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Implementation Plan

Public Sector Management of the Grand Parkway Program

Harris County, acting as the representative for a seven-county coalition consisting of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, and Montgomery Counties (collectively, “the Counties”), is currently leading the development of the Grand Parkway Program. This institutional arrangement (frequently referred to as “Local Primacy”) is defined in Senate Bill 792 (SB 792) which was passed by the 80th Session of the Texas Legislature. Local Primacy regulations—now contained within the Texas Transportation Code—grant a county (or its local tolling authority) the first option to finance, construct, and/or operate and maintain, the portion of a toll project located in its jurisdiction.

In accordance with the terms of Local Primacy, the Counties, and TxDOT agreed to Terms and Conditions outlined in a Market Valuation Waiver Agreement on March 25, 2009, which include the following provisions:

  1. The Counties have a period of up to six (6) months from March 25, 2009, to exercise Local Primacy with regard to the Grand Parkway Program (e.g., for the Counties to lead the development of the Grand Parkway Program).
  1. If the Counties exercise primacy, they must begin construction of certain specified segments of Grand Parkway in accordance with a predetermined phased-implementation schedule (e.g., Segments are developed in a typically sequential manner that may include a minimum initial scope followed by an ultimate build-out).


Implementing the Grand Parkway Program

The Counties are considering implementation of the Grand Parkway Program in accordance with the following guidelines:

  1. A Local Government Corporation (LGC) will likely be formed by the Counties to administer the Grand Parkway Program as provided for under Texas statute.
  1. The Grand Parkway Program will likely be developed through a Public Private Partnership (P3).
  1. The Grand Parkway Program P3 will reflect the special requirements of the region.
  1. The Grand Parkway Program will be developed in segments taking the following criteria into consideration:
     
    • Environmental clearance has been achieved prior to construction start.
     
    • A Master Developer is selected and executes Commercial Close with LGC.
     
    • The Master Developer (or affiliate thereof) executes Financial Close.

      Proposed Organization Structure Coming Soon