New York State Considers P3 Financing to Fix Long Island Highway

What happened: The Long Island Contractors’ Association, Inc. (LICA) and New York State Assembly Member Michaelle Solages (D – Valley Stream) released a report Aug. 3 on the use of Public-Private Partnerships (P3s) in U.S. highway and bridge construction. LICA commissioned the custom work from ARTBA. In addition to case studies of P3 projects across the country, the report explores the possibility of using a P3 to expand and reconstruct the Southern State Parkway (SSP) on Long Island, one of the most dangerous highways in the New York City metropolitan area.

Why it matters: The parkway, specifically the 10-mile stretch between Exit 17 in the Long Island community of Malverne and Exit 32 in Farmingdale, is nicknamed ‘Blood Alley’ because of its hazardous conditions. The sharp curves, short acceleration and deceleration ramps, the profusion of small exits, and the proximity of three major intersecting north-south highways, put this stretch of roadway in dire need of safety improvements.

The parkway has remained virtually unchanged since the first section opened in 1927, when it was built to improve beach access for automobiles traveling 35 miles per hour. According to New York State Department of Transportation (NYSDOT) estimates, the Southern State now handles nearly 200,000 vehicles per day through Long Island’s Nassau County and 130,000 vehicles per day through its western Suffolk County. Between 2012 and 2019, there were 15,768 accidents on the SSP resulting in property damage, 8,443 resulting in injury, and 78 resulting in death according to data from NYSDOT.

As a potential remedy for these hazards, the study provides extensive background material for public officials considering a High Occupancy Toll (HOT) lane throughout the 25-mile corridor and rebuilding the roadway to today’s engineering safety specifications. The report details case studies of other private investment in similar projects across the country. The use of a P3 could help fund the parkway’s reconstruction with a funding stream supported through a HOT lane. Similar to a High Occupancy Vehicle (HOV) lane like the one along the Long Island Expressway, a HOT lane would include tolling with prices adjusted according to congestion levels. The existing six-lanes would remain toll-free. Additionally, a HOT model could be attractive for P3 financing opportunities that leverage the incoming toll revenues, alleviating upfront costs for the public.

What’s next: New York has not implemented enabling legislation for comprehensive P3s but has in recent years expanded access to design-build (DB) procurement. LICA intends to use the report in advocating for appropriate state legislation to enable modernization of the Parkway.