Project Profiles

Project Sponsor / Borrower

Colorado High Performance Transportation Enterprise  (HPTE)

Fiscal Year Approved

Fiscal Year 2011

Mode

Highway / Managed Lanes; Bus Rapid Transit

Description

U.S. 36 is a four-lane divided highway that connects the City of Boulder to Denver at its intersection with I-25. The highway currently experiences significant congestion and has been targeted for improvements by the Colorado Department of Transportation (CDOT) since the late 1990s. The U.S. 36 Managed Lane Project: Segments 1 and 2 is an initial phase of approximately $1.3 billion of improvements originally identified in a 2009 EIS along the 18 miles of roadway between the two cities. This $307 million first phase will be delivered under a design-build contract and will include the following components:

• One express (HOT) lane in each direction from Federal Boulevard to 88th Street in Louisville/Superior (approximately 10 miles) and reconstruction of the general purpose lanes
• Replacement of the Wadsworth Parkway, Wadsworth Boulevard, Lowell Boulevard, and Sheridan Boulevard bridges and replacement of the U.S. 36 bridge over the BNSF Railway
• BRT accommodations at stations located on ramps and adjacent park-n-rides, and bus bypass ramps at several interchanges (new and more frequent bus service will be provided)
• Bikeway along much of the corridor
• ITS equipment including for tolling, transit information, and incident management
• Improvement of Regional Transportation District (RTD) stations along the corridor

The project is being developed by the HPTE in partnership with CDOT and RTD. This phase of the project is expected to be open to traffic by January 2015.

A $140 million Phase 2 will reconstruct U.S. 36 from 88th Street to the Foothills Parkway (approximately 5 miles). Specifically it will:

• Reconstruct and widen U.S. 36 to accommodate a new managed lane in each direction as well as 12-foot shoulders
• Reconstruct existing pavement
• Construct sound walls
• Construct retaining walls
• Install ITS for tolling, transit information, and incident management
• Construct a bikeway, where feasible
• Implement appropriate Transportation Demand Management strategies

CDOT and HPTE are pursuing a DBFOM P3 approach for Phase 2 where the concessionaire will design, build, and finance Phase 2 and operate and maintain the express lanes along the entire U.S. 36 corridor along with the existing I-25 Express Lanes, 24 miles in total.

Cost

Est. Total Cost: $307 million (Phase 1)

Funding Sources

TIFIA loan - $54.0 million

CDOT federal/state grant - $38.0 million

CDOT Bridge Enterprise funds - $46.0 million

Regional federal funds (Denver Region Council of Governments) - $44.0 million

RTD sales tax revenue - $120.0 million

TIGER Grant* - $4.8 million
*Net of TIFIA subsidy and costs

Project Delivery / Contract Method

Phase 1: Design-Build

Phase 2: DBFOM

Project Partners

Phase 1 Design-builder: Ames Granite Joint Venture Team (Ames Construction Inc., Granite Construction Company, HDR Engineering Inc., and Michael Baker Inc.)

Project Advisors / Consultants

Jacobs Engineering Group - Engineering Advisor

The PFM Group and Acacia Financial Group - Financial Advisors

KPMG - P3 Advisor

Wilbur Smith Associates - Traffic & Revenue Consultant

Kutak Rock, LLP - Bond Counsel

Ballard Spahr, LLP - HPTE's Special TIFIA Counsel

J.P. Morgan - Underwriter

To USDOT TIFIA JPO:

• TIFIA Legal Advisor - Hawkins Delafield & Wood, LLP
• TIFIA Financial Advisor - Infrastructure Management Group, Inc.

Lenders

USDOT - TIFIA

Duration / Status

Phase 1 construction began in July 2012; expected opening in January 2015

Phase 2: HPTE shortlisted three P3 proposers and issued a draft Request for Proposals in July 2012; selection of a preferred proposer expected spring 2013

TIFIA Credit Assistance

Direct Loan: $54.0 million

The TIFIA loan, which initially will be the only Project debt, will be issued within a Master Trust Indenture. The TIFIA Loan Agreement and the Master Trust Indenture provide certain credit protections to mitigate project risk, including reserves, additional bonds test, and a rate covenant. The security for the TIFIA loan will be a gross pledge of toll revenues collected on the U.S. 36 managed lanes. The Borrower has covenanted to maintain tolls to produce debt service coverage on all senior and TIFIA debt of 1.30x and debt service coverage on any future senior lien debt of 1.40x. Prior to substantial completion the Borrower will establish a TIFIA debt service reserve equal to maximum annual debt service over the next five year period.

The TIFIA loan has been rated "BBB-" by Fitch Ratings.

Financial Status / Financial Performance

TIFIA credit agreement was executed on September 1, 2011

Innovations

• Addition of the HOT lanes will connect to the existing I-25 Express lanes that extend from U.S. 36 to downtown Denver and add to a network of regional tollways
• Project combines several multimodal and ITS-based strategies to alleviate congestion along the corridor: managed (HOT) lanes, BRT, provision for a commuter bikeway, and various ITS and TDM strategies

Related Links / Articles

Project Website

U.S. 36 HPTE Project Website

TIFIA Loan Agreement

Contacts

John Schwab, P.E.
US 36 Managed Lanes, Project Director
CDOT Region 6, North Engineering Section
2000 South Holly Street
Denver, CO 80222
john.schwab@dot.state.co.us