The Montgomery County Toll Road Authority announced the sale of $87.68 million in revenue bonds June 5 after approving the sale of revenue bonds during a commissioner’s court meeting May 8.
The bonds will fund the construction of MCTRA’s segment of the Hwy. 249 toll road—which stretches from the Harris-Montgomery county line at Spring Creek to just south of FM 149 in Pinehurst—as well as Montgomery County’s share of a Hwy. 249 bridge at the county line, according to a June 6 statement from the office of Montgomery County Judge Craig Doyal.
The bonds will immediately reimburse Montgomery County for funds it loaned MCTRA, plus interest, officials said in the statement. As the revenue bonds reimburse the county, no property tax revenue dollars will be used to fund the construction of the Hwy. 249 toll road. The revenue bonds will be repaid from toll revenues paid by drivers on the toll road, according to the statement.
County officials anticipate the bonds to be issued June 21, according to the statement. Additionally, construction on MCTRA’s segment of the toll road is slated to wrap up by March 1, 2020—a delay from the previous timeline for the project that projected a completion in late 2019.
The sale of the bonds was met with a 3.826 percent rate of return, according to the statement. Additionally, county officials said they saw a high demand for the bonds.
“Critics have made numerous false statements about this project and tried to suggest it would be a failure,” Doyal said in a statement. “With Tuesday’s sale of these bonds, it shows investors have complete faith in this project and its promise for Montgomery County.”
MCTRA’s Hwy. 249 segment is anticipated to generate more than $400 million in toll revenue from 2020-40, according to a traffic and revenue study for the Hwy. 249 extension, county officials said.