An outbid competitor for Tennessee’s massive “Choice Lanes” project says the state is withholding records related to the winning proposal, which promised to pay the state tens of billions of dollars.
The competitor, 24 Choice Lanes Partners, sued the Tennessee Department of Transportation on Oct. 5, seeking an order to force the department to release the records.
In August, Tennessee’s Transportation Modernization Board unanimously picked DriveTN — a coalition of six companies including Ferrovial Cintra — for a 50-year partnership to build and manage elevated, tolled “Choice Lanes” along Interstate 24 southeast of Nashville.
DriveTN will build along I-24 between Nashville and Murfreesboro new lanes of traffic that drivers can pay a fee to use.
The project is expected to cost $9.2 billion, all of which will be privately funded.
DriveTN also said in its proposal that it would pay the state an unprecedented $24.8 billion in concessions over 50 years, establishing a new dedicated funding stream for roads.
The value of the proposed payments from DriveTN to the state was more than $17 billion more than any other proposals submitted.
Without access to the records, 24 Choice Lanes Partners says it has no way of knowing if the terms of the agreement between TDOT and DriveTN changed after it was awarded the contract.
“The public is entitled to know whether the agreement executed after contract award preserves that promised value or materially changes the amount, timing, structure, or certainty of those payments,” the lawsuit says.
Democrats raised concerns over Ferrovial Cintra's financial health and stability after DriveTN's proposal was selected. At publication, the company's stock had fallen 20% since the Transportation Modernization Board selected it on Aug. 19. Swiss bank UBS downgraded Ferrovial's stock after it landed the "Choice Lanes" project, citing "higher risks" associated with the project, the Tennessee Lookout reported.
TDOT declined to comment.
TDOT denied two of 24 Choice Lanes Partners' records requests, one filed before the agreement between TDOT and DriveTN was executed, and one filed after the agreement was executed. The most recent request sought a copy of the concession agreement that was finalized between DriveTN and TDOT.
24 Choice Lanes Partners filed its lawsuit in Davidson County Chancery Court. It is represented by Todd Hambidge, Mark Bell and Quynh-Ann Kibler.
Have questions about the justice system? Evan Mealins is the justice reporter for The Tennessean. Contact him with questions, tips or story ideas at emealins@tennessean.com.
This article originally appeared on Nashville Tennessean: Rival bidder sues TDOT over access to I-24 Choice Lanes records
