Mn/DOT and Economic Development ACEC Annual Meeting March 2, 2010.
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Transcript of Mn/DOT and Economic Development ACEC Annual Meeting March 2, 2010.
Mn/DOT and Economic Development
ACEC Annual Meeting
March 2, 2010
Outline of Discussion
• Mn/DOT’s Economic Development Objectives• Challenges• Solutions
– Innovative Finance– Public Private Partnerships– Transportation Economic Development initiative
Mn/DOT’s commitment to Economic and Community Development
• “Transportation is critical in supporting economic vitality and quality of life in Minnesota.”− 1st sentence in the Minnesota Statewide
Transportation Policy Plan 2009-2028
Mn/DOT’s commitment to Economic and Community Development
• Support local efforts to increase jobs, expand housing, and improve community livability through more coordinated planning, complementary design and timely communication among land use and transportation authorities.– Policy 8 of Minnesota Statewide Transportation Policy
Plan 2009-2028
Investments Needs 2009-2028~$65 Billion
Mobility$42.6 B
69%
Traveler Safety$3.1 B
5%
Infrastructure Preservation
$16.3 B26%
Regional & Community Improvement Priorities
= $3 to $5 B+
Investments to Meet Performance
Targets = $62 B($ in Billions, Year of Construction)
Projected Revenue : $15 B
0
200
400
600
800
1000
1200
2009 2019
State Fiscal Year
Co
ns
tru
cti
on
Ex
pe
nd
itu
res
(M
illi
on
s o
f D
oll
ars
)
State Funds
Federal Funds
Chapter 152 Bridge Bond Funds
Chapter 152 Other Bond Funds
2028
Buying Power of the SRC
Investment Plan for Projected2009-2028 Funding: $15 Billion
($ in Millions, Year of Construction)
Twin Cities Metro Area Mobility
$890 M6%
Interregional Corridor Mobility
$80 M1%
Capacity Improvement
$620 M4%
Roadway Enhancement
$780 M5%
Other Infrastructure Preservation
$640 M4%
Greater MN Trade Centers Mobility
$60 M0%
Regional & Community
Improvement Priorities$580 M
4%
Right of Way, Consultants,
Supplemental Agreements
$370 M2%
Pavement Preservation
$5,840 M40%
Other Bridge Preservation
$2,600 M17%
Chapter 152 Bridge Preservation
$2,520 M17%
“Traditional” Economic Development and Transportation Infrastructure Funding Sources
• Federal STP, Enhancements, CMAQ• Department of Commerce Economic Development Administration -
Public Works and Development Facilities Program• USDA Community Facilities programs• State DEED Programs• State and local funding from HUTDF• State bonding• Local Road Improvement Program• Transportation Revolving Loan Fund
One tool to narrow the gap: Innovative Finance • Innovative Transportation Finance is the practice of
exploring, developing and implementing the following to accelerate transportation improvements:– New and non-traditional revenue streams– New financing tools and techniques– New methods of utilizing existing revenue streams and
financing techniques– New types of financial partnerships between state,
regional, local and private entities
10
Innovative Finance Concepts • Revenue Generating Concepts
MnPASS HOT Lane/Shoulder Expansion
Toll Bridge Project
Concepts
Asset Revenue
Enhancement IdeasToward Zero
Death (TZD) Surcharge
Private Contribution
P3 Opportunities
Mileage Based User
Fees
Transportation Improvement
District Approaches
Addressing the Public Infrastructure Funding/Financing Gap
Mn/DOT Innovative Finance Initiative Activities
Innovative Finance Program Mission:
Mn/DOT will work with transportation partners and the public to explore, identify, develop, and implement financing approaches that enable access to non-traditional sources of revenue and new financial approaches that provide a maximum, sustainable level of transportation services to the citizens of Minnesota.
Benefits of Innovative Finance (Policy Rationale)
• Better Alignment of Transportation Use/Benefit and Financial Responsibility – Some IF strategies can better link the costs of a transportation improvement
with those who use or benefit from the improvement (e.g. toll projects, private contributions to specific projects, value capture strategies).
– When benefiting users and property owners are required to pay closer to the real cost of transportation improvements, revenue increases for some projects, demand decreases for other projects, and improvements can become more financially sustainable.
• Economic Development and Growth– Job Creation and Preservation– Tax Base Growth
Benefits of Innovative Finance (Cost/Operational Efficiency Rationale)• Project Acceleration Benefits
– Inflation Savings– Accelerated Public Benefits
• Safer Commutes• Improved Ride Quality• Less Congestion/Travel Time and Greater Reliability• Better Access and Greater Travel Mode Choice• Reduced Emissions and Environmental Improvement• Enhanced Livability and Quality of Life
Transportation Economic Development (TED) Initiative
Transportation Role in Economic Development
• Carefully targeted transportation infrastructure improvements will:– Stimulate new economic development and business
expansion– Create and retain jobs– Increase state and local tax base– Provide better/safer access to markets– Provide more opportunities for employers/employees– Improve livability and sustainability
Other State DOT Economic Development Programs
• Iowa - Revitalize Iowa’s Sound Economy (RISE) program
• Wisconsin – Transportation Economic Assistance (TEA) Program
• Illinois – Economic Development program (EDP)• Michigan – Transportation Economic Development
Fund (TEDF)• Massachusetts – Public Works Economic
Development (PWED) program.
Mn/DOT P3 Vision: Transportation Economic Development “initiative” Fundamentals
• Transportation / business development / jobs creation• Multi-agency collaborative effort (DEED, PFA, Mn/DOT)• Public Private partnerships/collaboration• Multi-modal, multi-jurisdictional• Project proposals to be evaluated on the basis of economic
development potential, level of private investment, safety, and mobility factors.
• Complimentary loan component (ROW Acquisition)
Potential “target” industries:• Manufacturing• Technology• Warehousing / Distribution• Research and Development• Agricultural processing• Bioscience• Tourism• Mixed use, high density multi-modal development
Strategies to Identify Transportation Economic Development Opportunities
• Public Outreach– Formal and informal meetings to discuss potential
project ideas• Project Screening
– Review of state and local plans/programs
Thanks very much!
• Brad Larsen
Director of Traditional and Innovative Finance(651) 366-4821
• Matt Shands
Transportation Economic Development Program Director (651) 366-4893