Editorial: Potential tunnel sale means opportunity for region

The timing couldn’t be worse — most of the circumstances are less than ideal — but Virginia should exhaust every avenue in the hopes of reducing the tolls at the Midtown and Downtown tunnels that continue to suffocate the people of Portsmouth, to the detriment of the region.

Word emerged last week that Elizabeth River Crossings, the consortium which manages the tunnels under the direction of Skanska USA Inc. and Macquarie Group, is exploring options to sell them. The companies declined to comment.

However, Del. Stephen Heretick, who represents Portsmouth, told local media that a sale was in the works. He expressed hope that the new buyer would be willing to meet with state officials to negotiate lower tolls for motorists.

Indeed, the state should make the new owners an offer they can’t refuse, to borrow a well-worn phrase.

The public-private partnership formed in 2011 to improve and expand the travel options between Norfolk and Portsmouth. The deal led to the refurbishment of both existing tunnels, the construction of a second tube parallel to the Midtown Tunnel and various other road improvements and extensions.

There was no question that the project was needed — population growth, travel patterns and traffic volume had all changed considerably since the tunnels were completed in decades earlier — but plenty of concerns about how to pay for the work.

Construction costs were split, with the commonwealth kicking in $503 million and ERC paying $2.1 billion, but ERC retained tolling rights for 58 years to recoup its investment and turn a profit. And tolling has been the sticking point since it began in 2014.

The tolls cleaved southern Hampton Roads in two, dramatically slowing travel between Norfolk and Portsmouth. The steadily increasing cost of those tolls disproportionately harms low-income residents, students, businesses and those who commute between the cities daily for work.

The ill effects have been especially acute in Portsmouth, which took a dramatic hit as a result of the tolling. In 2018, Old Dominion University economist James V. Koch prepared a detailed report about the consequences, concluding that Portsmouth suffers far greater pain that its neighbors as a result of the tolls.

Koch found that the negative economic impact he calculated in 2014 has lessened, but that Portsmouth still loses about $8.8 million in revenue per year as a result of business lost to the tolls. That’s year after year on a deal that won’t expire until 2070.

That sort of harm is no surprise. In fact, it was widely predicted at the time, leading former Portsmouth Mayor Kenny Wright pleaded for officials in neighboring cities to rally to his city’s defense. Those cries were ignored, to the region’s continued shame.

Not that it was the responsibility of Hampton Roads cities to clean up the state’s mess. And, amazingly, state officials understand that the tolls put Portsmouth, and the region, in a bind.

It’s what led then-Gov. Terry McAuliffe and then-Transportation Secretary Aubrey Layne to introduce a toll mitigation program to reduce the cost of tunnel travel. And what prompted McAuliffe’s swift action to address ERC’s billing problems, which saw some individuals rack up tens of thousands in late charges.

But those investments haven’t stopped the tolls from rising, or offset the pain endured by Portsmouth residents and businesses. Only reaching a new deal — or buying the tolling rights — can provide the lasting relief that the city and the region desire.

That seemed impossible even a few weeks ago. And, honestly, it may not be any closer, despite the news that ERC is on the market. But state officials, time and again, have said they would get out of that contract if they could.

This is the moment.

The timing isn’t great, with state finances in turmoil due to coronavirus. But for those who pony up each time they cross the water, there’s no bad time to do what’s needed to get a better deal for Hampton Roads.

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