Roads get first dib, rail coming fast

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buy this photo CRAIG DILGER/Daily Herald A cyclist wheels her bicycle onto the UTA Front Runner train to Ogden from Salt Lake City on Thursday, July 31, 2008.

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  • Roads get first dib, rail coming fast

Utah County is desperate enough for roads that officials are willing to use sales tax money meant for transit to cover its construction debts -- and likely pay millions in interest in the process.

Commissioners recently got an advance from the Utah Transit Authority for about $55 million total over the next three years to boost the building of roads that are needed as Interstate 15 alternatives. The freeway will be undergoing massive expansion beginning as early as next year. It will be the most expensive road project in state history.

The advance is actually better financially than trying to bond for the money, says Commissioner Larry Ellertson, and I-15 construction is happening sooner than they expected.

"It's a blessing but a dilemma that we're now trying to get more money in a shorter time frame," he said.

Up-front money

The county needs about $60 million for several roads, including a north-south road off Exit 275 that runs through Pleasant Grove, American Fork, Cedar Hills, Highland and Alpine. The other road is an east-west road that will connect Redwood Road and I-15 through Lehi along 10th South.

To get the bulk of the money, commissioners cut a deal to use revenue from a quarter-cent sales tax meant mostly for transit projects.

It works like this:

• The tax breaks down to 8 percent for roads, 87 percent for commuter rail and 5 percent for "other" transit.

• The county brings in $17 million to $18 million a year from the quarter-cent tax. They want to use the entire amount for the next three years on roads.

• UTA (which normally gets 93 percent of the money) is willing to allow that as long as the commission pays 5 percent interest on the amount it re-allocates.

• The payback will likely take decades and cost millions of dollars in interest. Ellertson says that's not as bad as it sounds because the county is saving money building the roads now instead of in the future when construction costs will most likely be higher.

Impact

UTA officials see the deal as one that won't delay transit projects like commuter rail and may even benefit transit in the long run by improving connector roads to rail and bus hubs. The sales tax revenues are usually used for bonding for large products. Commuter rail in Utah County (dubbed FrontRunner South) is tied into five rail projects in Salt Lake County.

"This has been structured so it doesn't hurt UTA," said attorney Bruce Jones. "We have a very complex financial model."

In fact, UTA is planning a Utah County groundbreaking this month at Thanksgiving Point for FrontRunner South. While construction is scheduled for completion by 2015, Jones said a more likely date is late 2012.

Juggling roads and transit in the next several years is going to be tricky but necessary, Ellertson said, as the county's population continues to boom.

"We want both."

Planned FrontRunner stops

• Salt Lake City: 200 S. 600 West

• Murray: Vine Street/5300 South

• Sandy/South Jordan: 10200 South

• Draper/Bluffdale: Bangerter Highway

• Lehi

• American Fork: Main Street

• Vineyard

• Orem: University Parkway

• Provo: University Avenue

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