Outline of Presentation
- Overview of Everyday Counts Fifth Round (EDC-5) & Value Capture Strategies
- Why are Advertising, Naming Rights, or Sponsorships Needed?
- Overview: Advertising, Naming Rights, and Highway Sponsorships
- Federal Roles
- Case Studies
- Q&A
Value Capture Overview & Benefits
What is Value Capture?
“Value capture” refers to a toolbox of strategies used by public agencies to recover a portion of the increased property value created as a result of public infrastructure investment.
Value Capture Can..........
Why are Advertising, Naming Rights, or Sponsorships Needed?
Highway Capacity & Condition Funding Challenges
Highway Trust Fund is Unsustainable
Ownership |
Federal-Aid Highways |
Non-Federal-Aid Highways |
Total |
|---|---|---|---|
Rural |
668,082 |
2,280,612 |
2,948,696 |
Urban |
359,767 |
875,245 |
1,235,012 |
Total Rural & Urban |
1,027,848 |
3,155,858 |
4,183,707 |
Overview
Advertising
Public agency sells advertising space or media to private company
- Agencies may consider advertising in transit stations, rest areas, and agency-owned fleets as relatively straightforward way to raise funds
- Opportunities: Can raise moderate sums of money for operating & maintenance expenses
- Challenges: Must be weighed against safety concerns
- Agreements: Advertising agreements may be related or unrelated
- Note: Advertising on the public right-of-way is not allowed
Ohio DOT entered into a ten-year, $8.65 million agreement to advertise on its safety patrol vans in 2014, which provide assistance to motorists at crash sites.
Example of a branded safety patrol vehicle
Example of Bus exterior Advertising
Naming Rights Overview
Public agency sells rights to name infrastructure to private company
- Transit stations
- Vehicle fleets: bus, rail, safety patrol vehicles
- Arena
- Stadium
- Advertising and naming rights agreements may be related or unrelated
The Salesforce Transit Center, CA
Ohio DOT Safety Patrol Naming Right
Highway Sponsorships
State & local agencies allows to place the sponsored company name and logo on the busiest highways
An innovative way to offset the costs of construction, operation and maintenance while providing enhanced services to the public
- Opportunities: Support or supplement construction, operations and maintenance program activities through voluntary and/or funds generated by sponsorship.
- Challenges: Must be weighed against safety concerns
Example of Arizona Adopted the Highway
Rest Areas Sponsored by Geico
- AZDOT, 14 rest areas
- FLDOT, 64 rest areas
- ILDOT, 6 oasis service plazas
- NCDOT, 58 rest areas
- NJDOT, 14 Rest Areas and Scenic Overlooks
- NYDOT, 52 rest areas
- TXDOT, 55 Safety Rest Areas and Travel Information Centers (TICs)
- VADOT, 43 rest areas and welcome centers
Courtesy GIECO
Voices of Our Customers: Aesthetic Feedback & Complaints
Aesthetic & Environmental Perspectives from Public Engagement & Omnibus Survey
Aesthetic Feedback: MnDOT’s Rethinking I94 Project
Impetus for Highway Sponsorship
Examples of Public-Private Partnerships: Chicago Gateway Green
- Local nonprofit manages 95 gardens on Chicago Freeways around downtown through a MOU with IDOT.
- Gardens are financed primarily through corporate philanthropy (sponsor acknowledgement signs)
- Nonprofit contracts for plantings, maintenance, and litter pick-up April-Oct
A Greener Welcome Project in Indianapolis with INDOT
- Transform a six mile gateway into Indianapolis on I-70 with art and landscaping in October 2010.
- A collaboration of City of Indianapolis, the Indiana Department of Transportation, Keep Indianapolis Beautiful, community leaders, neighborhood groups, and Eli Lilly Foundation/Eli Lily corporation
- Closure of I-70 for (1) day
- 8,000 volunteers installed 1,614 trees and 72,300 native plants and shrubs
- Three new sculpture installations
- $1M in TE funding, $1M from Eli Lilly Foundation
- Six area businesses adopted the 6 improved interchanges for maintenance and watering
MnDOT Programs Supporting Aesthetic, Environmental & Community Connection Goals
Sample Project Types
Highway Sponsorship Licenses as Value Capture
Visible Investments in Communities: Sponsor Acknowledgement Sign
For more information see: FHWA Order 5160.1A Policy on Sponsorship Acknowledgment and Agreements within the Highway Right-of-Way
Potential Highway Sponsorship Projects
Additional potential uses for highway sponsorship
Value Capture Benefits of Sponsorship Agreements
Nuts & Bolts of the Sponsorship Program
90 Day Pre-Development process for highway sponsorship projects
Sample Highway Sponsorship Project: Andersen Corporation (Bayport, MN)
- Highway 95, Screening & mitigation landscaping of industrial facility requested by the city of Bayport.
- Design, plant purchase, installation and maintenance at Andersen’s expense. Adjustments were made to proposal based on clear zone, plant selection, etc.
- Maintenance plan: Andersen landscaping & maintenance employees will perform ongoing maintenance of the landscaping.
Sample Highway Sponsorship Project: I-694/East River Road, Fridley
- Developer requested ability to do expanded maintenance in right of way adjacent to new 156,000 office park.
- Tree trimming, mowing, and litter pick up on-going basis.
Sample Highway Sponsorship Project: Great River Greening/Hmong American Farmers Association (HAFA)
- Great River Greening will install a 4.5 acre pollinator project underwritten by corporate philanthropy
- TH 52 in Dakota County, South of Coates, near Vermillion township
- Pollinator habitat supporting HAFA farm.
- Spring/summer 2020 project.
Expanding MnDOT’s Knowledge Base to expand Public-Private Partnerships
Aesthetic Market Research Project: Summary of Top Findings
- Visual Appearance of highway roadsides is important to quality of life (68%) rural/ (80%) urban but pavement appearance/condition is top priority;
- Conditions of roadsides impact perception of economic vitality, pride in community and perception of safety;
- Desire for case studies on rural communities that have invested in aesthetics that support economic development and tourism goals;
- Small communities need long timelines to plan/fund aesthetic enhancements (10 yrs+) to align with MnDOT construction projects;
- Scenic Byways validated the importance of preserving the scenic quality of roads/ improving viewsheds/reducing visual pollution;
- Extensive opportunities to enhance gateways (urban, rural, etc.);
- Validated the Minnesotan’s preference for native plantings and forb-heavy pollinator habitat;
- Elevated the importance of “sense of place” aesthetic elements in transportation infrastructure;
- Elevated the importance of focusing on the human scale: plants/art/placemaking create environments that encourage bike/walking, and play a role in public health and safety;
- Opportunities to engage large businesses with a stake in first impressions/attractiveness of communities for investment;
- Consider partnerships with arts & culture organizations;
Connecting the Dots: Enhancing Community Connections, Public- Private Partnerships and Innovative Uses of Right of Way
Commercial Programs
Evan Rowe
Director of Revenue
Massachusetts Bay Transportation Authority FHWA Value Capture Webinar
November 21, 2019
Background: Fiscal and Operating Realities
- 2015: Major operating budget deficits
- Objective: to achieve $100 million in operating non-fare revenues by FY 2021
Advertising, historically
- “Things on the side of a bus”
- Strong revenue streams, but limited growth
Approach
Implementation: Lessons
- Coordination in a 122-year-old system is a challenge
- Multiple stakeholders
- Operational needs are most important
- How do you address changing needs?
Project results
Shared Value
- Real-time and Disruption Communications
- Arts Program (ICA Teen Arts Program)
Sustainable Stewardship
- Assets
- Revenue growth
Project learnings
- The more work you can do upfront, the better the result
- What is most important?
- New tools create new needs and desires
- How do we get the most out of what we now have?
- Build in flexibility to address changing circumstances
- Funding, contractual, and staffing
