Project Profile: I-285 / SR 400 Interchange Reconstruction

I-285/SR 400 Interchange Reconstruction - Fulton and DeKalb Counties, Georgia

photo credit: Georgia Department of Transportation

Location

Fulton and DeKalb Counties, Georgia

Project Sponsor / Borrower

Georgia Department of Transportation / State Road and Tollway Authority

Program Areas

Alternative Project DeliveryProject FinanceValue Capture

Mode

Highway

Description

The I-285/SR 400 Interchange Reconstruction project involves the construction of direct connector ramps and collector-distributor lanes between I-285 and SR 400 to reduce congestion at a major metropolitan Atlanta interchange carrying over 400,000 vehicles per day. The project has been one of the top transportation priorities in Georgia for years, but was delayed due to a lack of funding. In 2012, the project was included in a group of projects that would have been funded by the Transportation Special Purpose Local-Option Sales Tax (TSPLOST) measure, but Georgians voted overwhelmingly against the initiative. In 2014, the Georgia Department of Transportation (GDOT) opted to procure the project as a design-build-finance (DBF) P3 arrangement. GDOT selected North Perimeter Contractors to design, construct and partially finance the $803 million project in December 2015.

The project will be financed through a mix of sources, including an upfront payment of approximately $231 million by the State Road and Tollway Authority (SRTA) to North Perimeter Contractors before construction begins. This payment will be made using funds from the Perimeter Community Improvement District, state issued bonds, and state motor fuel tax revenue. North Perimeter Contractors will finance the construction of the project with a $458 million tax-exempt loan issued by Bank of America that will mature in 2022. Following the completion of construction, SRTA will make payments to North Perimeter Contractors, with federal funds and state motor fuel tax revenues.

Cost

$803 million (total project cost inclusive of planning, preliminary design, environmental approval, right-of-way acquisition, oversight roles, final design, construction, finance charges, utility relocations, construction engineering and inspection, and bonding and insurance)

  • Design-build Contract - $460 million
Funding Sources

Construction Pre-Payment

  • Perimeter Community Improvement Districts - $10 million
  • State-issued bonds - $130 million
  • State motor fuel tax revenue - $81 million

Developer Financing

  • Tax-exempt bank loan - $458 million

Post-Construction Payments to North Perimeter Partners

  • Federal funds
  • State motor fuel tax revenue
Project Delivery / Contract Method

Design-build-finance (DBF)

Private Partner

North Perimeter Contractors

  • Ferrovial Agroman
  • The Louis Berger Group
  • Neel-Shaffer Inc.
Project Advisors / Consultants

HNTB - General Engineering Consultant

Ballard Spahr - Legal Advisor

Ernst & Young Infrastructure Advisors - Financial Advisor

Lenders

Bank of America, Bondholders

Duration / Status

Construction is anticipated to begin in late 2016

Construction expected to be complete in mid-2020

Financial Status

Closed. The tax-exempt bank loan was secured on April 14, 2016

Innovations
  • The competitive bidding process and innovation of the Design Build team reduced the total project cost from an estimated $1.1 billion to $803 million, a savings of approximately $300 million.
  • Significant savings were generated by innovative design and engineering, including reducing the number and length of steel bridge spans by nearly 50 percent.
  • The project was procured and will be managed using a unique intergovernmental partnership between GDOT and SRTA. During the procurement phase, GDOT was responsible for the project procurement and funding of the project. During the construction phase, GDOT will be responsible for project management and operations and maintenance. Following the selection of the preferred bidder by GDOT, SRTA was responsible for negotiating the DBF agreement and will make payments to North Perimeter Partners following construction completion using funds provided by GDOT.

 

Related Links / Articles

Project Website

North Perimeter Contractors' Proposal
Contacts

Albert "Butch" Welch, P.E.
GDOT
Program Manager - I-285/SR 400 Project
Tel: (404) 772-6969
awelch@dot.ga.gov

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