County Paves Way For SH 249 Construction

CONROE, TX — County Judge Craig Doyal said a financial analysis of a draft traffic and revenue study for the proposed SH 249 shows the project is highly viable, with the proposed revenue from projected traffic counts easily paying for the project.

The Montgomery County Toll Road Authority is going to fund the multi-million-dollar project with revenue bonds purchased by investors.

The MCTRA 249 Tollway Comprehensive Traffic and Revenue (T&R) Study, produced by CDM Smith, is what the authority will use to help sell the bonds that will fund project costs.

The draft report should be finalized in coming weeks, and no significant changes are anticipated.

“I am pleased with the results of the draft study, and it supports what I have said all along – this is a good and needed project for southwest Montgomery County, and demand for this road will easily pay for its construction,” said County Judge Craig Doyal.

“This project will be highly successful, and with this study I have zero concerns about its viability,” said Precinct 2 Commissioner Charlie Riley.

According to Terrell Palmer, the financial adviser for MCTRA, “We think the study illustrates the toll road revenues are sufficient to earn a high rating; we would call these investment grade bonds.”

Judge Doyal said, “The real decision going forward is what will be done with the excess funds after payoff of the bonds. Do we continue tolls to pay the ongoing maintenance, do we invest in additional roads and infrastructure in that same area of southwest Montgomery County, or do we try to reduce the tolls, or eliminate and call in the bonds?

“Those are decisions a future Commissioners Court will need to examine.”

Among the study’s findings:

• The study indicates the project will generate in excess of $400 million in revenue in its first 20 years, from 2020 to 2040 – more than enough to pay for the bonds needed to finance the toll road authority’s segment of 249, including a plan to add a third lane in each direction.

• This project is a planned three-mile extension of HCTRA’s 249 Tomball Tollway from the Harris County Line to Woodtrace Boulevard and is assumed to open to traffic January 2020. Furthermore, it is a three-plus-mile section connecting TxDOT’s SH 249 Tollway with HCTRA’s 249 Tomball Tollway.

• HCTRA’s 249 Tollway is open to traffic from Spring Cypress Road to FM 2920, and is currently exceeding prior traffic projections completed before opening. HCTRA is extending the 249 Tomball Tollway from FM 2920 to the Montgomery County Line.

• Annual transactions are expected to be 4.4 million in 2020 and are projected to increase to more than 13.6 million in 2030 and 22.9 million in 2040. This represents a growth of 11.8 percent per year in transactions for the ten years following 2020 and 5.3 percent per year for the period between 2030 and 2040.

• With the projected annual growth in traffic and the assumed annual toll increases, revenue is expected to grow at an average rate of about 11.4 percent per year between 2020 and 2040, from $5.0 million in 2020 to $43.8 million in 2040. It is important to note that growth in traffic and revenue on this facility is highly dependent on future developments in the corridor. It is also important to note the study specifically excluded a Woodlands Parkway extension and any impact that roadway would have if it is ever built. Changes to the rate of development growth from the study assumptions will result in changes to the traffic and revenue presented.

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