Financing Surface Transportation in the United States: Forging a Sustainable Future—Now! (2012)

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29 BREAKOUT SESSION 2 Financing Multimodal Projects, Rail, and Airport Access Lowell Clary, P3 Development Company (Moderator) Kate Miller, Alameda–Contra Costa Transit District Marcella Rensi, Santa Clara Valley Transportation Authority Nancy Whelan, Nancy Whelan Consulting Cheryl Jones, Federal Highway Administration Andrew Fremier, Metropolitan Transportation Commission Tom Boast, FirstSouthwest Jeff Ensor, Parsons Brinckerhoff Geoffrey Gosling, Aviation System Consulting, LLC money, moBility, and PoliticS: funding comPeting PrioritieS in a comPlicated region Kate Miller of the Alameda–Contra Costa Transit District and Marcella Rensi of the Santa Clara Val- ley Transportation Authority discussed the funding of competing priorities in the San Francisco, California, region, focusing on funding, institutional, and political complications. The complications are due to the many local governments and to the presence of three regional planning agencies and nine county congestion manage- ment agencies. The speakers provided an overview of the theory and reality of project prioritization and the key challenges. They shared strategies for success, noting that the same approach often does not work twice. PartnerSHiPS for ProgreSS: tHe finance Plan for tHe tranSBay tranSit center Nancy Whelan of Nancy Whelan Consulting, Cheryl Jones of the Transportation Infrastructure Finance and Innovation Act (TIFIA) Joint Program Office, Andrew Fremier of the Metropolitan Transportation Commis- sion, and Tom Boast of FirstSouthwest made the sec- ond presentation of the session. Each discussed aspects of San Francisco’s multimodal Transbay Transit Center project. The project has been divided into two phases, with the first phase (a transit center) costing $1.6 billion and the second (incorporating an intercity passenger rail extension into the bottom of the center) costing $3 bil- lion. The project is receiving $400 million in American Recovery and Reinvestment Act high-speed rail funds for constructing a “train box” below the terminal dur- ing Phase 1. There are more than 15 sources of funding in the first phase, and a TIFIA loan is the only debt for the project. The TIFIA loan relies on a tax increment and bus passenger facility charges (PFCs) for the loan repayment. Commercial and residential development is anticipated on the surrounding land; proceeds from the sale of these parcels will be used to fund a portion of the costs of constructing the transit center. financing rail StationS: innovative aPProacHeS and alternative SourceS Jeff Ensor of Parsons Brinckerhoff discussed innovative financing approaches for rail stations. He began with an overview of several sources that can be used to attract additional dollars from non–surface transportation sources, including tools that can be used for generating private-sector contributions, such as Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users private activity bonds and historic preserva- tion tax credits. He then discussed two types of new tax credit bonds, qualified energy conservation bonds and new clean renewable energy bonds, and how they could be used for elements of rail stations. He concluded with

30 FINANCING SURFACE TRANSPORTATION IN THE UNITED STATES a synopsis of a value capture study on the Potomac Yard Metrorail Station (located in Virginia) and discussed the innovative approach associated with that project. collaBorative funding to facilitate airPort ground acceSS Geoffrey Gosling of Aviation System Consulting, LLC, made the final presentation of the session. He discussed collaborative funding to facilitate ground airport access. He described the key funding sources that can be used for airport ground access projects, including the Airport Improvement Program, PFC revenue, and airport rev- enue bonds and operating funds. He then presented five case studies on which funding sources were used or are planned for projects enhancing rail access to airports, including the Bay Area Rapid Transit extension to San Francisco International Airport; the Metropolitan Area Express light rail line to Portland (Oregon) International Airport; the Miami Intermodal Center at Miami (Flor- ida) International Airport; the Airtrain People Mover at John F. Kennedy International Airport, New York; and the Oakland Airport Connector People Mover at Oak- land (California) International Airport. The presentation was based on a study being performed by the Mineta Transportation Institute at San José State University, with a report anticipated for publication in early 2011.