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Project Profile: State Street Redevelopment Project

State Street Redevelopment Project - West Lafayette, Indiana

photo credit: Plenary Group

Location

West Lafayette, Indiana

Project Sponsor / Borrower

City of West Lafayette, Purdue University

Program Areas

P3Value Capture

Mode

Local Road / Multimodal Redevelopment

Description

The City of West Lafayette and Purdue University are jointly delivering the State Street Redevelopment Project to provide aesthetic and functional improvements to both the City of West Lafayette and Purdue University. Transportation infrastructure enhancements will improve safety, mobility, and livability. The project includes new gateways into West Lafayette and Purdue University, streetscape and pedestrian amenities to enhance community and campus resident cohesiveness, and expanded transportation infrastructure to accommodate planned and future growth of West Lafayette and the University.

The $123 million project extends along State Street from the Wabash River through downtown West Lafayette and Purdue University's campus to its intersection at U.S. 231. The project will shift through-traffic off of the State Street corridor - a former state highway now under local control - and convert it into a two-way street with wider sidewalks, bicycle facilities, transit stops, street lighting, landscaping, public spaces, and public art. The project also includes the conversion of several intersecting one-way streets to two-way facilities and involved milling and resurfacing the existing streets, installing new pavement markings and signage, and converting traffic signals.

The project is being delivered through a 22-year design-build-finance-maintain P3 agreement between the project sponsors and Plenary Roads State Street, a private consortium. Under the terms of the agreement, the private consortium is responsible for financing, designing and constructing the project, and for maintaining the pavement for a 22-year period following project completion. It will be compensated with availability payments following project completion. The private consortium will transfer responsibility for the project back to the city after the operations period, with at least 6 years of remaining pavement life, for a total performance commitment of 28 years.

Cost

$122.7 million

Funding Sources

Sponsors' financing

  • West Lafayette TIF District 1 (TIF 1) - $60 million
  • West Lafayette TIF District 2 (TIF 2), backed by Purdue Research Foundation credit support facility - $62.7 million

Private partner's financing sources

  • Senior Credit Facility - $25 million
  • Senior Notes - $40 million
  • Private Equity - $5 million
Project Delivery / Contract Method

Design-build-finance-maintain Availability Payment Concession (25 years)

Private Partner

Plenary Roads State Street

  • Plenary Group USA Ltd.
  • Rieth-Riley Construction Company, Inc.
  • Janssen & Spaans Engineering Inc.
  • Shrewsberry & Associates LLC
Project Advisors / Consultants

KPMG - Financial advisor

Parsons - Technical advisor

Barnes & Thornburg - Legal advisor

Lenders

SMBC - Senior Credit Facility

Babson Capital - Senior Notes

Duration / Status

Financial close achieved March 16, 2016.

Construction began July 2016 and is expected to be complete by December 2018.

Financial Status

Closed

Innovations
  • Innovative partnership between a municipality and private university ("town-gown" collaboration) and use of an availability-payment P3 to deliver transportation infrastructure improvements supported by tax increment financing revenue.
  • First U.S availability payment P3 project to reach financial close where the private partner's bid included a privately placed bond with fixed credit spreads.
Related Links / Articles

Project Website

Plenary Group Press Release - Financial Close

Contacts

Chandler Poole
City of West Lafayette Department of Development
Tel: (765) 775-5160

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