MnDOT and Economic Development ACEC Annual Meeting March
- Slides: 21
Mn/DOT and Economic Development ACEC Annual Meeting March 2, 2010
Outline of Discussion • Mn/DOT’s Economic Development Objectives • Challenges • Solutions – Innovative Finance – Public Private Partnerships – Transportation Economic Development initiative
Mn/DOT’s commitment to Economic and Community Development • “Transportation is critical in supporting economic vitality and quality of life in Minnesota. ” − 1 st sentence in the Minnesota Statewide Transportation Policy Plan 2009 -2028
Mn/DOT’s commitment to Economic and Community Development • Support local efforts to increase jobs, expand housing, and improve community livability through more coordinated planning, complementary design and timely communication among land use and transportation authorities. – Policy 8 of Minnesota Statewide Transportation Policy Plan 2009 -2028
Investments Needs 2009 -2028 ~$65 Billion ($ in Billions, Year of Construction)
Projected Revenue : $15 B
Investment Plan for Projected 2009 -2028 Funding: $15 Billion ($ in Millions, Year of Construction)
“Traditional” Economic Development and Transportation Infrastructure Funding Sources • Federal STP, Enhancements, CMAQ • Department of Commerce Economic Development Administration - Public Works and Development Facilities Program • USDA Community Facilities programs • State DEED Programs • State and local funding from HUTDF • State bonding • Local Road Improvement Program • Transportation Revolving Loan Fund
One tool to narrow the gap: Innovative Finance • Innovative Transportation Finance is the practice of exploring, developing and implementing the following to accelerate transportation improvements: – New and non-traditional revenue streams – New financing tools and techniques – New methods of utilizing existing revenue streams and financing techniques – New types of financial partnerships between state, regional, local and private entities
Innovative Finance Concepts • Revenue Generating Concepts Private Contribution P 3 Opportunities Toward Zero Death (TZD) Surcharge 10 Mn. PASS HOT Lane/Shoulder Expansion Asset Revenue Enhancement Ideas Toll Bridge Project Concepts Transportation Improvement District Approaches Mileage Based User Fees
Addressing the Public Infrastructure Funding/Financing Gap Funding / Financing Strategies Innovative Finance Traditional Finance Public Only Strategies Innovative Finance Public/Private Strategies Public Private Partnerships (P 3) Private Financing P 3 Private Contribution P 3
Mn/DOT Innovative Finance Initiative Activities IF Methods/Approach Development • Identify "non-traditional" funding opportunities, including "value capture" • Evaluate IF method suitability for Minnesota • Obtain legal authority to implement IF Project Identification • Establish project screening process for potential IF projects • Determine project feasibility based on costs, risks, operational variables, etc. IF Program Integration • Develop internal tools for IF project consideration and application • Propose business processes/procedures to advance IF strategies IF Communications IF/Planning Coordination • Identify key messages and target audiences • Conduct meetings, workshops to promote IF implementation • Meet with partners to develop IF project strategies • Identify and engage partners in land use and transportation planning relationship • Particiapte in state, regional, and local long range planning efforts Innovative Finance Program Mission: Mn/DOT will work with transportation partners and the public to explore, identify, develop, and implement financing approaches that enable access to non-traditional sources of revenue and new financial approaches that provide a maximum, sustainable level of transportation services to the citizens of Minnesota.
Benefits of Innovative Finance (Policy Rationale) • Better Alignment of Transportation Use/Benefit and Financial Responsibility – Some IF strategies can better link the costs of a transportation improvement with those who use or benefit from the improvement (e. g. toll projects, private contributions to specific projects, value capture strategies). – When benefiting users and property owners are required to pay closer to the real cost of transportation improvements, revenue increases for some projects, demand decreases for other projects, and improvements can become more financially sustainable. • Economic Development and Growth – Job Creation and Preservation – Tax Base Growth
Benefits of Innovative Finance (Cost/Operational Efficiency Rationale) • Project Acceleration Benefits – Inflation Savings – Accelerated Public Benefits • • • Safer Commutes Improved Ride Quality Less Congestion/Travel Time and Greater Reliability Better Access and Greater Travel Mode Choice Reduced Emissions and Environmental Improvement Enhanced Livability and Quality of Life
Transportation Economic Development (TED) Initiative
Transportation Role in Economic Development • Carefully targeted transportation infrastructure improvements will: – Stimulate new economic development and business expansion – Create and retain jobs – Increase state and local tax base – Provide better/safer access to markets – Provide more opportunities for employers/employees – Improve livability and sustainability
Other State DOT Economic Development Programs • Iowa - Revitalize Iowa’s Sound Economy (RISE) program • Wisconsin – Transportation Economic Assistance (TEA) Program • Illinois – Economic Development program (EDP) • Michigan – Transportation Economic Development Fund (TEDF) • Massachusetts – Public Works Economic Development (PWED) program.
Mn/DOT P 3 Vision: Transportation Economic Development “initiative” Fundamentals • Transportation / business development / jobs creation • Multi-agency collaborative effort (DEED, PFA, Mn/DOT) • Public Private partnerships/collaboration • Multi-modal, multi-jurisdictional • Project proposals to be evaluated on the basis of economic development potential, level of private investment, safety, and mobility factors. • Complimentary loan component (ROW Acquisition)
Potential “target” industries: • • Manufacturing Technology Warehousing / Distribution Research and Development Agricultural processing Bioscience Tourism Mixed use, high density multi-modal development
Strategies to Identify Transportation Economic Development Opportunities • Public Outreach – Formal and informal meetings to discuss potential project ideas • Project Screening – Review of state and local plans/programs
Thanks very much! • Brad Larsen Director of Traditional and Innovative Finance (651) 366 -4821 • Matt Shands Transportation Economic Development Program Director (651) 366 -4893
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