Cotton Belt-PS121025 the 1}
Innovative Finance Initiative
(iFi): The Path Forward
North Central Texas Council of Governments
October 25, 2012
SYSTEM ADVANCEMENT: PARTNERSHIP
PROGRAM
TIFIA
FWTA iFi:PRIVATE
3 PARTY "NEW SECTOR COTTON
AGREEMENT STARTS" BELT
DCTA Manufacturing_ SECRETARY
FWTA Facility OF STATE/
DART POSITIVE TRAIN NEW VEHICLE
\ GOVERNOR'S
CONTROL PROCUREMENT OFFICE
REQUEST (LOCAL/STATE)
RTC$55 M
T MOU
TxDOT
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iFi Purpose
Enhance East-West Mobility with a More Sustainable
Economic Development Pattern
Expedite Implementation Through Innovative Funding
Methods
Dallas Area Rapid Transit (DART) and Fort Worth
Transportation Authority (The T) Request North
Central Texas Council of Governments (NCTCOG) to:
— Identify Viable Funding Sources
— Devise Funding and Revenue Plan
2
Cotton Belt Corridor - 3 Phases
11. iFi 0 2. Fund 0,13. Build
4-o $ 2.7B+
4-
4—
W
Time
Cotton Belt Corridor - Potential Revenue
(2010$)
Source Amount($million)
Cash/Current Commitments $342
New Starts Funding(The T) $415
Sales Tax
Grapevine $174
4B(@ 10%of collections) $55
DART Contribution $388
Farebox Revenue (@ 14 cents per mile) $280
Non-Geographic(Advertising,etc.) $149
Tax Base Value Capture $646
Land Value Capture(8-12 Major Developers) $263
Short Toll Road Revenue ?
RTC Funds for Positive Train Control
RTC/TxDOT Funds for Regional Rail Vehicles ?
GO/SOS Funds for Manufacturing Facility ?
TOTAL $2,712+
Assumptions:
•2.39 percent inflation rate
•40 year analysis
•Five percent discount rate
•35 percent facility share of incremental value 6
3
Cotton Belt Corridor - Potential Revenue
(2010$)
Source Amount Potential Legal
($million) Tool Parties
4B (@ 10% of $55 ILA Local Gov./SPD*
collections)
Non-Geographic $ 149 ILA Local Gov./SPD"/
(Advertising, etc.) Transit Authorities
Tax Base Value Capture $646 TIF Local Gov./SPD"/
Developers
Land Value Capture $263 MMD Local Gov./
(8-12 Major Developers) Developers
Short Toll Road Revenue ? ILA Local Gov./SPD*/
NTTA/Developers
*Special Purpose District established for project(e.g.,MMD,LGC,etc.)
Private Sector Interest
Received Confidential Business Approach
Summary
Integrated Transportation and Economic
Development Project
— Economic Development Helps Fund
Transportation
Submit Unsolicited Proposal by end of 2012
— Full 62-mile corridor developed
Propose Public-Private Partnership Process
Utilizing SB 1048
►r 4
1)011r`o,��t 44.n.+e 6e-
40"45.1c Cotton Belt Passenger Rail Corridor
NCTCOG Facilitation of Procurement under Senate Bill 1048
at the Request of Transportation Authorities
Next Steps
SB 1048
1. Agreement(s)with One or More Member Governments
2. Resolution Electing to Operate under SB 1048
3. Need to Secure Financial Advisory and Legal Services Experts
4. Adoption of SB 1048 Guidelines by Executive Board
5. Receipt of Unsolicited Proposal;Initiate Stakeholder Review/Comment, Evaluation
Process
Interlocal Agreement(s)
1. NCTCOG Lacks Independent Authority to Develop Cotton Belt Passenger Rail Project
2. Member Governments may Contract with NCTCOG to Perform Services on their Behalf
under Chapter 391
3. Agreement(s) Required with One or More Member Governments Requesting NCTCOG
to"develop"Cotton Belt Rail Project Utilizing SB 1048
Cotton Belt Passenger Rail Project Timeline
Innovative Finance Initiative Phase 2/3 Anal sis Public-Private Partnershi•
(Phase 1)
Dec 2012
Unsolicited Proposal Submitted
-Provided Simultaneously to NCTCOG(RGE)
and Affected Jurisdictions along Corridor
-Published and Competing Proposals Solicited
-Affected Jurisdictions Submit Written Comments to RGE
-Evaluation of Proposals
Summer 2013
Interim Award
Dec 2011 Aug 2012 -Exclusive Period for Private Sector to Resolve
iFi Final Report Confidential Letter of Interest Contingencies
Released Received from Private-Sector -To be Executed by NCTCOG(RGE)or Governance
Developer Structure if Established
2010 2011 2012 2013
Oct-Dec 2012
2010 Nov 2011 NCTCOG Facilitates Nov 2012-Sep 2013
DART and The T Mar 2012
request RTC to Rail Car Rail Car Vehicle 58 1048 Procurement Governance Structure
undertake Manufacturing Procurement -Executes Agreements with -Consensus Reached Among
Innovative Finance Facility Discussions Member Governments(Oct/Nov) Partners Along Corridor
Initiative(iFi) Opportunity -Elects to Operate under -Legislation May be Needed
SB 1048(Nov/Dec) (MMD:Local Bill)
-Adopts Agency Guidelines(Dec) -Executes Comprehensive
-Procures Independent Financial Award and Manages
and Legal Advisors Project Thereafter
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SB 1048
Summa of Potential Partner Powers
Eligibility as Responsible Authority to Implement
Governmental Entity? Rail Project?
Transit Authority Transit Authorities are Texas Transportation Code
exempted from SB 1048. Chapter 452.056
City As political subdivisions, Texas Transportation Code
a city is eligible as an RGE. Chapter454.001
County As political subdivisions, , Texas Transportation Code
a county is eligible as an RGE. Chapter 457.051
Independently
L\
NCTCOG/Transit Authority(s)* +y'
NCTCOG Asa political subdivision,
NCTCOG is eligible as an RGE. NCTCOG/City(s)* "
Ii.
NCTCOG/DFW Intl Airport
"NCTCOG has the authority to contract with member governments to perform services;particularly,activities the member government has
authority to carry out and could contract with a private organization to perform. 11
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