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OCR for page 59
Plan of Finance and Financial Feasibility 59
· If the project is not undertaken by a state or local government or an agency or instrumental-
ity of a state or local government, the project still must be included in both the State Trans-
portation Plan and an approved State Transportation Improvement Plan.
TIFIA credit assistance, backed by a regional gas tax and rental car fees, helped to complete
the financing for a $1.3 billion Miami Intermodal Center designed to improve access to and
within Miami International Airport.(8)
State-Based Credit Assistance Programs
Several programs are state-directed programs enabled through federal-aid funding. As with
any TIFIA project, the best point of contact is the state's DOT.
State Infrastructure Bank
The National Highway System Designation Act of 1995 (the NHS Act) enabled states to cap-
italize transportation credit assistance banks modeled after wastewater State Revolving Loan
Funds. The SIB program provides loans, credit enhancement, and other forms of assistance (such
as bond banks) to eligible surface transportation projects. Thirty-nine states participated in the
NHS Act pilot. SAFETEA-LU established a new SIB program, authorizing all states, Puerto Rico,
the District of Columbia, American Samoa, Guam, the Virgin Islands, and the Commonwealth
of the Northern Mariana Islands to enter into cooperative agreements with the U.S. DOT Sec-
retary. After entering into a cooperative agreement, they could then establish infrastructure
revolving funds eligible for capitalization with federal transportation funds authorized for fiscal
years 20052009. Since program implementation and capitalization levels vary from state to
state, the best source of information about SIB assistance is each state's DOT.
Section 129 Loan
Section 129 loans allow states to use regular federal-aid highway apportionments (annual fund-
ing allocations) to fund loans for projects with dedicated revenue streams. A state may directly lend
federal-aid highway funds to toll and non-toll projects that must have a pledge of a dedicated repay-
ment source to secure the loan. Section 129 loans must be paid beginning 5 years after construc-
tion is completed and must be completed within 30 years of the date federal funds were authorized
for the loan. States have the flexibility to negotiate interest rates and other terms for these loans.
Mixed-Use Developments and Intermodal Centers
A mixed-use development typically provides a number of aviation and other transportation
services that use a variety of public and private sources of funding. While the rules governing air-
ports' use of grant monies, PFCs, and airport revenue make this a potentially challenging endeavor,
the aggregation of potential airport customers at an offsite location establishes a larger market for
an airport access project. In this type of development, the airport and its passengers account for
only a portion of the center's overall usage. As such, airport grant funds and airport revenue may
only pay for the specific components of the center that exclusively serve airport passengers. Exam-
ples of a mixed-use development include an intermodal transportation center; a development in
partnership with one or more airlines; or a development in conjunction with the private sector,
referred to as a public-private partnership. While the enlarged scope of these projects may be rel-
atively costly compared with a standalone airport access project, the multiple purposes of the facil-
ity can generate more customers, as well as potential sources of non-aviation revenue, to fund the
project. A good overview of available funds for intermodal projects in general can be found in
"Intermodal Transportation: DOT Could Take Further Action to Address Intermodal Barriers."(9)
Case Study 3 is an example of a mixed-use development at the off-airport station.
OCR for page 60
60 Planning for Offsite Airport Terminals
CASE STUDY 3
Consolidated Intermodal Transfer Center with People-Mover Connection to Airport
· Miami, Florida: Miami Intermodal Center (MIC), When completed, the MIC is expected to reduce con-
which includes a consolidated rental car facility and gestion on the surrounding highways and the access
1.45 million sq. ft of developable space (office, roads to the terminal. Current estimates are that
hotel, retail, parking) 30% of current vehicular traffic will be eliminated
· Capital Funding, Phase 1: when the MIA Mover becomes operational. Seventy-
FHWA grants ($165 million) five thousand passengers are expected to use the MIC
Florida DOT (FDOT) state funds (over on a daily basis, and 60%of total MIC passengers
$386 million) (45,000) will continue on the MIA Mover to the ter-
Florida SIB loan ($25 million) minal (these estimates include airport employees).
Miami-Dade Expressway Authority
The project includes a joint development component
($87 million in toll-backed financing, plus
made up of a public and private ground lease pro-
$18 million from Florida's SIB for the SR 836/
gram. The joint development leases are expected to
SR112 connector)
help offset the facility's capital and operating costs
Miami-Dade Aviation Department ($400 mil-
and may include hotel, office, retail, and restaurant
lion for the MIAMIC connector. Funding
space.
sourceairport user fees)
The MIC has been designated a "major project" by
The MIC is to be completed in 2011 and will be a
the federal government and is receiving more direct
transfer point to Miami International Airport (MIA)
financing coordination and oversight from FHWA than
and other destinations for various rail systems (inter-
would a typical project. Many partners are involved in
city and commuter); buses (local and intercity); rapid
this large and complex project, requiring a great deal
transit; taxis; cruise ships; rental cars; and privately
of coordination. The following are the major funding
owned vehicles. The MIC is located adjacent to MIA
sources for the MIC, as described on the project web-
property and will be served by dual light-rail people-
site, www.mic.dot.com, in November, 2007:
movers (i.e., the MIA Mover) that span 1.25 miles.
The construction of the MIA Mover is being funded · Federal TIFIA loans;
in part by airport revenue, flowing through the · Miami-Dade County/MDAD contributions;
Miami-Dade Aviation Department's Capital Improve- · Transportation funding prioritized by the MPO;
ment Plan. A station on the third level of the MIA · Miami-Dade Expressway Authority;
terminal will connect the MIA Mover to the termi- · Private-sector contributions;
nal's automated walkways. The MIA Mover station at · CFCs paid by rental car customers;
the MIC will be located at the fourth level of the · Lease revenues paid through extended possession
Rental Car Center (RCC) between the RCC's Customer leases on property already acquired;
Service Lobby and the Miami Central Station, via an · Contingent rent to be paid by rental car companies,
elevated pedestrian walkway. if necessary; and
· FDOT SIB loan.
The rental car companies that serve MIA will operate
from a consolidated RCC at the MIC. The RCC is being If the MIC were to be completed on a pay-as-you-go
funded through a TIFIA loan, as well as CFCs currently basis, it would take at least 10 years to complete just
collected on all rental car transactions originating at Phase 1, based on the funding commitments of the
MIA. The rental car shuttles that serve the airport will State of Florida, Miami-Dade County MPO and
cease service once the RCC is operational--the MIA Miami-Dade County. TIFIA loans have allowed the
Mover will connect all rental car customers to the RCC. project to be accelerated by at least 5 years.
