Turnpike authority, hit with lawsuits, investigative audit, halts ACCESS Oklahoma

The Oklahoma Turnpike Authority notified its board and its consultants Tuesday that all work on its $5 billion ACCESS Oklahoma expansion plan will be halted as the agency is confronted with multiple lawsuits and an investigator audit requested by Attorney General Genter Drummond.

The agency previously halted work on the controversial Kickapoo Turnpike and parts of the toll road’s planned east-west connection and Tri-City connector.

Over the past year, as reported in The Oklahoman, the turnpike authority avoided providing new toll road route maps in advance of the launch of ACCESS Oklahoma. An investigation also showed the agency used questionable population and traffic growth forecasts to justify building new toll roads.

Using the Oklahoma Open Records Act, The Oklahoman also discovered a state lawmaker whose house is in the potential pathway of a new ACCESS Oklahoma toll road was the first to sell her property to the Oklahoma Turnpike Authority, and was paid $103,460 above the appraised value and was given nearly $26,000 in moving expenses.

Records obtained by The Oklahoman also showed the turnpike authority, which pledged to be transparent with ACCESS Oklahoma, bought 23 internet domains that could have been used by opponents just two weeks before presenting the plan and its branding to the public.

Tim Gatz, secretary of transportation, told board members the turnpike authority remains in a strong financial position in large part due to accounting practices and financial controls in place, but it can no longer continue funding work without a clear timetable for access to the bond market.

More on the expansion: Oklahoma lawmaker was paid $100K over appraisal for home in turnpike expansion route

“I have mentioned several times, including during the recent board meeting, that our continued ACCESS Oklahoma project work would be impacted or even stopped due to our inability to enter the bond market,” Gatz wrote.

Championed by Gov. Kevin Stitt, ACCESS Oklahoma was promoted as a way to keep up with population growth, create corridors that can attract new industry, and relieve existing congestion along corridors like Interstate 35 south of Oklahoma City. Opponents say the plan goes beyond the routes authorized by lawmakers in 1987.

The latest setback is unprecedented in modern history for the authority, which successfully overcame opposition to the Kickapoo Turnpike and expansion of the Kilpatrick Turnpike during the prior Driving Forward expansion plan.

Is the math accurate? ACCESS Oklahoma opponents say the math for new toll roads doesn't add up

What led to Oklahoma Turnpike Authority's decision to halt expansion plans?

Gatz cited several factors impacting his decision. In recent months, legal matters pending before the Oklahoma Supreme Court, including a request to validate and allow bond sales to proceed, and an impending state investigative audit, have prevented access to the bond market.

Approval by the Oklahoma Council of Bond Oversight recently expired, and a judge ruled the agency willfully violated the Oklahoma Open Meetings Act when it unveiled routes and details of the plan. In addition, the agency was hit with a taxpayer lawsuit alleging the turnpike authority made illegal payments to engineers and consultants after the original board of approval of ACCESS Oklahoma was invalidated in court.

Oklahoma Turnpike Authority delays: More delays for Oklahoma turnpike expansion likely as bond sale approval expires

The turnpike authority cannot sell bonds for ACCESS Oklahoma until the program is validated by the Oklahoma Supreme Court. But that did not stop the turnpike authority from spending millions on the proposal.

The turnpike authority approved $156 million in engineering contracts for ACCESS Oklahoma with payments coming from the agency's capital maintenance funds. The spending included the purchase of nine homes, including the residence of Rep. Sherrie Conley whose house, according to engineers, was the only one that could not be avoided along the pathway of south extension.

Gatz said the turnpike authority will continue normal operations and maintenance to existing toll roads, as well as moving forward with the conversion to cashless tolling. He also said the agency also will continue to service existing debt. All of the activities, he said, are funded through toll receipts that are consistently meeting or exceeding financial projections while the ACCESS Oklahoma projects would be funded through bond proceeds.

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“Despite the tremendous transportation needs across the state, I feel it is prudent to take this difficult step,” Gatz said. “This is an unfortunate decision that the OTA does not take lightly due to the critical nature of the ACCESS Oklahoma plan and the effect it will have on all our consultants and their employees as well as many Oklahoma communities and businesses that rely on these necessary transportation improvements.”

Gatz expects the work stoppage and delays will result in higher costs for ACCESS Oklahoma.

"Once you begin to stop development of a program like this, it can be challenging to restart it," Gatz said. "If you look at the bond markets, and the ups and downs of interest rates we might encounter, there is potential we might realize some costs we hoped not incur."

Richard Labarthe, an attorney representing Pike Off members in legal challenges, called the work stoppage a "win for the little guy."

"They've been horrible stewards of the public purse," Labarthe said.

More: Feds tell OTA to keep ACCESS Oklahoma turnpike expansion away from Lake Thunderbird

Turnpike officials early on indicated they hoped to win Oklahoma Supreme Court validation to sell bonds by early 2023. They initially sought a $200 million line of credit to build the new toll roads but gave up when they were told by the Oklahoma Council of Bond Oversight they could not use that line of credit for the contested toll roads. They then decided, without any public discussion, to proceed with an effort to gain approval for the bond sales.

Attorney General Gentner Drumond in March cited concerns of "unlawful conduct" related to questions of improper contracting and purchasing practices and inadequate financial controls. He said Tuesday the work stoppage is further cause for concern.

"This is a concerning development that causes me to question the leadership and cash flow management of this critical agency," Drummond said. "While it is unclear what the future holds for OTA, I am certain that the investigative audit I have ordered is needed now more than ever.”

Amy Cerato, a member of Pike Off OTA, said she was surprised by Tuesday’s announcement.

“The OTA has been nothing but arrogant in their push to build these illegal roadways,” Cerato said. “They have stated many times they know what is best for the citizens of Oklahoma and their transportation plan is the one we should follow.”

Pike Off OTA consists of dozens of people, some with backgrounds in law, finance, transportation and geology, who banded together to fight ACCESS Oklahoma despite the failure of similar battles waged by residents whose homes were destroyed during previous toll road expansions.

“The first day, people were telling us, ‘You’ll never beat the OTA. Quit wasting your time and money and just negotiate the best time and money for your home,’” Cerato said. “Eight months later we started winning, and now we’re picking up steam and exposing the poor business practices of the OTA.”

Cerato said the fight is not over. She said the group will continue to lobby to make the turnpike authority accountable and transparent, and to permanently change the constitution and the turnpike enabling act. Gatz also said he remains committed to making ACCESS Oklahoma a reality.

“While these delays slow progress for the state, it doesn’t eliminate the need for these critical transportation enhancements that will improve safety and the quality of life for all Oklahomans,” Gatz said. “Once these roadblocks are resolved and a path to the bond market is cleared, I am confident we will resume ACCESS Oklahoma and begin moving forward on behalf of the people of Oklahoma.”

This article originally appeared on Oklahoman: Oklahoma Turnpike Authority stops work on ACCESS Oklahoma expansion plan