We posted last year about a Measure R project to add tolled HOV lanes to 13.5 miles of the 5 freeway in the Santa Clarita Valley between the 14 freeway and Parker Road. Vehicles with one or two occupants would pay a toll while vehicles with three or more occupants could use the lanes for free; tolling the lanes allows the project to be built well before the original Measure R completion date of 2040.
Today we have this update: Metro and Caltrans have decided to publicly finance the project instead of seeking a public-private partnership (known as a PPP). Why? It’s less expensive to publicly finance the project by using $352 million in now-available Measure R and other funds and a federal low-interest loan for $175 million.
Under a PPP, a private firm or firms would have paid for the construction of the project and then been repaid, in part, by collecting and managing tolls from the lanes for 35 years. In this case, public financing will allow Metro to borrow less money and secure a lower interest rate on the needed loan.
This project as originally proposed was also unusual because it included new sound walls for the 210 freeway in Pasadena and Arcadia and the 170 and 405 freeways in Los Angeles, and adding extra lanes for a short stretch of the 71 freeway in Pomona. Under the public financing deal, those projects will be built separately. The toll revenues would be reinvested and used for transit services and traffic operations in the 5 freeway corridor in the Santa Clarita Valley.
The current forecast calls for the HOV lanes on the 5 to open in 2021, the soundwalls to be completed in 2019 and for the additional lane on the southbound side of the SR-71 to be done in 2021 and the lane on the northbound 71 to be finished in 2028.