South Bay
Expressway
SR-125 Toll Road
Background
The South Bay Expressway (SBX) project was a
public private partnership between Caltrans and
California Transportation Ventures (CTV).
SBX is a ten-mile stretch of State Route 125 (SR-
125) from SR-905 to SR-54.
The need for the project was driven by:
Commercial traffic growth in an area of
expanding trade at the Otay Mesa Port of
Entry with Mexico
Economic growth and activity in a largely
undeveloped area of Chula Vista and Otay
Mesa
Initial Goals
SBX was expected to achieve the following goals:
Complete a missing link in the San Diego
freeway network
Reduce traffic congestion and travel time by
34% from Otay Mesa to San Diego and by
75% in the reverse direction
Improve regional mobility in the South Bay
Allow access to employment centers on both
sides of the US-Mexico border
Toll Road History
In 1991, Caltrans and CTV signed a franchise agreement for the project, allowing CTV to finance and construct the toll road.
Caltrans leased back the operational rights for a 35-year concession period through November 2042.
Agreement prohibited Caltrans from building any
competing roads.
In 2010, CTV filed for bankruptcy and SANDAG purchased the franchise from Creditors, including the U.S.
Department of Transportation, in December 2011 for
$341.5 million.
Milestones
In 2012, SANDAG reduced tolls by 24% to 40%.
In 2017, SANDAG refinanced indebtedness and
operates uniquely strong operating margins.
Debt bonds are callable in 2027.
Franchise Agreement between Caltrans and SANDAG
scheduled to terminate in November 2042.
SBX FY21 Debt
Profile and
Reserve
Balances
SANDAG projects the following in FY27:
Outstanding Bond Balance $143 million
Total Cash Balances $110 million
When bonds are callable in 2027, an estimated $33
million gap exists.
SANDAG intends to make significant investments into
the electronic tolling system, which are not needed if
the goal is to eliminate tolls and pay off debt sooner.
Impact
Existing tolls place an undue and
disproportionate burden on South Bay users
Hinder the City’s economic development activity
in areas such as business attraction and retention
Divert more traffic onto local roadways and I-805
Otay Mesa East Port of Entry will provide border
crossings via a tolling system
Next Steps
To eliminate tolls, three actions are required:
SANDAG and Caltrans would have to support
actions to retire toll road debt and transition
facility to a freeway
$33 million in funding needed by SANDAG in
2027 to finance bond call
Caltrans would need to assume responsibility of
the road before end of lease in 2042
Resolution
Resolution of the City Council of the City of
Chula Vista requesting that the San Diego
Association of Governments exercise its option
to pay off SR-125 Toll Road debt in 2027 and
take all other actions necessary to revert control
of the SR-125 to the California Department of
Transportation in 2027 for its operation as a
freeway.