By CHARLES OWENS
Bluefield Daily Telegraph, Oct. 3, 2008
BLUEFIELD — The national economic downturn is taking a financial toll on the operations of the 88-mile West Virginia Turnpike.
Commercial and passenger vehicle traffic on the turnpike is still down by more than 5 percent, Turnpike Authority General Manager Gregg Barr said during a meeting Thursday in Bluefield. A decline in traffic on the turnpike also has prompted the authority to approve recommended adjustments in operating hours for certain food establishments at the turnpike travel plazas. The national economic downtown also has led to a significant spike in bond interest rates for the authority.
Victor Grigoraci, a member of the West Virginia Parkways Economic Development and Tourism Authority, said the turmoil in national economic markets has led to the increase in authority bond rates. He estimated potential losses at $3.6 million if economic conditions don’t improve.
“The $3.6 million figure is based on this continuing,” Barr said of the national economic downturn. “A lot of this hinges upon the bailout issue the House takes up (today). There is an anticipation that this all could kind of balance back out in the next couples of weeks. But in the meantime we are paying more interest.”
Barr said the interest rates on bonds had spiked to a high of 7.92 percent Thursday compared to a lower 1.77 interest rate just two weeks ago. If the House adopts the financial bailout package today that was approved by the Senate Wednesday night, Barr said the authority could see a potential reduction in interest rates as early as next Wednesday.
A decline in traffic on the turnpike is leading to a decrease in business at travel plaza restaurants. A motion to adjust operation hours for several travel plaza restaurants, including Starbucks, Sbarro’s and TCBY, was made by board member Bill Seaver, seconded by board member Mike Vinciguerra and approved unanimously by the authority. Starbucks, which is currently open 24 hours a day, will be changing from 6 a.m. to 11 p.m. from Labor Day to Memorial Day as part of the HMS Host recommendations. Barr said HMS Host is making similar adjustments to their operating hours at all of their travel plaza operations in other states. Barr said HMS will maintain 24 hour operations at the turnpike travel plazas for Burger King, Travel Mart and Blimpies.
High gas prices, and continued uncertainty about the economy, has led to a continued decrease in traffic along the turnpike. Barr said passenger car traffic on the turnpike is still down by about 6 percent, and truck traffic is down by about 5 percent.
“People are taking shorter trips,” Barr said. “I think people are being more cautious. It’s a double impact now. It’s not just gas prices, but the economy.”
With the exception of travel during Thanksgiving and Christmas, Barr said the authority is heading into a lower travel period. As a result, officials aren’t expecting to see an immediate increase in traffic unless the economy improves.
Barr said traffic on the turnpike will increase “if people get a sense that gas prices will level off, and if the economy of the country starts getting more positive.”
Barr said 20 percent of all traffic on the turnpike is local with 80 percent of the traffic coming from out-of-state. As a result, the authority is seeing fewer motorists from out-of-state traveling the 88-mile turnpike between Princeton and Charleston.
– Contact Charles Owens at cowens@bdtonline.com