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Collin County may invest $10 million in TxDOT loan
By Dan Eakin, deakin@starlocalnews.com
The Collin County Commissioners Court is considering a proposal to go in with other counties to take over a loan that the Texas Department of Transportation (TxDOT) made to the North Texas Tollway Authority (NTTA) several years ago.
The NTTA continues to make payments on the loan that it had received to build the President George Bush Turnpike. The loan has a balance of about $143 million.
Precinct 4 Commissioner Duncan Webb, who is a member of the Regional Transportation Council (RTC), told the commissioners Monday that TxDOT is now in need of funds. He said representatives of several area counties are considering going in together to get the $143 million and take over the loan.
While Webb and the other commissioners plan for the county to use some of those funds for improvements in various parts of the county, Webb is proposing that the county offer up to $10 million toward taking over the TxDOT loan.
The interest from the loan would be 4 percent, a much higher interest rate than the county gets from any of its other investments. "We usually get only a half-percent to one-and-a-half percent," Webb said.
He originally thought the interest rate would be 6 percent, but even 4 percent would bring in a significant amount of revenue for the county over the next several years. At 4 percent, a $10 million investment would net $400,000 in interest the first year, with lesser amounts each year as payments are made back to the county.
While Webb is proposing up to $10 million, the commissioners could approve a different amount. Webb said he expects a decision within the next couple of months.
In addition to the increase in the interest rate, the county would benefit in another way.
Tracy Homfeld, assistant director of the Collin County Engineering Department, said, "One of the negotiations of the loan is that TxDOT would potentially reimburse the county for the in-house costs related to construction engineering and inspection, affectionately called CE funds by TxDOT folks. This could be a significant amount, but TxDOT folks have not yet determined what that will be."
Webb said he received a positive response from County Judge Keith Self and Pct. 2 Commissioner Cheryl Williams at Monday's meeting. Pct. 1 Commissioner Matt Sheehan and Pct. 3 Commissioner Joe Jaynes were not present.
Webb said that he has been told Dallas County is especially interested in participating in the loan takeover plan, and that other counties in the area are also considering it. He said the counties would have to come up with the entire $143 million for the loan to be reassigned.
The following are comments from the readers.
In no way do they represent the view of Starlocalnews.com
In no way do they represent the view of Starlocalnews.com
collincountyoldtimer wrote on Aug 24, 2012 5:28 PM:
" Just another sign that the NTTA is struggling. What better way to reduce your debt load than to sell it off to the county taxpayers of North Texas.... one piece at a time.! "
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