The project opened to traffic in November 2007.
The South Bay Expressway (SBX) toll road (the SBX Project) is a 9.2-mile, privately-developed southern extension of SR 125, extending from San Miguel Road in Bonita, CA near the Sweetwater Reservoir to SR 905 in Otay Mesa, near the International Border. The SBX Project connects the only commercial port of entry in San Diego to the regional freeway network. This project, made possible through an innovative public-private partnership (P3), completes the missing link in San Diego's third north-south freeway corridor.
The SBX Project was developed pursuant to California's AB 680 legislation passed in 1989. Under the original franchise agreement, the private developer raised capital for the Project and constructed the road in exchange for a 35-year toll concession. Caltrans owns the highway, but leases the road back to the franchisee. Currently, SANDAG has the franchise, under an amended agreement executed when the toll road was sold to SANDAG in December 2011. Control will revert back to Caltrans in 2042.
The SBX Project connects Otay Mesa, the largest area of industrial-zoned land in San Diego County, with eastern Chula Vista and points north and east. The increased access between industrial, commercial, and residential areas has created value for manufacturing companies and its employees by reducing shipping time to local markets and by providing a less congested and more direct commuter option The SBX Project also utilizes an optional electronic tolling system, FasTrak, giving drivers the option to avoid stoppages at toll booths and to maintain steady driving speeds. Additionally, low tolls draw traffic to SBX, thereby relieving congestion on I-805 and nearby surface streets.
- Bank Debt: $340M (backed by toll revenues)
- TIFIA Loan: $140M (backed by toll revenues)
- Donated Right of Way: $48M
- Investor Equity: $130M
35-year Build-Transfer-Operate franchise with the State of California that allows the franchisee to set market rate tolls.
Nossaman, Guthner, Knox & Elliott, LLP - Special Counsel to SBX
Milbank, Tweed, Hadley & McCloy, LLC - Legal Counsel to SBX
Salomon Smith Barney - Financial Advisor to SBX
Parsons - Construction Manager
Orrick, Herrington & Sutcliffe LLP - Lenders' Legal Counsel
Wilbur Smith Associates - Borrower's Traffic Consultant
AECOM/Maunsell - Tolling Advisor to SBX
Louis Berger - Lenders' Traffic Advisor
ARUP - Lenders' Technical Advisor
USDOT TIFIA JPO Advisors
- TIFIA Financial Advisor: Montague DeRose and Associates, LLC/TransTech Management, Inc.
- TIFIA Legal Counsel: Nixon Peabody LLP
Direct Loan: $140 million
The TIFIA loan is secured by a priority security interest in all project collateral, including, but not limited to: (a) all income, tolls, revenues, rates, fees, charges, rentals, or other receipts derived by or related to the operation or ownership of the project including all amounts from joint development or leasing of air space lease rights; (b) any revenues assigned to the Borrower and proceeds of the sale or other disposition of all or any part of the project; and (c) all income derived from permitted investments. The TIFIA loan is also secured by a mortgage on the Borrower's leasehold interest in the real estate underlying the toll road right of way.
- $140 million TIFIA loan was the first-ever provided to a private toll road development and the first with bank debt and private equity.
- The original TIFIA debt service repayment structure was sculpted with mandatory and scheduled components.