Wells Branch Parkway woes

Wells Branch Parkway woes

Written by Beth Wade Friday, 07 December 2007

After six years of back and forth between the City of Austin, Travis County and private developers, part of a project to expand Wells Branch Parkway is expected to be up for bid in December, with construction following soon after, said Steve Manilla, Travis County public works director.

In 2001, money was approved in a Travis County bond election to build a portion of the project from Heatherwilde Boulevard to Tudor House Road, along with a new segment of Heatherwilde Boulevard.

“My biggest concern was people had voted on it, and it’s been on the books all those years,” said Gloria Wuthrich, a Pflugerville resident who donated part of her land for the project right-of-way. “They kept putting it on hold.”

The county Wells Branch Parkway project has three sections of roadway, including phase one (Wells Branch Parkway and Heatherwilde Boulevard), phase two (Wells Branch Parkway from Immanuel Road to Killingsworth Lane) and phase three (Killingsworth Lane to Cameron Road).

Phase one is expected to cost $13 million and is now funded approximately half by the county and half by private developers.

Problems with negotiations between four government entities and private developers for money and design have caused the delay, according to the county.

“We’ve had three developers working with numerous other parties, particularly with the county and city,” said Phil Spertus, a developer with New Wells Point Partners, Ltd., which is helping fund phase one. “In general, they have been very good to work with, it has just been a complicated process. The complication is why it took so long, but I don’t think any implication that the county or the city mishandled it would be accurate. They were working in good faith to move it forward.”

The 2001 bond approved $5.1 million for the project, but the county knew at the time it would not be enough and sought more funding through public-private partnerships and leftover funds from previously completed bond projects.

The average cost for road construction is approximately $1 million per lane mile. Each additional lane, mile or amenity including bike lanes, curbs, gutters or streetlights keep adding to the bill, Manilla said.Due to the rising costs of materials coupled with the price of gas, construction projects require more funding than before.

New funding methods

The increased need for funding has driven the commissioners to begin new methods to help cover costs, including public-private partnerships with developers and private landowners.

“The reason we are looking at public-private partnerships is because Travis County…particularly in Pflugerville, is growing so fast that the tax base can’t keep up with the demand for additional pavement,” said Travis County Precinct Two Commissioner Sarah Eckhardt.

The public-private partnerships do have advantages, one of which is helping the county find ways of funding road projects when property tax revenue does not come fast enough, Eckhardt said.

“We were relying on property tax, and property tax grows after the fact, and makes it very difficult to meet demand as the demand arises,” Eckhardt said. “All it is is another form of taxation, and the best kind of tax is on those who can afford it and stand to gain from it. The bottom line is [that] we wouldn’t have been able to do the Wells Branch extension without a public-private partnership.”

Eckhardt acknowledges a definite downside to the partnerships: Wells Branch Parkway phase three still lacks funding.

“Private entities may have deep enough pockets and a long enough event horizon that they can wait out the government,” she said. “Other states use impact fees and require every development to contribute to infrastructure based on the load they will put on that infrastructure with that development, but we don’t have the statutory authority to do that. So, we rely on the goodness of private entities to participate.”

Travis County and other government entities will have to find ways of funding road projects, Eckhardt said, but she sees another solution that must be resolved through the Texas Legislature.

“Impact fees would be a far more equitable way to distribute the burden than public-private partnerships, but we don’t have that authority,” Eckhardt said.

Once the county has decided to pursue a road project and voters support it with a bond election, the road must be built, Manilla said. However, in the case of the 2005 election, the bond language contained a clause that said if the county’s negotiations with private developers fell through the money would be reallocated to a different bond project.

That is what has happened for phase three. Along with another delayed project, its financing went to a project on Braker Lane. The remaining $1.5 million was put into an unallocated project or contingency fund to be used in the future for other projects.

No plans for funding are scheduled at this time, but Manilla is seeking assistance from the Capital Area Metropolitan Planning Organization. If that does not happen, phase three will require another bond election.

Partnership challenge

To help offset the rising costs of building new roads, Travis County has formed partnerships. However, those partnerships also come with negotiation delays. The agreement between the City of Austin, Travis County and three private developers determines the amount each entity will pay for phase one of the Wells Branch Parkway project. The road includes 3,000 ft., which belong to Austin, and 10,000 ft., which is the county’s jurisdiction. The estimates will change once the project is bid in December.

Source: Travis County Public Works Director Steve Manilla

When a project does not happen

If voters approve road projects with bond funding, then the money must be used for those roads, according to Travis County staff.

However, that is not the case for portions of Wells Branch Parkway because in the 2005 election, the bond language contained a clause that said if the county’s negotiations with private developers failed the money would be reallocated to other projects.

Phase One

• Status: Bidding begins in December with construction starting as early as January. It will take 15 to 18 months to complete. It was designed as a six-lane road, but will be built as four lanes.
• Funding: City of Austin, Travis County, New Wells Point Partners, Ltd., Village at Northtown, Ltd., Sealy Heatherwilde L.P.
• Estimated cost: $13 million - Included in 2001 Travis County bond election. (Remaining money from the 1997 bond also used).

City project

• The City of Pflugerville completed the four lane portion from Tudor House Road to Immanuel Road this summer. Travis County Commissioner Sarah Eckhardt credits Pflugerville with a speedy completion of its portion.

Phase Two

• Status: Two lanes completed. To add two more lanes, future bond funding is scheduled for 2009 or 2010 elections.
• Funding: Travis County
• Estimated cost: $1.74 million - Included in 2001 Travis County bond election.

Phase Three

• Status: Originally planned for construction with 2005 bond money, the funds for phase three were reallocated to another bond project. Developers decided not to participate because of a downturn in the housing market. To be built, it will require funds from a future bond election. The project would include financing for the two lanes of phase two still not built.
• Funding: Travis County is seeking funds from the Capital Area Metropolitan Planning Organization to complete.
• Estimated cost: $10 million - Included in 2005 Travis County bond election.