Wednesday, January 25, 2006
Ken Arnold's Illinois Route 53 Extension Initiative
BACKGROUND AND PROBLEM:
Increasingly, Chicagoland is a congested and difficult place to traverse. Travel times are growing exponentially and unpredictably vary. This situation, moreover, not only degrades our living environment; but, our ecological and economic environment with the added pollution of automobiles stalled in traffic and inefficient transportation of goods and people across the region.
Much has been discussed about enhancing our ability for North/South travel in the outer ring, Western and Northwest Suburbs. Schaumburg to Gurnee commutes are now effectively precluded from occurring because of the intolerable times and uncertain traffic between these two points. And with this, so too are the job opportunities precluded in these respective areas from being enjoyed by all area residents.
Admittedly, area citizens need to apply a holistic approach to this entire regional transportation problem. One needs to look not only at one mode of transportation, but all. And one also needs to view the traffic patterns across the entire Chicagoland megatropolis. Motor vehicle, air, and train transport must all be weaved into an entire, integrated picture. Our region has little time to start in earnest on such projects – we already are playing “catch up” with the problems already upon us.
Some falsely claim there is no consensus for such – when in fact there is general consensus. And there is legitimacy in saying that government revenues are pinched and therefore cannot fund such projects in the foreseeable future. But one badly needed project - and creative transportation initiative - by Ken Arnold that would help our area transportation needs is the building of the Route 53 extension into Lake County, Illinois. And the legitimate issue of finances can surely be overcome…now.
SOLUTION:
The issues of financial risk, as well as adequate current sources of financing, DO come up when considering the completion of a Route 53 extension. All must admit that having a freeway constructed is virtually impossible given the current budget woes of the State of Illinois. And with these budget woes, even taking on the issuing of more bonds by the State of Illinois would quite likely lower its bond ratings further and thereby INCREASE borrowing costs for all State projects – further driving Illinois into the red. Indeed, right now traditional means of constructing Route 53 are not feasible.
And considering the size and cost of such project which has always been present, there is now an added factor to this equation: escalating interest rates. With any project and its bonding, interest rate levels determine whether – at any point in time – a building project is feasible. If very high interest rates and interest costs…revenues may not match costs. If low interest rates, there’s less financial risk. Escalating bond interest rates, expected to continue thru 2006 and beyond, increasingly make this project more financially risky – and therefore less likely that even a private entity would commit to doing it.
But there is another way! The Federal government could guarantee bonds issued by a private Toll Authority. This bond guarantee would drive down the finance costs of the project (due to greatly lowering the investor risk) and increase the probabilities of profitability and financial value of such private venture.
To implement this initiative, however; the Federal, State, or Local governments would NOT operate this Tollway system – a private Tollway entity would operate it for a time period of 30 years (the period of the bonds). [One such private entity was recently sold The Chicago Skyway Tollway and The Indiana Toll Road which loosely form a precedent to this initiative developed prior to these recent events].
After such bond payoff period, the entire system would revert back to the State. This Tollway could then either be made a freeway OR be competitively re-bid to another private entity. But by that time, however, the original bonds would be paid off which would be an argument to perhaps then make it a freeway.
ADVANTAGES:
Under this creative financing scheme, the Route 53 extension would become a reality…now! And as finally implemented with the help of then Congressman Ken Arnold, this roadway has great advantages for the general public. Commuters and the general public would find this system extremely fast and finally convenient for their transportation the length of the far western side of Chicago. One would go its entire distance without a single stop light! In addition, this expanded Route 53 highway system would:
1) Be an economic boon to the whole region in job, housing, and general economic opportunities.
2) Reduce air pollution and greatly decrease auto/truck commute times as citizens use this system for intra-region travel North and South along the western suburbs.
3) Be a source of additional revenues to the State of Illinois in both the initial competitive bid payment as well as a continuing share (however small) of revenues generated in the first bid’s period of operation.
In addition to these three understandable advantages is an important fourth one in this day and age: Route 53 would form an important North/South evacuation route for Chicagoland in the event of a major terrorist incident.
Our interstate highway system was not put in purely for the convenience of the public. A major reason for its creation was National Defense. That’s how the act which first started this national highway system in the 1950s came with the term “National Defense Highway Act”. In this case, Route 53 would greatly enhance the speed at which any area in the Western and Northwestern and Southwestern suburbs of Chicago could be evacuated. And it would even be a positive help in any downtown Chicago crises of similar nature. For make no mistake: In cases of a “dirty bomb” or biohazard – speed WILL be of the essence. Time will mean lives…
CONCLUSION:
Candidate Ken Arnold for a number of years has been a proponent of the Route 53 extension. It was a mistake not to complete it in the 1960s. And it will be a grave mistake not to do so now – especially if there were to be any terrorist event here.
We must wait no longer! Candidate Arnold is showing the way – thru Federal initiative and creative financing/business operations – that we can have this vital link and have it now.
If citizens wish for these things to happen, they need only support Ken Arnold for Congress. He is obviously fully committed to the completion of Route 53 -- having worked for several years to get this badly needed initiative done. And with the economic as well as National Security interests in mind, he believes he can promote such initiative successfully at the Federal level.
To return to McHenry County Blog, click here.
Increasingly, Chicagoland is a congested and difficult place to traverse. Travel times are growing exponentially and unpredictably vary. This situation, moreover, not only degrades our living environment; but, our ecological and economic environment with the added pollution of automobiles stalled in traffic and inefficient transportation of goods and people across the region.
Much has been discussed about enhancing our ability for North/South travel in the outer ring, Western and Northwest Suburbs. Schaumburg to Gurnee commutes are now effectively precluded from occurring because of the intolerable times and uncertain traffic between these two points. And with this, so too are the job opportunities precluded in these respective areas from being enjoyed by all area residents.
Admittedly, area citizens need to apply a holistic approach to this entire regional transportation problem. One needs to look not only at one mode of transportation, but all. And one also needs to view the traffic patterns across the entire Chicagoland megatropolis. Motor vehicle, air, and train transport must all be weaved into an entire, integrated picture. Our region has little time to start in earnest on such projects – we already are playing “catch up” with the problems already upon us.
Some falsely claim there is no consensus for such – when in fact there is general consensus. And there is legitimacy in saying that government revenues are pinched and therefore cannot fund such projects in the foreseeable future. But one badly needed project - and creative transportation initiative - by Ken Arnold that would help our area transportation needs is the building of the Route 53 extension into Lake County, Illinois. And the legitimate issue of finances can surely be overcome…now.
SOLUTION:
The issues of financial risk, as well as adequate current sources of financing, DO come up when considering the completion of a Route 53 extension. All must admit that having a freeway constructed is virtually impossible given the current budget woes of the State of Illinois. And with these budget woes, even taking on the issuing of more bonds by the State of Illinois would quite likely lower its bond ratings further and thereby INCREASE borrowing costs for all State projects – further driving Illinois into the red. Indeed, right now traditional means of constructing Route 53 are not feasible.
And considering the size and cost of such project which has always been present, there is now an added factor to this equation: escalating interest rates. With any project and its bonding, interest rate levels determine whether – at any point in time – a building project is feasible. If very high interest rates and interest costs…revenues may not match costs. If low interest rates, there’s less financial risk. Escalating bond interest rates, expected to continue thru 2006 and beyond, increasingly make this project more financially risky – and therefore less likely that even a private entity would commit to doing it.
But there is another way! The Federal government could guarantee bonds issued by a private Toll Authority. This bond guarantee would drive down the finance costs of the project (due to greatly lowering the investor risk) and increase the probabilities of profitability and financial value of such private venture.
To implement this initiative, however; the Federal, State, or Local governments would NOT operate this Tollway system – a private Tollway entity would operate it for a time period of 30 years (the period of the bonds). [One such private entity was recently sold The Chicago Skyway Tollway and The Indiana Toll Road which loosely form a precedent to this initiative developed prior to these recent events].
After such bond payoff period, the entire system would revert back to the State. This Tollway could then either be made a freeway OR be competitively re-bid to another private entity. But by that time, however, the original bonds would be paid off which would be an argument to perhaps then make it a freeway.
ADVANTAGES:
Under this creative financing scheme, the Route 53 extension would become a reality…now! And as finally implemented with the help of then Congressman Ken Arnold, this roadway has great advantages for the general public. Commuters and the general public would find this system extremely fast and finally convenient for their transportation the length of the far western side of Chicago. One would go its entire distance without a single stop light! In addition, this expanded Route 53 highway system would:
1) Be an economic boon to the whole region in job, housing, and general economic opportunities.
2) Reduce air pollution and greatly decrease auto/truck commute times as citizens use this system for intra-region travel North and South along the western suburbs.
3) Be a source of additional revenues to the State of Illinois in both the initial competitive bid payment as well as a continuing share (however small) of revenues generated in the first bid’s period of operation.
In addition to these three understandable advantages is an important fourth one in this day and age: Route 53 would form an important North/South evacuation route for Chicagoland in the event of a major terrorist incident.
Our interstate highway system was not put in purely for the convenience of the public. A major reason for its creation was National Defense. That’s how the act which first started this national highway system in the 1950s came with the term “National Defense Highway Act”. In this case, Route 53 would greatly enhance the speed at which any area in the Western and Northwestern and Southwestern suburbs of Chicago could be evacuated. And it would even be a positive help in any downtown Chicago crises of similar nature. For make no mistake: In cases of a “dirty bomb” or biohazard – speed WILL be of the essence. Time will mean lives…
CONCLUSION:
Candidate Ken Arnold for a number of years has been a proponent of the Route 53 extension. It was a mistake not to complete it in the 1960s. And it will be a grave mistake not to do so now – especially if there were to be any terrorist event here.
We must wait no longer! Candidate Arnold is showing the way – thru Federal initiative and creative financing/business operations – that we can have this vital link and have it now.
If citizens wish for these things to happen, they need only support Ken Arnold for Congress. He is obviously fully committed to the completion of Route 53 -- having worked for several years to get this badly needed initiative done. And with the economic as well as National Security interests in mind, he believes he can promote such initiative successfully at the Federal level.
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 7:55 AM
