The N.C. Turnpike Authority sold $624 million in bonds Monday and Tuesday to complete its financing for the state’s first modern toll road, which is expected to start construction by early August in the center of the Triangle. [Wednesday update: see today's story with reader comments.]
Demand for the bonds was better than expected, creating more favorable terms that will let the turnpike agency pay off its debt – and quit collecting tolls on the 18.8-mile Triangle Expressway – several years sooner than originally planned.
The $624 million bonds will carry a term of 30 years, instead of a 39-year repayment schedule that had been planned. A federal loan of $386 million, approved last week to finance the rest of the project, is to be repaid in 32 years.
“It was far better than our expectations,” said David W. Joyner, the turnpike authority’s executive director. “We actually saved some money because of the strong offering.”
The turnpike authority will pay an interest rate of around 4.3 percent for the money, better than the 4.7 percent rate that had been expected a few weeks ago.
That marks a favorable reversal of fortunes for the agency, whose original plans to sell the bonds last fall were thwarted by the credit meltdown on Wall Street.
After the transactions clear and the money is in hand on July 29, the turnpike agency will be ready to sign contracts with two firms that were low bidders last August for the Triangle Expressway, which will be constructed in two pieces.
S.T. Wooten Corp. of Wilson will build the 3.4-mile Triangle Parkway through Research Triangle Park for about $137 million. A three-state partnership known as Raleigh Durham Roadbuilders will construct the 12.6-mile Western Wake Expressway, extending the 540 Outer Loop south from RTP to Apex and Holly Springs, for about $446 million.
The turnpike authority still has to buy about 800 acres of land needed for the Western Wake Expressway, at a cost estimated last fall around $227 million.
The new road is expected to open to traffic by late 2011 in RTP and by late 2012 between RTP and Holly Springs. It will be one of the nation’s first toll roads built without coin collection booths, with all tolls to be collected electronically.
Drivers will qualify for a low rate if they purchase electronic transponders and open acounts with the turnpike authority. Video cameras will record license numbers of other vehicles, so their owners can be billed by mail at a higher toll rate.
Bruce Siceloff reports on traffic and transportation. A News & Observer reporter and editor since 1976, he took over the 
Comments
All who drive into RTP from
Thu, 07/30/2009 - 22:34 — ctillAll who drive into RTP from North Raleigh and use the Davis Drive exit from NC 540 will have to pay a toll for the privilege of continuing to do so. Sadly, the NC General Assembly gave away this segment of taxpayer-funded highway to to the turnpike authority, who claimed that they could not make the overall project fly without fleecing us for tolls on a road we've already paid for.
2 Words
Wed, 07/15/2009 - 08:52 — CaniacGuyFlying.
Pigs.
Once a toll, always a toll
Wed, 07/15/2009 - 07:21 — richinraleighToll roads never get paid off. They will issue new bonds prior to these being paid off for maintenance, repairs, modifications, etc. I hope others in this area, like me, will avoid this road at all costs.
Raleigh won't be a ghost
Tue, 07/14/2009 - 23:19 — davetRaleigh won't be a ghost town at all. I don't think Raleigh itself will ever be a big, dense city with a compelling center like New York, Chicago or San Francisco but both Raleigh and the area will continue to grow rapidly and attract a lot of people.
Once a toll, always a toll.
Tue, 07/14/2009 - 23:15 — davetOnce a toll, always a toll. At least you're getting it built and there are no booths.
So, How much is the other 30 miles that is unfunded Yet?$$
Tue, 07/14/2009 - 21:34 — JoeGovernmentWo...Why is it? No one seems to mention the other 30 miles is not yet funded, going to cost? The money for the other 30 miles will probable cost another $2 Billion at the rate the NC Turpike authority is spending money.
TOLL ROAD
Tue, 07/14/2009 - 15:02 — VIPER1Raleigh will most likely be a ghost town in 20 years !
Where's the rest of the money go?
Tue, 07/14/2009 - 14:46 — bendalFrom this article, the money from the bonds and Federal loan is being distributed like this:
Build Triangle Parkway: $137 million
Build WW Expressway: $446 million
R/W purchase: $227 million
Add those up and you get $810 million. The Federal loan and bond issuance comes to $1.01 BILLION, a difference of $200 million. What is that $200 million going to?
Thirty two years, Guess
Tue, 07/14/2009 - 14:39 — henryeThirty two years, Guess again I have been living in central Fl for thirty two years and they just went up on the toll to one dollar, so dream on while you can. when I lived in Miami in the 1960s the idea was to build the roads and once they were paid for they would be returned for public use , That has not happened either