Governor Bob McDonnell announced today that a critical link of Gloucester Parkway in Loudoun County and the Route 460 project in southeastern Virginia will move forward as a result of financing provided by the Virginia Transportation Infrastructure Bank (VTIB).
The Commonwealth Transportation Board (CTB) voted to approve applications for both projects, totaling $160 million, through the infrastructure bank. It issues low-interest loans to fast-track high priority projects. The infrastructure bank is part of the governor's $4 billion transportation package passed in 2011 by the General Assembly.
"Much needed transportation projects can accelerate toward construction with financial assistance from the Virginia Transportation Infrastructure Bank," said Governor McDonnell. "The bank provides a resource that public- and private-sector entities can use to finance projects so they can be built as soon as possible to relieve congestion, provide better transportation and stimulate the economy in the near-term instead of waiting years into the future."
Gloucester Parkway and Pacific Boulevard Extension in Loudoun County
The CTB approved an $80 million VTIB loan application submitted by the Loudoun County Industrial Development Authority. The loan request is in collaboration with Kincora/NA Dulles Real Estate Investor LLC to finance an extension to both Gloucester Parkway and Pacific Boulevard, considered the number one transportation priority for Loudoun County. The project will relieve severe congestion on Route 7, Route 28 and Waxpool Road.
The loan will completely finance the three-phase project. Construction is scheduled to finish by the end of 2014:
Phase 1 -- Extend Pacific Boulevard north at its intersection with Gloucester Parkway
Phase 2 -- Extend Gloucester Parkway west from its intersection with Pacific Boulevard to Loudoun County Parkway
Phase 3 -- Extend Pacific Boulevard north at Russell Branch Parkway and another extension south to Severn Way
The loan will be repaid by special assessments on residential and non-residential property.
85 Connector/Route 460 Corridor Improvement Project
The CTB also approved a second $80 million VTIB loan application submitted by the Office of Transportation Public Private Partnerships, in cooperation with the Virginia Department of Transportation, to enhance the financing of the 85 Connector/Route 460 project.
The project is a new 55-mile four-lane highway to be located south and parallel to the existing Route 460. The road will be operated as a toll road and the design, construction and financing will be procured through the Public-Private Transportation Partnership Act.
Financial close on the project is scheduled for December 2012 with construction anticipated to begin next year once all financing is in place.
Chesapeake became the first entity to receive a loan from the infrastructure bank earlier this year. The VTIB, initially funded with $283 million from the fiscal year 2010 surplus and savings from the VDOT performance audit, is designed to make low-interest loans and grants to localities, transportation authorities and private-sector partners for transportation projects.
Secretary of Transportation Sean Connaughton said, "The infrastructure bank offers low interest rates and an incredible opportunity to fast-track projects that are needed now."
"We are leveraging all resources to get projects, people and traffic moving," added VDOT Commissioner Greg Whirley. "The infrastructure bank is accelerating three important projects, which will ultimately benefit motorists and the economy."