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Thread: FL Alligator Alley highway (on I-75): private investors, including foreigners, bidding to lease it.

  1. #1
    Cyburbian Plus Shellac And Vinyl VelocitY's avatar
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    FL Alligator Alley highway (on I-75): private investors, including foreigners, bidding to lease it.

    Today's news release- includes perfunctory outline of issues:
    http://www.news-press.com/article/20...30392/1004/ACC


    Prospective contenders for lease as of this post time. (Foreign investors bolded):

    * The Alligator Alley Development Partners: OHL Concesiones of Spain, and Carlyle Infrastructure Partners, an infrastructure subsidiary of the Carlyle Group of Washington, DC.

    * Atlantia SPA: Atlantia SPA of Italy, formerly known as Autostrade SPA, and U.S.-based Electronic Transaction Consultants Corporation as a non-equity partner.

    * A2 Transportation Partners: Brisa Auto-Estradas de Portugal S.A. of Portugal, Companhia de Concessoes Rodoviarias of Brazil, and JP Morgan IIF Acquisitions of New York.

    * Everglades Parkway Partners: Cintra Concessiones de Infraestructuras de Transporte S.A. of Spain, and G.S. Global Infrastructure Partners I L.P., an infrastructure investment subsidiary of Goldman, Sachs & Co. of New York.

    * GVI-Lehman Brothers' Alligator Alley Access Partners: Corporacion Financiera Caja de Madrid S.A. of Spain, FCC Construction S.A. of Spain, and a non-equity partner called GVI – Alltech O&M Joint Venture.

    The last one obviously can't happen as planned, but they have not withdrawn their bid.


    Alligator Alley website:
    http://www.alligator-alley.com/


    Alligator Alley (FL DOT PDF)- detailed history, financials, map:

    http://www.alligator-alley.com/Docum...gatorAlley.pdf


    Strong opposition:
    PHOTOS/POLL: Outspoken public takes full advantage of final public forum on proposed Alligator Alley lease


  2. #2
    Cyburbian hilldweller's avatar
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    This is a real head-scratcher because it appears to be a profitable toll road in the long-run for FDOT based on their reporting. Also, the state does a good job maintaining the road as it is so I don't see any benefit to leasing it to private investors.

  3. #3
    Cyburbian planr's avatar
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    What is the real issue here? The move to privatize? or partial foreign owernship of infrastructure? The articles do not really paint a clear picture.
    "Try to be in two incredibly successful bands. If not, that's okay." -- Words to live by, courtesy of Dave Grohl

  4. #4
    Cyburbian Plus Shellac And Vinyl VelocitY's avatar
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    Quote Originally posted by planr View post
    What is the real issue here? The move to privatize? or partial foreign owernship of infrastructure?
    Both.
    Originally, opposition to the lease was over foreign companies in Europe bidding, or even China, running the roadway. Now, the concern is there are U.S. banking companies also getting involved, such as JP Morgan and Goldman Sachs.
    http://cbs4.com/local/alligator.alle....2.879738.html


    A third issue is emerging:

    Should control of Florida infrastructure be up to public opinion or the DOT?

  5. #5
    Cyburbian Plus Shellac And Vinyl VelocitY's avatar
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    Florida's Alligator Alley lease bid deadline extended until May

    Naples Daily News article:
    FDOT postpones deadline to bid on Alligator Alley lease

    Highlights:
    A deadline for bids on the 50-year lease of the Naples-to-Fort Lauderdale toll road was pushed back from Jan. 9 to May 8, the latest in a string of false starts and delays for the lease proposal.

    “The proposers have said because of the financial problems in the world that they need additional time,” said Greg Schiess, the Florida Department of Transportation’s project manager for the proposed lease.
    [State Sen. Dave] Aronberg introduced a bill in October that would put a two-year moratorium on any road leases in the state of Florida, as well as outright ban leases with “foreign-financed companies.” In recent weeks, he has been lobbying fellow Democrats to fight the proposal.
    Aronberg said he is buoyed by the news of the postponement, particularly with a new legislative session beginning in March, when he hopes his bill will enter committee hearings.

    Plus, he said, it means that any money the state hoped to earn from the lease will not be considered fair game to plug the state’s current $2.3 billion budget deficit.

    “It means the state won’t be seduced by a short-term windfall that would bring long-term pain for taxpayers,” Aronberg said. “It will be judged on its own merits, but not as a desperation pass.”

    Gina Downs, head of the Citizens Transportation Coalition of Collier County... ...was hopeful that returning seasonal residents could help renew the effort to prevent the road from falling into private hands.

    “On the one hand, this is good news, because they’re obviously not coming up with bids,” said Downs. “We have a lot of snowbirds back, getting hot under the collar about this.”

  6. #6
    Cyburbian Plus Shellac And Vinyl VelocitY's avatar
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    No companies bid to lease Alligator Alley.

    *Bump*

    I'm aware of the no-more-than-two-posts-in-a-row rule; requesting an exception due to the final outcome.

    From 6/1/09 Miami Herald article:
    No Companies Bid to Lease Alligator Alley

    Highlights:
    Friday [5/29/09]was to have been the day when, at a public meeting in Naples, FDOT officials were going to open bids from private companies seeking to lease Alligator Alley. But the agency was forced to cancel the event because none of the companies expected to file a bid actually did.

    While opposition apparently didn't play a role in the agency's failure to get bids, it's unclear precisely what persuaded the companies to steer clear of the plan.

    All but one of the companies that had been expected to file bids either declined to comment or didn't respond to calls by The Miami Herald.

    The Spanish multinational that did respond, GVI, did not cite opposition to the project, but suggested the main factors were conditions set by FDOT and the global economic recession.

    GVI said in a statement that the consortium objected to a state requirement that bid offers remain valid for 150 days, and suggested the transportation agency expected too much money for the road.

    ''Financial proposals were required to be valid for a 150-day period, which is a long period considering the current financial environment and, therefore, made financing very expensive,'' wrote Patricia Cobo, a GVI spokeswoman.

    While she did not list the amount GVI intended to offer for leasing Alligator Alley, Cobo said the sum the company believed Florida expected did not match company profit projections.

    ''The minimum price GVI believed was expected by FDOT was difficult to reach considering the financial constraints and our target IRR [internal rate of return],'' Cobo added.

    Dick Kane, an FDOT spokesman in Tallahassee, said the agency's requirement to keep bids valid for 150 days is not extraordinary because agency contracts are generally required to be valid between 90 and 180 days. Kane said the agency has not set a lease price amount.
    Sen. Dave Aronberg, a Democrat from Greenacres, proposed legislation to prohibit lease agreements with foreign-financed companies and a two-year moratorium on any deal to turn over control of state roads to private companies.


    Off-topic:
    I'm disappointed that some Cyberians with an interest in Florida's infrastructure did not to post comments in this thread.

  7. #7
    Cyburbian Plus Zoning Goddess's avatar
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    Quote Originally posted by Seana View post
    *Bump*

    Off-topic:
    I'm disappointed that some Cyberians with an interest in Florida's infrastructure did not to post comments in this thread.
    Being from central, and now north FL, my only familiarilty with Alligator Alley is that a whole bunch of south FL mystery writers leave dead bodies there (in their novels, of course). I don't think I've ever actually driven it.

  8. #8
    Cyburbian JimPlans's avatar
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    Selling public roadways to private companies is one of the stupidest ideas that has come down the pike in a long time. The justification, as far as I have been told, is that private concerns have (had) looser rules on borrowing money than the state, and could fund projects that the state could not. Maybe so, but who wants to be paying tolls to some private company for the next 50 years?

    Texas sold a road (State Highway 121) to a private concern, and the deal included such asanine things as non-compete clauses and secret contract agreements. Imagine, as a government, promising that you will not build or upgrade a road for the benefit of your citizens because it might harm the profits of a private corporation's toll road. Absurd.

    Selling off infrastructure paid for by public funds (i.e. things that belong to ME and YOU) for a short-term monetary benefit that will be spent in a few years is the worst kind of public policy. It stems from the libertarian, dismantle-the-government mentality that has infected many policymakers like Swine Flu since the late 1970's. Instead of raising taxes on those that can pay, they would place more costs on lower income people (in the form of tolls and user fees) who cannot afford it. I have a feeling that this kind of thinking is on the way out. I hope it is.

  9. #9
    Cyburbian Richi's avatar
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    From a 5th generation Florida Cracker - What JimPlans said!!!!!!!!!

  10. #10
    Cyburbian Tobinn's avatar
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    Ditto what Richi says

    I've been in Florida for 11 years now (driven AA twice, I think). While not here as long as Richi when this story hit the papers last year aside from the usual vocals my sense was a collective yawn. I gave it little notice because my first thought was, "Never gonna happen - between the screaming meemies and the economy there's not even going to be a nibble." And that's what happened.

    Anyway, that's probably why no one from sunny FLA jumped on the thread. So don't be too disappointed - it's just that we're all close enough to it to no better than to get too excited - plus, with home owner's insurance, hurricanes, rising sea levels, two terms of Jeb Bush and the destruction of two plus decades of growth management we have to set priorities ya know.
    At times like this, you have to ask yourself, "WWJDD?"
    (What Would Jimmy Durante Do?)

  11. #11
    Cyburbian H's avatar
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    Quote Originally posted by Tobinn View post
    Anyway, that's probably why no one from sunny FLA jumped on the thread. So don't be too disappointed - it's just that we're all close enough to it to no better than to get too excited - plus, with home owner's insurance, hurricanes, rising sea levels, two terms of Jeb Bush and the destruction of two plus decades of growth management we have to set priorities ya know.
    ditto...
    "Those who plan do better than those who do not plan, even though they rarely stick to their plan." - Winston Churchill

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