Thursday, October 23, 2003

Hausdorfer gets role he sought

By: HEATHER LOURIE

The Orange County Register

Gary Hausdorfer - whose 1999 attempt to buy the 91 Express Lanes ended in controversy - has been named chief executive of the tollway's operator, Cofiroute Global Mobility.

Hausdorfer will replace Greg Hulsizer, who resigned from his post to become the new CEO of the State Route 125 tollway in San Diego.

Hausdorfer said he is in transition and expects to fully take over the top job in January. The Express Lanes are expected to generate nearly $27 million in toll revenue and $4 million in transponder fees for fiscal 2003-04.

"I'm very excited. I think there is an enormous potential and opportunity ahead," he said Wednesday.

Hausdorfer at the helm of the Express Lanes operation likely will be transparent to drivers, said county Treasurer John Moorlach, who called the appointment "déjà vu all over again."

In 1999, Hausdorfer was head of a private, nonprofit company hoping to buy the 91 Express Lanes from California Private Transportation Corp. The plan ultimately blew up under criticism about potential conflicts of interest. At the time, documents showed there was no independent appraisal of the 10-mile road. Also, CPTC helped create the nonprofit and loaned it $1 million. Last year, the Orange County Transportation Authority bought the road from CPTC for $207.5 million and hired Cofiroute to run it.

Hausdorfer defended his role in the 1999 deal.

"It's water under the bridge," he said. "We did absolutely nothing wrong. There was no conflict of interest of any kind, and I have the documents to prove it. It fell apart for political reasons, not financial reasons."

Hausdorfer, who helped OCTA with its tollway purchase, is president of the Diamond Group, an Irvine consulting company specializing in government relations and corporate strategies. The former San Juan Capistrano councilman left politics in 1994 after 17 years in office.

"I'm assuming he's the best person qualified for the job – and if he's not, time will tell and changes will have to be made," said Jeff Miller, a Corona councilman who sits on the 91 Advisory Committee.