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New Idea On How To Fund Toll Roads

By OccasionalCortex follow OccasionalCortex   2020 Jan 24, 2:08pm 104 views   2 comments   watch   nsfw   quote   share    


I've never heard of this idea before.

...to spur construction of new toll roads, which are usually financed through municipal bonds, a special tranche of small-denomination bonds should be issued to local residents. As an incentive to buy the bonds, drivers would be given a lifetime free pass on the new road. This would fund more routes, build civic pride, and give investors downside protection. Even if the bond prices fell, bondholders would still get free passage.


https://www.project-syndicate.org/commentary/crumbling-american-infrastructure-cliche-by-todd-g-buchholz-2020-01

Variations of this could be used to break through a lot of NIMBYism for all sorts of projects other than toll roads, too.

For example, developers NIMBY-hostile medium to higher density projects can issue these sorts of bonds to existing locals to finance the portion of the development needed to upgrade water, streets and traffic infrastructure improvements that would be necessary to do. Maybe even towards school/fire house/police mini-stations/parks construction if the new development is big enough (say a 500+ unit project). The developer gets to write off the interest for the bonds and the bondholders would get to earn the interest tax-free, like muni/state/federal bonds are.
1   TEOTWAWKI   ignore (5)   2020 Jan 24, 2:32pm     ↓ dislike (0)   quote   flag        

OccasionalCortex says
Even if the bond prices fell, bondholders would still get free passage.


https://www.project-syndicate.org/commentary/crumbling-american-infrastructure-cliche-by-todd-g-buchholz-2020-01

Variations of this could be used to break through a lot of NIMBYism for all sorts of projects other than toll roads, too.

For example, developers NIMBY-hostile medium to higher density projects can issue these sorts of bonds to existing locals to finance the portion of the development needed to upgrade water, streets and traffic infrastructure improvements that would be necessary to do. Maybe even towards school/fire house/police mini-stations/parks construction if the new development is big enough (say a 500+ unit project). The developer gets to write off the interest for the bonds and the bondholders would get to earn the interes, like muni/state/federal bonds are.


And what would be the equivalent of a "lifetime free pass" as a "downside protection" in this case?
2   Tenpoundbass   ignore (15)   2020 Jan 24, 5:18pm     ↓ dislike (0)   quote   flag        

I want my taxes to pay for all of the fucking roads every goddamn one of them. And not a single penny go to anyone that works in the government that doesn't facilitate either the construction of those roads, or traffic that flows on them, in one way or another.

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