Miami-Dade 2040 LRTP - Oct. 23, 2014

Public Partnership Private 5-10 | MOBILITY OPTIONS Public Private Partnerships Options and Trends Alternative project delivery options provide opportunities for the County to accelerate implementation, better manage risks, and possibly reduce costs. Possible private sector involvement could include concession contracts (applicable to roads and highways projects as well as transit) and Joint Development/Value Capture mechanisms (applicable mainly to transit/public transportation). Several Value Capture mechanisms (Tax Increment Financing or TIF, Special Assessment Districts or SAD, and Joint Development) have been applied in Florida to help fund transit projects. The potential for Value Capture mechanisms around fixed guideway transit stations continues to hold promise, provided that zoning, parking, and other land use regulations are supportive of transit. The joint development efforts could include air rights development, parking structures, donation of right-of-way, stations integrated into existing buildings, and other in-kind donations. An example of TIF mechanisms being implemented in other counties is The Wave project, a planned 2.7 mile streetcar system in downtown Fort Lauderdale; SFRTA is the FTA project sponsor for the project and manager of design and construction. Public Private Partnerships (P3s), agreements between a public agency and a private group, are a growing resource as an innovative way to finance transportation projects. P3s provide greater private-sector involvement to deliver the design, construction, financing, operation and maintenance of transportation improvements as compared to traditional design-bid-build procurements. The transfer of risk including revenue return for which the private sector assumes responsibility differs from project to project. P3 options can be categorized as design-build, design-build-finance, design-build-operate-maintain, design-build- finance-operate-maintain, asset monetization concessions, and build-own-operate. Each of these models has somewhat different implications on the interface between the planning and environmental approval processes and the development of P3 procurements. Existing planning and environmental review processes require certain steps to quantify the consideration of P3 opportunities and includes: For example, many states have introduced toll highways using a design-build-finance-operate-maintain (DBFOM) project delivery arrangement. Availability Payments The use of availability payments on DBFOM projects is where the Owner is providing a promissory note to the Concessionaire as its primary revenue source. The payments are made normally at critical construction milestones and matching operational performance standards during the O&M period, including lane closures, incident management, or snow removal. In some instances, congestion pricing on high-occupancy toll (HOT) lanes linked to prescribed traffic level of service may be used as the primary performance metric. Availability payments are often used for projects that are not tolled or for which project revenues are not expected to cover debt service costs and the Owner retains the underlying revenue risk associated with developing the project, and the private partner receives a predictable, fixed set of payments throughout the concession period. In the United States, the first availability payment concessions are being used on the following projects in Florida: Consideration of tolling and alternative funding, during NEPA and the state and regional planning processes Aligning project definition with revenue potential and available funding Managing NEPA and other strategies to afford greater flexibility and speed Port of Miami Tunnel – $1.1 billion, 1 mile, opened in 2014, 30-year concession, FDOT Availability Payment approximately $40 million / year. I-595 Express (Fort Lauderdale) – $1.2 billion, 10.5 miles, opens 2014, 30-year concession, FDOT Availability Payment approximately $15 million / year.