Costello Puts Up a (Toll) Roadblock

Toll road opponent Sal Costello has found one more way to zing the Central Texas Regional Mobility Authority, filing a temporary injunction to stop the delivery of $250 million in bonds for U.S. 183-A. His lawsuit could cost the CTRMA millions.

That means that the CTRMA is facing opposition on two fronts now, even as Costello's Austin Toll Party (which attempted to recall pro-toll Austin City Council Members) fades. In addition to Costello's suit, this week the City Council is poised to pass a resolution to ask the city's fin-ancial adviser to study alternatives to the toll road plan, ways to put roads on the ground that would not require tolls.

Documents on the bonds, which the CTRMA sold on Feb. 16, require the CTRMA to verify, both when the bonds were sold and when they are delivered, that there are no significant material claims or lawsuits pending against the CTRMA. That's now in jeopardy, a fact that the CTRMA acknowledges could cost the authority millions if the sale has to be repackaged.

According to Costello's lawsuit, filed on behalf of the People for Efficient Transportation Political Action Committee, the CTRMA is an illegal board with board members who have exceeded their terms under the provision of the Texas Constitution. Although the enabling legislation for the RMA designates six-year terms for board members, the Constitution states no one serving on a regional entity can serve more than two years. PET is asking the court to stop the delivery of the bonds.

"The illegal, unconstitutional CTRMA board should not be allowed to move forward with the bond sale, nor on the double tax toll plan," Costello said. "An illegit-imate board should not be permitted to control the tolling of 50% of our metro highway lane miles, especial-ly without an independent economic impact study show-ing the need for the plan. This is nothing more than a special-interest political power-play and is a recipe for disaster."

The U.S. 183-A bonds were scheduled for delivery on Wednesday afternoon. Attorney Brian Cassidy expressed confidence the injunction will fail. If not, the TRO could have serious implications to the cost of the U.S. 183-A project.

"We think we'll prevail on the merits of the case. This was obviously calculated to stop a project which had no other real opposition," Cassidy said. "It would be very costly to Central Texans if the transaction is enjoined."