Financial Plan
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Hudson Tunnel Project Financial Plan 23 August 2019 Submitted by The Port Authority of New York and New Jersey (Hudson Tunnel Project Sponsor as defined herein) In partnership with: The New Jersey Transit Corporation (Transit Operator); The National Railroad Passenger Corporation (Amtrak); and Gateway Program Development Corporation Hudson Tunnel Project Financial Plan Table of Contents 1.0 INTRODUCTION .............................................................................................................. 1-1 1.1 Gateway Program Overview .............................................................................. 1-2 1.2 Commitment of Project Partners........................................................................ 1-3 Phase 1A: Portal North Bridge Project ..................................................................................... 1-4 1.3 Portal North Bridge Project Overview ................................................................ 1-4 1.4 Description of the of the PNB Project Sponsor and Funding Partners ............ 1-5 1.4.1 PNB Project Sponsor ............................................................................ 1-5 1.4.2 PNB Funding Partners .......................................................................... 1-6 1.5 Description of the Portal North Bridge Project .................................................. 1-9 1.5.1 Portal North Bridge Project Identification ........................................... 1-10 1.5.2 Portal North Bridge Setting................................................................. 1-10 1.5.3 Portal Bridge Current Conditions ....................................................... 1-10 1.5.4 Portal North Bridge Project Purpose .................................................. 1-12 1.5.5 Portal North Bridge Project Summary ................................................ 1-13 Phase 1B: Hudson Tunnel Project .......................................................................................... 1-14 1.6 Hudson Tunnel Project Overview .................................................................... 1-14 1.6.1 Status of Environmental Review ........................................................ 1-15 1.7 Description of the of the HTP Sponsor and Supporting Partners .................. 1-16 1.7.1 HTP Project Sponsor .......................................................................... 1-16 1.7.2 HTP Supporting Partners ................................................................... 1-16 1.7.3 HTP Funding Partners ........................................................................ 1-17 1.8 Description of the Hudson Tunnel Project ....................................................... 1-19 1.8.1 Hudson Tunnel Project Identification ................................................. 1-19 1.8.2 Hudson Tunnel Project Setting .......................................................... 1-20 1.8.3 Hudson Tunnel Project Current Conditions ....................................... 1-22 1.8.4 Hudson Tunnel Project Purpose ........................................................ 1-23 1.8.5 Hudson Tunnel Project Summary ...................................................... 1-25 3.0 HUDSON TUNNEL PROJECT FINANCIAL PLAN ....................................................... 3-1 3.1 Financial Plan Revisions since FTA Fiscal Year 2020 Rating ......................... 3-3 3.1.1 Status of Environmental Review .......................................................... 3-5 3.2 Capital Plan ........................................................................................................ 3-6 3.2.1 Preliminary Contract Packaging Approach .......................................... 3-7 3.2.2 Capital Plan Sources of Funds............................................................. 3-8 3.2.3 Capital Financing Strategy ................................................................. 3-25 3.2.4 Capital Plan Uses of Funds ................................................................ 3-28 3.2.5 Capital Sources and Uses of Funds .................................................. 3-43 3.3 Operating Plan .................................................................................................. 3-48 3.3.1 Infrastructure Operating Plan ............................................................. 3-48 3.3.2 Rail Service Operating Plan ............................................................... 3-55 3.4 Risks and Uncertainties ................................................................................... 3-57 3.4.1 Capital Plan ......................................................................................... 3-58 PORTAL NORTH BRIDGE and HUDSON TUNNEL PROJECT August 2019 Page i Hudson Tunnel Project Financial Plan 3.4.2 Operating and Maintenance Plan ...................................................... 3-66 3.4.3 Mitigation Strategies ........................................................................... 3-66 3.4.4 Sensitivity Analysis ............................................................................. 3-67 4.0 NJ TRANSIT SYSTEM-WIDE FINANCIAL PLAN ......................................................... 4-1 4.1 Introduction ......................................................................................................... 4-1 4.2 Capital Plan ........................................................................................................ 4-2 4.2.1 Historic Capital Plan Sources of Funds ............................................... 4-2 4.2.2 Historic Capital Plan Uses of Funds .................................................... 4-3 4.2.3 Forecast Capital Plan Sources of Funds ............................................. 4-4 4.2.4 Forecast Capital Plan Uses of Funds .................................................. 4-7 4.3 Operating Plan .................................................................................................... 4-9 4.3.1 Historic Operating Sources of Funds ................................................... 4-9 4.3.2 Historic Operating Uses of Funds ...................................................... 4-11 4.3.3 Forecast Operating Budget ................................................................ 4-13 4.4 New Jersey Transit Risks and Uncertainties .................................................. 4-17 4.4.1 Bus and Rail Fleet Age ....................................................................... 4-17 4.4.2 NJTTF Financial Stability ................................................................... 4-18 4.4.3 NJ TRANSIT Liquidity ......................................................................... 4-21 Appendix A – Summary of Regional Economic Forecasts Appendix B – PANYNJ Financial Information Appendix C – List of Supporting Documents Appendix D – Local Financial Commitment Checklist PORTAL NORTH BRIDGE and HUDSON TUNNEL PROJECT August 2019 Page ii Hudson Tunnel Project Financial Plan List of Acronyms Amtrak National Railroad Passenger Corporation BCC Baseline Capital Charge BCI Building Cost Index CAA Clean Air Act CAGR Compound Annual Growth Rate CCI Construction Cost Index CCIP Contractor Controlled Insurance Program CE Categorical Exclusion CEO Chief Executive Officer CIG Capital Investment Grant CM Construction Manager CMAQ Congestion Mitigation and Air Quality Improvement Program Commission Gateway Development Commission Corporation Gateway Program Development Corporation CPI Consumer Price Index CRP Credit Risk Premium DEA David Evans and Associates, Inc. DEIS Draft Environmental Impact Statement DSCR Debt Service Coverage Ratio DVRPC Delaware Valley Regional Planning Commission EDA Economic Development Authority EPA Environmental Protection Agency ESB Emergency Services Building ESWA Early Systems Work Agreement FAST Act Fixing American’s Surface Transportation Act FEIS Final Environmental Impact Statement FFGA Full Funding Grant Agreement FHWA Federal Highway Administration FMOC Financial Management Oversight Contractor FONSI Finding of No Significant Impact FRA Federal Railroad Administration FTA Federal Transit Administration PORTAL NORTH BRIDGE and HUDSON TUNNEL PROJECT August 2019 Page iii Hudson Tunnel Project Financial Plan FY Fiscal Year GAN Grant Anticipation Notes GC General Contractor HTP Hudson Tunnel Project HYCC Hudson Yards Concrete Casing LIRR Long Island Rail Road LONP Letter of No Prejudice MAP-21 Moving Ahead for Progress in the 21st Century MBTA Massachusetts Bay Transportation Authority MLMU Multilevel Multiple Units MPO Metropolitan Planning Organization NEC Northeast Corridor NEPA National Environmental Policy Act NFPA National Fire Protection Association NJ TRANSIT New Jersey Transit NJDEP New Jersey Department of Environmental Protection NJDOT New Jersey Department of Transportation NJEDA New Jersey Economic Development Authority NJHA New Jersey Highway Authority NJTA New Jersey Turnpike Authority NJTPA North Jersey Transportation Planning Authority NJTTF New Jersey Transportation Trust Fund NJTTFA New Jersey Transportation Trust Fund Authority NYCDOT New York City Department of Transportation NYMTC New York Metropolitan Transportation Council NYSDOT New York State Department of Transportation O&M Operations and Maintenance OCIP Owner Controlled Insurance Program OMB Office of Management and Budget P&E Planning and Expense PAB Private Activity Bond PANYNJ Port Authority of New York and New Jersey Parkway Garden State Parkway PATH Port Authority Trans-Hudson PORTAL NORTH BRIDGE and HUDSON TUNNEL PROJECT August 2019