[Vendorsmi] Oh Where, Oh Where Are The Blind Vendors? Work-To-Welfare? Did the blind not see it coming?

[Terry D. Eagle]

On Thursday the Michigan Department of Transportation (MDOT) joined Governor
Snyder, the Office of Public-Private Partnerships, the Legislature, LARA,
BS4BP, Mr. Rodgers, BEP, and the EOC, in support of the Snyder
Administration's initiative WORK-TO-WELFARE for the blind of Michigan.  As
if it were not bad enough to take away employment from a qualified blind
person at the Anderson House of Representatives office building, the
Capitol, and the Port Huron Vending Facility, the administration is
targeting Michigan's rest areas for a public-private partnership, for the
development and construction of restaurants at the rest areas.  The
administration's idea is to cut cost and raise revenue for the state.  Just
as the cut of the Michigan Business Tax was done on the back of Michigan
retirees with the new pension income tax, this public-private business
partnership  will no doubt result on the back of blind vendors, ultimately
costing 22 rest area blind vendors their livelihood, and likely the
remaining 56 blind snack bar and cafeteria vendors their livelihood, moving
them from WORK-TO-WELFARE.

 

 

Michigan rest stops could get restaurants as state considers public-private
partnerships

 

LANSING -- The Michigan Department of Transportation is seeking interest
from private companies who may want to improve the Houghton Lake rest area,
potentially adding a restaurant. 

 

A pair of rest stops in northern Michigan could be revamped to include fast
food restaurants or coffee shops as the state considers relying more heavily
on the private sector to manage public infrastructure projects.

The Michigan Department of Transportation hopes to find private businesses
to improve rest areas near Houghton and Higgins lakes on U.S. 127 in
Roscommon County. The deteriorating facilities could be salvaged through an
arrangement where a business -- perhaps a food or beverage vendor -- would
take over operation and maintenance of the facilities. 

 

None of Michigan's 81 rest areas have restaurants like those in Ohio and
Illinois toll plazas. Recent federal legislation gives states more
flexibility to manage and fund rest areas along certain routes.

MDOT is not looking to privatize freeways into toll roads, but it is poised
to delve into public-private partnerships -- or P3s -- to improve highway
rest stops, replace freeway lighting and bridges, and provide timber
management along highways.

"It just is a new business model that we think is worth including in how we
go about our business," said Joe Pavona, Gov. Rick Snyder's special advisor
for public-private partnerships.

 

MDOT on Thursday requested letters of interest from businesses to gauge
appetite for several proposed projects. (

 

"This is an information-gathering stage, the first step to starting a
conversation about what's possible in financing and building
infrastructure," Transportation Director Kirk T. Steudle said in a
statement.  

 

Traditionally, the state has hired private contractors to design and
construct public infrastructure projects. They pay the contractors along the
way with available funds or by issuing bonds.

 

P3s rely on private businesses to finance, maintain and potentially operate
the facilities. Officials said it's not considered full-blown privatization
since the state would maintain ownership of the bridges, rest stops and
other assets. The state would repay investors over time. Revenue -- from a
rest stop restaurant, for example -- would offset that debt.  "When the P3
model is used correctly, they're better, faster and cheaper," Pavona said.

And letting private investors handle the up-front financing would allow the
state to leverage its available money on other projects, he said.  P3s have
been used in other countries and U.S. states, but not to this degree by
MDOT. The planned DetroitWindsor bridge would be a P3 in conjunction with
Canada.

 

While some investors and planners hail P3s as innovative solutions for
states or financially struggling municipalities like Detroit, the
arrangements can be controversial. Critics say such projects can hurt
taxpayers. They point to problems that have arisen under Chicago's parking
meter system run by a private company, or a San Diego toll road that went
bankrupt.

 

PROPOSED PROJECTS:

Rest areas: Higgins Lake and Houghton Lake facilities along US-127 in
Roscommon County.

 

Rest Areas

Why were these two specific rest areas chosen?

The new federal highway authorization bill, MAP-21, gives states greater
flexibility

to use

innovative techniques to manage and fund rest areas that are located along
the interstate

highway

system. These two rest areas already had been identified as locations
requiring additional

review

by MDOT due to their proximity to other rest areas, low usage and poor
condition.

What type of usage does the department expect a private entity to propose?

MDOT is looking to start a conversation with private industry to determine
if alternate

uses are

available for these rest areas that would benefit both the traveling public
and MDOT.

No specific

types of usage are being targeted.

What types of services will be provided at these rest areas?

That's unknown and is one of the objectives of the requests for letters of
interest.

It's anticipated,

however, that any P3 project would provide enhanced facilities and services
to the

public beyond

what's currently available.

What will happen if no private entities express interest in the rest areas?

If there's no interest expressed in managing or operating the rest areas,
MDOT intends

to

permanently close the Higgins Lake rest area on southbound US-127 later this
year.

The

Houghton Lake rest area on northbound US-127 will remain open; however, MDOT
will

continue to monitor its usage, condition, and operational and capital costs
to determine

long-term

plans for the facility. Prior to making these decisions, though, it's
important for

MDOT to

examine opportunities for alternate uses of the existing rest areas.

Would MDOT consider expanding this opportunity to other rest areas?

Where allowed by the Federal Highway Administration (FHWA), and based on the
interest

and

results from these pilot projects, MDOT would examine the use of its other
rest areas.

 

 

 

 

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