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State Infrastructure Bank

Road extension expected to spur economic growth

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Construction on the State Road 56 extension began in February and is expected to wrap up in late 2019.

When finished, the new four-lane segment will provide a 6-mile link between Zephyrhills and Wesley Chapel.

The extension will be from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills.

A silt fence is installed as construction gets underway on a section of the new State Road 56 extension. The project will be completed in late 2019. (Courtesy of Florida Department of Transportation)

The road project also will add a 10-foot wide multi-use trail on the south side of State Road 56, a five-foot sidewalk on the north side, and seven-foot bicycle lanes going in each direction.

Traffic signals will be installed at Morris Bridge Road, at the new intersection with State Road 56, and at U.S. 301 where it connects with the new extension.

Major benefits are anticipated for traffic relief and economic development.

“Obviously, this will help relieve the traffic for people back and forth from Zephyrhills to Wesley Chapel, and vice versa,” said Pasco County Commission Chairman Mike Moore.

But, the east-west connection also should remove some traffic from State Road 54, which is clogged with traffic backups daily, he said.

The project has other impacts, too, Moore said, “It will be a huge economic boon to the area. The opportunities will open for more jobs.”

State Rep. Danny Burgess, a former mayor of Zephyrhills, agreed.

“This means everything,” he said.  “It helps in the revitalization of the area. That’s why, when I got to Tallahassee, I fought so hard for four lanes.”

Initial plans were to build a two-lane extension, with the possibility of adding another two lanes in future.

One beneficiary of the road extension will be the Zephyrhills Municipal Airport, which is undergoing significant upgrades. Approximately 440 acres next to the airport is being prepared for future marketing as site-ready for development.

A site evaluation and marketing study completed by Duke Energy in 2015 identified the location, which has a CXS rail line spur, as a prime site for aerospace manufacturing, light industrial and assembly companies, and the plastics industry.

Moore said the State Road 56 project will give the site direct links to Interstate 75 and Interstate 275, and make the site attractive to developers and businesses nationwide.

Florida Department of Transportation officials estimate the project’s cost at about $58 million. Another $8 million in interest is expected.

More than half the funding is from the state transportation department.

The county received nearly $23 million in a 30-year, low-interest loan from the State Infrastructure Bank. The bank provides loans and other assistance to public or private entities for projects that qualify for aid under federal and state law.

Developers for four residential projects along the route agreed to a repayment schedule through county-collected mobility surcharge fees.

As a backup, revenues from gasoline taxes and special assessments might be applied.

The city of Zephyrhills agreed to pay up to 10 percent of annual loan payments – about $1.3 million – to cover any costs not paid by developers.

State transportation officials suggested the state bank loan after residents lobbied during a town hall meeting to scrap the two-lane extension in favor of building four lanes.

Published November 29, 2017

New 4-lane to connect communities

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Pasco County is set to receive a nearly $23 million state loan after state and local officials stitched together a deal for a four-lane extension of State Road 56 from Wiregrass Ranch to Zephyrhills.

The project previously had been intended to build two lanes from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills.

Converting it to a four-lane project will boost the estimated $35 million price tag to about $65 million, including the loan plus interest.

‘We will facilitate a lot of regional benefits. This will definitely benefit all of our (traffic) circulations.’ — Richard Gehring, Pasco strategic policy administrator.
‘We will facilitate a lot of regional benefits. This will definitely benefit all of our (traffic) circulations.’ — Richard Gehring, Pasco strategic policy administrator.

Loan proceeds from the State Infrastructure Bank could be available as soon as April. Construction is expected to start by fall of this year. Completion is expected in 2019, and repayments of the loan would start shortly thereafter.

The project is expected to improve access to Interstate 75 and southeast Pasco, and spur new development in and around Zephyrhills, and its airport. Residents and officials in Zephyrhills have long lobbied for four lanes, arguing that a two-lane road was a major roadblock to redevelopment.

“It’s a major, major public/private partnership,” said Steve Spina, Zephyrhills’ city manager. “It will be an economic boost for the area.”

Pasco County commissioners, on Jan. 12, approved a series of agreements with the Florida Department of Transportation, four developer/landowners, the Cone & Graham construction company and the city of Zephyrhills.

The agreements detail a repayment schedule that allows the county to collect funds from developers and landowners along the corridor through mobility surcharge fees, or special assessments if needed.

“We will facilitate a lot of regional benefits,” said Richard Gehring, the county’s strategic policy administrator. “This will definitely benefit all of our (traffic) circulations.”

Prior to the commissioners’ meeting in Dade City, negotiations had hit a few snags, largely around how to structure the loan’s repayment and who would be liable for cost overruns.

State transportation officials agreed to extend the department’s contract with Cone & Graham, the contractor hired for the initial two lanes. The contractor would cover cost overruns but, in the event of a default, the county and developers would be liable.

Most of the road construction runs through Two Rivers Ranch, and its developers will pay almost $15 million in mobility surcharge fees. River Landing and Wyndfields will yield fees of about $6.8 million and $4.2 million, respectively.

Developers of a fourth community – Wesley Chapel Lakes – had an existing agreement in place, not taking into account additional construction, and will contribute about $2.7 million.

The county would pay most of a potential shortfall of about $1.5 million, with Zephyrhills contributing about $150,000 of that total.

In addition, plans to build a district park in Wesley Chapel Lakes will be abandoned. Because of wetlands, the site was too small, said David Goldstein, Pasco County’s chief assistant county attorney.

Instead, the developer of River Landing will provide parkland co-located with River Landing High School.

“This is going to be a win-win for the school district and the road project,” Goldstein said.

Published January 20, 2016

Loan for State Road 56 no sure thing

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A state loan to build two additional lanes of an extended State Road 56 is in jeopardy, as state and county officials haggle over details of how to repay the estimated $22 million construction costs.

The road project currently calls for a two-lane extension of State Road 56 from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills.

A state loan would allow a four-lane road to be built — which is what residents and city officials in Zephyrhills have sought for years.

Pasco County commissioners will review eight agenda items on Jan. 12 related to the loan application that was made in May to the State Infrastructure Bank. They are facing a deadline on that date to complete an agreement acceptable to the county, the Florida Department of Transportation, area developers, and Cone & Graham, which is contracted to build the first two lanes of the project.

Everything could fall in to place by then, or not.

“Unfortunately, the ball’s in DOT’s corner. They set the deadline,” said Assistant County Attorney David Goldstein. “The deal is going to fall apart, or they are going to have to give us a new deadline.”

Most of the issues with developers and the road contractor are resolved, but state department of transportation requirements on the loan’s repayment are a major sticking point.

Goldstein said the state initially anticipated the county receiving a loan through tax-exempt bonds. But, that places restrictions on how the loan can be repaid, and likely means the county couldn’t pass the burden to private developers through county-collected mobility surcharge fees.

The city of Zephyrhills also agreed to pay up to 10 percent of annual loan repayments, if the county had to dip into its coffers for expenses.

The county had turned to the state bank as a last resort to fund two more lanes on State Road 56.

Unless the state transportation department can shift the county’s request into a loan pool for non-tax exempt bonds, the agreements with developers can’t work, Goldstein said.

The county also has a second concern about potential liability for cost overruns.

Cone & Graham representatives agreed to absorb expenses, if there are cost overruns with building the additional lanes. But, Goldstein said the state transportation department has a caveat. The agency won’t extend that protection in the event the company is fired, and a new contractor hired.

That would leave the county on the hook for unexpected payments.

“We’re hoping FDOT can resolve these two issues, so we can move forward,” Goldstein said.

The idea for the state loan arose after a February town hall meeting in Zephyrhills, where residents and city officials lobbied the department and state lawmakers for help. Many view a four-lane State Road 56 as an economic driver for more commercial and retail development.

Among the largest land tracts along the route is the Two Rivers Ranch, with about 3,500 acres. About half of the 6.7-mile extension would cut through the ranch. Thousands of new homes, shops and industries are anticipated there and within other new developments still on the drawing board including Wyndfields.

One development – Wesley Chapel Lakes in the Meadow Pointe subdivision – is under construction. Based on a prior agreement, the county has received between $300,000 and $400,000 in payments, but might not be able to recoup additional funds, despite the increased costs of road construction.

Published January 6, 2016 

 

Pasco takes first step toward loan for State Road 56

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Pasco County commissioners agreed to at least inquire about a $27 million state loan to pay for an additional two lanes for the extension of State Road 56. But there are concerns that the payback could jeopardize other county road projects.

On May 19, commissioners unanimously voted to submit a letter of interest to the State Infrastructure Bank for a 30-year, low-interest loan. The goal is for developers to shoulder the responsibility for repayment through county-collected mobility surcharge fees. As a back up, revenues from gasoline taxes and special assessments might be applied.

The Pasco County Commission approved a letter of interest for a possible low-interest loan from the state to create a four-lane extension of State Road 56, linking Wesley Chapel with Zephyrhills. (File Photo)
The Pasco County Commission approved a letter of interest for a possible low-interest loan from the state to create a four-lane extension of State Road 56, linking Wesley Chapel with Zephyrhills.
(File Photo)

The Zephyrhills City Council also has agreed to pay up to 10 percent of annual loan payments – estimated at about $1.3 million annually — to cover costs not paid by developers.

Developers have not signed on to any loan agreement, but negotiations will continue as more details are learned about the project’s costs, said Richard Gehring, the county’s planning and development administrator.

The letter had to be sent by May 29 in order for banking officials to consider a loan in the 2016 cycle. The infrastructure bank provides loans and other assistance to public or private entities for projects that qualify for aid under federal and state law.

“We don’t have to accept the loan until we are all comfortable,” Gehring told commissioners.

Preliminary estimates on costs were provided by Cone & Graham, which is under contract to build the two-lane extension planned by the Florida Department of Transportation. But the final amount could be lower than $27 million, Gehring said.

Current plans are to extend State Road 56 from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills, as a two-lane road.

City officials and residents of Zephyrhills have lobbied intensely for a four-lane road into the community, but state highway officials say there are no funds for the extra work.

The low-interest state loan was proposed as a method of payment following a February town hall meeting in Zephyrhills to discuss transportation issues. Gehring and Assistant County Attorney David Goldstein made a presentation to the Zephyrhills’ City Council on May 11 regarding the city’s role in repaying the loan.

“They are certainly committed to wanting to see this built,” Gehring said.

Commissioners Mike Moore and Mike Wells saw little risk in moving forward on the loan. Moore noted that the loan repayment could be deferred for five years.

Wells said the loan was “an opportunity to be proactive not reactive here. It sounds like there is really a low risk.”

But there also was skepticism.

“Do we know what impact it could have on other projects?” said Chairman Ted Schrader. He cited roadwork on U.S. 41 and State Road 54 as essential to keep up with Pasco’s growth as more subdivisions are built. A proposed overpass on the north side of Zephyrhills also is critical, he added.

“I don’t want to see that project jeopardized for this one,” Schrader said.

As the conduit for the loan, Goldstein said the county could wind up repaying the loan temporarily while waiting to collect fees from developers. County staff members are still crunching budget data for fiscal year 2016, including estimates on some road projects including State Road 54 and U.S. 41.

Schrader restated his objections, saying $1.3 million would be a significant amount of money to lose from the county’s capital improvement budget.

“I don’t think it would have a devastating impact, but we’re still working on the issues,” Goldstein said.

Commissioner Kathryn Starkey expressed support for road improvements in Zephyrhills but, like Schrader, held up State Road 54 and U.S. 41 as priorities, along with the overpass.

“I very much want to see us work with Zephyrhills,” she said. “I think we have great potential for growth on that side of the county…that will add to our tax base. (But) I’m going to keep harping (State Road) 54 and (U.S.) 41. That intersection is going to get worse and worse with no solution in sight. Developments are popping up along that route. It really concerns me.”

Published May 27, 2015

State loan may help widen State Road 56

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The Pasco Commission agreed that a low-interest state loan to fund the widening of additional lanes on State Road 56 is worth exploring, if developers take responsibility for paying it back.

Commissioners voted unanimously to direct county administrators and staff members to gather details about the loan and prepare a letter of interest to be sent to the State Infrastructure Bank. The letter must be submitted by May 29 for state officials to consider granting a loan in its 2016 cycle.

‘I do have some reservations. People here believe growth should pay for itself.’ – Pasco County Commission Chairman Ted Schrader
‘I do have some reservations. People here believe growth should pay for itself.’ – Pasco County Commission Chairman Ted Schrader

The infrastructure bank provides loans and other assistance to public or private entities for projects that qualify for aid under federal and state law.

Commissioners are expected to vote on the matter at their May 19 meeting.

“There’s a lot of details that need to be worked out on this,” said Assistant County Attorney David Goldstein.

Goldstein and Richard Gehring, the county’s planning and development administrator, sought permission at the commissioners’ May 5 meeting to pursue the loan option.

A lot of staff time will be needed, Goldstein told commissioners.

“I think this is a regional road, not a local road, and will be a benefit for the entire county,” said Commissioner Mike Moore. “There may be options, many ways the loan can be packaged.”

But commissioners also had concerns about potential costs and who would be held accountable for repaying the loan.

“I do have some reservations,” said Chairman Ted Schrader. “People here believe growth should pay for itself.”

Gehring said the county would be the lead applicant for the loan but would collect repayment funds from developers through mobility surcharge fees and potentially special property assessments.

County officials hope the city of Zephyrhills will agree to pay 10 percent of the annual loan payments not covered by developers’ contributions.

The Zephyrhills City Council was expected to discuss the matter at its May 11 meeting.

The state loan option arose out of a February town hall meeting to discuss transportation issues. Since then county officials, State Sen. John Legg, State Rep. Danny Burgess and state highway officials have had additional meetings on the loan plan.

Current plans are to extend State Road 56 from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills, as a two-lane road.

Zephyrhills’ residents and city officials have pushed for the additional lanes as a boost to the area’s economy. They also have said it would be less costly to build four lanes now rather than later.

Gehring said the agreement might be crafted along the lines of a similar one that paid for roadwork for the Villages of Pasadena Hills. In that instance, the Florida Department of Transportation and developers each paid for two of the four lanes built to accommodate increased traffic generated by the development project.

If needed, other funding sources could be tax increment financing and gasoline taxes.

However, Gehring cautioned commissioners that if these funds were used, the county might have to defer other road projects.

Commissioners said developers should bear the burden of repaying debt from the project.

“Other developers have already been paying,” said Commissioner Kathryn Starkey.

Published May 13, 2015

 

State loan could pave way for four-lane State Road 56

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The money isn’t in anyone’s bank account yet, but a state loan program might be the solution to fund the widening of State Road 56 to four lanes from Wesley Chapel to Zephyrhills, according to a press release from State Rep. Danny Burgess and State Sen. John Legg.

The lawmakers, in consultation with the Florida Department of Transportation staffers, including Secretary Jim Boxold, are looking to the State Infrastructure Bank as a potential source for a low-interest loan.

A low-interest loan from the state may be a way to create a four-lane extension of State Road 56, which now ends in Wesley Chapel over to Zephyrhills. (File Photo)
A low-interest loan from the state may be a way to create a four-lane extension of State Road 56, which now ends in Wesley Chapel over to Zephyrhills.
(File Photo)

The loan could be made to Pasco County for the cost of building additional traffic lanes.

The infrastructure bank provides loans and other assistance to public or private entities for projects that qualify for aid under federal and state law.

To start the process moving, a letter of interest must be submitted by May 29 for the loan to be included in the bank’s 2016 cycle.

“This is a much needed project,” said Burgess. “It’s important for economic growth to our area, a benefit that affects all of Pasco and all of the region.”

County officials plan to meet with state officials on April 16 to get details on how the loan would work.

“We’re still in early stages of exploring this,” said David Goldstein, Pasco’s assistant county attorney.

To many, the four-lane extension is a decade-long unfulfilled promise.

“I’m afraid if we let this go by now, it will be another decade,” said Charles Proctor, president of the Zephyrhills City Council and a long-time Zephyrhills’ business owner.

Current plans are to extend State Road 56 from Meadow Pointe Boulevard in Wiregrass Ranch to U.S. 301 in Zephyrhills, as a two-lane road. Even for this two-lane project, money is an issue because land from adjacent landowners must be purchased for right-of-way.

If the state paid for four lanes, state highway officials said some other project on Pasco’s list likely would not get done.

The low-interest loan could be a way to avoid that scenario, but the effort to secure a loan faces hurdles including buy-in from the county and state, as well as from property owners and developers along the planned extension.

“This cannot get done unless the state, the county and the private sector come together for the benefit of our East Pasco county residents,” stated Legg in the press release.

The city of Zephyrhills is pressing its case.

As recently as mid-March, all five Zephyrhills’ council members, Mayor Gene Whitfield and City Manager Steve Spina headed to Tallahassee to lobby for four lanes as a priority for State Road 56.

This followed a February town hall meeting where area residents, elected officials and business owners met with Burgess, Legg and Goldstein to plead for construction of four lanes, not the current two lanes being planned. Legg raised the possibility of state funds being repaid with a loan but didn’t think the state had a mechanism for such a transaction.

Goldstein said he had some familiarity with the state bank, having explored its use for other county projects. He broached the subject at the meeting’s conclusion to Debbie Hunt, transportation development director for the Florida Department of Transportation. “She ran with it,” he said.

Since then the county has had ongoing discussions with developers and property owners whose land could bring thousands more homes as well as retail and industrial development to the area. Among the largest land tracts is the Two Rivers Ranch with about 3,500 acres. About half of the 6.7-mile extension would cut through the ranch.

“The county is not interested in putting a lot of money into this. It’s a state road,” Goldstein said. “There are a lot of other priorities. If there is a loan, we expect developers to pay it back. We might be a conduit.”

Before the Pasco commission can sign off on anything, Goldstein said there are a lot of details that must be worked out including how much money would be needed, terms of the loan and, most importantly, who would be responsible for the payback.

Spina applauded the new effort to find a solution.

“I think it’s pretty inventive of them to come up with an idea like this to find the money,” he said.

It makes more sense, Spina said, to do four lanes now and not wait five or more years when the project likely would be more costly.

Proctor envisions a major economic boost to the area’s commercial development if the four-lane road is built. He has heard from business owners who would like to locate in Zephyrhills and surrounding areas and from owners who would consider expanding operations, if there was an improved road for getting in and out of the city.

“I see nothing but positive,” Proctor said.

Published April 15, 2015