from Alligator Alley, why give it away?
A: The leasing of the Alley allows the Department to receive significant upfront funds for advancing other transportation projects that otherwise would be delayed for several years.
Q: If the Department will give a private Concessionaire the okay to raise the toll on the Alley, why doesn't the Department just raise them now and let the state keep all that extra profit?
A: An increase in tolls would only provide for a modest return on investment and not provide the large amount of upfront funds needed to advance important transportation projects.
Q: Why is the lease for 50 years?
A: The financial models that are being developed for this asset indicate that 50 years is the optimum term length for a Concessionaire to have an equitable return on its investment.
Q: I am very concerned for the Everglades. Who will oversee this Concessionaire to guarantee that the Everglades are protected?
A: The Department will directly oversee the Concessionaire to ensure that all requirements of any agreements are fulfilled, including regulatory compliance and protection of Everglades National Park.
Q: If the private Concessionaire damages the Everglades, what is Florida's recourse?
A: The Department’s agreement with the Concessionaire will include several escalating measures of recourse to ensure that the Concessionaire prevents or restores any damage to the Everglades original condition, including monetary damages, default and ultimately termination of the lease.
Q: Can we take the lease back? And throw them out of the country?
A: Yes, there will be language in the agreement to provide for termination of the lease under certain circumstances. No, the Department is not authorized to throw companies out of the country.
Q: When the state raised the Alley tolls a couple of years ago, it was supposed to cover extra FHP Troopers. What is the status of that?
A: The additional troopers were assigned and will continue to be assigned.
Q: If tolls are raised to $10.00 as reported by the media - where will it go?
A: There are no present plans to have tolls reach $10.00 in the immediate future. Toll increases on the Alley will be subject to administrative rulemaking and will be expressly stated in the concession agreement. Funds the Department receives under the Concession will be used to reimburse outstanding contractual obligations, operate and maintain the facility, contribute to the Everglades Fund of the South Florida Water Management District, and accelerate construction of much-needed transportation projects in Broward and Collier counties.
Q: Will the Alley's Road Rangers be fully funded with the increased tolls?
A: This remains an open question at this time.
Q: Why doesn't Florida have a state income tax?
A: This is not a question to which the Department can respond.
Q: Why was the industry forum held in Orlando?
A: The forum was held in Orlando to allow prospective proposers, most whom are from outside of Florida or South Florida, a central location that is most convenient for arrival and departure flights.
Q: Why the interest so suddenly in leasing Alligator Alley?
A: The interest has not been sudden. The Department is looking for innovative ways to generate revenues to build transportation projects sooner rather than later. This type of approach is being used in other parts of the country and the world.
Q: Will SR29 and the new Everglades interchanges be tolled?
A: There are no plans to toll either the existing or proposed interchanges.
Q: Will the postponement of the Request for Qualifications (RFQ) of companies to fund the design, construction and operation of the First Coast Outer Beltway around Jacksonville due to the issue of potential property taxes affect the Alligator Alley project?
A: No, the particulars of these two projects are distinct. The unresolved Florida real estate and intangible property tax issues are a factor of some measure on any P3 project that the Department analyzes for each project. The Department is currently reviewing available options for pursuing a definitive determination of these legal issues.