Using the Economic Value Created by Transportation to Fund Transportation (2014)

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111 and beneficiaries are rarely documented for different types of capacity projects. Advances in types of data both open and public domain now allow better identification and assessment of such effects. On one hand, national level databases such as those developed under Strategic Highway Research Program (SHRP 2) C03 “Interactions between Transportation Capacity, Economic Systems and Land Use Merged with Integrating Eco- nomic Considerations Project Development,” have provided a valuable national level resource to study and assess economic impacts of projects completed nationwide, but they generally have not focused on land development aspects. How can data- bases like this have in further discussions on land development that are so vital to value capture? ReseaRch Objectives The first question many decision makers may ask in the con- text of fiscal constraints is how can additional funding by means of value capture be considered and if value capture tools have to be deployed what would be entailed and how much can be expected as a way to recoup costs? What are the risks and returns from adopting a specific mechanism, and how could they be com- pared across funding sources when pooling from different rev- enue sources? The proposed research will aim to address these issues by means of the three related objectives. • Develop a framework and a toolkit for decision makers to use for studying the integration of value capture tools as part of a toolkit. To that extent, this research would evaluate existing toolkits such as the FHWA PPP Tool- kit and assess the potential for enhanced consideration of value capture mechanisms for PPP and non-PPP projects delivery. • Consider as part of the framework the role of economic and other feasibility models in calculating the risk and returns from implementing value capture and integrate that as part of a decision support toolkit. • A third but related objective is to develop a set of case examples to showcase land development effects of capac- ity projects from sample national level databases and to show how the analysis may be part of an overall feasibility assessment of value capture mechanisms. ReseaRch PROblem statement This synthesis indicates that value capture mechanisms offer advantages of accelerated delivery, local matching of monies, and sometimes seed money for critical mobility improvements. Given that most value capture innovative funding and finance mecha- nisms are part of local government economic development related toolkits, highway agencies and local organizations need to be able to consider feasible options for planning in a fiscally constrained environment. This study demonstrates that the operationalization of such methods comes with several challenges, including but not limited to transaction costs, stakeholder involvement costs, and administration costs. There are other operationalization chal- lenges that are implicit in the use of specific mechanisms which rely on the use of special service areas and processes for estab- lishing fees or levies. Some of these issues are contingent on a fair assessment of future economic returns and beneficiaries from undertaking the improvements. Research is needed to show if value capture can be integrated better into decision support tools to allow (a) a relative assess- ment of the costs, benefits and relative risks of the mechanism in comparison to other types of funding sources in a toolbox. National level tools such as those developed by the FHWA (PPP Toolkit) allow some of this type of analysis in the context of PPP projects but only consider value capture mechanisms spar- ingly. There is also no such toolkit for general project finance for projects that are not PPP type projects but still have multiple revenue sources. The research study could help to develop and enhance the value capture considerations as agencies begin to consider this in their funding portfolio. The research should pay attention to the financial assessment or a comparison of risks, returns and costs of undertaking value capture mechanisms allow- ing comparison across other revenue sources and across other potential value capture revenue sources. It is increasingly being recognized that economic impacts and information from eco- nomic models including land development effects may play an important role in furthering the discussion of value capture and other funding methods. Land development effects, including private (land) development beneficiaries, land related effects of highway capacity projects have received somewhat dissimilar attention in the literature. Property value effects are well studied in the literature but general private land development effects aPPenDiX D Research Problem statement

Abbreviations used without definitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012) NASA National Aeronautics and Space Administration NASAO National Association of State Aviation Officials NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Program NHTSA National Highway Traffic Safety Administration NTSB National Transportation Safety Board PHMSA Pipeline and Hazardous Materials Safety Administration RITA Research and Innovative Technology Administration SAE Society of Automotive Engineers SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) TCRP Transit Cooperative Research Program TEA-21 Transportation Equity Act for the 21st Century (1998) TRB Transportation Research Board TSA Transportation Security Administration U.S.DOT United States Department of Transportation