Montgomery County Council sent a letter to the Maryland Board of Public Works on Aug. 9, requesting that a vote on the pre-development agreement for the state's public-private partnership to build toll lanes on I-270 and I-495 wait until after the report from the state's financial advisor and bond counsel is complete.
This contract will set the terms for a business partnership between the state and the selected concessionaire involving $6 billion in construction. The Council believes that the state should not enter into an agreement of this magnitude without due diligence to fully understand and review the contractual obligations.
In addition, the Maryland P3 law requires the State Treasurer's Office, in coordination with the Office of the Comptroller, to analyze the impact of a public-private partnership on the state's capital debt affordability limits.
The full text of the letter by the Council is attached.
The Pre-Development Agreement Plan for Phase 1, running from the American Legion Bridge to I-270 in Frederick will soon come before the Board of Public Works.
“Regardless of one's view of the policy merits of any project, the State should not enter into an agreement of this magnitude without due diligence to fully understand the contractual obligations we are assuming,” wrote Council in the letter to Hogan. “Careful study of the contract by the Bond Counsel and Financial Advisor is a necessary part of that due diligence.
“We therefore ask you to vote on the pre-development agreement only after funding for review by the Financial Advisor and Bond Counsel has been provided and these experts have completed their work and reported to you and the General Assembly.”