2020 Jan 24, 2:08pm
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...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.
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.
Even if the bond prices fell, bondholders would still get free passage.