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>> Ladies and gentlemen, thank you for standing by.Welcome to the leveraging value capture with federal innovative finance programs.At this time, all lines are in listen only mode.Later we will conduct a Q&A and instructions will be given at that time. If you need help during the call dial star 0.I would like to turn the conference over.
>> On behalf of the federal highway administration I like to welcome everyone here.My name is Jen: I will be facilitating today's webinar.As you can see on the screen, we have a great set of presenters for today.We will introduce you to them in more detail in a few minutes.Our webinar will run until 3:00 p.m. ET.We are recording this, and it will be posted to the FHWA website.The speaker presentation slides will be available for download at the end of the webinar.If you are interested in applying for professional credit hours for attending today's webinar, we will provide information at the end of how to obtain the confirmation of your participation.
I will now give you a quick orientation to the webinar room.In the top left corner of the screen, you will find the audio call in information if you prefer to listen to the webinar by phone instead of by computer speaker.In the lower left corner is the chat box that you can use to submit questions or comments during the webinar.We will field questions at the end of each presentation, and we will have about a half an hour for additional questions and answers at the end of the webinar.
We don't have time to address all of the questions submitted, we will post written responses along with the webinar recording to the FHWA value capture website.If you decide to use your phone to listen to today's event, you will also be able to ask questions by pressing star one on your telephone.We will remind you about that at the appropriate time.
To view closed captioning click on the CC icon in the barren the top of the page and select show captions from the drop - down menu to display captions on the page.
Before we begin, I would like to ask the audience to fill out the poll questions that are now showing on the screen.These are to help us understand your affiliation and your level of knowledge about the topics that will be discussed today.
While you are answering the poll questions, I would like to introduce you to our moderator.Pepper is a professional analyst at the transportation system center in Cambridge Massachusetts.Been supporting the FHWA finance program since 2015 and provided assistance in developing a series of value capture programs.
Pepper, what are your reactions from our poll results?
>> PEPPER SANTALUCIA: Hi, everybody.As usual, we have a wide range of participants today ranging all the way from federal down to local and transit agency representatives, and that is great.We love to have that diversity.It looks like we have folks here who have some familiarity with the topic today but have something more to learn which is great which is why they are here and we hope to fill that knowledge gap.
I'm going to go ahead now and introduce our first presenter.Thay Bishop -- Thay Bishop is a Senior Program Advisor for the FHWA Center for Innovative Finance Support.
For nearly 20 years at FHWA she he has provided technical assistance and led capacity-building efforts in the area of innovative finance.Prior to joining FHWA, she was the Director of Corporate Finance and Treasurer for the Metropolitan Atlanta Rapid Transit Authority.Thay, go ahead.
>> THAY BISHOP: Good afternoon and Good morning to everyone.Welcome to the 2023 Value Capture webinar series.In my briefing today, I want to take a moment to clarify a couple key distinctions and also discuss why the need for innovation such as value capture and project bundling.While reacquainted you with the value capture strategies, provide you example of that related mechanism.I will not be able to go through the detail on the examples, but they are embedded links.You can click them, and it will take you directly to the project profile or case study.
The first is funding and financing.The terms are often used interchangeable in a confusing way.Remember when you deliver a project, you only need three things.The source of funds, the revenue source to repay the financing.It refers to how the infrastructure project is actually paid for.Financing options, is financing vehicle to pay for the upfront cost.It refers to the supply of capital such as debt and equity.Which is used to pay for the upfront investment costs of an infrastructure project.Then uses of the funds, select procurement option to get the project completed.
You can also bundle multiple funding courses and bundle multi innovative project tools.
You can also use any procurement techniques from design bid build to P3 depending on your state allow.
You can bundle similar projects award as a single contract to save times and costs
Value capture versus tax.Tax force contribution to generate revenue for government spending on services offered to the public.Everyone pays regardless of the benefits from the public investment or use of the particular services.Tax revenue typically deposit into a general fund.Value capture, on the other hand, only benefits pay and equitable.It takes into consideration of the ability to pay.Authorization for value capture comes from the state law or the home rule power of the local government.
Local government makes a decision to implement value capture and control the revenue generated from the value capture.It's required proportionality between the benefit and cost and strict accounting procedures for each value capture strategy.
Why is value capture needed?This slide provides you the list of all the infrastructure that the state and local are responsible for most, if not all of them.
You can see they are not under good conditions.Yes, there is a federal fund assistance, but it's not enough and it also requires a matching share and value capture can help to meet that requirement.
Here is another reason.There is a about 4.2 million-mile of public road in this country.And 620,000 bridges.Local own about 77% of the public road.And almost 50% of the bridges.They are only about a million mile of the public roads are eligible for federal aid.Federal fund can use for capital not operation and maintenance.
Highway system capacity and conditions challenge.There is a chronic issue.We have been talking about it for 20 years.Bipartisan infrastructure law provided funding to modernize roads, bridges, broad band, and a range of things.And hopefully,we will see the improving by 2026.Certainly, the billion dollar backlog will be reduced.
There is a major concern of the pedestrian death has increased.This is concern to federal, state, and local of the pedestrian death.The pedestrian death on US road increased 36% since 2015.There is significant funding needed to provide a complete street as well as leveraging the 21st century with smart vehicles.
Here is the heart of the problem.The major funding sources for the federal aid system come from highway trust fund.It's not sustainable.Actually, it's insolvent since 2008.Congress has transferred from the general fund money to the trust fund to keep it solvent.You see on the graph that shows spike where Congress transferred the general fund into the highway trust fund.Just so you know, on the bi-partisan infrastructure law alone, Congress transferred -- 118 billion from the general fund to the highway trust fund to delay the insolvent from 2022 to 2027.Beyond 2027 through 2031 on, the -- it's going to be 195 to 215 billion shortfall.That is the reason why we continue looking for a funding source to address the funding gap
Also, it helps the state and local to get the most important project started, while waiting for Congress to figure out how to fund for the highway trust fund.Then, this problem is going to get worse, by the way, with the electric vehicle adoption coming up.So you will see more the damage to the highway trust fund.
That is why we continue seek new funding sources to help pay for infrastructure funding gap.Value capture is untap revenue sources available for state nd local public agencies to help fund infrastructure needs and meet other objectives
So what is the value capture?Value capture is innovative approach for capturing the economic benefit of the transportation investment.It really is a simple term return on investment.It's widely used in transit and limited in highway but it has been changed since 2019.At least 185 state and local implement local value capture that we are aware of.
Transportation improving create the value at the local level.You have to create the value in order to capture the value.It attracts new development, increases the surrounding property value, and also spurs economic development.So that mean to create jobs and new revenue sources to the state and local government.
This is a list of the beneficiaries from the infrastructure project.The benefit, the key benefit of value capture, basically it can facilitate the access to ongoing revenue stream to state and local agency accelerate project delivery.You can use value capture to get the project off the ground sooner while waiting for the value fund approval.Also provide gap funding sources for transportation improving and infrastructure life cycle costs.
Much, much more important in the next four years, that you will need a matching share requirement for all the federal funds and value capture can help to meet that requirement.They also provide the opportunity to access to the federal low interest rate loan program.Because you should be able to use value capture as a source for repayment.
This slide basically introduced the innovative finance strategies that can align with the federal aid candidate projects.The key here is you will be able to align the project to the right techniques so you can maximize resources and flexibility.
So the bottom of the pyramid represents about 80% of the federal aid candidate project.It does not generate any revenue.It depends on the grant base.They can benefit from the federal funds management techniques to advance of projects.If the project had a long, useful life, they can using garvee bonds.You issue tax exempt bond and the pledge future federal fund as a source of repayment.The state infrastructure bank can provide credit assistance on the direct loan as well.
And using the future federal aid as a source of repayment for the state infrastructure buying loan.
Then the middle pyramid only represents about 15% of the federal aid candidate project.It generates some source of the project related revenue, but it needs assistance to be able to be financially viable to access capital market.The state infrastructure bank is a good source, TIFIA, and the section 129 loan is another possibility.Section 129 loan the state can loan appointment fund directly to the project.It can loan up to 80%.So just so you know, the section 129 loan has a requirement similar TIFIA.The top of the pyramid is less than 5% of the project can generate substantial revenue to access the capital market.It can benefit federal assistance to lower the borrowing cost and attract the private capital.
So how the value capture strategy is implemented.We group value capture into seven categories.We talk about them individually, but they can use in tandem together for advance a project.A development, special assessment and tax increment finance can use together -- spur economic development.
They all had a common goal which is funding the project from the beneficiary rather than the general tax payer.The future webinar is going to dive deep into each category.Today, I'm reacquainted you with each category to save time so you can hear from all executive experts later in this session.
The table provides you the key features as well as characteristic of each value capture strategy.This provides you a link so you can download to see what is going on.
The first category is the developer contribution.Impact fee, mobility fee, multi modal fee, all the good examples.It's a one time payment from the developer to the public agency to fund a portion of the infrastructure or services required for the new development.
The opportunity provides a upfront funding source for the public agency because a developer is required to pay up front.A relative, easy to implement and create very little public resistance.No voter approval required.
The challenge is estimate the cost impact of the new development and some resistance from the developer.The key is you must meet the rationale Nexus or a reasonable relationship established between a development and a payment.And it also, you need to take into consideration of the stakeholders outreach since it can take time.The next slide just provides you the example with the embedded link you can click.It takes you to the project profile detail or case study.
The next category is the transportation utility fees.The transportation utility fees treat the transportation system like the utility without meter.There is a fee imposed the property owner or property occupants for transportation costs based on system usage.It provides an opportunity for on going funding.Street improving, street maintenance, pavement preservation, complete street, pedestrian safety improvements.The fees are typically included in the city utility invoice to minimize the administrative cost.The challenge is the methodology to calculate transportation utility fee and typically based on the estimated number of roadway trips generated by each type of property.You may need a consultant to do this.
You will need a stakeholder outreach.You need to incorporate that into your schedule because sometimes it can be lengthy.
This is just examples with embedded links.The next category is a special tax and fee.Within that special assessment districts are a good example.Special assessment is funding technique in which the fee is imposed on the property owner within the defined boundary or district.The property owner are the main beneficiary of the improving.There are many names for special assessments.However, there are only two ways you can initiate the special assessment.A provisional order by the local government and petition filed by the property owner that is self-imposed assessment to fund the project.
To generate a good funding source for capital and major rehab expense it can use in tandem with strategy like tax increment finance.It generates a significant revenue source in financing the project.It's authorized in 50 states in district of Columbia.Challenges requires significant outreach.You need the majority of the property owner support.These are examples of the self-imposed assessment from the property owner.This provides you an example of the local government imposed on the assessment to the property owner.
The next category is the increment growth.Within that tax increment finance is a good example.It allows you to use in the future increment property tax revenue that generates from a new development in the defined district for a specific period of time to fund or finance the infrastructure investment.It can be funded or finance --
You can generate substantial revenue for capital projects through revenue backed bonds.A good source of long-term revenue and generate significant gap funding, flexible, very powerful techniques to foster the high quality development and redevelopment.Authorized in 19 states and district of Columbia
The challenge is it required to additional or institutional capacity to manage.You need a city and county and public school commitments in order to get established the tax increment finance.It requires a but for test.You need to show that no development would happen but for the use of the tax increment finance.This provides you the example of a typical project that fund with tax increment finance.It's a successful project by the way.
The joint development is when the public agency and the private sector partner to improve or develop the land near, below or above the infrastructure including those that better link neighborhoods.It is basically a public agency sell or lease the right of way for development for improving the area.It can be a typical using  in transit-- you can see the joint development are popular in transit.A good example in highway for above the infrastructure would be the public agency cap a portion of the highway to provide amenities to the public such as park or sell or lease the air rights for the development.Like in capitol crossing development project in district of Columbia.
By the way, the bi-partisan infrastructure law provides a funding or discretionary grant for technical assistance and in the planning for the reconnect the community.There is a threshold, so you might be considered to bundle the projects to meet the threshold.
The challenge is it's complex development agreement and lengthy negotiation process.It might require federal and state approving.If the project or the land had federal interest.This is just an example of joint development project.
The next category is concession.With that asset recycling is a good example.It a technique to extract value from existing asset through the sale or enter into a long-term lease with the private sector and the use of proceeds to invest in new infrastructure project.It provides the opportunity to generate a moderate amount of money without having to borrow the money.It doesn't have to be a revenue generate facility.The challenge is the complex concession agreement and lengthy to negotiation process.It may be required federal and state approval if the existing facility had a federal fund in it.
This is just to show you there are successful projects that were done in this country.
The next category is naming rights and sponsorship.In highway, naming rights are not allowed.It uses in transit and are successful in sport arena it can raise a good amount of funding to offset the operating and maintenance.The challenge is a first and 14th amendment.I can tell you in my previous job that I basically entered into the agreement with a third party contract and share with them the company value and let them handle the issue.
This just provides you the example of different types of the projects.Before I conclude my briefing, I want to share with you couple key take aways.Value capture is a set of powerful funding techniques that can help address the funding gap.US DOT support value capture
All grants and discretionary grant require matching share.Value capture can help to meet the matching requirement.It provides the opportunity to meet funding challenges and deliver a public policy objective.However, it can only supplement, not replace additional funding sources.The value capture requires a commitment of the local jurisdictions and collaboration between local, state and private and federal sector.You need to bring them in in the early project development process so you can maximize the benefit and gain their support.
Carefully planning and implementation and aware of where the economic cycle and familiar with state law and make sure you follow the state law requirement.In my previous job, we were in the sales tax district.I kept 50 years of sales taxes receipts to see the economic cycle to include in the future sales tax projection.we have developed significant resources on the value capture.These are just a few to share with you.You can click in it.It takes you to the resources.And the same thing with a project bundling with the linked resources.There are significant material on the website.
By the way, I want to share this with you.We do have a consultant on board to provide a technical assistance workshop as well as a peer sharing free of charge.So if you need help, contact us.
With that, I'll turn it over to pepper.
>> PEPPER SANTALUCIA: Thank you Thay.Thank you for giving us that broad bush of the various capture techniques.More detail on the individual techniques is available on the FHWA website.We developed guide books for several of these techniques.There is a lot more detail and they will be available at the end and people will be able to follow the links to these many examples that you provided.
We would like to open up the phone line in case there are questions.Can you remind us how to do that?
>> Ladies and gentlemen on the phone lines if you have a question please press 1 and then 0.
>> PEPPER SANTALUCIA: While we are waiting to see if anyone wants to ask a question by phone, Thay, we did get one question in the chat.That was if the asset recycling process used for parking structures to support in urban districts.
>> THAY BISHOP: We have an example on our website and I think there is an example on the slide.I can't remember the slide number.But there is a project that demonstrates that.
>> PEPPER SANTALUCIA: I'm backing up a little bit.I may have passed it.
>> THAY BISHOP:When you download the presentation you will have a list of the asset recycling example that has been successfully done in this country.You click on that link will take you to the case study of project profile.By the way, there are much more projects on the website.
>> PEPPER SANTALUCIA: Do we have any phone questions?
>> No one is cued up on the phones.
>> PEPPER SANTALUCIA: Thank you.That being the case, I think we will turn to our next presentation who will give us a deeper dive into one of those value capture techniques.Joshua devries.He is serving as director of transportation in owes oal A county Florida.He has five years of experience as a plan with the city of Kissimmee.He has been active with the American planning association since 2005 and is the immediate past president of the local board of directors.He holds a master’s degree with regional planning from University of central Florida and bachelors of planning from Michigan University.
>> JOSHUA DEVRIES: Good afternoon or morning.Thank you for inviting me to discuss leveraging value capture with federal innovative finance programs which discussing some of my experience in innovative funding strategies to leverage additional dollars such as federal and state funds.
I'm the director of transportation planning for Osceola county transportation and transit department.I'm going to describe mobility fee program. Some innovative funding mechanisms which were utilized mobility fees to help leverage additional funding from both public and private sources.With that said, I'll shift to a short mobility fee history for Osceola county.
The first was cluster development study in May of 2009.This study analyzed the impacts of the medical city development on how it would influence growth in Osceola county.Lake note is a major expansion of Orlando Florida.650-acre health and life science park that was first proposed in 2005.It will ultimately offer over 5 million square feet of commercial and retail space as well as a mixture of residential options.The total number of jobs created over the next ten years in medical city is projected at 30,000 with economic impact of over 7 billion according to Orlando properties.com in 2020.The second event that happened to get the county to think about funding transportation differently is the 200 the update to the transportation analysis zones or TAZ.
This TAZ update was a breakdown of geographic areas to show where people are and where they are going to.It added several new TAZ areas for expected growth and activity and shows how traffic was expected to be disbursed, much differently than in the past.
What these two projects showed us is we had to think differently about how we were going to fund transportation projects, or we end up creating a big traffic jam.In 2011 we began the process of the transportation element update.We shifted from a focus on management and mitigation and shifted away from concurrency.
We moved towards plans which recognize growth as a powerful market force which must be harnessed to achieve our vision.This involved a funding study that explored funding strategies, innovative funding mechanisms and adoption districts within our plan.
Moving toward the mobility fee, the calculation is not only by vehicle trips, but also had several pieces of the pie that converts vehicle miles traveled or VMT into person miles traveled or PMT.This approach takes into consideration such as multiple occupants per vehicle, bicycle trips and peddest yan trips.
Next slide.In March, 2011 -- actually, it's March 2015.March 2015 the first mobility fee study and ordinance was adopted to contribute its fair share of growth in transportation facilities.In February 2022 the original mobility fee study and ordinance was evaluated and revised with updated information.This study found the increase of construction costs among other factors has led to not enough funding about captured through mobility fees to cover the cost of development driven capacity improvement needs.
Based on the increased construction cost and changes in trip distribution among land uses, the proposed mobility fees per land use were for the most mart recommended to be increased.Due to the phase in limitation requirements adopted in the Florida statutes in late 2021 and retro act isk to January, and the construction unit prices caused by the Covid pandemic, our board reviewed the study and kept the fees the same.
Staff was given direction to reevaluate the construction costs in 2023.In 2023 we will begin the evaluation of local construction costs to evaluate if an increased mobility fee should be proposed to the board of common commissioners.
As can be seen here, Osceola county has the highest impact, mobility fees in central Florida.Over $25,000 residential unit per area.These are not just mobility fees they are impact and mobility fees that would be paid within the different counties including Osceola.
As mentioned previously, while in the early stage of updating the mobility fee study, which will bring our fees to a level that can pay for improvements to mitigate the impact of new development.
We can not require new development to pay for the sins of the past.Mobilities fees are not for existing transportation deficiencies.While Osceola has had one of the highest fees in central Florida we have seen a slight increase of development applications in 2021 and 2022.
During the 2010 to 2012 time frame changes in master planned communities are being identified as mixed use districts with major frame work roads as well as planned out local land network to better drive infrastructure patterns.This is east of lake Toho and south of lake Toho and northest district.There was mixed land developments which created place times and density and intensity and road connective network and creation of more efficient urban form.
There has been a revision to the future land use element for the northeast district for future land use in that area.There was an associated planning development approved that kept development patterns and densities and intensities similar to what was previously adopted in the northeast district conceptual master plan.So for transportation, we are still treating that development the same.
However, we have in December of 2021, coordinated with the developer of the entire northeast district also known as sun bridge for an adopted comprehensive road way developer agreement which I'll discuss more in the following slides.
The Alligator chain of lakes mixed use district is planned for adoption next month, February 2023.Similar to the south and east of lake Toho the al gait or chain of lakes provides requirements for place types, higher density and intensities and interconnected road network and a creation of a more spisht urban forum for an area dominated by ranches, forms and lots.Has growth potential from the land owners since they are within the urban growth boundary.
As can be seen here with this animation.This shows what is circled shows the mixed use districts two, three, four, five and six.That area, you can see is a rural area of the county as it currently exists.So this slide -- next slide, thank you.
This shows the same area of the county and how it's planned to develop.To get an understanding of the order of magnitude with the lighter shaded concept plans and darker shaded areas approved sielt plans, there is a total of over 54,000-acres and 117,000 dwelling units with a mix of non residential uses.
With this signature growth plan, we are planning for adequate transportation infrastructure.With all this unlimited funding available we have looked at funding strategies that allow us to use value capture approach.Next slide.
While the numbers on the slide are from fiscal year 2020 it helps the show the order of magnitude the mobility fees had covered versus other funds.Mobility fees covered -- sorry, 92.8 million available for capital projects.Mobility fees are only able to be spent at capital projects within the mobility fee district they are collected from.Osceola county has three districts for which these funds can be spent on capital projects as opposed to the two district notice 2020.
Because of the many transportation improvement needed, several revenue sources have needed to be evaluated and innovative financing approaches have had to be utilized.This slide shows the order of magnitude related to the percent of total revenue that mobility fees are covering versus other available fiscal year 23 funds.These fiscal year 23 funds also include roll forward dollars from previous years.As seen on the previous slide, in 2020, the approximately 19.5 million of mobility fees covered approximately 40% of the total 92.8 million available in revenue for capital projects.
In 2023 the 45 a million in mobility fees covered 35% of the approximately 412 million available for capital projects.This shift is due to several funding source realized.It is also indication in the use of value capture and innovative funding strategies that allowed Osceola to have other resources for overall capital improvements.Next slide.
For Osceola to accomplish the very large task of addressing the existing and future transportation needs ever the county, innovative funding strategies or value capture has been implemented.Some include bundling the funds, state/federal plus mobility fees, plus other local funds as well as developer agreements and bundling of funds within a new established infrastructure area utilizing financing plus bond proceeds and mobility fees and mobility fee credits, which would then tie back to developer agreements I mentioned earlier.
Next slide.
A few examples where Osceola county has been able to fund transportation projects using mobility fees to fill the gap after receiving state or federal funds include Neptune Road, fortune lake shore trail, parkway middle school sidewalk and deer wood elementary school sidewalk.
The Neptune road project utilizes state and federal funds, mobility fees and other available local funds.This project will reconstruct Neptune road from two ways to a divided four lane road way a distance of four miles.To qualify for federal and state funding a project and environmental study was performed.The project is in the design phase of development which will be followed by construction later this year.
Next slide.
The fortune lake shore trail project also utilizes state/federal funds, mobility fees and other available local funds involved designed instruction of a multi use trail and pedestrian bridge over the C31 canal and a ten foot wide asphalt trail.The project is currently under construction.
Next slide.
The parkway middle school project utilizing state/federal funds, mobility fees and other available local funds as well involve design and construction of a new five foot sidewalk for approximately one mile.Osceola county made this project shovel ready sooner to utilize state and federal funding for completion.This project is also near completion.Next slide.
Then the deerwood elementary school sidewalk project also utilizes state/federal funds, mobility fees and other local funds.It involved design and construction of a five food sidewalk for 1.25 miles along neighborhood streets.Osceola county advance funded the design of this project to make it shovel ready sooner to utilize federal/state funding for completion.That is near completion.
The Osceola mobility ordinance allows the county to enter into agreements with the developers in a way that acts similar to public private partnership.These agreements allow for early construction of county obligated framework/major road ways through coordination with the development community as development progresses.This allows for major roadway network connections to be constructed ahead of the county having capital revenue for such projects.It allows developers to move forward with their developments and benefits future residence by enhancing transportation options.
Since the adoption of the mobility fee ordinance, there have been over 20 developer agreements for private funding of roadway construction and collection of the mobility fees.This has achieved over 208 million of right of way -- it has expi dated construction with private land develop.Orange avenue, west side boulevard just a name a few.The next few slides have a few real-life examples of some of these agreements coming to fruition.
The first example I'll talk about is an agreement that Osceola county has entered into with a large developer of the northest district mentioned earlier as the sunbridge Roads agreement.That included obligations based on the developers tripped based on non-project trips to determine a project share the developer would be responsible for versus what the county would be responsible for.
The agreement included an estimated 380 million in improvements in 2021 estimates which now in 2023 are estimated at approximately 657 million to sunbridge and for the district. The county plans to fund its 258.6 million portion of the program with contribution of the mobility fees, direct developer contribution and the TIF revenue for a new northeast improvement construction area or NIA.The bonds issued for the NIA.The developer will fund the remaining portions of either -- sorry, the developer will fund the remaining portions either as their obligation or by receiving mobility fee credits where the traffic is shown to be attributed by others.
The northeast infrastructure area was formed similar to CRA or community redevelopment area by allowing a tax increment finite strategy to be implemented with the properties taxes.This process was confirmed by the supreme sort of Florida.The broad powers of the local government utilize --
Next slide.Cyrils drive is another example.It's under construction as part of the sun bridge Road developer agreement.It provides a connection between the Narcoossee road and the master planned community sun bridge.
(reading from screen)
There is animation if you can hit next.The pictures shown show the existing rural continue, the proposed typical section and construction that is underway.
Orange Avenue.It's another example.It's a connector frame work road way constructed by koafl developers to provide a connection between the parkway north through the core of a planned transit development (reading scre)
Started in 2018 rkt the road way construction is completed between Osceola park 2K8 wai and orange county line.Hit next for the animation.
The road way improvements along with the commuter rail station have spurred economic development including a new hospital, residential and other uses to come.
Next slide.The cross prayery parkway is constructed by developers to provide a connection between the Florida turnpike south and Neptune road.Snp (reading scree
Hit next for animation.Next in 2018 the roadway construction is completed between the turnpike and Neptune Road and nearing completion to the C31 canal.If you can hit next for the animation.Additionally, it's in the early stages of extending south through the east of lake Toho master development.Governmental coordination will likely be needed to complete the bridge over the C31 canal.
So far, there is about four miles completed.This is westside boulevard.It was constructed by developers to provide a connection between the US192 and Avalon section in orange county through Osceola county and connecting to Ronald Reagan parkway in Polk county providing a parallel facility to US27 once complete.It's a project that will connect three counties.The west side boulevard is just in Osceola county.
Another example is east Nolte Road.Again, a connector framework road.(reading screen)
Story creek boulevard is a connector framework roadway to provide a connection between pleasant Hill road and ham Brown Road.Animation.
A.m. Brown Roadside has started.The county is coordinating with the developer on a time line for completion in coordination with the ROW acquisition time line.These are examples of public private partnerships with the developer building framework road up front and getting credits in turn.
As seen throughout this presentation, mobility fees can be used for innovative funding and value capture strategies.Next slide, please.And just thank you, again, for this opportunity to present to this forum.And thank you for listening to the presentation.And my contact information is available on the slide.
>> Thanks a lot Joshua for giving us a good look at roadway develop and development in general in Osceola county.Looks like there is a lot of change afoot.We have a question that goes back to one of the earlier slides when you were showing the owes Osceola impact fees.The question is whether it's $27,000 fees per acre or for development unit or residential unit.What is the metric?
>> JOSHUA DEVRIES: That was slide five.Yes, a apologize.That was per residential unit.So I believe single family home was the number that we use for this.
>> Great.Art, I guess we will give the phone line to try again while we are looking at the chat for additional questions.
>> If you have a question, please press 1 then 0.Once again, please press 1 and then 0 for your question.
>> PEPPER SANTALUCIA: While we are waiting, maybe you can talk a little about what this mobility fee credit is all about. This is -- are they spending monies on road waits and developer if they get credit against the mobility fees they would owe later?
>> JOSHUA DEVRIES: Essentially.They are called developers agreement steums but they are also called dolor funded county obligation agreements.They are getting credits for what the county is obligated to construct.It's just -- when I mention the framework roads in my presentation, those are roads that are in adopted in our comprehensive plan as major road ways and therefore, their county obligations.They may not be within our five-year capital improvements program.In order to allow these to go further fer.If a developer comes in within a framework road, we will look at the surrounding traffic and see what may be needed for improvements.And if we are able to get -- if we are able to and it makes sense for the ultimate configuration for that road way to be constructed, then we will work with the developer like sun bridge roads is a great example.We will work with a developer to determine how much of the traffic is theirs or non trips and we will get a percentage there of what the account would be responsible for versus what the developer would be responsible for any ways if they were not entering into the agreement.
So, basically, they -- they are responsible for what they would be constructed any ways with their development.Anything beyond that then is provided to them in credits for mobility fees.So when they come in for their building permits and their home builders have to pay the mobility fees.Then, that mobility fee they essentially have a credit fund that our building department keeps track of as well.They can get drawdown from that fund.
>> PEPPER SANTALUCIA: Great.We did get a question in the chat, another one.Patrick asks, are fees able to be changed based on number of parks spaces or some other metric.Is special treatment give into DOT to give developers any offset opportunities or support for enhanced transit authorities?
>> JOSHUA DEVRIES: Good questions.The number of parking spaces, we don't have -- our mobility fees are not based on the number of parking spaces.They are based on the different land uses in the manual.That is the ease eedziest because the IP manual has the number of trips and such.As I mentioned in my presentation, we took the vehicle miles traveled and converted them to person miles traveled to get the overall fee for the different land uses.
Then the other portion of TOD.So we also as part of our mobility fee study to look at and recognize that for mixed use as well as transit oriented development, there is some modes split and a lot of users that can can benefit by by sharing uses and not necessarily driving their vehicles on the road to get to the different uses.
So there is actually discount for TODs as well as the mixed use districts.That is built into our mobility piece structure.
>> PEPPER SANTALUCIA: Do we have anyone on line for the phone lines?
>> No one has queued up on the fon lines.
>> PEPPER SANTALUCIA: We will be able to take more questions for Joshua and for our prior speaker after our next presentation.
Andrea Steven son is administrate for for local programs at the Ohio department of transportation.Andrea has been working for ODOT for 23 years in the division of planning serving in a variety of positions.
Prior to her service at Ohio DOT she worked for Ohio environmental protection agency.She is a graduate of Ohio State University and enjoys spending time outdoors and cooking holiday meals for her family.
Jonathan will help out with the presentation.He is a budget administrator with the Ohio division of finance.Been with the state of Ohio within three years.Three with Ohio DOT and nine with the Ohio department of taxation.He is a graduate of Ohio State University and is a certified public accountant.With that, I will turn things over to you, Andrea.
>> ANDREA STEVENSON : Thank you, very much.It's an honor to be speaking to you.We look forward to share ag few details about our bridge funding at the Ohio department of transportation.Thank you.
We are just going to kick it off here.We have been aggressively pursuing replacement and rehabilitation of bridges for the last nine to ten years.
I wanted to give you a snapshot of our bridge program here at the department and then talk about how we have worked to finance the rehabilitation and replacement of those bridges.Johnny is going to give the financing side of that.Ohio has over 27,000 bridges that meet the federal definition of a bridge.
What is interesting about Ohio is many states are in a similar situation is Ohio is a home rule state.That includes our county, cities, our I will vajs and township have the ability to make those important rules and decisions for their jurisdictions.We work closely and partner with all of our stakeholders to make sure our bridge funding and replacement programs are very aggressive.
We do know that Ohio's bridges are better than the national average, but we still have many waiting for much needed repair.We know that even on our county system, we have hundreds of bridges that are in the queue to be replaced and be funded.So we work diligently to make sure that we are always focused on bridges and that we are working hard to actually fund those and work with our partners.
As I mentioned, we have been working for a number of years to ensure our bridges are getting replaced and that they are safe and provide good service to our communities across the state.
This is just a long list of our local partners.We take a lot of pride in partnering with those who are vested in transportation in the state of Ohio.We have our county engineer's association.Our municipalities.We work closely with the Ohio general assembly and our CEA to advance our program.Our department is going for our general assembly soon to get our budget approved.We want to make sure we are addressing your needs and concerns and being good stewards.
We work closely with Ohio municipalities.The Ohio contractors association, ACEC and MPOs.A know states may not know what RTPOs are.We have a lot of locals across the state in our rural areas.We designated regional transportation organizations to represent those rural areas.
We work closely with those MPOs and RTPOs across the straight to provide funding not only for bridges, but for all transportation modes and projects.
Our program funding allocations are probably similar to a lot of other DOTs.I wanted to share with you and eventually we will get to the point and example where we had a lot of value capture, where we had bridge bundling which is really the example we are here to talk about today.We have what I call a traditional long term commitment to fund local bridges annually.We have approximately $11 million annually to fund those bridges that are within municipalities.We identify those bridges and know which ones they are.We work closely with the municipalities and can take advantage of getting their bridges replaced.
We have something called a local major prij program.We have designated $20 million annually to that.Those are for bridges that are over 15,000 square feet.Also includes lift bridges.There are a lot of those across the state, particularly with us being on Lake Erie we have unique bridges over water ways in our state.
We have something referred to as the county bridge program.This program is advantaged by our county engineer association.It's 38.8 million annually.Those are to fix the county bridges across the state that are in true need of replacement or rehabilitation.Our county engineer association works closely with the county engineers in our department for success with those programs.
In the short-term needs or funding as to our existing long-term commitment to fund those bridges annually.This is where I wanted to get into the example of how we are using the bridge formula funds from the BIL.You get more proactive and more aggressive to add to what we are already doing.What we have done and we worked on this about a year ago.Of course, many of you did as well.
We increased our 38.8 million for county bridges by 40 million, which now takes us to 78 million annually for those county bridges across the state.Of course this BIL money has to be utilized by 2026.But this is a way that we are saying, these bridges are important to the state of Ohio.Many of our economic development opportunities are in these areas and we want to make sure the bridges are fixed.We added 7.5 to our city bridges and additional 10 million to our state system.
The big picture is with those additions, with the BIL money, ODOT has a local bridge investment of 112 million.This is 8 times the required federal commitment for the 15% off system bridge requirement.We are being aggressive with that.
Overall, the ODOT annual statewide bridge investment is 407.8 million.That is four times the required commitment for bridge formula funding.
With that, and this is Johnny's area, but we have to get creative in the way we use these funds, how we do the 80/20 split and some ways to help support our locals.One of the things we have done in the last several years is we have tried to make bridge replacement and rehabilitation as economic and feasible as we can.
An example of that with our Ohio bridge partnership program, it started in 2014.It has transitioned recently.So I put 2021 to give you an example.The true Ohio program lasted those years.We have wrapped into our county bridge program I spoke about previously.
Our original goal, we wanted to say what value we can get out of this program.It was to be quick hit.It was to deliver safe and quality bridges really with a no nonsense approach to getting bridges fixed and moving people back and forth on safe bridges.
We did design build contracts and we sold them in bundles and we financed them in bundles.So, when I say we sold them in bundles, it would be from two to six projects.Then Johnny will talk about how we financed these particular bundles of projects back in 2014.
consultants were hired to support the effort.We used creative financing techniques such as GARVEE bond and credit.
What was yielded from that was 100% federal funding for the bridges that we replaced for a number of years.We had simple bridges.Limited roadway work.Apparently, the road was detoured and they were single span bridges typically.
They were open bridge type.We did not mandate the structure type.And generally, these bridges were in the 30 to 60-foot span range.
100% federal fund, later phases which has been the last few years.We only funded construction at 100%.So really, this was a great bonus, a huge coupon, so to speak, forgetting bridges replaced and rehabilitated.Our total bridge partnership number of replaced brujs was 258 at $140.7 million.A portion of that, 100 million was financed with Garvee bonds and the others through programs at the department.We continued the program through the county bridge program.Now the program is actually $5 million annually.
We feel it was very successful.We file like we did capture that value.We have built new bridges.We have a lot of communities with brand new bridges that are safe and our school buses and emergency management equipment are able to pass over the bridges without the second guessing is everything okay?
We did have innovative funding and the time period was aggressive.We did see a lot of cost savings.Because we were able to mobilize some of those bundled packages, you know, if there were bridges within proximity of ten to 20 or 25 miles, contractors had the ability to bid on these bundles and we were able to realize from greater potential and savings with those bundle combined.
We were able to provide a variety of package sizes to accommodate both large and small contractors.In Ohio we have a lot of big contractors, of course, and they were able to bid on the bundle with the four, five and six projects in it.The smaller contractors were able to bid on those single projects or those that had the range of two or three bridges in a bundle.
It really was a unique program.It worked well.We are in the ninth year of paying down some of that debt.It's been a good program and continues to be a good program.We tried to capture that value and really represent innovative financing.
What I'm going to do now a turn it over to Johnny.He is our finance expert at the department.I'm going to let him speak to some of the innovative things we do to fund the bridges and other types of projects so thank you.
>> JOHN: I'll talk a little about our financing strategy.For Ohio we have a diverse financing program.Some of the things we do we have a State infrastructure bank that has a loan and bond program.We did issue the first ever SIV loan in 1996.Our bond programs for infrastructure, for roads and bridges consists of two different programs.We have a state bond program and the GARVEE bond program.We also in Ohio issued the first ever GARVEE in the US.Focusing in on the GARVEE bonds a bit here.We have a program issued every 18 months.We fund periods of time.We don't fund whole projects.
An example of that is we have something called a value view bridge.It's approximately a six-year project and we are going to fund that over 18-month periods at a time with our GARVEE bonds.Basically, what that means is that would have at least four plus issuances of GARVEE bonds that would relate to fund portions of that project.
So with that, we do monitor the cash balance to determine when the next issuance would be appropriate.Our program has a very good rating, coverage ratio allowing for great financing opportunity.We do conditionally look at different options, but because of the abilities of the GARVEE bond program and rating and coverage ratio, it normally is the better option for us compared to other alternatives we look into.
As Andrea mentioned before, this funding source has been used to address a large number of bridge projects in bundles through the Ohio bridge partnership program.The other thing that has benefited us recently is our state motor fuel tax has been increased back in July of 2019.It increased the revenues to ODOT and the locals across the state to benefit with being able to match for federal dollars and also the increase in federal dollars that have come from BIL.
Then we have a federal and state exchange program.What this is, we have a program within ODOT that allows the trade of federal funds for state funds.The allows the Ohio county engineer association to exchange up to $12.5 million an leully.That is county, federal loc state.It is limited to the local bridge funds and bridge project.Then the state funds can only be used for construction phase of the project.Then no federal money can be used in any of the other projects.That is just some of the ways we go about financing here in Ohio.We would be happy to open it up for any questions you may have.
>> PEPPER SANTALUCIA: Thank you, Andrea and Johnny for that presentation.We are open for questions, folks.Type your question into the chat or again, art will give it one more try to open up the phone lines for anyone who might want to ask a question that way.
>> As a reminder to the phone phones, if you have a question, please press 1 then 0.
>> PEPPER SANTALUCIA: Could you please explain the exchange program again?
>> JOHN:Basically the program allows for the exchange of federal dollars for state dollars.It's for our county engineers association.They have the ability to exchange up to $12.5 million annually.That exchange of the federal county local bridge program funds for state dollars is limited to only those local bridge funds.It's for bridge projects. Sorry -- it can only be used for construction phase of the project.And then, no federal money can be used in any other phase of the project.
>> ANDREA STEVENSON: I'm going to elaborate a little bit.We have been doing this for a number of years.We adopted this concept from Kansas.They were one of the initial pilot states.What we have been able to do is while we have, for example, assigned that $38.8 million to the county engineers association, what they do is they walk that back with us. They have to be simple projects.Essentially, minimal right way way, minimal environmental impacts.We are using state funds on it at that point.It defederallizes it and it becomes a state project that we can potentially get the bridge built more quickly.
That was the original goal of the program was to help the county engineers get these bridges to construction and repaired more quickly as a program concept in a way to allow the department to exchange some of the federal and state dollars back and forth.
Initially when we started this maybe eight or nine years ago, it kind of got off to a slow start, but it's popular with the county engineers now.We use the 12.5 million exchange every year to the point where they come to us and say can we have a little more this year?
So, we just have to monitor through that Johnny's office.That is a little bit of the history associated with it.
>> PEPPER SANTALUCIA: There is a follow up question as to whether it was the same as the AC program?Maybe that is advanced construction although it may look like she may have got her question answered.I don't know if you have anything more to say?
At this point, we are open to questions that relate to any of the three presentations you have seen today.Again from Thay bishop from FHWA with a quick tour of value capture techniques available for state and localities.
Then, Osceola county's on mobility fees.We are open to more questions on any of the three presentations that we have seen today.I do see we have got some questions coming in the chat.Thay, I wonder if you might use the time to talk about the whole 2023 series of webinars and what we have planned for future webinars in the series?
>> THAY BISHOP: The future webinar series on this series we integrate, the value capture with innovative finance techniques as well as innovative project delivery.We also are diving deep into each individual value capture technique.In a future webinar, we also have a consultant expert going to speak with the health equity development.
We are also going to cover the development agreement as well as the capital improving program and how you monitor the value capture program in the case of economic downturn.You know, there are a couple projects, development projects that have survived through several economic downturns.We want to share with the participant as well as how to handle or take into consideration in that case to survive through that difficult time.
>> PEPPER SANTALUCIA: Thank you for that.If you look in the chat window, you'll be able to see a link that will take you to the listing of the webinars and the opportunity link to register for each of them.If you look right now, I have added the file share window on the left above the attendee list.That file that is listed there is the combined PDF of the slide we used today.I am stealing some of Jen's thunder.If you hover your cursor over of the file name you should see an icon with a downward pointing arrow.If you click that, it will allow you to download the slide.
So we still have an opportunity for a few more questions.Joshua, I thought it might be interesting to hear about the developer communities stance towards mobility fees in your part of Florida.There is a lot of pressure for development growth.Do they just tack the mobility fees on as the cost of doing business in a growing state like Florida
>> JOSHUA DEVRIES: It's tough to answer
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