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Cotton Belt-PS101217 L COTTON BELT CORRIDOR INNOVATIVE FINANCE INITIATIVE (IFI) L DECEMBER 2010 NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS r The Innovative Finance Initiative (iFi) The DFW region is undertaking an innovative and entrepreneurial initiative to Potential Revenue Sources f un d an d eve l op a 62- regiona passenger rail corridor (the Cotton Belt), Direct Indirect Policy N N O V A T I V E linking more than a dozen cities in the =INANCE Fort Worth & NIT IA T I V E region, DFW Airport, the successful Dallas Development Value '�' Western Fair Fare Area Rapid Transit (DART) Light Rail System, Capture Railroad the Denton County Transportation Authority (DCTA) Structured Rail System and the potential 300+ mile regional Public /Private Joint Toll Revenues Finance passenger rail system. Development Entity The iFi does not rely substantially upon traditional Vehicle Smart Card government tax revenues to service the issuance of Tax Revenue Sharing Manufacturing Data debt. Rather it promises to support and harness the Facility broader economy of the Cotton Belt Corridor and Enhanced Farebox Smart Card the DFW Region: Recovery • The Cotton Belt Corridor is the spine for a Parking regional Sustainable Development Network. • The iFi could become a model to expand the Transit Availability Sustainable Development Network to Frisco, Payment McKinney, Waxahachie, Midlothian, New Member Duncanville, Mesquite, Burleson, North Equity Payment / Tarrant County /Denton, as well as linking Connection Fee the network to the DART Rail, DCTA Rail and Vehicle Registration THE Corridors. Fee • If executed, the iFi will grow the economic potential for the Region beyond what is Air Freight Revenue already anticipated. • The Cotton Belt Corridor brings together Loans & Grants communities, landowners and other (TIFIA, RIF, etc.) institutions including DFW Airport and UTD Federal Funding into a partnership to leverage their (New Starts, etc.) respective economic potential in a way they could not separately. Advertising Potential Revenue Sources Naming Rights The iFi effort has narrowed potential sources of Non - transportation revenue from over 125 down to the following Corridor Access potential revenue source categories: Concessions (Fiber Optic, etc.) Operational Cost Savings DART 0 -..,Ar 1 4 m n , n m 0 a l. Q ,5ie - . { - _ Colvin m 0 . g , Count z1 —{ ii C Ls Cpl+ " t UTD/ W CO � °-- Synergy Park IR 1=th Street ITT er .� 1 4—e - Bush h Tu e ti� �. AddlSOn Renner Village :1*"..'........-'"\ i \-71 ,_ ... j , • .� , • �-. , 1 N . ■ ` 7ransrt. enter •reston Road \\ 1 . ? "w+' ` I ' •North Lake g + 0 1R hncti Traii i Grapevine, Si } • Mown 75 � !• � .• it art North Canrollion c, 1 A e , . r s _ JO) , 1 McCain DFW Airpert � n, de I C RH: "Smr ';field ` � .... i2 _ . 7 —4"- 141 1 � NRN'Jron Horse I - ._ �•_ Beach - Meachan .. _ J O 0 Z t , �• _ ` Dallas s,,--• p –�{ —_ate 1R StocA, a ds _ Lt.^ County ~`� 2 D •Y n : 1:\ - 3 '', , . 7 - . ■ 1111111V ''`'''-------7 Tarrant ai M T &F .,.. ,G fir' r Medico,' ' J _ . M ;1 01 Berri -T CU Y , : D y - . xi, ' •rr� ,,, --- � o n y ---� 1.1o'Granbur t l '� a � _ ' C �•t T 'ti... _ 1�' ! L •gMd n ` 1 t illir � � �- Paertiel Cotton Bet Sims e Qanl,re LRi Prma Nl + ' Secarda H I x j4 Sycamore School Ad 6 0 � `�'� ,. f " _ Proposed Cohan Belt cerrrdve.ly,men DCTAA rc lRT n�yv ANenel Q DC7AA "T1 •. _ J � ��({ '� = Red Lne LRT TR E -' l.Akl5 -,_______,...( �. ^ �. •- L , 31, Sue Lire LRT .. // D 7 l Y 4i IWez :.1 0 2 9 B r S bons idenV.d on map symboLce general location used 1 r ) jl ., drown peoos a and do not representzprne alg�meA A m COTTON BELT CORRIDOR IM Z So UVest Fort Worth t ©ART Red t ine � Z 12/17/2010 0 ir Innovative Finance . • • initiatuve fard111111111•1=1•111101. Stakeholder Team Meeting December 17, 2010 www.nctcog,orglifi 0 ill . Agenda 1 • Introductions r r4ANC.F.I' , ° T A V tatmematamulte# • Global Perspective . Cotton Beit Regional Benefits • Innovative Finance Initiative (iFi) Analytical Update • Possible Legislative Initiatives . Summary — .s.k 1 12/17/2010 . 00 F, rspec oorg Global e Live ,_ ,_, - cTC N ',-;'':' . hael Morr • mic NovAT:vE IN, ,,, C N F f-4,11169.... ON 916 A , ..„„... 1 Global P „.„.., .. ,... ,._ Ir'''''' „,,,,„.„...., ,,,,,,---7 n. 7 ,i7vra. ''.".J.,,- .. . . v.,,, . 1t7 • 7 , 4 „... erspective vAr,, vow "'sr,' 7 ,T --- u .-, :---- ., . , ' ,.. , --A . , .7■0","'.*,:;* ',1,1,,N,e: ''',1'. , ... .... - . clesigrof transPor king wn onto ' -...-:. 5 - ' ' nact cf delin , ,,v system do The i lg ter ir." , eric,r, ..-,noi ent An ear s nui!ing the curr ..i tation 2 1 ° I li Global Perspective ir NA.NCE g reater val g Tinci g re • c zD ...= ,,. 12/17/2010 ,,,-, ‘ , i .: 1 , 'NNOVAT1VE r , N,! ,-, A7 'r'E e a gregatior:: 1,D.ver Dere:ft Zoning vA ,...: :=1.0wer .:2,,,,,...,41t. .7'....._.0..",,,,,:,..., - • ".• - ...'1••• •L'i .A..7"-. r, r"..0,...17,.:3".i Iiii . Arlington, 31% of taxbase '''''t -: .! : - ital. '; - ''''' ... - ,• it -- ' -.4 - - iiiiiiiin realizing the rel ii.hip between ra il. oesign a rd rea i est:. &girt all i S in , usta V P . able Developm , , __ wig . ,,i iiiii . Pi4 C.) Y li tgoier i,. m z ,_ coil VVon- r ' ", ,angka-urms,,,v ir ' i I! ' . , . „- • , ,s,, .','r F ' li, , ' : . 11' . . , •. ' ,, N';,I, ' 1 , , .,' . ' ' \ ' ''. '' ',' / ■At';': ',: *....1-' 241`..-4,;,....qi...:: ',. . - ' - .„, y,*.':1` ' , ' - ..- -....' :,. ' 'i- ' ''.:, ''.• #i ' * -_!" .1,•,,,j4i tl',' ".''''.,‘‘,:::-k-AL. ..if, ,,::"..........„ - - .... - - , iii anamma. 3 12/17/2010 1 _ri iir'''') Transformation N T= _ • Change from Mo ilit 2030 A E « Funding Shortfall vie,maa. IWO • 1.4601 • RTC Sustainable Development Program/Vision North Texas • Cotton Belt Now, Others Later • Frisco . Waxahachie Pvicl<inney . Cleburne • Mansfield * Duncanville Midlothian, Etc, ``t 1 Prioritization p r ovements r O V AS ° V F Infrastructure ikilamtenance a Considered ° 111410M44.1 a Throughout the c4/::a••••rrrla1•1•• cn Process Manadernent & Operattor;s , Policy r? ccusssnns • Intermodal Planning Efforts Growth Development, and Land Use • System Safety Strati • System Security 4srxl m4t 9, S 1, sri ••• '"•+.4• • __ ...... ice Rail and Bus ti r ardsnp al c N N F T. E O E HOV /Managed Lanes t N onstraints Freeway/Tottway and Artedals , Caott, y 4 12/17/2010 Ir II Regional Benefits Aer NNOVATiVE Jon Hockenyos, PLC A C A r - Regional Benefits • Growth Context a' Regional patterns -,A-f —......." • Role of transbortation/transit • Tools to Implement • Value capture/land use planning • Resulting Economic Benefits • Population and Employment Growth • Sustainable Tax Base • Global Competitiveness 5 12/17/2010 r •ii. i 7 im Growth Context ;NNovA „ • DFW one of fastest growing regions of `' "”" ` ' the nation • DEN population and employment expanding • Others experiencing decline • Trends are expected to continue . Assuming 2% annual population growth 2010 Estimate: 6,729,800 2060 Estimate: 18,113,800 Change: 1L384 O00 * 00 w' , li Transit and Growth V,,nVAT s , • Transit associated with network economics • Value of a network expands with growth in its size • Cotton Belt extends network and connects activity centers • Activity center connection is key element of a transportation system's worth { 6 12/17/2010 e l • i Tools to Implement • Value Capture Mechanism: ,NN0„,,-ndE rINAN—, • incremental tax-base growth • Expand to include other elements • development rights • share of development profits, etc. • Land use planning crucial to maximize value Clerr - N.I■■•■=m...■■■i 00 Ai . Value-Capture Mechanism N'oDVAT , .. 1 : !NANCE mwsw.v......... a) Ta Captured Value After .0° Appraised Termination Tex ir■crement Value a < Baseline Property Value 1 • Time Creation Termination • 7 12/17/2010 0 • Impact of Network Expansion: 1 ,--11 Survey ,Nov...,-,v, , Survey sent out to .5(1-- experts m Economic Development Blisiness. : N A N c . Transit and Land Use Planning from regions with established rail €N '€AT'V Systemi. : national experts in TOD Site Selection 1141 ONOWto Regions National Experts San Francisco Bay Area ULI Washington DC IEDC Portland APTA tlAnd Use and Devekvinent) Dalin; ETA ,aen Diego Public Policy Institutions It Lake Coy Unrcerntits Minneapolis Se Paul C oinultang Finns. , Received more than 25 responses ., Survey focused on addressing central question of doe* investment in transit induce nev growth to a region that otherwise would have not occurred without transit or is it a redistribution of growth. or some combination Source: Denver TOD Economic and Market Study, July 2007. Basile, Baumann, Prost & Associates, Inc. ir 011 11 il ..e. Survey: Key Findings - Does rail transit induce or redirect growth? swolosormtroll w o oc e Both • If induced, how much? • 2:/:' to 50% - depends on other factors • If induced, why? • improved accessibility • Quality of life • Job opportunity locations • Regional 'mindset" Source: Denver TOD Economic and Market Study, July 2007. Basile, Baumann, Prost & Associates, Inc. 8 12/17/2010 ., i „,,,#, K ey ...,,,.., r lir Survey: Findings . If induced, w-ere — within A mile N N 0 VAT r, iNANC: stations? ,,,AT,, OMMIII•11011■111.1111111 • Varies from <5% to 80% • Depends on link between transit and la nd u • Station location. etc. • Transit system important to business location decisions • Employ trans users (young professionals • Comprehensive system • Belisoutn in Atlanta • Boeing in Chicago Source: Denver TOD Economic and Market Study, July 2007 Basile, Baumann, Prost & Associates, Inc Cotton Belt Impact a Estimates of transit system expansion run .NhovAT,,, ^-INANC' from 2 to 50 percent a 50 year impact 2% gain : 227,681 additional population 5% gain : 569,202 10% gain : 1,138,405 • Employment impacts would follow • Current ratio of .615 job/person • 140,000 to 700,000 new jobs created A .."- ";Ar 9 12/17/2010 ,.....„ 0 ow C otton ‘-'--- Belt Impact II • Cotton Belt implementation offers INA NCL • possibility of expanding the transit network .01111111.111 WNW • Consistent with creation of sustainable tax base • Consistent with region's economic development go _ • Integration of transit and and use planning • Creates more durable lifecycle and trend values • Initial impacts related to directing growth • Not nducing growth * Mature system will • Improve competitive position • Lead to net gains , , a sto No I r-- iFi Analytical Update lir Scott Pohl-coy, PLC 4 N ( t.t.ararsnarromork 10 12/17/2010 , E t 1 II iFi Analytical Update ir INNO'vATiVF • Started with 130 Potential Reve- ..'„-. N : VF Sources • Analyzed the Corridor • Interviewed Sta <eholders • Interviewed Potentia Investors • Considered Polcy Implications • Systematically Related Viable Set of Sources -.A — A r _..... i II iFi Analytical Update r Nt,O C Potential Revenue Sources .. N A 1.161110MMIIIIIIIMIN. 4 Non-geographic • Advertising • Fiber Optic • Loans —TIFIA, RlF • Enhanced Farebox Recovery/Smart Card . Geographic • Pubiic Land Development • value Capture —Special Districts . •— *".4* 11 12/17/2010 air; 111 Non - geographic Sources NNovAriv, • Advertising i N ' A N C E _ • Fiber Optic • Loans — TIFIA, RIF • Enhanced Farebcx Recovery/Smart Card • Parking • Cotton Belt Sets the Stage • RTC Coordination • iFi Analytical Update N . • Investors Confirm Approach is �E.� .6 . - • 66" Appropriate • What Is Value Capture? -A 12 12/17/2010 00to iFi Analytical Update °'- An 1 NNOVA I rnpem nt) -',, N A '4 ' -1,,..,- .c- 1_1 entin , .4MISP.R.1 fil greenfle'u) ......-- , t) * l '-' Street tredV Capture eveloprne • LITD (Pu- 'c i Bush Cer . - TIF ry exIstIng , mD) l ia (i n ri ds l deve opmen , -r-nent) Summer Creek (new gree North Richlan • ‘,,lo Cypress Water ills nfield) - (redevelop * --ith ctreet 0 • , 1 ' , •I•• , lir NNO ‘'' I' '' ' NA''' 1 . . . . it 4 - 0 V t ' 1 IS P ft it A i 1 Ar, , 1 ur • " ‘44 II ° f At ' • l'' " ,....4 j - •,, 1—*-- "'" a E7;7411dillfic'- - t - ' ' ‘,.. I 1 Ifr \ .,.* •. _ „..-----t,*•*4',/,,,,,,, .,— as, — - , t;' 4 esr d. A' ......, 13 1 2/17/2010 , • ,,•••755114 ,. . b , Bush cent ''''.*:::'°"7—:*:-.121..----- ral ,----* M . . I ' .. ...... ... , , ... . .. . „i• 5,,,... . 55 X - . ,, INANC , ■ --s..4.° „.:..,,,, '''' , •• '1/411,11r:,7;::" ''''',';',*-,,,„*"'' „•5 , 5 ,,,, _ i ,,....•,,, . -,, 4 • .. , .. .. . .•._,, --- . ,...„ ,47m __. ,... 5„_, . • wff,ma -.. si. ,..„-;:::-.-:5,:!,455.•.,i, 5 •• ,w''t U T D , . ,.:„... ....... , ... , , . ,... , . . • , ... 0VA 4 at,10,4avE40i _ 'I■ ri,■.-.0*.',:i... -.;;,", .'°. A `,. „..., 14 12/17/2010 III w/A pp Cypress Waters o '` : ., i N o, PST? °1 i t a v , Nr.„Ar Az " -, .� - .'..max c r CYPRESSWAWFRS ",^ 00 '" N III OV/T - N A N t. , � �o..� _ ! F3= ..— , -- N.m.w E ,i I .— „o..•,.. I t , S 1 Regulating Plan .1 :, Smithfield T.O.D. NORTH RICHLAND HILLS Ado Au�st 24, 2009 INRH IG„..f.'9 4 15 12/17/2010 ao. Summer Creek 1 r „ 4‹ . NNOVATI‘E nnmn F :,- 4 i Ea ..- . .,,,, -.0., ,r`..o......-...- t , 4 . .kk.. \ 4 ° 0 iFi Analytical Update I . • Fare Structure Philosophy Pg4.60115 89(414104. Smart Card Opportunity 6 Manufacturing Facility • Coordinated Multimodal Operations A 16 12/17/2010 mi. Transit Farebox Revenue Enhancements ,NNOVA-` vE NANCE What is a Fair Fare and Where Are Your '' vs f4f4111.0111111MMINOMIN Partners? Partnership 1 1 Partnership , Lower Fent tpter Fare Non-Member Student Low Income ' Peak User City User Average Special Special Elderly Frequent User F are Destination Functions Parking Space Ozone Alert Unemployed Off-Peak Use Response Longer Medical Distance L - 'A 00 If ir Smart Card Opportunity NNCvAT vE * Needec: for Enhanced Farebox ANC.F Recovery 19161■4111111M111111 - Evolving Technology . Multimodal Possibilities • Competition. for Franchise . implications for Funding Partnerships 2:1 4-:trz 17 12/17/2010 i i Manufacturing Facility i N.7!vE • National Opportunity for Luca N K N E ff�t�zQ Economic Development • DFW National Rai! Developmen '.: Leader r '" IN iii Multimodal Operations „:or,T3 • Necessary for Leveraged Funding N A tit ;NT;Ari - t Supports Sustainable Development • Supports Sustainable Economy 18 12/17/2010 • i ,,,,,,„ Important of Officials Working Create st. is Q: Using the scale below, please indicate how important is it to you that your t community leaders and elected officials work towards creating more INNOVATVE f 2 e' sustainable communities. N A T ' Vf. ':296 10 Extremely Important ( 1 , i 9 1111111111111111111111111111111111111110 129 8 16% 7 1111=11011=11111111111 13% 6 .1111 * Mean 74®/ 5 arnallem. 11% 4 MN 3% 3 NMI 3% 2 _IN 2% 1 Not at all important MIN 4% 0% 5% 10% 15% 20% 25% 30% 35% FORDFOUNDATlON 4 tSC lit:j:t] nro [sear '' con aM 2glp Fora Po d imb a Common t n Poll Prefm rury resulu. Nrn br Ustnbution. con .rr szz.a4s.zzoom, romment: ,� � m.eom m :,Hearrn. iril I€ NOVATi.::- '' The federal government should stop P!N, `t, T. P-T;, focusing on on car - oriented systems, and start balancing the funding more toward public transportation • 68% Agree Copyright 2010 Ford Foundation Sustainable Communities Poll Preliminary results. Not for Distribution. Contact 512.445.2200for comments /questionsabout this research. YYar e* 19 12/17/2010 II. 111: Possible Legislative Initiatives 4r NNOVAT'VE • Mike Krusee, PLC NANC, .1.1.1■1/VVVIIMIOVIIIIN ‘ r ' k 01. 4.4 ...... 1, -- `1111 Possible Legislative Initiatives INNOVATI , * Mu:tijurisdictional Coordination , ,NANc .....—......., . Leveraging Value Capture • Enable Single Contracting Entity • Limited Sovereign Immunity Strictly Local Legislation 84. Permissive ..., .A. 20 12/17/2010 r . Closing Remarks • Ron Natinsky INIIKIMLIFOUNIr111.416■1 * RTC Chairman • Councilman, City of Dallas • Jungus Jordan • RTC Vice Chairman • Councilman, City of Fort Worth • Kevin Feldt • Meeting Summary/Next Steps 1.017 * 11M111.....1.1111.1=1.11.111..11.111. 111. i 1/ Questions & Comments r 1 !-• N g' Tom Shelton, P.E., A!CP Kevin Feldt, AICP Senior Program Manager Program Manager Streamlined Project Delivery Streamlined Project Delivery tshelton@nctcog.org kfeldt@nctcog.org (817) 704-5633 (817) 704-2529 WWWnc,tcog.orglifi 21 12/17/2010 0 0 111 A aVV.A.OVVOIS. *MOS .7 4 . ,ir r 4 , „. Miscellaneous Slides NNOVATP,, , i . Following slides to be used f needed €1NANC 'NITIAT:' W41,111§SMIONIS *VP. .4., 174.1t4 t 22 12/17/2010 i ). �a ., s „ t N N ' v A 7 `a ti \ , .v x v v ^d l Over tir e our Arnerieer Cries have become col ectfons of pro ,:ac, subject to bundled financ rIg nave; as cornrnodities. r ttIV ;r p cti V = N A N J rat €ii<on 1 •ous',n; F.= SAM mm: ff ansactt �?'ts \3?t ti" a U iC I [hs ,,,,,,. VIA !:, = 4 ., ,,, . cji 1: ,peak Ic= ii=e new art urban =ivEfE \. ... Millennial Millennials and Boomers 23 12/17/2010 i 0 SUSI ? 3n3ty 9: r 5.. 'c',''''' c =s fo t 1Aro.:ID: - ,„, F- 1 N A N , ; ',, ''''::' '' ' ' ' ''''''IS'''''''''''''''''' '''''''''''''''' \''' ''''''4''''' ' ,'; ' , , :. , , ''' a. , ' ' '' ' ''' !I:':,1::=41,::4:' ''. ,N,....,A,..T„,„..„ , u s a ° .x rrw.+wx y East =. is'a — R;eharescn 24