Market Urbanism

Liberalizing cities | From the bottom up

“Market Urbanism” refers to the synthesis of classical liberal economics and ethics (market), with an appreciation of the urban way of life and its benefits to society (urbanism). We advocate for the emergence of bottom up solutions to urban issues, as opposed to ones imposed from the top down.

$12.8b Bid for PA Turnpike

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From Toll Road News:

With a bid of $12.8 billion an Abertis/Citi team has been selected as the concessionaire in a 75 year lease of the Pennsylvania Turnpike. The bids were received in a second round of best-&-final offer bids last Friday (May 16). #2 bidder was Transurban/Goldman Sachs at $12.1b.

With this kind of cash, it’s going to be very tempting for more states to privatize to keep budgets afloat. I worry about how much wasteful spending today’s politicians plan to do after they get this windfall. It’s also a shame it’s a 75 year lease not a sale. This gives the state some authority to maintain some patronage, cap toll increases, and keep unions happy.

  • I think the most important question to ask is: if they wanted, could they tear up the road and built whatever they wanted in its place? For example, could they turn a ten-lane highway into a two-lane highway, add one line of rail in each direction, and develop the remainder as real estate? If, as I suspect, the contract doesn’t allow them to do anything but maintain the current structure (and possibly add onto it more auto lanes), then it’s very, very far from being privately owned.

  • I think the most important question to ask is: if they wanted, could they tear up the road and built whatever they wanted in its place? For example, could they turn a ten-lane highway into a two-lane highway, add one line of rail in each direction, and develop the remainder as real estate? If, as I suspect, the contract doesn’t allow them to do anything but maintain the current structure (and possibly add onto it more auto lanes), then it’s very, very far from being privately owned.

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