SANDAG officially takes over South Bay toll road

The once-troubled South Bay Expressway toll road is now in public hands.

Closing for the sale to the San Diego Association of Governments took place this morning at the regional planning and transportation agency's offices on B Street, Downtown.

Starting Dec. 22, SANDAG becomes the operator of the 10-mile toll road in South Bay.

The SANDAG Board of Directors voted Dec. 16 to purchase the franchise agreement from a consortium of banks which acquired ownership in April as the SBX emerged from bankruptcy.

The base sales price is $341.5 million – about a third of what it cost a private company to build it. Additional costs include about $10.2 million in closing fees.

According to SANDAG board chair Jerome Stocks, "In the coming months, the Board will move to cut the tolls, bringing congestion relief to South Bay decades sooner than previously planned, removing the need to build other facilities elsewhere, and saving $268 million in taxpayer money.”

SANDAG's stated long-term goal is to eliminate all tolls from the road, once the debt is paid off.

The savings comes from not having to build two of four planned lanes on nearby Interstate 805. SANDAG expects lower fares on the SBX to take the pressure off traffic congestion on I-805.

Construction begins in 2012 on two express lanes on I-805.

For the immediate future, drivers will see no change to the toll road's operation. The agency has contracted with the previous owner to keep staff and operations intact for the next six months during the transition to public ownership.

In January, SANDAG and the State Department of Transportation will begin the process of reworking the franchise operating agreement for the toll road, which expires in 2042. Caltrans' local division director Laurie Berman has indicated that most of the changes will reflect the transition from private to public operation. She recently said that there are no major differences between the two agencies to resolve.

SANDAG will also schedule hearings on the transfer of $198 million in TransNet funds from the I-805 expansion to pay down its debt on the expressway purchase. SANDAG staff say this"swap" will enable the agency to lower tolls by as much a 50 percent.

The South Bay Expressway runs for 10 miles through eastern Chula Vista from State Route 905, near the Otay Mesa Port of Entry, to State Route 54 near the Sweetwater Reservoir. Tolls are $2.50 to $4 for cash customers, less for FasTrak users.