Thursday, October 08, 2009

"TTC-35 will get the most expensive funeral of any project in state history."

Gilbert Warns That State Is Still On Hook For TTC Billions

Says Already Tight State Budget Could Take Serious Hit

Oct 07, 2009

Hank Gilbert for Governor
Copyright 2009

Link to Comprehensive Development Agreement – TTC-35 High Priority Corridor (03/11/05) courtesy of Corridorwatch.org.

TYLERAlthough the Texas Department of Transportation is claiming the controversial Trans Texas Corridor is dead, Democratic Gubernatorial Candidate Hank Gilbert today warned Texans that the state is still likely on the hook for billions for terminating its contract with the company hired to build TTC 35.

Gilbert, who led the charge to kill the Trans Texas Corridor over the last several years and co-founded Texans Uniting for Reform and Freedom, an anti-toll road organization with San Antonio activist Terri Hall, says the TTC will get the most expensive funeral of any project in state history.

“At a time when our state budget is already stretched to the limit, I’d love for Governor Perry to tell us where the money is going to come from to pay off Cintra-Zachry for terminating this contract. They’ve already paid the state $1.2 billion in concessions to develop this giant land grab. You can’t tell me they aren’t going to get that—and more—back from the state and Texas taxpayers,” Gilbert said.

Cintra, a Spanish-owned company, partnered with Texas-based H.B. Zachry Construction to bid on and ultimately win the contract to build TTC 35, which the Texas Department of Transportation today announced was dead. TxDOT made a similar pronouncement in January.

“This is the second time TxDOT has allegedly killed the Trans Texas Corridor. Vampires die quicker than Rick Perry’s transportation policy,” Gilbert said. “I suspect the reason the death has been so slow is because the state has been wondering exactly how it will pay to terminate the agreement,” Gilbert said.

“Rick Perry’s debacle will cost the state a minimum of between $750,000 and $3.5 million dollars plus fees, charges, and penalties which could run into the hundreds of millions. It could take teams of lawyers and accountants months to determine the true dollar impact,” Gilbert said.

“The Comprehensive Development Agreement between TxDOT and Cintra-Zachry has paragraph after paragraph of termination clauses—including clauses relating to TxDOT terminating the contract for ‘convenience.’ The big question right now that no one is asking is how much this is going to cost Texans,” Gilbert said.

“Rick Perry made the TTC a centerpiece of his election campaign in 2002. Now, in 2009, as he is in another fight for his political life, he’s stopping it—or so he says. He develops and ditches transportation policy based on his level of panic related to whether or not he is going to be beat at the polls. That’s not sound policy, that’s political opportunism,” Gilbert said.

TxDOT’s decision to ditch the TTC comes on the heels of the announcement that the Texas Farm Bureau AgFund PAC was endorsing Perry’s opponent, U.S. Senator Kay Bailey Hutchison, in the GOP Primary. “There is no way that is a coincidence,” Gilbert said.

Gilbert also noted that Hutchison was far from blameless when it comes to Texas’ transportation woes.

“Senator Hutchison voted for SAFTEA-LU in 2005. This bill might as well have been captioned as enabling legislation for Rick Perry’s colluded vision for transportation policy in Texas. It designated 80 plus trade corridors including those that were part of the TTC plan, and gave the states the option to toll existing Interstate Highways. Her opposition to toll roads is, at best, insincere,” Gilbert said. “Those corridors will remain until Congress kills them. I don’t see Kay Bailey Hutchison introducing any legislation to that effect,” Gilbert noted.

“I would like to say this is a good day for Texas, because it appears that the hard work of myself, Terri Hall, and the 300,000 plus members of TURF, as well as the American Stewards of Liberty—all organizations who worked hard to kill the TTC—seems to be paying off.

But, it is the other payoff I’m worried about. I’m worried about Texas citizens now being on the hook to payoff Cintra-Zachry because Rick Perry allows his transportation policy to mirror his level of electoral panic,” Gilbert said. “It is a good day for the men and women who own hundreds of thousands of acres this mammoth highway would destroy, but a dark cloud still hangs over the state in fiscal terms,” he continued.

FACT SHEET

The Trans Texas Corridor: Brought To You By Rick; Enabled By Kay; Killed By Hank, TURF & American Stewards Of Liberty

TxDOT Has Already Spent Millions Developing The Now Dead Corridor. As of the end of FY 2008, TxDOT had spent at least $131 million on the Trans Texas Corridor, not including “indirect” costs. (Austin American-Statesman, January 9, 2009)

TTC 35 Is Dead, But How Big Are The Costs? TxDOT’s agreement with Cintra-Zachry to build the TTC 35 Corridor includes numerous clauses related to the termination of the development agreement, including a clause relating to TxDOT scuttling the project out of “convenience.” (Texas Department of Transportation TTC-35 High Priority Corridor Comprehensive Development Agreement, Conformed for Execution, 289215v22, March 11, 2005)

What About The $1.2 Billion? Cintra-Zachry (a consortium led by Texas-based H.B. Zachry Construction and Spanish company Cintra Concesiones de Infraestructuras de Transporte) paid the state $1.2 billion for the right to design, construct, and operate for up to 50 years a four-lane, 316 mile toll road running from the Dallas area to the San Antonio area. The proposal required the transfer of the right to build and operate TTC 35 as a toll road from the state to Cintra-Zachry. Now that TTC 35 is ‘dead,’ what happens to the $1.2 billion dollars? How much of a bill will Texans be responsible for?

The TTC Would Have Decimated Farms Across Texas. The Trans Texas Corridor was envisioned as a long-range plan for 4,000 miles of tollways, passenger, and freight rail lines. It was envisioned as up to 1,200 feet wide. The Austin American-Statesman called the TTC “a pasture- and cropland-consuming prospect that helped spark widespread opposition to the plan in rural Texas.” (Austin American-Statesman, January 9, 2009).

The Trans Texas Corridor Is Rick Perry’s Political Vampire. This is at least the second time the state has proclaimed the Trans Texas Corridor as being “dead.” In spite of a major media event in Austin today to read the TTC its last rights, Governor Perry claimed the TTC was dead back in January:

Gov. Rick Perry in 2002 unveiled with great fanfare the corridor plan as an almost $200 billion blueprint for the state’s transportation future and then took withering criticism for it in a tough 2006 re-election race. On Tuesday, he said, “The days of the Trans-Texas Corridor are over.” (Austin American-Statesman, January 7, 2009)

TxDOT officials, who will again declare the TTC “dead” today made similar pronouncements a month ago:

“Make no mistake: The Trans-Texas Corridor as we have known it no longer exists,” TxDOT executive director Amadeo Saenz said in a speech at an annual transportation conference. (Dallas Morning News, January 7, 2009)

Like a vampire, the TTC seems almost impossible to kill. Perry pronounced it dead ten months ago this week, as did TxDOT. Yet, it still lingers on life support?

State Auditors Raised Numerous Questions Over Corridor, Corridor Contracts. The Texas State Auditor’s Office accused the Texas Department of Transportation of downplaying potential costs associated with TTC and criticized TxDOT for being secretive about information relating to the Cintra-Zachry contract. TxDOT defended its more than a year of stalling on releasing portions of the contract in spite of the auditor’s rebukes. (Austin American-Statesman, February 24, 2007).

Perry’s Toll Road/TTC Policy Got Him Heavy Cash From Connected Donors. As of 2006, Governor Perry had received more than $1.2 million from individuals or political action committees with a stake in the Trans Texas Corridor. (San Antonio Express-News, November 4, 2006).

Governor Perry has received more than $200,000 from Zachry family members alone:

Contributor Name Employer Filer Name Amount Date Report #
Zachry, David
Texans For Rick Perry,

$1,000.00

11/4/2002

212423

Zachry, David
Texans For Rick Perry,

$2,200.00

10/29/2003

239054

Zachry, David
Texans For Rick Perry,

$1,000.00

11/14/2003

239054

Zachry, David Zachry Construction Corporation Texans For Rick Perry,

$2,500.00

10/10/2005

298297

Zachry, David Zachry Construction Corporation Texans For Rick Perry,

$1,000.00

11/27/2007

360712

Zachry, David Zachry Construction Corporation Texans For Rick Perry,

$2,500.00

11/24/2008

400343

Zachry, H.
Texans For Rick Perry,

$1,000.00

7/30/2001

188871

Zachry, H.
Texans For Rick Perry,

$10,000.00

9/19/2001

188871

Zachry, H.
Texans For Rick Perry,

$5,000.00

10/7/2002

207160

Zachry, H.
Texans For Rick Perry,

$25,000.00

11/3/2003

239054

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$5,000.00

2/27/2004

254536

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$10,000.00

4/6/2004

254536

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$10,000.00

7/7/2004

267605

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$10,000.00

10/10/2005

298297

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$15,000.00

10/31/2005

298297

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$5,000.00

3/1/2006

317134

Zachry, H.
Texans For Rick Perry,

$5,000.00

3/1/2006

305020

Zachry, H.
Texans For Rick Perry,

$20,000.00

3/1/2006

305020

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$20,000.00

3/1/2006

317134

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$25,000.00

11/27/2007

360712

Zachry, H. Zachry Construction Corp. Texans For Rick Perry,

$10,000.00

11/24/2008

400343

Zachry, James
Texans For Rick Perry,

$2,500.00

9/19/2001

188871

Zachry, James
Texans For Rick Perry,

$1,000.00

10/7/2002

207160

Zachry, James
Texans For Rick Perry,

$2,000.00

11/4/2003

239054

Zachry, James Zachry Construction Corp. Texans For Rick Perry,

$2,500.00

10/10/2005

298297

Zachry, James Zachry Construction Corp. Texans For Rick Perry,

$1,000.00

11/24/2008

400343

Zachry, John
Texans For Rick Perry,

$1,000.00

9/19/2001

188871

Zachry, John
Texans For Rick Perry,

$5,000.00

10/1/2001

188871

Zachry, John
Texans For Rick Perry,

$1,000.00

10/7/2002

207160

Zachry, John
Texans For Rick Perry,

$1,000.00

11/4/2003

239054

TOTAL

$203,200.00



(Texas Ethics Commission)

Senator Hutchison Has Taken Thousands From The Zachry Family, Too. Senator Kay Bailey Hutchison is also a favorite of H.B. Zachry Company family members:

Contributor

Address

Date

Amount

Emp./Occup.

Image Number

ZACHRY, BARTELL

SAN ANTONIO

12/31/2007

400

ZACHRY CONSTRUCTION CORP./C.E.O.

28020071926

TX 78209

ZACHRY, DAVID S

SAN ANTONIO

1/23/2004

2000

H B ZACHRY COMPANY

24020260496

TX 78224

ZACHRY, DAVID S

SAN ANTONIO

6/9/1999

1000

H B ZACHRY COMPANY

99020081955

TX 78224

ZACHRY, DAVID S

SAN ANTONIO

1/23/2004

2000

H B ZACHRY COMPANY

24020260496

TX 78224

ZACHRY, DAVID S

SAN ANTONIO

7/1/1999

-1000

H B ZACHRY CO

20020070867

TX 78224

ZACHRY, DAVID S

SAN ANTONIO

2/25/1997

1000

H B ZACHRY COMPANY

97020071979

TX 78221

ZACHRY, DAVID S

SAN ANTONIO

7/1/1999

1000

H B ZACHRY CO

20020070867

TX 78224

ZACHRY, H B JR

SAN ANTONIO

6/15/2004

2000

ZACHRY CONSTRUCTION CO

24020550164

TX 78205

ZACHRY, H B JR MR

SAN ANTONIO

2/21/1997

1000

H B ZACHRY

97020071979

TX 78205

ZACHRY, H B JR MR

SAN ANTONIO

6/25/2003

2000

ZACHRY CONSTRUCTION CO

23020292278

TX 78205

ZACHRY, H B JR MR

SAN ANTONIO

3/12/1997

1000

H B ZACHRY

97020071980

TX 78205

ZACHRY, H B JR MRS

SAN ANTONIO

6/25/2003

2000

HOMEMAKER

23020292278

TX 78205

ZACHRY, H B JR MRS

SAN ANTONIO

3/12/1997

1000

HOMEMAKER

97020071979

TX 78209

ZACHRY, H B JR MRS

SAN ANTONIO

6/15/2004

2000

HOMEMAKER

24020550164

TX 78205

ZACHRY, H B JR MRS

SAN ANTONIO

2/21/1997

1000

HOMEMAKER

97020071979

TX 78209

ZACHRY, J P MRS

SAN ANTONIO

4/4/1997

2000

HOMEMAKER

97020071980

TX 78209

ZACHRY, J P MRS

SAN ANTONIO

4/19/1997

1000

HOMEMAKER

97020071980

TX 78209

ZACHRY, JOHN B

SAN ANTONIO

1/23/2004

2000

H B ZACHRY CORPORATION

24020260496

TX 78221

ZACHRY, JOHN B

SAN ANTONIO

3/10/1997

1000

H B ZACHRY COMPANY

97020071980

TX 78221

ZACHRY, JOHN B

SAN ANTONIO

1/23/2004

2000

H B ZACHRY CORPORATION

24020260497

TX 78221

ZACHRY, JOHN B

SAN ANTONIO

6/1/1999

1000

H B ZACHRY CORPORATION

99020081955

TX 78221

ZACHRY, LAURA

SAN ANTONIO

3/7/2006

1000

HOMEMAKER

26020290341

TX 78209

ZACHRY, LAURA B

SAN ANTONIO

4/21/2005

1000

HOMEMAKER

25020273126

TX 78209

ZACHRY, MOLLIE

SAN ANTONIO

12/31/2007

400

HOMEMAKER

28020071926

TX 78205

ZACHRY, NANCY

SAN ANTONIO

3/28/2006

1000

HOMEMAKER

26020290341

TX 78209

ZACHRY, NANCY

SAN ANTONIO

9/27/2006

1000

HOMEMAKER

26020781485

TX 78209

ZACHRY, NANCY E

SAN ANTONIO

1/23/2004

1000

HOMEMAKER

24020260497

TX 78209

(Federal Election Commission)

Hutchison Enabled Governor Perry’s Trans Texas Corridor. Senator Hutchison voted for legislation allowing tolls to be charged on interstate highways, and established an Interstate Highway construction toll pilot program. This program allowed states, like Texas with the Trans Texas Corridor, to collect tolls on a highway, bridge, or tunnel on the Interstate Highway System in order to construct more Interstate Highways. (HR 3, 109th Congress, 1st Session, Vote 220, July 29, 2005)

Perry Said Trans Texas Corridor Would Be Great For Texas. Among his more outlandish claims, Governor Perry claimed that the Trans Texas Corridor would be beneficial for the Texas environment and actually reduce air pollution, and make Texans better stewards of our environment. (Editorial by Rick Perry; Press Release, Office of the Governor)

No Other Democrat Has Credibility On Private Property Rights. Tom Schieffer was a key player in the first instance of the use of eminent domain in Texas to seize privately held land for an entertainment venue. Between 11 and 13 acres ultimately controlled by the Texas Rangers’ were acquired through eminent domain with landowners owners receiving only $817,220 for the land, which a court later valued at being worth $4.98 million dollars. When landowners sued to get what they should have rightfully received for their land, Tom Schieffer said it was the “silly season in politics” and claimed the suit was a political stunt to derail his friend George W. Bush’s gubernatorial campaign. (SOURCE: Arrillaga, Pauline. “Property owners sue Bush, other officials.” Austin American-Statesman, September 1, 1994 & Zimbalist, Andrew. “If the Washington Redskins Are Worth $800 Million,” Texas Monthly, September, 1999.)

© 2009 Hank Gilbert for Governor: hankgilbert.com


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