The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, January 20, 1995               TAG: 9501200500
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL 
SOURCE: BY MAC DANIEL AND FRANCIE LATOUR, STAFF WRITERS 
DATELINE: CHESAPEAKE                         LENGTH: Long  :  109 lines

PRIVATE FIRM MAY WIDEN ROUTE 168 ASSEMBLY BILL WOULD CLEAR WAY FOR BATTLEFIELD BOULEVARD BYPASS AS WELL AS A NEW JORDAN BRIDGE

For years, Chesapeake's top road priorities, a new section of Route 168 and a replacement for the Jordan Bridge, have been stalled: The city couldn't afford them, and state and federal funds did not materialize.

Now the government is hoping the private sector - lured by potential toll revenue - will step in and build the projects.

The roadways could be the first in the state constructed under a bill before the General Assembly that would allow businesses to build and operate parts of Virginia's transportation system as private toll roads.

In anticipation, Chesapeake has signed a letter of intent with Rebuild Inc. to explore building and operating a new Jordan Bridge.

The company, based in Sterling, approached the city in November and is studying traffic-flow projections, building costs and toll revenues.

It would be a case of history repeating itself. The original Jordan Bridge was built in 1928 by C.M. Jordan, an entrepreneur for whom it was named.

The South Battlefield Boulevard bypass probably wil be the first road in the state built under the new legislation, according to the state secretary of transportation, Chesapeake city officials and two legislators, Del. J. Randy Forbes and Sen. Mark L. Earley.

The bypass would be the second private toll road built in Virginia since 1816. The other is the Dulles Greenway outside Washington, which is scheduled to open this year.

The private-construction bill is expected to pass the General Assembly, and the Allen administration has said it supports the concept.

``I expect that Battlefield Boulevard will be one of the first ones out of the hopper,'' Transportation Secretary Robert E. Martinez said Wednesday.

Martinez said the road is a priority because the two-lane section is heavily used by commuters. The road is also an emergency evacuation route for the Outer Banks.

``Of all the projects that come to mind within Virginia,'' Martinez said, ``. . . I would have to think that that was one of the prime candidates.''

Chesapeake city officials said South Battlefield Boulevard is carrying three times more traffic than it was designed to handle. It has a rated capacity of 7,500 vehicles per day, but daily traffic on summer weekends has been as high as 28,200 vehicles. An estimated 80 percent of the traffic comes from outside the region.

The private-construction legislation, sponsored by state Sen. Elliot S. Schewel of Lynchburg, would allow a business to submit highway proposals. If the state or city approves, either could enter into a partnership with a business to build the road. The state or local government would have the option of helping finance the projects, which would eventually revert to the city or state.

The companies would be allowed to charge tolls to make a profit and cover construction costs.

The Virginia Department of Transportation and the Allen administration support the privatization plan, known as the Proposed Public Private Transportation Act of 1995. The bill was unanimously passed by the General Assembly last year but was not signed by the newly elected governor, who wanted to examine the issue further.

Virginia's efforts to build the $140 million South Battlefield Boulevard bypass come as North Carolina prepares to widen its portion of the highway from two to five lanes.

North Carolina's project is scheduled to begin in March. The 18 1/2-mile, $36 million project is expected to be finished by the end of the year, said Neil Lassiter, assistant division engineer of the North Carolina Department of Transportation.

Chesapeake included the Battlefield toll road in its proposed five-year capital budget released Tuesday.

Even if the highway is approved for private construction and operation, the project still must overcome major hurdles, including an extensive environmental review.

Numerous wetlands have been identified along the proposed route. The city is preparing a draft environmental study for the U.S. Army Corps of Engineers, which must approve the plan along with the U.S. Environmental Protection Agency. A public hearing on the environmental review is scheduled for April.

The Jordan Bridge, a vital link between South Norfolk and Portsmouth, has been closed since it jammed while open in May.

Though the city has earmarked funds from a recent road bond issue to repair the span, City Manager James W. Rein said it was only a stop-gap measure.

``We were at a dead end with Jordan Bridge,'' Rein said.

The letter of intent is not a contract, city officials said.

``What that letter of intent means is that we will enter into negotiation with this firm alone to consider the option of having a whole new toll bridge with a private company,'' said Vice Mayor Arthur L. Dwyer.

The agreement calls for the city to provide Rebuild Inc. with information on the project and assistance with permits required to conduct traffic studies. The construction contract will be put out for bid if the legislation passes.

The Jordan Bridge replacement is estimated to cost about $100 million. Rein said he didn't know what the tolls would be. The old bridge had a 50-cent toll.

``But that's the beauty of the private aspect to this thing,'' Rein said. ``Whatever the toll is, it has to work or investors lose their money. If they make it too high, and they don't get the ridership, then they'll have a problem with that investment.''

While Rebuild's main focus is the Jordan Bridge project, Dwyer said the company has expressed interest in entering similar partnerships for building the Battlefield Boulevard bypass and another of the city's long-delayed highways, the Oak Grove Connector joining the Great Bridge Bypass with Interstate 464.

A spokeswoman for Rebuild Inc. said both the chairman and chief of operations declined to comment on their plans in Chesapeake. ILLUSTRATION: Map

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