The Oklahoma Turnpike Authority received state approval on Wednesday for a $200 million revolving line of credit to jumpstart its $5 billion expansion and improvement program, but it will not be able to spend a portion of the money unless a lawsuit is resolved in its favor.
The state’s Council of Bond Oversight placed the condition on its approval after opponents of the OTA’s ACCESS (Advancing and Connecting Communities and Economies Safely Statewide) Oklahoma plan
Specifically, the OTA will not be able to tap the revolving line of credit from Wells Fargo for expenditures related to the Southern Extension Turnpike, Outer-Loop: East-West Connector, and Outer-Loop Tri-City Connector, which are being challenged by the litigation.
“We are mindful of all the legal activity, proceedings, going on,” Tim Gatz, executive director of the Oklahoma Department of Transportation, told the council. “We believe the turnpike authority will ultimately prevail.”
Inger Guiffrida, a member of Pike Off OTA, one of the plaintiffs in the lawsuit, said the best option would have been for the council to “deny the line of credit period.”
“This is kind of a second-best option in that it slows it down,” she said.
The lawsuit filed in Cleveland County District Court by the group, along with homeowners and others impacted by the project seeks an injunction prohibiting the OTA from moving forward, raising concerns that federally protected land will be harmed and thousands of homes and properties will likely be destroyed or damaged. The plaintiffs claim that the OTA lacks legislative approval to build or finance through bond issues the three turnpike extensions included in the ACCESS program.
Financing for ACCESS Oklahoma may be further delayed if a bill requiring a detailed study of the plan before any bonds can be issued is passed by the legislature. Senate Bill 1610 is headed to a conference committee to work out differences between versions approved by the House and Senate.
Wendy Smith, the OTA’s finance and revenue director told The Bond Buyer in March that the revolving line of credit would be retired with proceeds from the
Governor Kevin Stitt officially unveiled ACCESS Oklahoma in February, calling it “a bold investment in our future that provides needed corridor connections and expansions while making travel easier and leading to more economic development across the state.”
A petition on Change.org to stop the program, claiming “it will decimate our homes, our land, our clean air and water, our way of living, and our wildlife” has nearly 3,000 signatures.
