Rail-Volution 2002 Portland's Airport MAX Extension October

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Portland's Airport MAX Extension
Rail-Volution 2002

• October 2-6
• Washington, D.C.
• Joe Walsh, TriMet

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Airport MAX Logo Slide
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Project Summary

• Added 5.5 miles to extg. 33 miles of LRT
• 125m fast track project
• Key innovative aspects
• expanding ground access options to PDX
• nontraditional funding - PFCs, private dollars
• design/build delivery
• Opened 9/10/01

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Local Context

• PDX as economic growth engine
• Access challenges - roadway capacity and parking
• LRT key to land use/growth management
• 12 mile, 1 billion LRT measure rejected at the
  polls 11/98

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Project Highlights

• Multi-jurisdiction and private partnership
• Prior planning
• Innovative funding
• Real estate venture
• Airport funds
• Risk allocation/management

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The Deal

• Unsolicited proposal from Bechtel
• Mix of local funds, including PFCs
• Private participation
• Bechtel/Cascades to invest 28m in return
  lease/development deal on 100 acres
• Bechtel Infrastructure to design build
  project

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Partnership

• TriMet
• City of Portland
• Port of Portland
• Bechtel/Cascades

• General Funds
• 46 m

• Urban Renewal
• 23 m

• Passenger Facilities Charges
• 28 m

• Real Estate Proceeds
• 28 m

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Partnership, cont.

• Public funds - multiple sources
• No new revenues
• All locally directed
• Private participation
• Associated real-estate venture
• Regional buy-in

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Partnership, cont.

• Project Dynamics
• Strong political leadership
• General alignment on goals
• Differing timelines

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Partnership Mechanics

• Partners Framework Agreement
• Roles responsibilities
• Funding commitments
• Key Inter-party Agreements
• Port-Cascades Master Lease
• Cascades-City Development Agreement
• TriMet - Bechtel Design Build contract
• Numerous financing-related documents

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Project Structure

• Risk allocation - play to strengths
• real estate risk - Cascades
• LRT construction risk - Tri-Met, Port
• FAA funding - Port
• Rolling commitments dollars at risk
• Financial guarantees on real estate
  infrastructure

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Management Structure

• Policy group Mayor, General Manager, etc.
• Executive group formal project oversight
• Project Management group - informal
• Tri-Met manages LRT design/build

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Cascade Station Development

• Bechtel contributes 28.3m from development
  proceeds
• 120 acre/85 year lease from Port of Portland
• 15 yr. development program- 400,000sf retail,
  1200 hotel rooms, 1million sf office
• Infrastructure funding assistance - City, Port

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LRT Project Delivery Summary

• Unsolicited Proposal/Sole Source for LRT project
• Design/Build
• Fast Track

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Schedule Summary

• 4/97 - Bechtel Proposal to local partners
• 9/98 - Local approvals, PE, price proposal,
  completed
• 10/98 - Sign Design/Build Contract
• 1/99 Complete NEPA
• 4/99 - Begin construction
• 7/99 - Close financing
• 9/01 - Line opens

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Local approval steps

• Public Review Committee advises local partners
• Partner board/commission approvals - sole source,
  Design/Build contract, ground lease and
  development agreements
• Parties commit at risk dollars - total of 16m
  before closing

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Key Strengths

• Prior planning
• PDX alignment in all adopted plans
• ROW reserved in freeway median
• Public experience with Airport congestion
• Partners past experience together

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Key Challenges

• FAA Approval for PFC funds, land deal
• Design/Build
• Private participation through Unsolicited
  Proposal/Sole Source

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FAA Approvals

• Revenue Use
• PFC Process
• Bond financing

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Private participation

• Time value/Time constraints
• Profitability requirement
• Narrower focus than public partners

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Design/Build Approach

• Preliminary documents by Tri-Met - concept
  design, specs, program narrative
• Two-step process to final package
• PE cost estimate by Bechtel
• D/B contract including fixed price

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Design/Build Contract

• Lump sum, fixed price
• Unique risk allocation
• Special restrictions for Airport work

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Unsolicited Proposal/Sole Source

• Established procedures for Tri-Met, City, Port
• Due diligence by each public partner
• Pricing fair?
• Benefits gt costs?
• Open Book for public critics

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Current Status - CascadeStation

• Infrastructure complete
• Letter of Intent for 40 a. retail development
• Economic downturn, 9/11 have hurt leasing
  prospects

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Current Status LRT

• Solid ridership 10 over projections, despite
  fewer airline passengers
• Higher proportion of leisure travelers than
  projected
• Terrific public acceptance

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Challenges

• Deal complexity/deal fatigue
• Regulatory hurdles
• Size and scope of LRT implementation
• Complexity/profitability of real estate deal
• Driving decisions among all parties

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Strategies for Success

• Public support
• Terrific political leadership
• Prior planning - design, land use plans
• Integrated, interagency project management -
  virtual organization
• Real partnering - financial stake, financial risk
  increase motivation

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Lessons learned

• Solve a widely understood problem
• Pick good partners
• Move fast

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Hiawatha Light Rail Project
19th Transportation Construction Roundtable

• Minneapolis, MN
• October 20-22, 2002

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Project Summary

• 11.6 miles with 17 stations. Connects downtown
  Minneapolis, Minneapolis/St. Paul International
  Airport and the Mall of America
• 675.4 million (2002 dollars)
• Design/Build delivery
• Full revenue service to begin late 2004

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Project Status

• Ground was broken January 17, 2001
• Bombardier-built vehicles are now in production
  with delivery of the first vehicle scheduled for
  early 2003
• Overall design/build project completion is more
  than 55 Oct. 2002

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Funding Summary

• Federal Transit Administration 334.3 m
• State of Minnesota 100.0 m
• Metropolitan Airports Commission 87.0 m
• Hennepin County Regional Rail Authority 84.2 m
• Congestion Mitigation Air Quality Grant 49.8
  m
• MnDot 20.1 m
• Total 675.4 m

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Project Details

• Ridership Projections
• 19,300 per day in 2004
• 24,800 per day by 2020
• Park Ride Locations
• 900 spaces near Fort Snelling Station
• 200 spaces at Mall of America
• Airport tunnel
• Two tunnels, 1.4 miles in length (north
  southbound)
• Yard Shop 26.5 acres including Metro Transit
  LRT Operations Maintenance Facility

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Vehicle Details

• Bombardier Light Rail Vehicles
• 22 to 26 cars, 94 long low-floor, ADA compliant
• 66 seats per vehicle, maximum capacity 187
  passengers
• Equipped with luggage racks and bicycle storage
  hangers
• Power is 750 V DC
• Top speed is 55 miles per hour, average is 35
  MPH. Slower speed in downtown

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