LOS ANGELES -- The U.S. Ninth Circuit Court of Appeals agreed this week to halt construction on part of the San Joaquin Hills toll road in California, pending a hearing off an envi~ tonmental appeal tied to the project.
A three-judge appellate panel on Wednesday granted an injunction until September, when the appeal hearing is scheduled.
A lower court judge had lifted the injunction earlier this month. U.S. District Court Judge Linda McLaughlin took the action after ruling that the San Joaquin Hills Transportation Corridor Agency and the Federal Highway Administration had complied with environmental laws for approving the road.
Following McLaughlin's decision, the toll road agency immediately began work on the 4.4-mile section. Last week, however, environmental groups obtained a temporary stay halting the work until they could plead their case further. The groups have argued that the environmental approval process for the project was flawed.
The new injunction only affects construction on 4.4 miles of the overall 14-mile right-of-way for the project. Construction is continuing at both ends of the corridor not affected by the injunction.
Officials at the San Joaquin Hills road agency expressed disappointment at the further delay. But on a positive note, they said the appeal will be given expedited consideration.
"The court has set a very tight briefing schedule on this case and in doing so has virtually eliminated the potential for lengthy procedural delays," William Woollett Jr., chief executive officer of the toll road agency, said in a statement. "That is good news."
The opening brief from the environmental groups is due July 6, based on the schedule established by the appellate court's order. The answering brief by the U.S. Department of Transportation and the toll road agency is due July 20. The environmental groups can then file an optional reply brief within a week of receiving the other side's arguments.
Municipal market participants have a stake in the outcome because extensive delays could throw the project behind and add to the overall cost. The road is scheduled for completion in 1997.
The project was financed with more than $1 billion of toll road revenue bonds, which were sold early last year. Fitch Investors Service rates the senior lien bonds BBB; no ratings were assigned by other agencies.
The toll road agency has fended off other environmental challenges, and it remains confident about the dispute at hand.
"Given that the legal issues the [federal] court of appeals will be reviewing have already been settled in favor of the agency by the Orange County Superior Court, the state court of appeal, and the federal district court, I remain hopeful that our agency will prevail before the court of appeals," Woollett said in the statement.
The injunction affects construction in an area known as the Laguna Greenbelt, including Laguna Canyon, and also covers a 1.7-acre parcel owned by the University of California at Irvine.
