Bradford Bypass (MTO, Hwy 400 - Hwy 404)

[afransen]

Well, that's not even half as bad as Harris' deal to lease it off for 99-years.

Especially given, say, a 30 year lease would have have nearly as much revenue as a 99 year lease given time value of money.

 

[nfitz]

Especially given, say, a 30 year lease would have have nearly as much revenue as a 99 year lease given time value of money.

It would have given a lot more money to the province (in terms of toll revenues). And one would think lower toll rates. Obviously they'd have to pay more up front (like they did for 407 East).

 

[afransen]

It would have given a lot more money to the province (in terms of toll revenues). And one would think lower toll rates. Obviously they'd have to pay more up front (like they did for 407 East).

I mean, the $3.1B lease deal signed by the province for a 99 year lease would probably not have been much less than 90% of that amount (eg $2.7B) for a 30 year lease, which would have been expiring in 2029. Of course, perhaps less would have been invested in upgrading the highway since then, but usually there are contractual mechanisms for compensating lessees for improvements they make that are still being amortized by the end of the lease.

 

[nfitz]

I'm not sure the 30-year period was a lease. I thought it was the contract length an operating agreement - similar to what the province put in place for the 407 East. And I thought it left the province in charge of setting the toll rates, not a consortium.

 

[innsertnamehere]

Just got an email stating that the EPR for the bypass will be posted for review from June 1 to June 30.