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Project Profile: I-405 Improvement Project

I-405 Improvement Project

photo credit: OCTA

Location

Orange County, California

Project Sponsor / Borrower

Orange County Transportation Authority (OCTA)

Program Areas

Alternative Project DeliveryProject FinanceTolling and PricingValue CaptureTIFIA

Fiscal Year Approved Fiscal Year 2017
Mode

Highway / Express Lanes

Description

The I-405 Improvement Project in Orange County, CA will add one new general purpose lane along the right shoulder and one new express lane in the median in both directions along a 16-mile segment of I-405 between State Route 73 (SR-73) and Interstate 605. The existing high occupancy vehicle (HOV) lane will be converted to express lane operation to provide two express lanes in each direction. The I-405 Express Lanes will include single-lane direct connector ramps to/from SR-73 to the south and to/from I-605 and SR-22 to the north.

The project will also widen and replace 18 bridges, improve auxiliary lanes, relocate utilities, add new sound walls, and incorporate Transportation System Management and Transportation Demand Management strategies.

Cost

$1.908 billion (TIFIA eligible project costs)

Funding Sources

Measure M2 sales tax bonds - $891.07 million

TIFIA Loan - $628.93 million

Measures M2 sales tax revenues - $253.94 million

State and federal grants - $135.4 million

Project Delivery / Contract Method

Design-build

Private Partner

Design-builder - OC 405 Partners. A joint venture of:

  • OHL USA, Inc.
  • Astaldi Construction Corporation

In conjunction with subcontractors:

  • Myers and Sons Construction
  • All American Asphalt
Project Advisors / Consultants

To OCTA

  • Financial Advisor - Sperry Capital
  • Legal Advisor - Nossaman LLP

To USDOT Build America Bureau

  • Financial Advisor - Deloitte
  • Traffic and Revenue Advisor - Louis Berger
  • Legal Advisor - Nixon Peabody
Lenders

USDOT TIFIA, Bondholders

Duration / Status

OCTA awarded a design-build contract on November 14, 2016, and executed it on January 31, 2017.

Construction is expected to start in early 2018 and reach substantial completion by December 2023.

TIFIA Credit Assistance

Direct Loan - $628.93 million

The TIFIA loan is secured by pledged net toll revenues (gross revenue minus annual O&M expenses).

Financial Status

TIFIA credit agreement was signed in July 2017, and will mature in December 2057, 35 years after substantial completion.

Innovations
  • The Measure M1 ½-cent local options sales tax raised $4 billion in transportation improvement funding for Orange County between 1990 and 2011. The measure was renewed in 2006 as Measure M2, extending the tax's collection through 2041, by which point it is expected to deliver on $14.2 billion in planned improvements.
Related Links / Articles

OCTA Project Website

OC 405 Partners Website

Contacts

Andy Oftelie
Executive Director of Finance and Administration
OCTA
Tel: (714) 560-5649
aoftelie@octa.net

Kirk Avila
Treasurer/General Manager
OCTA
Tel: (714) 5606-5674
kavila@octa.net

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