Audio: https://connectdot.cosocloud.com/p1amlg4aomv9/
ROUGH EDITED COPY
FEDERAL HIGHWAY ADMINISTRATION
VALUE CAPTURE STRATEGIES:
VALUE CAPTURE STRATEGIES: TOOLKITS AND OTHER FHWA RESOURCES
WEDNESDAY, DECEMBER 20, 2023
JOB NO. 25834
CART CAPTIONING*PROVIDED BY:
LINDA M. FROST, CRC
on behalf of
MID-ATLANTIC INTERPRETING GROUP, INC.
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This transcript is being provided in rough-draft format. Communication Access Realtime Translation (CART) is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings. Due to the nature of a live event, terms or names that were not provided prior to the assignment will be spelled phonetically and may or may not represent the true spelling.
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>> OPERATOR: Ladies and gentlemen, thank you for standing by and welcome to Value Capture Strategies: Toolkit and Other FHWA Resources at this time, all participants are in a listen only mode. Later there will be time for questions. Instructions will be given at that time. If you should require assistance during the call. Please press star zero. I would like to turn the conference over to your host, Pepper Santalucia.
>> PEPPER SANTALUCIA: Thank you, operator. Hello, on behalf of FHWA and Everyday Counts initiative. I would like to invite you to Value Capture webinar. On Value Capture Strategies: Toolkits and Other FHWA Resources. My name is Pepper Santalucia, and I work in Volpe Center in Cambridge, Massachusetts, I'll facilitate the webinar. Our webinar will return until 3:00 p.m. eastern time. Two hours, we are recording the event today and that recording will be posted on the FHWA Website at the link shown on the bottom of the slide that you see right now. The speaker slides will be available for download on the FHWA Website as well as here on the webinar toward the end of the event. If you intend to use this for continuing education, we'll provide information how to do that toward the end of the webinar.
Now for a quick orientation to the webinar room. In the top left corner of the screen, there is audio information, if you -- in case you decide you want to listen to the webinar by phone instead of through your computer speakers. If you decide to do that, you will be able to ask questions verbally.
If you decide to listen to the webinar through your computer, you won't be able to ask questions orally, or verbally but you can use the chat window in the lower left corner of the webinar room.
We will field questions at the end of each of our three presentations, but we should also have time for additional Q&A at the end of the webinar.
To view closed captioning during today's event, you can click on the CC button or icon that you see near the top of the webinar room, and with the dropdown menu that appears, you can select "Show Captions". With that, I'll now introduce our first presenter, Thay Bishop is a senior program adviser for the FHWA center for innovative finance support. For nearly 20 years at FHWA, she has provided technical assistance and led capacity building efforts in the area of finance arena. Prior to joining FHWA she was Director of Corporate Finance and Treasurer for the metropolitan Atlanta Rapid Transit Authority. Thay will be retiring from Federal service at the end of the month, so I want to take a moment now to acknowledge her leadership on all FHWA has done over the years to promote the use of Value Capture for transportation infrastructure. These webinars and resources that will be described today are the result of her dedication to this topic. With that, Thay, I turn things over to you.
>> THAY BISHOP: Good morning and good afternoon to everyone. Welcome to the 2023, the final Value Capture Innovation webinar series, but also my final with Federal Highway Administration on my last day on December 30th. And thank you for all of you, have been with Value Capture program throughout the years and your participation helped with the program success.
With that, let me dive into my briefing today. I'm going to focus you on the process and key consideration when implement Value Capture strategies. The goal of my briefing today is to provide a proper context for more interesting discussion to be followed by the beginners and practitioners’ toolkits that we developed for you and available on the Website.
All right. So, let me move to the next slide
This is very important information for you to develop feasibility analysis, and you will see this layout on the toolkit for the petitioners. To deliver projects, you really need three things: First identify Source of Funds. The revenue sources in the future to repay the financing. Next select the Financing Option, you borrow the money to pay for the up-front costs. You can bundle the group of projects or programs to save borrowing costs, and then you can select to get the project complete. Then Uses of Funds: You select procurement technique to get the project completed. You can bundle two or more similar projects and award as single contract for procurement to save time, costs, and also attract bidders, and depending on your state law allows, you can use from the design, bid, build and all of the way to P3 concessions. This is indifferent than you purchase your home.
Value Capture versus Tax. If you're going to implement Value Capture Strategies, you need to be very clear the difference between Value Capture versus tax. Keep in mind, tax pretty much force contributions to generate the revenue for the public services. Mandatory tax provided by the general law, and everyone pays regardless of you are using the services or you benefit from the service or not. Money collected from the tax deposit into the general fund account for the government spending. Value Capture on the other hand is very equitable because only benefits are repaid, and it is taking into consideration the ability to pay.
Authorization for Value Capture comes from the state law or home rule powers of the local government. Keep in mind, a local makes the decision to implement Value Capture, and control the revenue generated from Value Capture. It requires proportionality between the benefits and costs and very strict accounting procedures and must deposit into a separate accrued interest earning account.
So, what is innovative finance that you hear quite often, and is interchangeable in a very confusing way. So, let me clarify. Federal Highway defines innovative finance as new and non-traditional revenue or funding sources. For example, Value Capture revenue sources are considered new, new financing techniques such as Federal low interest rate loan program: TIFIA, RRIF, SIBs, GARVEE Bonds, Private Activity Bonds, or Private Finance.
New methodology to utilize existing Federal funding, like Federal Funding Management strategy, we refer to flexible match, tapper match, tolls, and bridges credits as well as new types of financial partnerships between the state, regional, local, and private sector including Project Bundling and P3s, and so, you need to be very clear, what are we referring to when they are using innovative finance.
So, Why Consider Value Capture Strategies? here's the reasons why the state and local should be considered all of the revenue sources, include Value Capture strategies.
Highway Capacity Funding Challenges. I include data comes from World Economic Forum Research and this is 2020 data, but is really relevant to the highway congestion issues, you know, when we just about thinking that we find a solution for that, and it is just the beginning. And the reason for that is the combination of ecommerce, population, and economic growth. As ecommerce booms, transportation logistics are shifting to Meet demand. Ecommerce delivery that increasingly congestion.
Just to give you an idea, Ecommerce hit over 1 trillion for the first time in 2022. Ecommerce relies heavily on the trucking industry in the form of long-haul transport, then regional and urban transfers, and then finally “the last mile,” which is usually completed with vans, cars, bicycles, and app-based delivery services.
In today's city streets and transportation network, simply were not designed to handle additional flood of packages and freight trucks, especially with the adding pressure of next-day delivery, or in some cases same day, or next-hour delivery. So, that's why increase in congestion, not only on the highway but on the local roads as well.
The increase in e-commerce has also increased the need for loading zones and space for delivery vehicles. And another problem for the capacity demand is populates and economy growth. While it is a good problem, it increased the demand for various infrastructure including additional roadway and transportation facility to provide mobility.
So, the future, that we have to take in consideration, the integrated E-commerce into the transportation planning and funding, because those are going to be demand for additional capacity. Another issue is the highway condition funding, or really funding challenge, and our systems are aging. If we're talking about on every 5-mile pavement in poor condition. State and local are alike facing with system aging funding challenges. Our highways and bridges are reaching the end of their economic lives. One out of every five miles of highway pavement is in poor condition and over 47,00 bridges are rated in poor condition and classified as “structurally deficient.” Motorists cross these structures 167.5 million times a day. I believe the bridges structurally deficient are going down to probably 43,000 bridges. The decline in HTF - Federal and state fuel taxes no longer sufficient to cover the costs of operating, maintenance, and rehabilitation of the transportation system. Just an example, a 2022 bridge collapsed in Pittsburgh, Pennsylvania, it demonstrates why the local government needs to find a new additional revenue sources for infrastructure investment in the face of the diminishing state and Federal support. Keep in mind, the local owns over 50 percent of the nation's bridge, and really 620,000 bridges in this country. Locals also own over 77 percent of the public roads and really roughly, 4.3 million center miles of the public road in this country, and roughly only around a million miles of public road are eligible for Federal funds. Federal only fund capital not operation and maintenance. So, with the significant amount of funding needed for our roads and bridges. Hopefully with the one in the lifetime of IIJA funding, we see the number improving but our system continues aging, and funding will continue need for major rehabilitations and replacements. At the same time. We need funding for preservation programs to extend the life of our good roads further.
Okay. So, here is the data coming from national highway safety administration, in 2021 data. And it is really alarming the pedestrian deaths increased 72 percent between 2010 and '21. And estimate about 7500 pedestrian deaths in 2022. So, there is a significant funding going to be needed to make our system safer for the pedestrian, as well as improve the other traffic fatalities as well. And my recommendation is that state and Federal are partnering with the Value Capture Community Improving Districts or Business Improvement Districts to address this pedestrian safety issues in an urban area, because the district is very much involved in Complete Streets that benefit the businesses.
Here's the heart of the problem. The gap between transportation demands and available funding, continuing to widen. The future Federal transportation revenue is unpredictable and unsustainable. According to the congressional budget office in the next transportation bill beginning in 2027, Congress had to address a $215 billion shortfall, and this is not new. The highway trust fund are major funding sources for highway and transit were insolvent in 2008. Congress just delayed the insolvency into 2027 by infusing the general fund money into the highway trust fund. And that's why we continue to promote or looking for the new revenue sources and Value Capture can help to advance critical project while waiting for Congress to address this funding shortfall issue
So, what is Value Capture. Keep in mind, major real estate developments are often triggered by transportation projects. Value Capture is about monetizing the future new real estate taxes, economic growth activities like sale taxes, property tax appreciation near the transportation improving project to help pay for the project. The key is to establish clear, direct nexus between new real estate development and transportation projects. And to maximize the Value Capture monetization potential is to start early during project planning stage and well in advance of right-of-way acquisition and project procurement.
The key benefits of the Value Capture are, accelerated project delivery by making investments available earlier in the development process. It provides local matching share to State & Federal Grants. IIJA provides opportunities for Value Capture Transportation districts to apply discretionary grant directly, but it requires a local matching share and Value Capture can help to meet that need. It also provides opportunity to access to capital market and Federal low-interest rate loan programs such as TIFIA/RRIF, TIFIA-SIBs (rural), Sec.129 Loans, State Infrastructure Banks, Private Activity Bonds and attract private capital.
It also gets the project off the ground. In general, Value Capture can fund up to 50 percent of your project costs, depend on the Value Capture technique, some technique can fund 100% project or program cost such as transportation utility fee or special assessment techniques and it's flexible and can be used in wide range of settings including urban, suburban, or rural projects. It helps fund capital projects as well as operation and maintenance.
We have grouped value capture techniques into seven broad categories. The 2023 Value Capture Strategy series have covered all seven categories where real-world case examples were presented. We also provide you integrated strategies like development agreement, build a business economic case, managing the economic downturn, and much more. If you missed any of those session, you could access to AUDIO, Transcripts, and Presentation on the Value Capture website. I also embedded presentation link to relevant VC Strategies that takes you directly to the presentation, or you can access the web page with the link on the bottom of the slide.
All right. So, let's look at the important aspect of the overall Value Capture implementation process. The first step is the feasibility analysis. Basically, you assess Value Capture potential and identify Value Capture opportunity areas and key stakeholders. The key stakeholder is the very important that you need to gauge their interests, and work toward their commitments. Engage key stakeholders for Value Capture buy-in and approval (throughout) the implementation process to gain their on-going supports.
Next step in preparation. Define the relevant project, and the project area, gain internal support and develop Value Capture implementation plan, as well as identify and establish a Value Capture cross functional team to perform quite a few analyses taking place during this phase including conduct Specific Plan-based nexus study for coding Development Impact Fee schedule to incorporate to City Ordinance or BUT FOR test to determine the level of public investments. You will need to develop Specific Plan and Capital Improvement Plan for Value Capture opportunity areas. You also need to set up investment fund(s) dedicated to Value Capture Opportunity Areas if the area identified in the opportunity zone list. Another opportunity for investment fund.
And then, the next step, you establish a Value Capture districts, Tax Increment Financing District or Special Assessment District. You must follow your state enabling legislation requirements, and different Value Capture techniques will have a specific requirement that you've chosen. The next step is financing. You need to obtain the final approval to issue Value Capture revenue-backed bonds. Remember, Value Capture is monetized future of revenues, so, you need to have a way to borrow the money or issue bonds to get the money to fund for the project, and certainly, life cycle administration—manage Value Capture district and administer financial transactions to mandate those districts are essential.
And keep in mind, always think early, and think long-term beyond the revenues.
So, the next step is to take into consideration, different Value Capture techniques require different implementation processes. So, for example tax increment finance. One of the key implementation considerations is to obtain buy-in from cities, counties, and/or public school to set the tax baseline. Remember, in tax increment finance, those local jurisdictions have to agree to accept the tax dollar the same for the duration of the district, but for analysis, also important and required in some states.
Actually, there's only about 22 states that require the "but for analysis."
In terms of special assessment, you need to determine if the assessment is considered a fee or tax, this is very important, because it is requiring proportionality between the fee and benefit and only benefits the repay. Keep that in mine. If you're using the increment sales tax, you need to consider additional time, because you need voter approval. There are only a couple states that allow the locals to increase the sales tax at a certain level, and up to that, they can have to obtain the voter approval.
For the developer impact fee, the nexus is the key for determining the appropriate fee level to incorporate into the city ordinance.
So, in general, local government considers implement each Value Capture technique separately, and, as such, business economic case for each technique is also made separately. All right. You also need to have a clear policy objective, beyond the generated new revenue. The use of Value Capture techniques can also help local jurisdictions in meeting their overall policy goals established in their general plans, which could include, for example, the view of Value Capture technique can also help local jurisdiction in meeting the overall goal or plan.
So that could be create more, better jobs, provide more housing, including multi family, and affordable housing unit, promote the smart growth multi modal oriented development, and improve local and regional connection, as well as provide the amenities to the community, like open space, parks, bike paths and so on.
All right. We developed significant Value Capture resources that are available online, that can take you from the cradle to grave. We also have developed two toolkits available online right now. For the beginner, as well as practitioner. You will hear from the experts shortly.
Before I turn it over to Pepper, I want to leave you with a few key takeaways. Value Capture is a set of powerful and sustainable funding mechanisms should be included strategic mix funding sources for transportation improvement solutions. Proven to accelerate project delivery, improve safety, save time and money when done properly. Several billion of transportation infrastructure need by public sector. Value Capture can help to fund at least 30%. Value Capture is locals’ tool and the use of Value Capture techniques to pay for major infrastructure projects with regional benefits, especially those that extent beyond the local jurisdiction, have been limited to date. However, their use is becoming increasingly critical to generate gap funding sources locally to complement Federal and State funding sources.
Essential to include the Value Capture strategy early, in the planning state to maximize Value Capture of revenue potential, and while Value Capture can contribute significant revenue to the project, for both capital as well as operation’s needs, it is usually a supplement, keep that in mind, rather than replacement.
With that, this concludes my briefing, and I'm available to answer all of the questions. And my contact information is right there. So, I'll turn it over to Pepper.
>> PEPPER SANTALUCIA: Thank you, Thay. We do have comments and questions in the audience chat, and David Pritchard makes an observation that in Ohio, we seem to give money to developers to developers for infrastructure construction not making them pay and why. Not sure of the circumstances but maybe you can comment.
>> THAY BISHOP: Sure. In general, to attract or spur economic development, certain conditions have to happen, and as typical, the public sector, city, and County in general, will enter that building to take on economic improvement to spur the development. Other developers do it and the city reimburse them. Actually, that's not giving the money to the developer for free, but rather invest into the infrastructure in order for the development to happen. Okay? And that's rye why it is so important, in specific, on tax increment finance, is require a "but for analysis," meaning that the development only happens if the tax increment finance, are available.
So, I hope to answer that question.
>> PEPPER SANTALUCIA: Thank you, Thay. We have another longer comment here from Sarah, that we may not be able to get to all of it, but there is a question here about how Value Capture can be used to increase affordable housing for young adults. I don't know if that's something you want to try to tackle now, or maybe we save it toward the end of the webinar.
>> THAY BISHOP: Actually, certain cities have used Value Capture to stimulate an increase the affordable housing. In some cases, that might be provide a developer with the benefit of these -- developer impact fee, that have been viewed to help to stimulate the developer interest, and to build the affordable housing. Okay?
>> PEPPER SANTALUCIA: Okay. Great. Well, thank you, Thay. I was thinking we're going to, in the interest of time, move on to our next presenter, Miss Brett Piercy is associate at EBP known as EDR group formerly. Brett has nearly 15 years’ experience in economic development and urban planning. She has expertise assessing the development of major infrastructure projects and policy decisions as well as fiscal analysis for a wide range of land uses and proposed policies. Prior for joining EBP, Brett worked for a planning agency in Southeastern Massachusetts and holds a Master of Science in urban planning from MIT and master’s degree in policy analysis from UC San Diego.
With that, Brett, I turn things over to you.
>> BRETT PIERCY: All right. Hi, my name is Brett Piercy, and I am here to talk about two really useful sets of tools for Value Capture that I've been involved in developing. These two tools are both great for those dipping their toe into the subject of Value Capture.
Just as background, this is EBT and what we do. I tend to think of us as developing consulting because that's my practice area. Really, we have three strong practice areas, economic development, and transportation sustainability. They're integrated that's the tools we drew from when developing these tools.
So, the first tool is FHWA Value Capture tool kit. We created this kit for FHWA in 2020/2021 and include a range of tools we developed for the tool kit. Some tools FHWA developed previously and some they've developed since then.
The other is EconWorks. For those not in the transportation community the American association of state highway officials. They have 150 case studies featuring full range of economic land use outcomes of infrastructure assessment and has a project tool to plug in a project or agency to get the ballpark idea of labeling of impact as well as list of case study examples you might want to review to understand kind of what drove those impacts.
So, let's start with the Value Capture tool kit. We're going to spend most of our time on that tool today.
All right. Here's where you find it. If you're starting from the center for innovative finance support Website t-is here on the right. Click on the Value Capture tool kit to go where we're about to go or click on one of the menu items go directly to a specific tool.
There's our link. All right. So, this is the tool kits Website, and that brings you here. So, the menu here on the right links to the different tools in the kit. They are listed in chronological order, but I'll talk about them in a different order. When I think of each of the different tools and who will be using them and how do they use, they fall into the four different category, general reference tools -- sorry about that. -- and by general, I mean all aspects of Value Capture. I don't mean to imply the information is general, everything in the materials is very focused on the practitioner. If you're interested in academic to access Value Capture, the manual has lists of other resources you can check out, but these tools are what you need to implement Value Capture. The two tools are implementation manual and quick start guide. We'll talk about those in a little bit. Topical reference tools, have aspect of Value Capture in a more focused way. Implementation examples, if you didn't know about baseball and you needed to learn how to play, you would start by reading the history of baseball or step by step guide. You probably want to watch a game and see what it is all about and then go back and read the step-by-step guide for a state of reference. These are tools for Value Capture for watching the game.
Interactive tools, the agency self-assessment and competency maturity matrix, they work together to identify strengths and weaknesses for Value Capture and give you steps to implement or expand the agency use of Value Capture.
Let's see here. Okay. So, I'm going to start with implementation examples, because I think that these -- reading these -- the category, the case studies, and notable projects database, and these can create some kind of connection to the topic that can help give you some sort of energy, motivation, to carry you through maybe more technical aspects of learning about how to implement Value Capture.
S so, the case study, they are five-to-ten-page examples of specific projects that were funded all or in part by Value Capture, or they're case studies of specific Value Capture programs being used by jurisdictions across the country.
One of my favorite case studies is the N Street Protected Bikeway in Lincoln, Nebraska. It was funded through a complicated package of multiple sources, and I liked how they used several adjacent districts. Some already existed and some created just to support this project to create a corridor that correspondents with all of the areas of the city that would benefit from the protected bikeway. And the other categories I mentioned is the programs being used to fund broader infrastructure investments.
My favorite case study in this category is Pasco County multi modal mobility fee program in Florida. By increasing demand for pedestrian bicycle infrastructure.
So, this is the development impact fee, but the County was concerned about applying the same fees Countywide, that is areas where the market is strong and can bear an extra cost of the bes, as well as more distressed areas where the fee might discourage development.
So, their fee structure involves lower ways for projects that meet certain criteria, related to affordable housing and compact development, and check out the case study to see how they offset the cost of those developments in a different way without impacting demand for development -- the cost of development, rather.
So, after we went through case studies, let's see, you might be ready to look at the notable approaches database. When you click on the link on the tool it takes you to this page. This is not really the database yet. You need to click on where it says click here, right there. And that will take you to this page, and it is hard to see here but that's okay.
So, this is just a screen shot. You definitely want to check this out on your own. As I mentioned there are attributes to click on to show areas of interest. Let's go to the bottom. This opens to the VCP database tab. It opens in an Excel workbook and moving left to right. There's the table of contents there's a data dictionary that explains the field, so if you're looking for a particular field of interest, you can scroll through that there's a list of opportunities referenced in the database. There's a list of documents and resources that provide a summary of other publications with useful information and tab with each Value Capture technique so you can refer to that.
You can flip through them on your own, but I want to highlight my two favorite tabs in this book, there we go.
The first is the VCT project profiles tab which links to FHWA's center for innovative finance 150-plus project profiles. If, after the 15 case studies then 50 examples in the database, you still want more inspiration, you can keep going. I actually think FHWA has more project profiles now than they did at the time this was made, but these are very big selection of project profiles that you can review. And the other tab is the documents and resources tab. This is kind of a bibliography of the greatest Value Capture. I say before digging into any of these resources you want to check out topical reference tools we'll talk about in a moment. If down the line you want to know about Value Capture, these are great places to go, it's kind of summarized there, so you know what you're getting into before tracking down something.
Okay. Why also have a set of interactive tools, as I mentioned before. There's agency self-assessment and CMM
Now that you used case studies to build a connection to the project, you see what other people are doing, you start having ideas what the agency might want to do, and wonder is my agency ready for this. We have two tools that work together to help you answer the Gwen. First, we have agency self-assessment tool to help identify the agency's strengths and areas that need improvement it asks a series of questions in each of the following categories: Funding and financing needs, institutional knowledge, such as does your agency have history of using Value Capture or relighted endeavor such as PPP. What is your regulatory environment like? Do local agencies, are they cooperating and are the sort of planning land use building policies and regulations that support increased land use values and development in place? Your agency staff capacity, skills, and experience, does your staff have commercial real estate experience, market analysis or financial and risk analysis experience, and if not, can they supervise consultants with this experience, do you have the necessary staff hours to take on these new tasks.
It asks questions about your institutional, civic and stakeholder environment. So, you'll indicate if your agent -- the level of engagement that your agency has with a wide range of stakeholders, elected official, neighboring capacities, development agency and so forth.
The assessment will indicate on the CMM the competency maturity matrix, more or less where your agency is on each of seven components of competency, on a scale of one to four with one indicating informal understanding and four indicating institutional maturity.
The value of this tool is not really taken ticking off the boxes self-assessment to see where you are in the CMM, the value is the discussion us have with agency on each of the topics, speaking about staff and doing training. If you have these discussions but never end up filling out the form, you'll get plenty of value out of the tool rather than if you fill out the form on your own. There's no harm filling out the form yourself to get the ball rolling in your own mind but that can be the starting point for discussion. This is not meant to give you a grade, like a test, it is to shape ideas and get things in motion.
Now we can look at the CMM so, the cycle blocks on the left represent the competency components and on the level is levels of competency. We measured these with local transportation agency Directors with some experience with Value Capture to determine what is really important here. But the matrix doesn't give you sort of a level for each component and leave you on your own. The matrix is too big to show on the screen, so let's produce the first component. As you can see it describes what each level looks like. If you find yourself at level 1 on the first component you can look at level 2 to see what that looks like and decide what your agency will do to get there, which in this case, introduces the basic concepts of Value Capture to senior policy makers, this helps build on strength focusing on shoring up areas of weakness and it is actionable.
Now, we'll work our way back to reference tools. So, you're probably ready for these in the project because you want to move up a level in the CMM or you want to implement, and you have specific questions. The two general reference tools are FHWA Value Capture implementation handbook and quick start guide. In 2019 FHWA published Value Capture implementation manual which is a concise introduction to Value Capture that emphasizes information from many useful sources and condenses it down to what you need to under to get started but it is 212 pages which for busy planners who are trying to learn about Value Capture on their own time or introduce it to their agency, and learning about it, might be tough to start to. The quick guide directs users to the resources they need in 30 pages the resources will have a lot of information you need to move to the CMM level. If you pop open the handbook you can turn to the quick start guide to point you in the right direction.
There are four topical reference tools: Strategy primer, how-to briefs, nexus and other legal tests and frequently asked questions. All four of these address specific topics related to Value Capture implementation. Strategy primer each focus on specific Value Capture technique. The how-to briefs cover a wide range of topics such as how to overcome common barriers to Value Capture, how to do a market analysis, how to integrate Value Capture in the transportation infrastructure planning process and often provide specific case study examples. Ed nexus and other legal text memo if you're familiar with the concept of regulatory.
That crops into that area. Nexus refers to economics, a lawyer who specializes in development legal issues. Does a great job of explaining nexus and rational proportionality to keep them in mind. It also explains the issue of step 4 which is particularly important.
Two great takeaways from this. First if you want to know if your state enables legislation that allows you to do what you want to do, you can write a letter to the state Attorney General to ask and they will respond and tell you.
Second, don't try to guess on legal aspects of your specific plan, get good legal counsel. The memo helps identify points in the process where you need that technical expertise.
And finally, FHWA added frequently asked questions that answers questions and gives the ability to ask your own if you think the answer would be helpful to others.
Okay. So, now we're moving on, shifting gears, and looking at an excellent resource not part of the FHWA tool kit. This is called EconWorks, hosted by AASHTO. It is database soon to be 160 case studies from across the country with a few international cases Peppered in there documenting the full range of economic outcomes associated with transportation infrastructure investments. Notice that I didn't say economic impacts. To me, economic impacts invoke a more limited concept such as what you get from input/output model. For Value Capture you need more information. You want to know if land use changed. Did land values change, what type of development occurred. Was it concentrated in a certain area or distributed throughout the project area and how big was the impact area
Perhaps just as important as the impacts, the case study documents the non-transportation factors that affected the project's outcome. Where the right land use policies in place to allow development? What other factors driving population in the job growth, were there specific program elements not related to transportation that made a big difference. The examples I have on the right are related to transportation. They are bikeways and pedestrian improvements that accompany these projects. The stakeholders who reported were at least as important if not more important than the transportation infrastructure itself.
So, the case studies document all of this, and the information that's not estimated from a model, we collected pre and post data on a wide range of economic indicators and we did several stakeholder interviews for each case study to help us under the role of the particular infrastructure in the local and regional economy.
This is what it looks like, this is the -- you want to go to the tools here and select case study search from the dropdown menu.
So, this -- let's see. All right. So, you would come to this page. That givens you sort of a list of cases and you can filter by region, project type and other key project filters to identify case studies of interest to you and if you select one of these, this is what the page will look like, kind of, just for space reasons, here on the left is what will appear at the top of the page it kind of summarizes the projects and the three on the bottom show impacts from the state, County and local level as appropriate for the given case. As you scroll down you get what is on the right, a map of the project location and the narrative that covers the aspects as I stated before.
Those are the -- okay, that's actually how EconWorks, those are the two tools. I hope you start to check them out and use them as your agency pursues Value Capture. Thank you.
>> PEPPER SANTALUCIA: Thank you, Brett, that was a lot of ground to cover, and I hope the people will follow the link and explore those resources. Maybe you could talk a little bit about the modes that are represented in the EconWorks. Does it cover highway, transit, rail? Is it specific to just highways
>> BRETT PIERCY: Um, so there's several different types -- there's limited access highways then there are bridges, pipe bypasses and industrial transit. There are commuter rails and light rails, plus rapid transit and we have several freight intermodal terminals. Some of the transit projects transit stations and some are transit lines.
>> PEPPER SANTALUCIA: That's helpful. Thank you. Operator, we've been remiss asking whether there are any folks on the phone who might want to ask a question. I believe if you are on the phone and you want to ask a question, pressing one, zero, will alert the operator. We'll give a little time to see if anything wants to ask Brett a question over the phone.
In the meantime, I'll pull up the last slide deck. Operator, do we have anyone that's been added to the queue?
>> OPERATOR: Ladies and gentlemen, if you wish to ask a question, please press one then zero on your telephone keypad. And there are -- there's no one in queue at this time.
>> PEPPER SANTALUCIA: Okay. Thank you. Okay. Everyone, this is Pepper Santalucia again from the Volpe Center. I will actually be the last presenter today. I'm going to be talking about a second tool kit, one that is still under development. We'll have a PDF version of it available for download today. It will eventually find a home on the FHWA Value Capture web pages. This is the second tool kit. It is targeted at more experienced practitioners, that will include -- it does include some of the same resources that Brett just described, but it also has additional resources, for those who are ready to take a deeper dive into different Value Capture technique.
So, the modules or sections of this tool kit are Sloan on the screens. I'll go through them quickly in turn, and then and then we'll go and see if there are any questions, for any of the presenters today.
The tool kit begins at the beginning by defining the following Value Capture techniques. For those of you who have been on our prior webinars, we'll recognize these techniques are ones that we have addressed multiple times so the tool kit will give a nice clear definition of these techniques. Then the tool kit provides links to different publications and resources that are available on the FHWA Website. So, essentially this tool kit is going to be sort of a road map, not just to FHWA resources, but also to resources available more broadly across the Internet
Some of these Brett has already alluded to. We developed -- FHWA developed frequently asked questions, documents on the following Value Capture techniques. So, those can be helpful in getting acquainted with these techniques.
And then when you're ready for a little deeper, more comprehensive description of these techniques and how to implement them, we do have the following primers. So, you'll see that sort of the first five or six or seven of these focus specifically on a particular type of Value Capture technique. The ones toward the end are a little more general. One talks about capital improvement plans or capital improvement programming and how Value Capture can be integrated into that process. Another resource that I alluded to in the chat on making the business and economic case for the use of Value Capture techniques, assessing Value Capture rivers, and managing economic shocks so that they are related topics, but important to look at the potential downside of Value Capture techniques and make plans for mitigating or avoiding some of those downside impacts.
Brett alluded -- referred to this document as well, the Value Capture implementation manual. Also, a longer document but does touch on the full range of Value Capture techniques, and it is a good starting resource.
Now I'll talk about what we call analytical tools. This is the overlap that Brett just described is more apparent. There's the self-assessment tool that she referred to, and the capability maturity model that's viewable after you've done your self-assessment and finally the database of notable approaches that she outlined for us just now. The fourth section of the practitioner's tool kit includes links to our annual webinar series, recordings and slide for these webinars. This is our fourth year of webinars as you can see, we did 17 this year, this is No. 17, but also many webinars before that. Some of the topics we've come back to year after year. Others, like we've taken a year off. This is only one, two, three, four -- five of the topics. Couldn't fit them all on the slide, just to give you a sense of just a sense of the topics that we have covered and how often even in case where's we were talking about special assessments, from year to year, we brought in different presenters from different communities, different states, so, there's something to learn in each of these in each of these webinars.
FHWA has a center for load aid support which is focused on helping localities and tribes, especially smaller communities with transportation and particularly using Federal funds. They have developed three online training modules on Value Capture, each of them takes about 90 minutes to complete. It's free, and, again, this might be a useful way for people to assess their own knowledge of Value Capture and to approach Value Capture in a more systematic way.
The tool kit contains links to videos about Value Capture techniques. Sometimes a little easier way to learn than to read through page after page of the documents. Some of these videos were produced by FHWA, including the ones that are linked here, but others that are included in the cool tilt were developed by others
Innovative finance tools. So, the tool kit moves beyond the Value Capture strategies themselves and talks about how Value Capture can be used in conjunction with innovative finance tools like the ones listed here grant management strategy, including toll credits, flexible match, debt financing tools, private activity bonds, and other types of credit assistance, the TIFIA and RRIF, within the office of state office. State infrastructure banks, there are a number of states that have them. They make low interest infrastructure projects. The resource -- -- the GARVEEs are great participation revenue vehicle. Essentially, responding to a question in the chat, it's essentially taking the future stream of Federal funding that's coming to a state locality, and basically issuing debt to basically access those funds earlier than you would if you had to wait each year for those Federal funds to come in
That is, you'll find, a section on the FHWA Website that does a much better job of describing those grant participation revenue vehicles. To the right of the slide here is a look at the menu, and this all Leeds to more and Fuller descriptions of those different financing tools
Finally, the tool kit defines the more common types of procurement techniques that can be used along can Value Capture strategy. These are sometimes referred to as alternative contracting methods. They don't necessarily have to be used with Value Capture but can also help with implementation and construction of a project funded with Value Capture.
That concludes my run-through of this second tool kit that again, as I mentioned, is underdevelopment. I pulled up different layout. It has a file share window to the left, just above the attendee list. There you'll find a PDF of the slides that were used today, as well as this -- a draft of the tool kit that I just described. The tool kit that Brett described is already available online. I included the link to it in the chat, just -- and it is also -- you'll be able to get to it from her slides.
So, with that, I will take another look at the questions in the chat. Thay, did you see anything in the chat that you wanted to bring to the attention of the audience I know you've been active in answering specific questions about different Value Capture techniques. But anything else you want to add at this point? Okay. We are finishing up a little bit early today. We'll give a little bit more time for folks to put any additional questions in the chat. Again, the purpose of today's event was really -- to have a Capstone on all of the efforts to develop this wealth of Value Capture resources and to really just remind folks or introduce people who have not visited a portion of the FHWA Website. Either refresh people's memories or introduce them to all of the resources that are available there on the Website.
We didn't touch on all of them. There are project profiles, over a hundred projects that have used Value Capture in some way to get a project completed. And we will -- FHWA will continue to add to those resources in the future. Again, we thank you, everyone, for attending today, and for attending the prior 16 webinars that we held this year. It was an aggressive schedule, but we wanted to make sure that we covered the full gamut of Value Capture topics.
I see a few more people typing, so I'm just basically filling time until I see what they have to say.
I meant to add, if you have any trouble downloading these files, if you hover the mouse curser over top of the file name, you should see a downward pointing arrow, and you can click those -- click that icon to pull the file down. You can also click on the three buttons in the upper right corner of the file share, and that should bring up a menu that has a download all option, and that will -- you'll get a zip file with both of those files inside it.
I mentioned, if you want to get credit for your participation today, if you look in the upper left corner of the screen now, you'll see an e-mail address, valuecapture@dot.gov. That's valuecapture@dot.gov. If you send a message to the inbox, you'll receive a confirmation of your attendance today.
You can also provide feedback on today's webinar on the webinars you have seen earlier and suggestions on what future webinars should cover, questions on a different -- suggestions for new resources, or different resources, will be -- gladly be accepted through that e-mail inbox. I would like to thank our presenters, Brett and Thay for their participation today. Also, would like to acknowledge the ongoing support of the FHWA web conferencing office. They always help us out in a pinch, and we are thankful for that. Again, we want to say, congratulations, once again to Thay, and wish her all of the best in her retirement.
And with that, I wish everybody a happy holiday, and that concludes today's event. Thank you.
>> OPERATOR: Thank you, and that does conclude our conference for today. Thank you for your participation and for using AT&T conferencing service. You may now disconnect.
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