Is Leasing Toll Roads A Smart Move?

A key factor in toll road lease agreements is shifting risk from the public sector to sophisticated investors.

1 minute read

April 24, 2005, 1:00 PM PDT

By Chris Steins @planetizen


The city of Chicago recently sold its Chicago Skyway toll road. The winning bidder is paying Chicago $1.83 billion in return for a 99-year lease and operating rights. In announcing sale of the Skyway, Chicago Mayor Richard Daley said running a toll road 'is not a core function of city government.' A key factor in these agreements is shifting risk from the public sector to sophisticated investors who are better placed to take on such risks. This is especially important for start-up toll roads, like the 73, which are inherently high-risk endeavors. Although Orange County's taxpayers would not be at risk if the 73 went bankrupt (only its bondholders would directly suffer), it would hardly help the county's still-recovering bond rating to have a major toll-road bankruptcy occur within its public sector.

Related documents from the Reason Public Policy Institute: Policy Brief: 91 Express Lanes a Financial Success and Policy Brief: Orange County Toll Roads Largely Successful.

Thanks to Chris Steins

Saturday, April 23, 2005 in Orange County Register

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Yellow electric school bus with preteen students exiting.

California Invests Additional $5M in Electric School Buses

The state wants to electrify all of its school bus fleets by 2035.

April 25 - Associated Press

City Hall building in Austin, Texas.

Austin Launches $2M Homelessness Prevention Fund

A new grant program from the city’s Homeless Strategy Office will fund rental assistance and supportive services.

April 25 - Spectrum Local News

Brick school building with mid-sized tree on front lawn.

Alabama School Forestry Initiative Brings Trees to Schoolyards

Trees can improve physical and mental health for students and commnity members.

April 25 - Governing