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Case Study - Flexible Match
Franklin Boulevard Interchange

The Financing Challenge

In mid-1999, the Idaho Transportation Department initiated a six-month, $2.7 million construction project to double the capacity and relieve congestion on the interchange between Interstate 84 and Franklin Boulevard in Nampa, Idaho.  The Franklin Boulevard overpass crossing Interstate 84 was widened from two to four lanes, and traffic signals were installed at the intersections of the ramps with Franklin Boulevard, which provides access to downtown Nampa and nearby offices.  The Franklin Boulevard project was built as a public/private partnership between Micron PC and the Idaho Transportation Department.

The construction project was intended to relieve congestion along Franklin Boulevard, which connects the Interstate to downtown.  Franklin Boulevard also provides access to several major employers in Nampa, including Micron PC, a manufacturer of computer equipment and the area's largest employer.

Although the Franklin Boulevard project was a high priority for Micron PC and other Nampa area employers, the Idaho Transportation Department had committed much of its resources to other projects around the state, including the $75 million reconstruction of the Interstate 84 interchange with Interstate 184 in nearby Boise (the "Wye interchange").  The Franklin Boulevard interchange was not scheduled to be improved by the state until after 2002, when the Wye interchange in Boise is scheduled to be completed.  Funds were not available to pay for the interchange on an accelerated schedule.  However, an improved interchange was central to the expansion plans of Micron PC.

The Innovative Solution

To accelerate the construction of the Franklin Boulevard interchange, a public/private partnership was formed between the Idaho Transportation Department, Micron PC, and the City of Nampa.  Central to the terms of this partnership was a $1 million contribution by Micron for interchange construction costs; the City of Nampa contributed $550,000.  The private sector contribution had three key benefits.  First, it allowed the interchange to be built years earlier than would otherwise have been possible if Idaho had financed the project on its own; accelerated construction also avoided inflation costs.  Second, the $1 million was credited as part of the state's share of matching funds for the project, using the flexible match provisions that allow contributions from the private sector to qualify as local match.  Third, the contribution meant that Idaho was able to reprogram the $1 million to other construction projects in the state.

The Results

The State of Idaho, the City of Nampa, and Micron PC all benefited from the public/private partnership established to construct the Franklin Boulevard interchange project.  The project was completed in December 1999 on an accelerated schedule, resulting in lower project costs and improved traffic conditions on the interchange serving Micron PC and other businesses in Nampa.  In addition, the project illustrates how state and Federal dollars can be leveraged by private sector contributions enabled by U.S. DOT's flexible match provisions.

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