Value Capture Webinar Series

Value Capture: Joint Development, Use ROW Agreement, and Case Studies

September 19, 2019

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Value Capture: Joint Development & Case Studies

Value Capture Techniques Summary

  • Developer Contributions - One-time charges collected by local governments from developers to offset the cost of infrastructure and services necessitated by new development.
  • Special Assessments - An additional fee or tax assessed on businesses or residents in specified geographic areas benefiting proximity to a highway or other transportation facility or corridor.
  • Fees - Similar to a utility fee, transportation fees are assessed based on how individual businesses and households use transportation facilities.
  • Incremental Growth - A mechanism allocating back to infrastructure from some specified portion of increased property tax revenues fostered by new infrastructure - often for a specified period of time.
  • * Joint Development - Sale or lease of land or air rights on or adjacent to transportation facilities. This can include donations of land or other in-kind resources from the private sector in ongoing commercial operations.
  • Concessions - Sale or lease of government owned assets - such as toll roads or bridges - to private-sector investors/operators.
  • Advertising and Naming Rights - Sale of advertising space or naming rights on a transportation facility. Note: Commercial uses within Interstate Highway System right of way, including rest areas, is prohibited by law; however, they may be allowed on toll facilities and in transit stations.

*Topic of this webinar

Outline of Presentation

  • Joint Development Overview & Benefits
  • Why is Joint Development Needed?
  • Joint Development Types
  • The Federal Role
  • Selected Case Studies
  • Q&A

Joint Development Overview

Joint Development
  • Involves a partnership between a public entity and a private sector or other public entity to develop certain infrastructure assets
  • Generate revenue to reinvest in the transportation system or revitalize communities
  • Plays key role in some urban projects
  • Often practiced in transit agencies
  • Generates long-term revenue streams to fund transportation improvements and/or reduces costs
  • Improve utilization of public assets (i.e. ROW)
  • Opportunities for public-private & Public-Public Partnerships
  • Economic development tool controlled by public sectors
  • Provide local benefits by increasing a jurisdiction's tax base and creating new jobs
  • Promote Economic/transportation-oriented development
Joint Development Types
  • At-Grade (solar energy in the highway right of way) Graphic depicting solar energy next to highway
  • Below-Grade (fiber optic opportunities) Graphic depicting fiber optic internet opportunities
  • Above-Grade (cap parks or air right development) Graphic depicting cap parks or air right development

Why is Joint Development?

Capacity & Conditions Challenges
photos of various traffic issues
  • Two out of every five miles of America's urban interstates are congested
  • Cost the country $160 billion in wasted time and fuel
  • One out of every five miles of highway pavement is in poor condition
  • $836 billion backlog of highway and bridge capital needs
  • 47,000 bridges in poor condition and 43% (260,000 bridges) are over 50-year old
  • Pedestrian deaths on US roads increased 11% since 2015; (5,977 in 2017)
Mileage by Ownership & Federal-aid Highway System
  • 45 % of America's major roads are in poor or mediocre condition.
  • 15% of U.S. rural roads are rated in poor condition, while 21% are in mediocre condition
  • Local owns 79%, State 18%, & Federal 3%
Ownership Federal-Aid Highways Non-Federal-Aid Highways Total
Rural 668,082 2,280,612 2,948,696
Urban 359,767 875,245 1,235,012
Total Rural & Urban 1,027,848 3,155,858 4,183,707
Highway Trust Fund is Unsustainable
Chart showing why Highway Trust Fund is Unsustainable
Source: CRS, based on CBO, Highway Trust Fund Projections: June 2017 HTF Baseline 2016-2017.
Notes: Includes highway account and mass transit accounts combined. Revenues include interest on HTF balances. The shading between spending and revenues indicates the period that the HTF balance is maintained by the transfers from the general fund and the LUST fund.

Joint Development at Grade

Solar energy in the highway right of way
  • Uses existing public right-of-way for solar energy generation
  • Adds value to public right-of-way asset and revenue to Department of Transportation
  • Public-private partnerships can use tax benefits to deliver solar power at costs no greater than paid for electricity from the grid
  • Leverage underutilized land
Solar Deal Structures: Direct Procurement & Ownerships

Text for diagram

Flow chart of "Solar Deal Structures: Direct Procurement and Ownership"
The Solar Power System flows electricity into the State or Local infrastructure, who has purchased, built, operates and maintains the solar power system. Excess electricity is sent to the Power Grid who also then sells to the State or Local infrastructure with Net Metering Credit.
Solar Deal Structures: Public-Private Partnership

Text for diagram

Flow chart of "Solar Deal Structures: Direct Procurement and Ownership"
The Solar Power System flows electricity into the State or Local infrastructure. A Private Concessionaire takes Electricity Payment from the State or Local infrastructure, while making Land Lease Payments to the State or Local entities. The Private Concessionaire is in charge of Purchase, Build, Operate and Maintain of the Solar Power System. Excess electricity is sent to the Power Grid who also then sells to the State or Local infrastructure with Net Metering Credit.
State & Federal Incentives
  • State Incentives:
    • Solar Renewable Energy Credit
    • Net Metering Policy
    • Solar Rebates & Grants
  • Federal Incentives
    • Federal Investment Tax Credit (30%)
    • Modified Accelerated Cost Recovery System (5-year property depreciation for TX base deduction)
  • Interconnection standards (grid-connected)
State of Practices
  • California Highway 50 Solar Project
  • Georgia Solar Road & Laboratory
  • Maryland: DOT-wide Solar Program
  • MassDOT Highway ROW Solar project
  • Oregon Solar Highway Program
  • Ohio, Along 1-280 in Toledo, Ohio
  • Wyoming, I-70 Rest Area Solar Flowers in Parachute
  • Nevada: Moapa Solar Energy Center, Moapa River Indian Reservation (Reservation), Clark County

Joint Development Below Grade

Fiber Broadband Deployment Approaches

One size does not fit all ...

  • Publicly-owned and operated network (i.e. Santa Monica, CA)
  • Privately-owned and operated network (i.e. Columbus, OH and City of Boston, MA)
  • Network via public private partnership (i.e. Utah and Maryland)
Smart Cities

Text for diagram

  • Internet of things
  • Public Safety
  • Gas & Water leak detection
  • Smart EnergyWater Quality
  • Traffic Management
  • Smart Health
  • Intelligent Shopping
  • Smart Parking
  • Smart Environment
  • Electric Vehicle Charging
  • Air Pollution
  • Smart Buildings
  • Open Data
  • Electromagnetic Emissions
  • Smart Home
  • Smart Street Lights
  • Waste Management

Broadband encourages:

  • Economic Growth,
  • Better quality of life for the community,
  • More efficient, cost effective delivery of community services
  • Capitalize on fiber infrastructure investment

Note: It all runs on Fiber...

  • FCC Universal Service Fund (USF)
  • US Department of Agriculture (USDA): Rural Business Development Grants (RBEG), Rural Utilities Service (RUS), Community Connect Grant
  • US Department of Commerce
    • Economic Development Administration (EDA)
    • National Telecommunications and Information Administration
  • Local (Value Capture): Local Improvement Districts (LIDs), Local Utility Districts (LUDs), Community Development Block Grant (CDBG)
  • Pay-as-you go
  • US Department of Agriculture: Rural Utilities Service(RUS) Loan Programs
    • Broadband loan program
    • Electric loan program
    • Community Connect
    • Digital Learning and Telemedicine (DLT)
  • State Revolving Funds,
  • Capital Market
  • Private Equity

Joint Development Above Grade

Air Right Development
  • Sale or Lease of public land or the right to develop on the top of the highway or transit station
  • Provide ongoing income streams and opportunity to renegotiate terms at end of lease
  • Leasing retains public ownership
  • Sales provide upfront capital infusion
  • Income streams allow revenue sharing agreements between multiple agencies
  • Often practiced in transit agencies
Economic Vitality:
Increase tax revenues, create jobs for local and regional workers, attract development
Social Equity:
Reconnect neighborhoods & enhance quality with public amenities and activities
Environmental Integrity:
Directs development onto an existing transportation corridors, reducing trips and increasing viability of all mobility/public transportation options
Example: Copley Place, Boston, MA
3D rendering of Copley Place, Boston, MA
  • Value Capture: Air Rights Development Lease
  • Type: Mixed-use joint development on 9.5-acre site over the Turnpike
  • Lease Term: 99 years lease
  • Economic Benefit: Fund for capital, operating, & maintenance expenses of the turnpike
  • Social Benefit: Reconnected urban neighborhoods of city, which were divided by the turnpike
Example: I-395 Capitol Crossing, D.C.
3D rendering of 395 Capitol Crossing, D.C.
  • Value Capture: Above Grade - Air Right Development
  • Scope: 7-acre decked development site above I-395
  • Economic Benefit: Create 8,000 jobs & generate $40 million in annual tax revenues
  • Social Benefit: Reconnect Neighborhoods which were divided by the construction of I-395 in late 1960
The Freeway Deck Park
  • Arizona: Margaret T. Hance Park
  • California: 210 Freeway Cap Park, La Canada Flintridge, Enhanced Overpass, Park 101
  • Colorado: Central 70
  • Georgia: 5th Street Bridge, the Stitch
  • New Jersey: South River Walk Park,
  • Texas: Klyde Warren Park,
  • Washington: Freeway Park in Seattle, Mercer Island
  • Others

Federal Roles

Federal's Role in Value Capture Strategies
Federal's Role in Value Capture Graphic showing the federal governments role in value capture strategies Universe of Land under State Legal Authority Land owned/Regulated by City/County. - Depend on the local's policies. - Decision at the City/County Level. - State DOT and FHWA have no direct influence. Land owned/Acquired by State DOT with State Fund. - Decision at the State level. - Federal has no direct influence. Land Purchased with Federal Fund. - State DOT and Federal have direct influence. - US DOT support value capture.
Federal Regulations
  • 49 Code of Federal Regulations (CFR 18.31(b): Real Property
  • 23 U.S.C 111: Use and Access to Right-of-Way
  • 23CFR 645 Subpart B: Accommodation of Utilities
  • 23 CFR 710: Right-of-Way and Real Estate
  • 23CFR 752.5: safety rest Areas

Contact: Lindsey Svendsen, FHWA Office of Planning, Environment, and Realty;

Value Capture Implementation Team
  • Co-Leads
    • Thay Bishop, FHWA Office of Innovative Program Delivery
    • Stefan Natzke, FHWA Office of Planning, Environment, and Realty
  • Members
    • Jennifer Ahlin, Virginia Department of Transportation
    • Janine Ashe, FHWA District of Columbia Division
    • David Cohen, FHWA Office of Project Development & Env. Review
    • John Duel, FHWA Office of Planning, Environment, and Realty
    • Kathleen Hulbert, FHWA Infrastructure Office
    • Chip Millard, FHWA Freight Management & Operation
    • Diane Mobley, FHWA Chief Counsel Office
    • Kevin Moody, FHWA Resource Center
    • Ben Orsbon, South Dakota Department of Transportation
    • Jill Stark, FHWA Office of Planning, Environment, and Realty
    • Lindsey Svendsen, FHWA Office of Planning, Environment, and Realty
    • Jim Thorne, FHWA Office of Planning, Environment, and Realty
    • Bingxin Yu, FHWA Transportation Policy Studies
VCIT Focus Areas
  • Communication - Developing the tools to help FHWA staff and others promote Value Capture to local public agencies (Value Capture Implementation Manual)
  • Technical assistance - Providing technical assistance to local public agencies interested in pursuing Value Capture (Peer Program)
  • Clearing House (Clearing House website) - Identification of best practices and lessons learned and promoting further discussion on innovative funding options for local public agencies, lessons learned from past and current efforts, etc.
Value Capture Implementation Manual
Cover for Value Capture Implementation Manual
  • 1. Introduction
  • 2. Assess funding options and need for value capture
  • 3-8. Select appropriate value capture technique
  • 9. Develop business and economic case and for stakeholders
  • 10. Address real estate risk
  • 11. Establish regulatory framework
  • 12. Implement funding and financing plan
Clearinghouse for best practices/lessons learned
EDC-5 Funding Opportunities

Thay Bishop: or

Questions & Answers

Georgia Department of Transportation

Joint Development, Use ROW Agreement, and Case Studies

FHWA Webinar Presentation September 19, 2019

The Ray and Georgia DOT

  • Designated in July, 2014
  • Georgia Tech Collaboration
    • Master Plan
    • December, 2014
  • Coordinating Committee, early 2016
    • District 3
    • Operations Div./State Maint.
  • Improved safety is the ultimate form of sustainability
    • Costs and impacts of a crash
Exits on interstate 85 being used for case study

Text for diagram

List of exits along Interstate 85 in case study

  • GA 109 #18
  • US 27 #14
  • GA 219 #13
  • Kia Boulevard #6
  • GA 18 #2
  • Welcome Center

Green Initiatives

First Initiatives:
Diagram showings exits on interstate 85 used in first initiatives
  • Bioswales, #16, 2016
  • Pollinator garden, Welcome Center, 2016
  • Sustainable landscaping, #2, #18, 2016-17
  • Native pollinator plants/grasses, #14, 2017
    • 2,000 square feet
    • Planted by Troup County HS Students
    • Organized by The Ray
Grass alongside interstate
Living Lab:
Diagram showing exit #6, Kia Boulevard, used for the living lab
  • With UGA at Kia Blvd. (#6)
    • Vegetation establishment research
    • Different plant types, plant mixes, different types of establishment
    • Kernza
    • Different native species, others, to prevent erosion
    • Multiple goals: "will this grow" and aesthetic
Green initiatives alongside interstate 85 at exit #6

Technology Projects

Done and Working:
Diagram showing projects completed at welcome center on interstate 85
  • Charging station, Welcome Center, 2015
    • Lessons learned:
      • Reality of solar power generation
      • Challenges of acknowledging donors
  • Wattway on-pavement solar panels at Welcome Center, 2016
  • WheelRight tire pressure/tread depth monitor at Welcome Center, 2016
Green initiatives alongside interstate 85 at exit #6
Diagram showing projects underway at several exits on interstate 85
  • Pilot project for solar energy generation, 1MW, working with Georgia Power and the PSC, #14
    • Native grasses/pollinators planted under solar panels
  • Pilot project for Connected Vehicles
    • Rural settings
    • Fleets
    • Each exit
Solar panels alongside interstate 85 at exit #6

Incubator for New Ideas

Other Ideas Explored
  • Glowing lines
  • Road dot
Map showing project locations along interstate 85

Real-World Challenges

Wattway performance and repair

Wattway installation in roadway

Thanks for your attention

Questions? Contact

Value Creation & Value Capture

Utilizing ROW for Fiber Optic Networks U.S. Department of Transportation (9.19.19)

Gary Carter
Community Broadband Manager
City of Santa Monica

Intelligent Transit

Computer Illustration depicting intelligent transit
Paving A New Type Of Road

Who will pay for the nation's new intelligent transportation systems?

New Transportation control systems capable of managing and interfacing with autonomous vehicles, unmanned aerial vehicles, and new personal mobility solutions ex. Electric scooters, ensure pedestrian safety.

Existing infrastructure needs -roads, bridges, tunnels are delayed due to budget/funding issues.

How are emerging ITS needs planned, developed, and budgeted for ongoing operations?

History Overview

Computer Illustration of city buildings
Notable Milestones
  • 2006 - City of Santa Monica offered dark fiber to Google per Google's request
  • 2009 - City launched Santa Monica CityNet 10 Gigabit Fiber Optic Network, City is own first customer
  • 2010 - Present: CityNet provides broadband to ~95% tech and entertainment firms with Santa Monica offices. Network offers up to 100 Gigabit broadband services.
  • 2015 - Digitial Inclusion Pilot launched providing Gigabit broadband to affordable housing buildings.
  • 2018 - CityNet Labs launched piloting smart city initiatives


Computer Illustration of a beach and buildings

Initiative proved successful in attracting and meeting requirements of startups and established tech and entertainment firms during Santa Monica's period of economic growth which lead to "Silicon Beach".

Santa Monica CityNet broadband initiative evolved to include new focus on shaping, informing, and piloting the city's Smart City strategy.

Economic Development

Logos for several companies


$1.87 million $1.87 million
$1.90 million
$1.92 million
$1.90 million $2.20 million
$2.49 million

Key Projects

Computer Illustration of construction
Digital Inclusion
This Is Only The Beginning

$1.85M Community Development Block Grant (CDBG) for Digital Inclusion Fiber Network expansion to 30 affordable housing buildings.

11,300 linear feet conduit. 84 pull boxes added.

Funds to connect buildings to network require use of enterprise funds. Average $20K per building.

10 buildings - construction in progress to connect to network. Completion estimated July 2020.

Remaining 20 buildings scheduled for completion June 2022.

Computer Illustration of space rocket
Digital Inclusion
Next Steps
  • Millimeter Wave Wireless Network
  • Secured FCC licenses to offer Gigabit internet services using 0GHz (V Band) and 70/80GHz (E Band)
  • Test pilot at temporary homeless housing for UCLA/SMC students
    • Pro: + Reduces capex for construction build
    • Con: - Ongoing maintenance costs for remove/replace and troubleshooting
    • Con: - Increased costs to monitor/support devices
Computer Illustration of man and dog standing next to a smart traffic signal
Traffic Management
Potential Of Real-time Data

Cities require better access to real-time data to analyze and understand dynamic traffic patterns and trends.

Data required for traffic management, but also to draft informed policies and regulation.

What role and responsibility do cities have in preparing their physical and technological infrastructure for the new waves of mobility needs?

Computer Illustration of man riding scooter next to autonomous vehicle
Pilots Fiscal Year 2019-2021
Coming Soon
  • Autonomous vehicle pilot
  • Introduce autonomous vehicles to resident & assess traffic impact
  • Research more effective technologies to manage new mobility options

Question? Contact

Meridiam - Investing for the community

Value Capture in Infrastructure

September 2019


  • Meridiam Overview
  • Developer Role in Project Delivery
  • Inclusion of value capture in P3 project procurements
  • Central 70 Project Case Study

Meridiam Overview

Meridiam at a glance
"Meridiam develops, finances and manages sustainable and resilient infrastructure that improves people's quality of life over the long term"
Thierry Dau, Founder and CEO Meridiam
  • ESG and UN-SDG* criteria are part of our DNA to deliver impact for communities
  • A multi-disciplinary and multi-cultural team that brings a comprehensive approach combining technical and financial expertise with innovation and agility
  • A leading actor in developing and financing a low-carbon economy to counter climate change
  • A pioneer in Public-Private Partnership solutions

* United Nations (UN) Sustainable Development Goals (SDGs)

Key Figures*
  • More Than 72 Projects And Assets Under Development, Under Construction, Or In Operation In 23 Countries (including Over 41 Facilities)
  • $7.0 Billion Of Assets Under Management
  • 250 Employees Including 110 Working In Project Companies
  • 25 Year Investment Horizon
  • +50 Billion Of Construction Capital Deployed
  • 28 Nationalities
  • 9 Offices
    • Paris
    • New York
    • Istanbul
    • Toronto
    • Dakar
    • Luxembourg
    • Addis Ababa
    • Vienna
    • Amman

* As of June 2019

Meridiam Team

A global, integrated team with financial, technical and asset management expertise

Experienced and multidisciplinary
In-depth experience in PPP as public sector representatives, financiers, contractors, operators, lenders or advisors
Skill sets include engineering and development of complex projects, industrial strategy, asset management, financing, etc.
A global approach
A multinational team of 200 professionals across Europe, North America and Africa
Flexibility to shift resources and expertise across borders
Access to specialist expertise and key relationships maintained on a global basis
World map showing Meridiam office locations
Offices in Paris, Luxembourg, Vienna, Istanbul, Toronto, New York, Addis Ababa, Amman, and Dakar
Portfolio Overview: 72 Projects
World map showing Meridiam project locations and type
CRCHUM Research
Long Beach Courts
Felix Bulnes Hospital
Salvador Geriatrico (secured)
LIFT Medical Facilities
Chateauroux Gend.
French biogas
Bursa Hospital
Yozgat Hospital
Elazig Hospital
Adana Hospital
Physical Therapy (secured)
Trechville hospital
Annemasse Hospital
UoH Accommodation
Rennes Hospital
Edmonton Ring Road
Calgary Ring Road
Presidio Parkway
LBJ Express Lanes
North Tarrant Express
North Tarrant Ex. 3a/3b
North Tarrant Ex. 3c
Port of Miami Tunnel (secured)
I-66 Express Lanes
Isle of Wight Roads
Limerick Tunnel
Cedinsa (secured)
A5 Motorway
R1 Motorway
E18 Phase I
E18 Phase II
A2 Phase I
A2 Phase II
Vienna Ring Road
A4 Motorway
A7 Germany
L2 Marseille
Port of Calais
Ile de Groix Offshore (secured)
Gipuzkoa Waste Plant
Waste Gas Recovery
Black Pellet
Dessau Biogaz
Hohenhameln Biogaz
Pessin Biogaz
NeuConnect (secured)
Navigation Dams
Touba Solar PV Plant (secured)
Kahone Solar PV Plant (secured)
Tulu Moye
Owendo Port
Kinguele Hydro Dam (secured)
Waterloo LRT
Purple Line LRT
Nottingham Tram
SEA High Speed Line
CNM High Speed Line
Firenze Tram
La Guardia CT
Queen Alia Airport
Ivato & Nosy Be

All projects have been closed unless noted

Developer Role in Project Delivery

Public-Private Partnership Delivery

A performance based/ availability payment model is a form of public-private partnership where a private partner assumes the responsibility of Designing, Building, Financing, Operating and Maintaining a facility (DBFOM Contract) for a certain period of time and is compensated with a periodic Availability Payment.

General Characteristics
Payments are not made by public authority until construction completion and facility is operational
If facility is not available or performance is poor, payments are deducted
Provides capital planning flexibility and certainty to public authority
Developers responsible for raising financing
Lenders provide financing against availability payment stream
Stronger credit for lenders resulting in more efficient pricing and terms
Public authority can provide construction subsidies
Promotes whole-life costing and innovation through integration of construction with long-term maintenance
Public authority will outline specific O&M performance requirements
Public authority can terminate contract if performance requirements are consistently not met
Project Examples
Governor George Deukmejian Courthouse, Long Beach, CA
Governor George Deukmejian Courthouse, Long Beach, CA
First social infrastructure P3 in the United States
Meridiam has 100% equity shareholding in project
Reached financial close in December 2010
LaGuardia Airport Central Terminal Redevelopment New York, NY
Reached financial close in June 2016
$3.9bn project with $2.8bn privately financed
LaGuardia Airport Central Terminal Redevelopment, New York, NY
Port of Miami Tunnel, Miami, Florida
Port of Miami Tunnel Miami, Florida
First availability-based P3 project to be procured in the United States
Reached financial close in October 2009
Meridiam has 100% equity shareholding in project
Greenfield Project Delivery Models

There is a broad range of delivery options for projects

Chart explaining the Greenfield Project Delivery Models
Text for chart
Public Financing Private Financing
Traditional Delivery (non-P3) Public-Private Partnerships (P3)
Design-Bid-Build Construction Manager at Risk Design-Build Design-Build-Operate-Maintain Design-Build-Finance Design-Build-Finance-Operate-Maintain (Performance Risk) Design-Build-Finance-Operate-Maintain (Performance + Revenue Risk)

Project Examples:

Long Beach Courthouse
Purple Line LRT
Port of Miami Tunnel

Texas Manged Lanes
          LaGuardia Central Terminal
Limited Risk  >>  Degree of Private Sector Involvement and Risk Transfer >>  Full Risk
Traditional Procurement vs. Public-Private Partnership
Chart explaining the value for money analysis
Text for diagram

Traditional Procurement: Project Costs increase as you consider Capital Costs, Financing Costs, Operations & Maintenance Costs, Risks Retained by the Gov't

Performance Based Delivery (P3): Project Costs increase as you consider Capital Costs, Financing Costs, Operations and Maintenance Costs and Risks Retained by the Gov't. However, there are less Risks Retained by the Gov't, and that difference is the "Value for Money" amount.

Key Highlights
A P3 procurement ensures:
Risk transfer of not only design and construction but long-term operations and maintenance
Long-term budget certainty
Competitive tension which drives down costs
Private sector innovation which drives down costs
P3 Project Risk Allocation
P3 Project Risk Allocation table
Text for chart
Project phase: Design & Construction
Key Risks
Construction cost and time overrun
Risk Allocation: Private Sector
Design & Construction Approvals and Permits
Risk Allocation: Public Authority
Latent Defects
Risk Allocation: Private Sector
Labor and material availability
Risk Allocation: Private Sector
Project phase: Operations & Maintenance
Key Risks
Labor and material availability
Risk Allocation: Private Sector
Maintenance costs higher than anticipated
Risk Allocation: Private Sector
Meeting Performance Requirements
Risk Allocation: Private Sector
Project phase: Project Financing
Key Risks
Benchmark rate risk
Risk Allocation: Public Authority
Refinancing risk
Risk Allocation: Private Sector

Inclusion of Value Capture in P3 Procurements

Incorporating Value Capture in P3 Procurements
Value Drivers Description Statistics
Capacity Building Inclusion of MW/DBE participation goals, community engagement metrics, and local job creation requirements are critical to support capacity building in communities 4,285 jobs created during construction of the Central 70 project in Denver, Colorado
Additional Development Opportunities Infrastructure improvements can enhance adjacent property values (transit-oriented development) by increasing accessibility, decreasing congestion, and improving public services. 60 acres of commercial development on the Denver National Western Triangle site
Design Innovation The competitive tension in a P3 procurement pushes teams to identify value engineering concepts and design alternatives while maintaining asset quality 12.5% lower capital costs than public sector comparator (PSC) on Port of Miami Tunnel Project
Revenue Enhancement Technologies to enhance project revenues like automated tolling can be specified as requirements in a P3 procurement 2x road capacity on the new North Tarrant Express will relieve congestion in Dallas, Texas

Central 70 Project Case Study

Central 70 Project Overview
Project Summary

In August 2017, the Colorado Department of Transportation selected Kiewit Meridiam Partners (KMP) to design, build, and finance Central 70, as well as operate and maintain the completed project for 30 years. Construction began in Summer 2018 and is anticipated to reach substantial completion in 2023.

The Central 70 Project includes:
Adding one Express Lane in each direction
Removing a 55-year-old viaduct and lowering the interstate
Constructing a new 4-acre park over the interstate
Map showing the Central 70 project location
Central 70 Project Timeline
Text for chart
Timeline shows Procurement phase (RFP, Preferred Proposer to Clsoe) 2016 to the end of 2017; Construction phase (Construction Start, Construction Period, Substantial Completion) mid-2018 thought the start of 2022. Operations Phase begins after 2022.
2012-2016, Environmental Study and Cover/Aesthetics Final Design
Development of lowered alternative
Community input on cover design and features
Community input on aesthetic features of retaining walls
Community input on mitigation measures
2016-2017, RFP/Contractor Selection
RFP/Contractor Selection Process
ROD Received
Public-Private Partnership Transparency
2017-2018, Pre-Construction Community Commitments Implementation
Building improvements to Swansea Elementary School and playground reconstruction
Home improvements to 300 homes
Dollar contributions to affordable housing and fresh food
Noise impact survey
TDM Programs
January-June 2018, Early Construction Work
Utility relocations
Property demolitions
Soil testing
PUC applications
July 2018-2022, Major Construction Work
Highway widening between Chambers and Quebec
Full reconstruction between Brighton and Chambers
Lowering highway between Brighton and Colorado
Adding 4-acre park between Columbine and Clayton
Key Stakeholders
Procuring Authority
Colorado Department of Transportation
Colorado Bridge Enterprise
Local Community
City of Denver
Chaffee Park
East Colfax
Montview Park
Five Points
Green Valley Ranch
North Aurora
Northeast Park Hill
South Commerce Hill
Organizational Chart
Central 70 Project Organizational Chart
Text for chart
  • Colorado Department of transportation
    • Lenders
      • TIFIA (FHWA) $416 million
      • Bonds $120 million
    • Developer
      • Kiewit & Meridiam partnership
        • DB Contract
          • Lead Contractor: Kiewit
          • Lead Engineer: WSP
          • Design Job: Jacobs
        • Interface Agreement
        • Lead operator
          • Jorgensen
    • Equity Members
      • Meridiam 60%
      • Kiewit 40%
Value Capture
Value Drivers Project Requirements
Capacity Building Ensure job opportunities for residents through a 20 percent local (geographic-based) hiring requirement. Require on-the-job training to provide opportunities for workers to advance to high-skill positions during the construction period.
Additional Development Opportunities As part of the project, CDOT provided $2 million to support affordable housing in Elyria and Swansea, which are neighborhoods adjacent to the project.
Design Innovation Kiewit Meridiam Partners is constructing a 4-acre park over the highway including features selected by the community
Revenue Enhancement The estimated direct benefit of the project to road users tops $12 billion over 25 years. 80% of this benefit comes from business and personal time saved from less congestion on the highway
Value Capture - Bridging Communitities
Aerial view of community
Value Capture - Capacity Building
food market busy with patrons

Mobile Food Market

  • 6,827 people served
  • Average 40lbs of food
  • 441,484 servings to date
  • Fresh
  • High Quality
  • Wholesome
  • Free
Value Capture – Capacity Building
Prieto's Catering food truck photos

KPM supported a local program that offers micro-scholarships to women with culinary arts interests, to help with their business needs: KMP contributed in 2018. First scholarship recipient is now a regular face at the project with her new food truck business: Prieto’s Catering.

Support a company that resolves back office needs for emerging small businesses – an affordable solution that helps get them over the initial hurdle between successful and growing into big contract jobs