OTA Bond Issuance Awaits Lawsuit Conclusions and Supreme Court Support
The Oklahoma Turnpike Authority continues to move forward with its $5 billion, 15-year ACCESS Oklahoma turnpike plan, despite the pending lawsuits in Cleveland County and ahead of a planned request to the Oklahoma Supreme Court to validate bonds for the project.
On July 27, the Oklahoman published an article stating that the OTA approved another $74.8 million on top of an already approved $60 million to pay 12 engineering firms to survey land related to 46 of the ACCESS projects, including the south extension and tri-city connector projects, on July 25. Some residents have already been told to expect engineers on their properties. The money for these projects comes from a capital improvements fund, and according to the Oklahoman article, the OTA’s board members approved a capital project budget of $193,162,181 for this year. However, because they chose to dip into this fund to begin ACCESS projects, other projects slated to start this year have been put on hold, awaiting reimbursement to the capital improvements fund.
A Conditional Yes
The Council of Bond Oversight (COBO) voted on approval or denial of the OTA’s request for $500 million of bonds on August 9, which the OTA had planned to use to reimburse the capital improvements fund. COBO voted to conditionally approve the bonds, on the terms that the bond sale cannot be issued until (1) the two ongoing lawsuits are “dismissed or decided” in favor of the OTA, and (2) the Oklahoma Supreme Court chooses to validate the bonds.
This comes after the OTA terminated an approved $200 million line of credit in its June meeting, which carried a condition that it would not be used to fund projects involved in any lawsuits. The original $200 million line of credit would have allowed the OTA to begin other turnpike projects in the ACCESS plan, but the August 9 decision by COBO means that OTA will not have any bond sale funds for turnpike projects until the lawsuits are resolved.
The OTA’s finance and revenue director said it could head to the Oklahoma Supreme Court as soon as August 10, but no information regarding whether or not they have gone to the Supreme Court yet has been released.
Unclear Timelines
Some residents, like Pike Off OTA President Michael Nash, are wary of engineers visiting their properties so soon after the February announcement of the ACCESS plans and the July 25 approval of the extra funds paid to the engineering firms. Residents were assured earlier this year that the Norman-area expansion projects were far down the list of projects included in the 15-year-long plan by OTA Director Tim Gatz and OTA Deputy Director Joe Echelle.
“It’s still baffling that they’re saying it’s a 15-year project, but yet they are trying to ram it through,” Nash said, quoted by the Oklahoman in the article mentioned above. “It’s only been six months. It should raise some eyebrows with the messaging and what is the truth.”
On the FAQ page of OTA’s website, a question regarding timelines of each project states that it’s “too early in the process” to determine when projects will start and how long they will last. “We are assigning tasks to project teams to begin assessing the requirements of each project in the ACCESS Oklahoma program. In the coming year, those project teams will conduct preliminary studies and initial design processes which will then allow OTA to better understand potential timelines for the projects,” the OTA’s answer reads. “Through the accessoklahoma.com website and future public meetings, we will be providing more timeline information of each project as it’s available.”
Slow to a Stop?
Even in these early stages, it seems the OTA would like to move as quickly as possible. The most recent COBO decision will slow them down until they get their application to the Supreme Court, however. This could have an effect on projects both in and outside of the ACCESS plans, since certain projects have been put on hold until the $132.8 million taken from the capital improvement budget is returned. Between the bond issue awaiting the conclusion of the lawsuits and the approval of the Supreme Court, the termination of the original $200 million credit line, and the necessary repayment of capital improvement funds before paused projects begin again, it seems the OTA has hit a scheduling and planning roadblock. Nothing requiring financing can happen until things move along judicially. COBO has given the OTA until February 5, 2023 to conclude the lawsuits and gain approval from the Supreme Court.
Plans already paid for, like the surveys, will likely continue without interruption. If you are in the path of the proposed routes, or you have engineers entering your property, now is the time to contact a property attorney experienced with eminent domain proceedings. If you enter negotiations by yourself, you aren’t guaranteeing yourself the best offer. Having an attorney on your side of the negotiation takes a lot of anxiety and responsibility off of your shoulders, giving you the best chance at higher levels of just compensation. If you need representation in preparation for eminent domain takings, call Plainview Legal Group at (405) 310-0183 to schedule a free consultation, or request an appointment through our website.
