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State Rep. Richard Chalk, R-Hilton Head, wants the money to be used to pay down the debt on the Cross Island Parkway. He plans to introduce legislation when the General Assemby reconvenes in January that would require the state to use money from property sales statewide to pay off the debt of any road project that land is associated with.
On Hilton Head, the DOT bought the land, then a parcel of 15 acres, for $3.1 million in 1994 so it could be used as a construction staging area for the Cross Island Parkway. The property is near the foot of the Charles E. Fraser Bridge, between the Cross Island Landing and the Haig Point ferry terminal.
"In this case, the property was purchased by the state for this particular road project," Chalk said. "It seems to me the sale should be used to pay down the debt."
The Cross Island Parkway has struggled financially since it opened in 1998. Toll revenue has failed to cover the cost of the debt and routine maintenance in nine of its first 10 years of existence.
To shore up its finances, the state raised the toll 25 centsto $1.25 for cash-paying motorists in March 2008 and renegotiated its contract with Dallas-based ACS, the company that manages toll collections. Under the state's previous contract, about 50 cents of every toll dollar went to administrative costs. It's unclear what the current expense ratio is.
Of the $81 million in construction costs, the state still carries about $39.7 million in debt, said Kristen Lominack, DOT director of state governmental affairs. The debt is scheduled to be paid off in 2022 and can't be repaid sooner unless the state refinances, she said.
The road is expected to become free to motorists at that time, but questions linger over who would pay to maintain the six-mile stretch if the toll is removed.
"Who knows what shape the road will be in at that point?" said Hilton Head town manager Steve Riley."If it needs a major overhaul, how is the state going to pay for it?"
On top of the bonds, an additional $3 million is needed to reimburse the state for years when it subsidized the road's operation, Chalk said.
The Cross Island Parkway is a sore subject to some local residents and officials. Many believe the state should have built the link between the northern and southern portions of the island without creating a toll to pay it off.
"It's a poor way of collecting revenue," Chalk said. Mid- and north-island residents reap the reward of less congestion on William Hilton Parkway, while residents and visitors commuting to and from the south end pick up the tab, he said.
State Rep. Bill Herbkersman, R-Bluffton, said he likes Chalk's proposal, but thinks money from the land sale should be used to automate the toll booths, which could drastically reduce costs.
"Automating the toll booths would have the propensity to pay the debt down quicker than if we just put the money from the land toward the debt," Herbkersman said.
At a minimum, Herbkersman said, the money needs to stay in the area.
"I'm against it going into the general fund," he said. "We've invested a lot of our own money into roads. It needs to stay here."
The state is accepting sealed bids for the land until Sept. 29. Both Beaufort County and the Town of Hilton Head have expressed interest in it.
