New transportation district touted as tool for progress

Published 9:50 am Friday, March 4, 2011

It’s a way to beat high construction costs and get transportation projects completed faster. That’s the purpose behind creating a Transportation Improvement District.

And at its Thursday meeting the Lawrence County Commissioners approved the creation of a local TID, making it the 10th in the state.

“They are responsible for the planning and financing of projects in the county that involve transportation,” County Engineer Doug Cade said. “It is very identical to a port authority. It is a financing tool to be able to accelerate construction projects whether county, state or city. A lot of time we have the plans and the specs and don’t have the funding for construction for a project.”

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A TID can enter into an agreement with an entity like the Ohio Department of Transportation that confirms that funding for a project will be available at a future date. However, a TID can go ahead and finance the project itself, by selling bonds or other means, and get the construction under way, even finishing it before the future funds are available. That can keep down construction costs that can escalate from inflation.

Right now the county has a project to put in new guardrails scheduled to be funded in 2015 from the cooperative state transportation program. Before the creation of the TID that project would have been on hold for the next four years.

“We can actually enter into an agreement and fund that project today and get it constructed,” Cade said. “If I didn’t have this, I would have to wait until 2015 for the money to become available.”

The transportation district could accelerate the creation of the long-sought-after second phase of the Chesapeake Bypass, also known as the Tri-State Outer Belt. Right now there is between $2 and $3 million allocated for design work for Phase 2 with a possible $20 million to become available later for right-of-way acquisition.

If the Lawrence County TID could work out an agreement with ODOT, it could fund land acquisition now and get reimbursement in the future.

“That is the whole advantage, to be able to expedite the project,” Cade said. “An another opportunity is the Ironton-Russell Bridge. If they didn’t have enough money to finance, the TID could come up and help with the financing. Instead of killing the project, the TID could actually finance it until ODOT came up with the money.”

The concept for the Transportation Improvement District began in Butler County, where it was used as a pilot project. In 1995, the Ohio General Assembly passed legislation allowing all counties in the state to start their own TIDs.

A five-member panel will oversee the district with two non-voting members, usually state legislators, also on the board. County commissioners appointed Commission President Les Boggs, Cade, County Auditor-elect Jason Stephens, Union Township Trustee Terry Porter and Lawrence Economic and Development Director Bill Dingus.

“I see it as so valuable to the county,” Dingus said. “The state approves the Transportation Improvement District in an effort to develop local capacity. If Lawrence County is ever to be truly great, we have to do it from the grass roots level. We cannot now or ever look to Columbus or Washington to do it for us. We must take the reins in our own hand and make things happen. The Transportation Improvement District gives us that capacity. It will allow us to direct our future, to mold the future, to help bring prosperity to our county.”

Last week ODOT drew up its current budget proposal that would fund the first nine TIDs. With the creation of the Lawrence TID, it could also go into that budget plan.

“That would give us $250,000 for seed money,” Cade said. “It is a great opportunity for Lawrence County to take an active role in planning transportation projects.”