Sometimes called the “no-compete clause.” This is a clause that is commonly found in agreements (known as CDA’s ) between toll investors and local governments.  Basically, the clause states that roads that parallel a toll road, while they can be repaired as needed, will not be widened to relieve congestion.  If they are, the government must pay the investors a substantial penalty.

When roads become tolled, the public will usually look for free roads to travel on that parallel the tolled road.  These of course become extremely congested almost immediately, which is what the investor is hoping for.  Eventually, many people get tired of using the free roads due to massive congestion and begin using the toll road.  In San Antonio for example, two roads that parallel US Hwy 281 north of 1604 are Blanco and Bulverde Rds.  They needed to be widened years ago but TxDOT has been slow to do so for fear of running off potential investors.

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