Value Capture Webinar Series

Capacity Building Webinar:
Value Capture: Advertising & Naming Rights & Case Studies

November 21, 2019

View as PDF

Outline of Presentation

  • Overview of Everyday Counts Fifth Round (EDC-5) & Value Capture Strategies
    value capture
  • Why are Advertising, Naming Rights, or Sponsorships Needed?
  • Overview: Advertising, Naming Rights, and Highway Sponsorships
  • Federal Roles
  • Case Studies
  • Q&A

What is “Every Day Counts”(EDC)?

State-based model to identify and rapidly deploy proven but underutilized innovations to:

  • Shorten the project delivery process
  • Enhance roadway safety
  • Reduce congestion
  • Improve environmental sustainability
    • EDC Rounds: Two-year cycles
    • Initiating 5th Round (2019-2020) - 10 innovations
    • To date: 4 Rounds, over 40 innovations

For more information:

FAST Act, Sec.1444

Value Capture Overview & Benefits

What is Value Capture?

“Value capture” refers to a toolbox of strategies used by public agencies to recover a portion of the increased property value created as a result of public infrastructure investment.

Source: NCHRP Research Report 873

Value Capture

Value Capture Can..........

Value Capture Techniques Summary

Value Capture Techniques




Fund or Finance

Developer Contributions

Impact fees

Capital Expenses


Negotiated Exactions

Capital Expenses


Special Assessments

Special Assessment Districts

Capital Expenses

Fund or Finance

Business Improvement Districts

Capital or Maintenance

Fund or Finance

Sales Tax Districts

Capital or Maintenance

Fund or Finance

Land Value Taxes

Capital or Maintenance

Fund or Finance


Transportation Utility Fees

Operations and Maintenance


Incremental Growth

Tax Incremental Finance

Capital Expenses

Fund or Finance

Transportation Reinvestment Zones

Fund or Finance

Tax Allocation District

Fund or Finance

Joint Development

At Grade

Capital Expenses

Fund or Finance

Below Grade

Capital Expenses

Fund or Finance

Above Grade (Air Rights)

Capital Expenses

Fund or Finance


Asset Recycling

Capital Expenses

Fund or Finance



Capital or Maintenance


Naming Rights

Capital or Maintenance


Highway Sponsorships

Capital or Maintenance


Why are Advertising, Naming Rights, or Sponsorships Needed?

Highway Capacity & Condition Funding Challenges

image image image

Highway Trust Fund is Unsustainable


Mileage by Federal-aid & non-Federal-aid


Federal-Aid Highways

Non-Federal-Aid Highways










Total Rural & Urban





  • Generate revenue/in kind contributions to offset some of the maintenance or operational costs
  • Provide convenience and safety to the travel public
  • Engage communities to participate in programs, like Adopt-a-highway, which are aimed at beautifying roads throughout the state and preventing litter
  • Create community ownership of the apparent of highway system



Public agency sells advertising space or media to private company

  • Agencies may consider advertising in transit stations, rest areas, and agency-owned fleets as relatively straightforward way to raise funds
  • Opportunities: Can raise moderate sums of money for operating & maintenance expenses
  • Challenges: Must be weighed against safety concerns
  • Agreements: Advertising agreements may be related or unrelated
  • Note: Advertising on the public right-of-way is not allowed

Ohio DOT entered into a ten-year, $8.65 million agreement to advertise on its safety patrol vans in 2014, which provide assistance to motorists at crash sites.
State Farm sponsored ODOT Safety Patrol vehicles roll out to assist motorists.
Example of a branded safety patrol vehicle

Bus with Batman Live exterior advertising.

Example of Bus exterior Advertising

Naming Rights Overview

Public agency sells rights to name infrastructure to private company

  • Transit stations
  • Vehicle fleets: bus, rail, safety patrol vehicles
  • Arena
  • Stadium
  • Advertising and naming rights agreements may be related or unrelated

The Salesforce Transit Center, CA

Ohio DOT Safety Patrol Naming Right

Examples of Naming Rights in other Public Facilities

  • Chicago’s Millennium Park
    • AT&T, Boeing, Exelon, BP
  • Chicago’s Transit Authority
    • stop outside of an Apple flagship
  • Denver’s Regional Transportation District
    • University of Colorado (The A Line to Denver International Airport)
  • New York City’s Metropolitan Transportation Authority (MTA)
    • Barclay’s Atlantic AV (Subway station @ Barclay’s Center)
  • Philadelphia’s Southeastern Pennsylvania Transportation Authority
    • AT&T (Pattison Station on the Broad Street Line)
  • San Diego’s Metropolitan Transit System
    • UC San Diego (UC San Diego Blue Line)
  • Others

Top Naming Right Transaction


Total Price


MetLife Stadium

$ 425 � 625 M

2010 - 2036

Chase Center

$ 300 � 400 M

2016 - 2040

Citi Field

$400 M

2006 - 2028

Mercedes-Benz stadium

$ 324 M

2015 - 2043

NRG Stadium

$ 310 M

2000 - 2032

SunTrust Park

$ 250 M

2014 - 2042

Hard Rock Stadium

$ 250 M

2016 - 2034

Levi’s Stadium

$220.3 M

2013 - 2033

US bank Stadium

$ 220 M

2015 - 2041

American Airline Center

$195 M

1999 - 2030

Highway Sponsorships

State & local agencies allows to place the sponsored company name and logo on the busiest highways

An innovative way to offset the costs of construction, operation and maintenance while providing enhanced services to the public

  • Opportunities: Support or supplement construction, operations and maintenance program activities through voluntary and/or funds generated by sponsorship.
  • Challenges: Must be weighed against safety concerns

Example of Arizona Adopted the Highway

Highway Sponsorships

  • Adopt-A-Highway and Sponsor-A-Highway litter removal program
  • Traveler information services, such as 511
  • Incident Management Assistance Patrols
  • Weigh stations
  • Rest Areas and Welcome Centers
  • Ferries and Ferry support facilities
  • Highway beautification
  • Others

Rest Areas Sponsored by Geico

  • AZDOT, 14 rest areas
  • FLDOT, 64 rest areas
  • ILDOT, 6 oasis service plazas
  • NCDOT, 58 rest areas
  • NJDOT, 14 Rest Areas and Scenic Overlooks
  • NYDOT, 52 rest areas
  • TXDOT, 55 Safety Rest Areas and Travel Information Centers (TICs)
  • VADOT, 43 rest areas and welcome centers

Courtesy GIECO


  • Can raise moderate sums of money for building, operating & maintenance expenses
  • Transactions are usually not complex, as they involve standard procurement processes
  • Generate new revenues with little public investment
  • Provide political opportunity for naming rights linked to economic benefits that these transactions create
  • Provide a clean environment, gives civic pride to the community, serves as a reminder not to litter and saves tax-payers money


  • Address regulations, including billboards and discrimination, Federal Highway Beautification Act (Title 23, United States Code)
  • First Amendment prevents company from being excluded from naming rights transaction because of its image
  • Fourteenth Amendment prevents agency from rejecting bidder based on agency’s politics
    • Portland, ME’s bus service faced controversy over ads promoting marijuana ballot initiative on buses
    • Because of risk of legal exposure, Los Angeles Metro canceled plan to sell naming rights
  • Political Challenges
    • Concerns over losing historic landmarks
    • Difficult navigate transport network when name changes

Federal Roles

FHWA Policy Order on Sponsorships
(Order 5160.1A Issued on April 2014)

  • Requires DOT develop policy to govern sponsorship/ revenue programs & approved by FHWA
  • Allows sponsor of highway related services, products, or monetary contributions.
  • All funds generated through a sponsorship program must be used for “highway purposes”
  • Eligible sponsoring organization must comply with Federal and State laws prohibiting discrimination
  • Agreements will include provisions for the operations or maintenance of physical elements during the contractual term and removal after the agreement expires or the sponsor withdraws
  • Agreements will include termination clauses based on: Safety concerns, Interference with the free and safe flow of traffic, or a determination that the sponsorship agreement or acknowledgment is not in the State or public interest.

Value Capture Implementation Team


  • Thay Bishop, FHWA Office of Innovative Program Delivery
  • Stefan Natzke, FHWA Office of Planning, Environment, and Realty


  • 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
  • Ben Hawkinson, FHWA Transportation Policy Studies
  • Kathleen Hulbert, FHWA Infrastructure Office
  • Andrea Kirk, FHWA Center for Local-Aid Support
  • 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)
  • Clearinghouse (website) � Identifying 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.

Thay Bishop
Tel: 404-562-3695 or

Highway Sponsorship

FHWA Value Capture Webinar November 21, 2019

Minnesota Department of Transportation

Office of Land Management

Jessica Oh, Highway Sponsorship Director

Origin of MN �160.801 Highway Sponsorship Statute (2017)

  • Enhance and maintain highway right of way in partnership with businesses and civic organizations
  • Improve highway aesthetics and sustainability statewide
  • Leverage taxpayer dollars by activating outside resources, reduce maintenance liabilities for MnDOT
  • Create and maintain critical pollinator habitat
  • New & innovative uses of right of way
  • Establishes a special revenue fund for sponsorship revenue
  • Subject to FHWA Order 5160.1A Sponsorship Agreements and Acknowledgement Signs

Voices of Our Customers: Aesthetic Feedback & Complaints

Noise walls Mowing & Maintenance Pollinator Habitat Litter

Aesthetic & Environmental Perspectives from Public Engagement & Omnibus Survey

Aesthetic Feedback: MnDOT’s Rethinking I94 Project


Impetus for Highway Sponsorship


Examples of Public-Private Partnerships: Chicago Gateway Green

  • Local nonprofit manages 95 gardens on Chicago Freeways around downtown through a MOU with IDOT.
  • Gardens are financed primarily through corporate philanthropy (sponsor acknowledgement signs)
  • Nonprofit contracts for plantings, maintenance, and litter pick-up April-Oct

Sign: For Your Logo Here

A Greener Welcome Project in Indianapolis with INDOT

  • Transform a six mile gateway into Indianapolis on I-70 with art and landscaping in October 2010.
  • A collaboration of City of Indianapolis, the Indiana Department of Transportation, Keep Indianapolis Beautiful, community leaders, neighborhood groups, and Eli Lilly Foundation/Eli Lily corporation
  • Closure of I-70 for (1) day
  • 8,000 volunteers installed 1,614 trees and 72,300 native plants and shrubs
  • Three new sculpture installations
  • $1M in TE funding, $1M from Eli Lilly Foundation
  • Six area businesses adopted the 6 improved interchanges for maintenance and watering

Rectangle Rectangle Rectangle Rectangle Rectangle Rectangle

MnDOT Programs Supporting Aesthetic, Environmental & Community Connection Goals


Sample Project Types


Highway Sponsorship Licenses as Value Capture

Types of Highway Sponsorship Licenses

Visible Investments in Communities: Sponsor Acknowledgement Sign


For more information see: FHWA Order 5160.1A Policy on Sponsorship Acknowledgment and Agreements within the Highway Right-of-Way

Potential Highway Sponsorship Projects


Additional potential uses for highway sponsorship


Value Capture Benefits of Sponsorship Agreements

Reduce Your Maintenance Liabilities Improve Partnership with Communities Support Livability and Quality of Life Leverage Tax-Payer Dollars for Aesthetic Elements in Projects Protect Your Investment in Plant Material Generate Modest Revenue

Nuts & Bolts of the Sponsorship Program


90 Day Pre-Development process for highway sponsorship projects


MNDOT Functional Units: Development & Review Process for Sponsorship Projects

District-level highway sponsorship liaisons: Permits or Planning

District Review:

  • District Engineer (or designee)/Area Manager
  • District Resident Engineer
  • District Planning
  • District Maintenance: Superintendent/Local truck station
  • District Right of Way
  • District Surveys: Area Surveyors/District Surveyors
  • District Permits
  • District Traffic
  • District Environmental/Water
  • District Communications & Public Engagement

Central Office Review:

  • OTST: State Sign Engineer
  • OM: State Maintenance Engineer
  • OLM: Right of Way
  • OLM: Utility Permits/Permits
  • OLM: Mapping/Surveys
  • OLM: Limited Use Permits
  • OES: Environmental Investigation Unit
  • OES: Vegetation Mgmt.
  • OES: Erosion & Storm water Mgmt.
  • OES: Env. Planning & Design
  • OES: Cultural Services team
  • Chief Counsel
  • Tribal Affairs

Sample Highway Sponsorship Project: Andersen Corporation (Bayport, MN)

  • Highway 95, Screening & mitigation landscaping of industrial facility requested by the city of Bayport.
  • Design, plant purchase, installation and maintenance at Andersen’s expense. Adjustments were made to proposal based on clear zone, plant selection, etc.
  • Maintenance plan: Andersen landscaping & maintenance employees will perform ongoing maintenance of the landscaping.


Sample Highway Sponsorship Project: I-694/East River Road, Fridley

  • Developer requested ability to do expanded maintenance in right of way adjacent to new 156,000 office park.
  • Tree trimming, mowing, and litter pick up on-going basis.


Sample Highway Sponsorship Project: Great River Greening/Hmong American Farmers Association (HAFA)

  • Great River Greening will install a 4.5 acre pollinator project underwritten by corporate philanthropy
  • TH 52 in Dakota County, South of Coates, near Vermillion township
  • Pollinator habitat supporting HAFA farm.
  • Spring/summer 2020 project.


Expanding MnDOT’s Knowledge Base to expand Public-Private Partnerships

Image: Releasing Market Research Report on Public Opinion on the Aesthetics of Highway Roadsides

Image: Community Vitality Fellowship: Artist in Residence Pilot position with Smart Growth America

Image: Updated Highway Roadside Litter Analysis 2020

Aesthetic Market Research Project: Summary of Top Findings


  • Visual Appearance of highway roadsides is important to quality of life (68%) rural/ (80%) urban but pavement appearance/condition is top priority;
  • Conditions of roadsides impact perception of economic vitality, pride in community and perception of safety;
  • Desire for case studies on rural communities that have invested in aesthetics that support economic development and tourism goals;
  • Small communities need long timelines to plan/fund aesthetic enhancements (10 yrs+) to align with MnDOT construction projects;
  • Scenic Byways validated the importance of preserving the scenic quality of roads/ improving viewsheds/reducing visual pollution;
  • Extensive opportunities to enhance gateways (urban, rural, etc.);


  • Validated the Minnesotan’s preference for native plantings and forb-heavy pollinator habitat;
  • Elevated the importance of “sense of place” aesthetic elements in transportation infrastructure;
  • Elevated the importance of focusing on the human scale: plants/art/placemaking create environments that encourage bike/walking, and play a role in public health and safety;
  • Opportunities to engage large businesses with a stake in first impressions/attractiveness of communities for investment;
  • Consider partnerships with arts & culture organizations;

Lesson’s Learned

Lesson's Learned

  • Matching projects are of particular interest to stakeholders;
  • Make the process easy for community-based partners with less capacity;
  • Explore partnerships with Tourism & Economic Development agencies;
  • Scenic Byway connections/ Rural Mainstreet connections;
  • Opportunities to promote DBE/TGB/Woman/VET-owned contractors;

Connecting the Dots: Enhancing Community Connections, Public- Private Partnerships and Innovative Uses of Right of Way

Collections of Photos representing the following: Advance Equity, Construction Mitigation through Arts, Support Bike & Ped, Right of Way as Public Space: Under bridge Environments

Enhanced Community Connections


Contact: Jessica Oh

Highway Sponsorship Program Director Minnesota Department of Transportation

Engineering Services Division, Office of Land Management

Office: 651-366-4939/Cell: 612-430-4762

imageCommercial Programs

Evan Rowe

Director of Revenue

Massachusetts Bay Transportation Authority FHWA Value Capture Webinar

November 21, 2019


  • Background
  • Principles
  • Projects
  • Takeaways

Background: About the MBTA

  • Provides transit service to 175 cities and towns in Massachusetts
  • Independent public authority
  • Founded in 1964 (with predecessor companies / agencies going back to 1894)

Background: Fiscal and Operating Realities

  • 2015: Major operating budget deficits
  • Objective: to achieve $100 million in operating non-fare revenues by FY 2021


Advertising, historically

Image result for mbta bus advertising

  • “Things on the side of a bus”
  • Strong revenue streams, but limited growth


Chart: Principles to Strategy to Implementation and back to Implementation

Image: Shared Value Capture

Principles for the MBTA

  1. Shared Value
    • for customers
    • for communities
    • for the T
  2. Sustainable Stewardship
    • providing the resources to run service
    • delivering assets that will provide value for the MBTA in the long term

Image: Digital Panel Project

Project background (Strategy)

  • MBTA recognized that advertising is moving digital
    • Out-of-home advertising is growing overall, but growth is centered around digital formats
  • Digital also allows for more flexibility:
    • In content
    • In information
  • MBTA issued RFP in 2016
  • Contract with Outfront Media began December 2016
    • Requires installation of 700 digital panels – at no cost to MBTA
    • Revenue share model – no required guarantees
    • MBTA has 1/3 of content on digital panels, Outfront 2/3
    • MBTA owns panels at end of contract

Implementation: Lessons

  • Coordination in a 122-year-old system is a challenge
    • Multiple stakeholders
    • Operational needs are most important
  • How do you address changing needs?


Project results

Shared Value

  • Real-time and Disruption Communications
  • Arts Program (ICA Teen Arts Program)


Sustainable Stewardship

  • Assets
  • Revenue growth


Project learnings

  • The more work you can do upfront, the better the result
    • What is most important?
  • New tools create new needs and desires
    • How do we get the most out of what we now have?
  • Build in flexibility to address changing circumstances
    • Funding, contractual, and staffing

image image


  • Principle of shared value provides a framework for “value capture” methods
  • Focusing on providing value for all stakeholders eases project implementation
  • Building in flexibility allows projects to adapt to changing circumstances, particularly in dynamic industries

Thank you!

Evan Rowe