mike heiligenstein of the ctrma: the central texas approach

The Central Texas ApproachThe Central Texas Approach

Mike HeiligensteinExecutive DirectorMike HeiligensteinExecutive Director

Texas Regional Mobility AuthoritiesTexas Regional Mobility Authorities

• #1 Central Texas• #2 Alamo• #3 Grayson County• #4 Northeast Texas• #5 Cameron County• #6 Hidalgo County • #7 Camino Real

• #1 Central Texas• #2 Alamo• #3 Grayson County• #4 Northeast Texas• #5 Cameron County• #6 Hidalgo County • #7 Camino Real

The Texas ModelThe Texas Model

• Board of directors (appointed)– Local control

• A multi-modal approach– Planes, trains, automobiles and more

• Jurisdictional flexibility– Multiple counties– Non contiguous counties

• Innovative contracting methods– Comprehensive development agreement

• Board of directors (appointed)– Local control

• A multi-modal approach– Planes, trains, automobiles and more

• Jurisdictional flexibility– Multiple counties– Non contiguous counties

• Innovative contracting methods– Comprehensive development agreement

The Texas ModelThe Texas Model

• A blend of funding sources– Revenue bonds– Private equity– Private capital– Federal funds– State funds

• A blend of funding sources– Revenue bonds– Private equity– Private capital– Federal funds– State funds

– Grants and loans• Toll Equity Grant• Texas Mobility Fund• TIFIA• SIB

– Local contributions/taxes– Concession agreement

– Grants and loans• Toll Equity Grant• Texas Mobility Fund• TIFIA• SIB

– Local contributions/taxes– Concession agreement

Getting StartedGetting Started

• Government loans, grants and donations create financial foundation

• Revenue bonds or private investment provides primary capital

• Tolls or fees generate revenue to meet debt obligations

• As business increases, surplus revenue can be used to fund other regional mobility needs

• Feasibility account in first bond financing issuance

• Government loans, grants and donations create financial foundation

• Revenue bonds or private investment provides primary capital

• Tolls or fees generate revenue to meet debt obligations

• As business increases, surplus revenue can be used to fund other regional mobility needs

• Feasibility account in first bond financing issuance

The Mobility Authority ProcessThe Mobility Authority Process

• The county or counties file a petition with the Transportation Commission for creation of a Mobility Authority

• Commission reviews the application to insure all requirements have been met

• TxDOT conducts public hearing(s)• Transportation Commission reviews

application and public comment before determining whether to authorize

• The county or counties file a petition with the Transportation Commission for creation of a Mobility Authority

• Commission reviews the application to insure all requirements have been met

• TxDOT conducts public hearing(s)• Transportation Commission reviews

application and public comment before determining whether to authorize

The Central Texas Regional Mobility AuthorityThe Central Texas Regional Mobility Authority• 1st regional mobility

authority in Texas• Began operation in

January 2003• Bi-county agency with

seven member board• Initial focus regional

toll road plan

• 1st regional mobility authority in Texas

• Began operation in January 2003

• Bi-county agency with seven member board

• Initial focus regional toll road plan

First ProjectFirst Project

• Originally proposed in 1982• Being built under a Comprehensive

Development Agreement– Design/build process– Contractor assumes risk– Guaranteed maximum price of $166 million– Guaranteed completion March 2007– Public involvement activities included

• Originally proposed in 1982• Being built under a Comprehensive

Development Agreement– Design/build process– Contractor assumes risk– Guaranteed maximum price of $166 million– Guaranteed completion March 2007– Public involvement activities included

Benefits of CDA ProcessBenefits of CDA Process

• Fosters innovation• Best value approach• Expedited schedule• Reduced risk

• Fosters innovation• Best value approach• Expedited schedule• Reduced risk

Sources of FundingSources of Funding

Senior Lien BondsSenior Lien Bonds $167,967,611$167,967,611

BANS (Bond Anticipation NotesBANS (Bond Anticipation Notes)) $66,000,000$66,000,000

TxDOT EquityTxDOT Equity $64,700,000$64,700,000

Local Contributions (Right-of-Way)Local Contributions (Right-of-Way) $18,000,000$18,000,000

TIFIA LOAN$66,000,000

TIFIA LOAN$66,000,000

Next Project – 290ENext Project – 290E

• 5.6 to 9 mile project running from U.S. 183 to SH 130 with possible extension past Manor to FM 973

• First segment replicates CDA arrangement on 183A

• Second segment planned as a concession

• 5.6 to 9 mile project running from U.S. 183 to SH 130 with possible extension past Manor to FM 973

• First segment replicates CDA arrangement on 183A

• Second segment planned as a concession

Texas’ First Concession Agreement – SH 130Texas’ First Concession Agreement – SH 130

• SH 130 – Part of Trans Texas

Corridor– Cintra-Zachry financing

completion from Austin to Seguin

– $25 million upfront concession payment

– TxDOT to share toll revenue, eventually reaching 50/50 split

– Southern half financed under CDA agreement and managed by TxDOT

• SH 130 – Part of Trans Texas

Corridor– Cintra-Zachry financing

completion from Austin to Seguin

– $25 million upfront concession payment

– TxDOT to share toll revenue, eventually reaching 50/50 split

– Southern half financed under CDA agreement and managed by TxDOT

The Central Texas ApproachThe Central Texas Approach

Mike HeiligensteinExecutive DirectorMike HeiligensteinExecutive Director