...Historic Bridge Dependent on Leisure: The Rickenbacker Causeway (Rickenbacker or the causeway) has a long operating history, but depends on leisure traffic for 90% of revenue. The causeway, the only crossing to Virginia Key and Key Biscayne, serves a narrow catchment area and competes with other regional tourist destinations. (Revenue Risk -- Volume: Weaker) Moderate Pricing Flexibility: Miami-Dade County (the county) has shown willingness to raise rates on discretionary trips over the last 10 years, but the leisure orientation of the bridge could limit future pricing power. Tolls on leisure trips must be sized to cover the majority of costs as commuters pay only for annual plans, rather than for each crossing. Though annual commuter plan cost is low, political risk exists with raising rates on these plans should discretionary trips decline, given the lack of demonstrated history. (Revenue Risk -- Price: Midrange) Adequate Approach to Lifecycle Maintenance: Projections for capital maintenance...
