In January 2009, the NTTA, City of Fort Worth, Texas Department of Transportation (TxDOT) and Union Pacific Railroad (UPRR) entered into a formal agreement outlining each of their respective responsibilities as it relates to Southwest Parkway (SWP) and UPRR Davidson Yard. As part of the formal agreement, the NTTA and City of Fort Worth agreed to pay approximately $95 million for right of way and other costs associated with the construction of Southwest Parkway across and adjacent to the UPRR Davidson Yard.

 

The Texas Transportation Commission gave preliminary approval on June 25, 2009, of a toll equity grant in the amount of $49.87 million to fund the first portion of the $95 million in costs the NTTA and City of Fort Worth have committed to pay under the Southwest Parkway/UPRR formal agreement. The Dallas-Fort Worth area Metropolitan Planning Organization, also known as the Regional Transportation Council (RTC), designated $49.87 million on June 11, 2009 from its Surface Transportation Program - Metropolitan Mobility funds for this purpose. RTC’s action was necessary since TxDOT determined the section of Southwest Parkway crossing UPRR Davidson Yard is an off-system project. The $49.87 million would cover UPRR costs through approximately July 2010. The Texas Transportation Commission is expected to give final approval of the toll equity grant in July.

 

The NTTA would fund the remaining $45.13 million of the $95 million commitment for costs incurred to develop Southwest Parkway after July 2010 through NTTA financing. In the event NTTA determines that Southwest Parkway is not feasible or otherwise elects not to develop the roadway, the RTC would fund the remaining $45.13 million from Category 2 funds already dedicated to the project and no longer needed. These funds in fact would be Category 2 since the roadway would be re-designated as on-system in order for TxDOT to construct Southwest Parkway.