Rising Tolls of New Mobile Bay Bridge Exposed
ALGO pass to start at $3 per crossing
The Mobile River Bridge and Bayway project will feature a toll that increases over time, as reported by local news outlets. Recently, the project received attention for its $2.5 billion federal loan from the U.S. Department of Transportation. Additionally, some funding details have been revealed online through the official bond projections.
The tolls will automatically increase every year for the first 10 years after tolling begins, according to FOX10 News. The toll will increase by 5% or by the inflation rate for Southern urban consumers, whichever is higher.
Transportation officials have left out the increases in documentation available online, but told local outlets the increases are necessary to make the $3.2 billion project work.
According to WPMI, those bond documents show the “Alabama Toll Road, Bridge and Tunnel Authority issued nearly $3.8 billion in four bond and note series for the project, which is now budgeted at $4.15 billion. That includes $567 million in first-lien toll revenue bonds, $2.5225 billion in short-term notes, and nearly $696.3 million in third-lien bonds.”
The Alabama Department of Transportation (ALDOT) told 1819 News the tolls will be set to encourage the use of the ALGO pass.
Initially, the ALGO pass will cost $60 per month or $3 per crossing. Vehicles with an out-of-state transponder would pay $7.70 per crossing. Vehicles with no transponder would be billed $15.40 per crossing but would be given the option to open an ALGO pass account to get the lower rate.
Local leaders have been celebrating a $2.5 billion Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to fund the project. However, some leaders said they were surprised to learn the tolls would increase over time.
“I was not aware of any escalation clauses,” Eastern Shore Metropolitan Planning Organization Chairman Jack Burrell told FOX10 News. “You know, maybe in their defense, that’s the only way they can make the numbers work. … I was a little disappointed to see those escalators – did not know they were gonna be in there. And I’ll just have to say we have to trust them to do, you know, ALDOT to do the best job they can for the citizens.”
Mobile Mayor Spiro Cheriogotis and County Commissioner Connie Hudson also said they were unaware of the planned toll increases. The increased provisions were only disclosed in documents submitted for the sale of revenue bonds.
ALDOT claims the Causeway, Wallace Tunnel and Bankhead Tunnel will remain toll-free.
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