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VOLUME 5, NUMBER 2 SUMMER/FALL 1999

FEDERAL CREDIT PROGRAM Secretary Announces FY 1999 TIFIA Selections On September 27, 1999, Secretary committee to administer the formal commercial development. USDOT of Transportation Rodney Slater rulemaking process and manage the will fund two loans: one for $269 announced the first group of project program. Seven applications were sub- million to fund right-of-way and selections for credit assistance under mitted by the August 2, 1999 due date, design and engineering elements, the Transportation Infrastructure from which the five finalist projects backed by a regional gas tax alloca- Finance and Innovation Act (TIFIA). were selected. tion of state funds, and the other for $164 million backed by daily car TIFIA Leveraging Factor 106:1 rental fees, to fund a consolidated rental car facility. $6.5 Billion 1999 TIFIA Projects: ❖ Farley-Pennsylvania Station (New Total Capital Investment to York City). This $749 million pro- ject expands and refurbishes the his- Federal Budgetary Cost toric Farley Post Office building and the existing Penn Station com- plex in midtown Manhattan as a key intermodal transportation and $1.6 Billion commercial facility. The current sta- tion – already the nation’s busiest $61 Million transportation facility serving over Budget Authority Credit Assistance Total Investment half a million people daily – is expected to see dramatic growth in Following a competitive solicitation, usage. The project will increase sta- As of September 30, the end of the tion capacity by 30 percent, improve five projects were selected based on cri- Federal fiscal year, the Secretary had teria set forth in the TIFIA statute. executed term sheets with four of the continued on page 2 The projects are valued at a combined five selected projects, and entered into total of nearly $6.5 billion. TIFIA will a conditional commitment with the Also in this issue … provide $1.6 billion in credit assistance fifth. The term sheets outline the terms at a cost of just $61 million to the under which the U.S. Department of Federal government. Every TIFIA dollar Transportation (USDOT) agrees to GARVEE Roundup ...... 3 will generate more than $100 million provide credit assistance to the projects. in capital investment (see chart above). SIB Update ...... 4 The FY 1999 approved projects are: TIFIA was enacted last year as part of ❖ SIBs on the Internet ...... 5 the Transportation Equity Act for the Miami Intermodal Center (Florida). 21st Century (TEA-21) to help advance The MIC is a $1.3 billion project Grant Management projects that have their own revenue designed to improve access to and Techniques ...... 6 streams but face market gaps in com- within Miami International Airport, pleting their plans of finance. TIFIA a global gateway for national and Technical Corner ...... 6 international trade and commerce. involves credit assistance, rather than Conference Highlights grants, and can be provided in the The project involves the establish- form of direct loans, loan guarantees, ment by 2005 of a multimodal Innovative Finance or standby lines of credit. transportation center for car rental, Solutions ...... 7 transit, commuter rail, Amtrak, and Following the passage of TEA-21, Transitions and New Secretary Slater established a intercity bus services. Subsequent “ONEDOT” multi-agency steering project phases call for substantial Team Members ...... 8 FHWA's

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TIFIA, continued from page 1

passenger safety and circulation, and handle 100,000 trips per day in of Federal, state, and local sources. provide a grand new gateway into 2002, its first year of operation. WMATA has been approved for New York. Upon finalization of all The Authority has arranged a $600 million of Federal credit assis- project funding sources, USDOT “turnkey” development with a private tance in the form of a loan guaran- will provide a $140 million direct sector consortium using state-of-the- tee. The guarantee will enable WMATA to accelerate its procure- Approved TIFIA Projects ment schedule, resulting in substan- tial cost savings on subway car Project Cost Credit Assistance overhauls and other items. The loan Project (in millions) (in millions) guarantee is secured by capital con- FL – Miami Intermodal Center $ 1,349 $ 433 tributions by the District of Columbia, the states of Maryland NY – Farley-Penn Station 749 160 and Virginia, and eight other partici- 1 CA – State Route 125 397 127 pating local government jurisdic- PR – Tren Urbano Transit 1,654 300 tions, as well as a junior pledge on DC – WMATA Capital Program 2,324 600 WMATA’s general revenues. Total $ 6,473 $1,620 Representatives of the five selected pro- 1 To be obligated in FY 2000 jects attended a press conference at the World Trade Center in New York, where junior lien loan, and a $20 million art technology, and will enter into Secretary Slater made the announce- line of credit supporting an issue of operating agreements with a private ment of FY 1999 assistance. Formal loan senior bonds, in both cases backed sector entity to run the system. agreements will be executed, as project sponsors obtain final bond ratings and by lease payments from retail and USDOT will provide a $300 million other tenants at the new station. satisfy other conditions set forth in the loan secured by a junior lien on the term sheets. ❖ State Route 125 (San Diego, Authority’s revenue stream, which California). SR 125 is a critical trans- includes fuel tax receipts, motor vehicle USDOT expects to announce the portation link to provide improved registration fees, and farebox revenues. schedule for FY 2000 assistance later this fall, with an application deadline access to the Otay Border Mesa ❖ Capital Program. Crossing – the principal commercial likely in the first quarter of calendar The Washington Metropolitan Area 2000. A total of up to $9.0 billion of border crossing in southern Transportation Authority (WMATA) California between the U.S. and additional credit amounts remains has initiated a 20-year capital improve- available through FY 2003. Mexico – and to relieve existing con- ment program to rehabilitate and gestion and accommodate growth in replace vehicles, facility, and equip- Contacts: San Diego County. The $397 million ment on its Metrorail system, portions Max Inman, FHWA, project involves building a nine-mile of which date back to 1976. The entire at 202/366-0673, or toll facility, part of a new 11.2-mile capital program costs $2.3 billion, and Mark Sullivan, FHWA, four-lane highway. Because the pro- is being funded with a combination ject has not yet received its final envi- at 202/366-5785. ronmental clearance, the SR 125 term sheet is being structured as a condi- tional commitment, pending issuance of the final record of decision. TRB Workshop on Project Finance The TIFIA assistance consists of a The Transportation Research Board’s (TRB) 78th Annual Meeting will be held $90 million loan guarantee on sub- January 9 to 13, 2000 in Washington, D.C. FHWA and the TRB Committee on ordinated toll revenue bonds, and a Taxation and Finance are sponsoring a workshop on Federal financing initiatives on $37 million line of credit supporting Sunday, January 9, from 1:30 p.m. to 5:00 p.m. in the Lincoln East room, a series of senior toll revenue bonds. Washington Hilton. The workshop will provide transportation stakeholders up-to- The project, which is being developed date information on new funding approaches and share the progress and lessons under a private consortium, is learned in implementing these new programs. The first part of the program will focus scheduled to be completed in 2002. on TIFIA which will feature an overview on the selection criteria and the scoring ❖ Tren Urbano (San Juan, Puerto model, a perspective on the rating process for credit assistance, and highlights of TIFIA Rico). The Highway and awards for FY 1999. The GARVEE financing mechanism will be the focus of the sec- Transportation Authority is develop- ond half of the workshop program, providing in-depth coverage of the program para- ing a 17-kilometer line meters for this financing technique, lessons learned, and the outlook for the future. to serve metropolitan San Juan. The Contact: Jon Williams or Pamela DeWitt, TRB, 202/334-3205. $1.7 billion project is expected to

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GARVEE ROUNDUP More States Roll Out GARVEE Programs The Grant Anticipation Revenue As reported in the Spring 1999 issue at http://www.lao.ca.gov/cal_update/ Vehicle (GARVEE) financing mecha- of IFQ, the New Jersey Transit aug_99_update.pdf) which provides nism continues to gain momentum as Corporation was the first transit an excellent summary of the major more states and transportation author- agency to issue debt backed solely by a issues involved in GARVEE issuance. ities move forward with programs to pledge of future Federal Transit California’s legislation permits issuance advance projects with up-front capital Administration funds and plans to sell of stand-alone, non-recourse GARVEEs on the basis of future Federal trans- a second issue in the near future. At (bonds that are backed solely by Federal- portation dollars. Through September least six other transit agencies across 1999, as shown in the table below, aid funds, with no other sources of rev- the country are exploring the issuance enue pledged). The legislation limits the four states have issued a total of $1.3 of GARVEE bonds for transit expan- billion in GARVEE bonds, some- annual debt service on the GARVEEs sion and capital improvements. times referred to as GANs or Grant to 30 percent of Federal funds received Anticipation Notes. The largest state Please refer to the Spring 1999 and by the Department in any 12 months issuer to date is Massachusetts which Summer 1998 issues of IFQ for addi- of the last 24 months before issuance. has sold $921.7 million in two sepa- tional information on the GARVEE Local governments in California may rate bond issues to finance a portion financing mechanism. be able to access the GARVEE tool, of the Central Artery Project. One of issuing bonds backed by the county the benefits of this new financing Golden State GARVEEs Pass allocation of future Federal-aid. mechanism is its flexibility as indi- With Overwhelming Margins cated by the variations in program In early September, the California State Other GARVEE News structure among the issuers. Three Assembly unanimously passed enabling Ohio, one of the first states to issue states – New Mexico, Ohio, and legislation to permit issuance of GARVEEs, recently sold an additional Massachusetts – have brought to mar- GARVEEs. The GARVEE bill (Senate $20 million in GARVEEs as part of a ket project-specific financings, while Bill 928) also passed the Senate by an refunding of the Spring-Sandusky Mississippi sold GARVEE bonds to overwhelming margin, and was recently interchange project. Another GARVEE finance a program of road projects to signed into law by Governor Gray Davis. bond sale on the horizon is Arkansas’ expand capacity on the state’s highway Prior to the bill’s passage, the California issue which was approved by the vot- system. Two of the issues to date have Legislative Analyst’s office released a ers on June 19, 1999. The Arkansas been direct GARVEEs, while two were report on GARVEEs (available on-line Transportation Commission is in the structured as indirect GARVEEs. process of selecting a financing team for its planned $575 million issue for Key Aspects of GARVEE Transactions to Date Interstate improvements. Meanwhile,

Date of Face Amount Direct/ Projects Colorado voters are preparing to decide State Issue of Issue Indirect Financed Backstop whether to approve a referendum on November 2, 1999 allowing their state Massachusetts June $600 million Indirect Central State Gas Tax Lien in the 1998 Artery event of shortfall in to issue GARVEE bonds for several Project coverage (subject to related projects improving I-25. Nov $321.7 million appropriations); 1998 Partially insured Virginia’s governor has launched a major transportation funding plan to Mississippi June $200 million Indirect Four-Lane State Gas Tax pledge 1999 Highway accelerate highway and bridge projects. Program The plan includes a proposal to issue up

New Mexico Sep $100.2 million Direct New No backstop; Bond to $590 million in indirect GARVEEs. 1998 Mexico Insurance obtained The issue will help accelerate 90 pro- State jects delayed in Virginia DOT’s most Route 44 recent six-year program. VDOT will Ohio May $70 million Direct Spring- Moral Obligation pledge be developing enabling legislation. 1998 Sandusky to use State Gas Tax Project funds and seek general Contact: Aug $20 million fund appropriations in the Jennifer Mayer, FHWA, 1998 event of Federal shortfall Western Resource Center, Summary $1,311.9 million 415/744-2634.

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SIB UPDATE Progress Report on State Infrastructure Banks Recognizing the benefits of the State ❖ Attract additional investment to Projects financed by the SIB address a Infrastructure Bank (SIB) mechanism transportation projects; variety of local transportation needs. to leverage limited transportation ❖ Reduce transportation project costs They include constructing new roads, resources, state DOTs are continuing by reducing the cost of borrowing; reconstructing and resurfacing major to make strides in accelerating projects county, city, or village roads and ❖ Accelerate the delivery of trans- through SIB assistance. Federal SIB streets, improving street access to local portation projects by providing obligations as of September 30, 1999 businesses, upgrading existing roads to financial assistance that is otherwise totaled $565.9 million, of which $24.1 all-season standards, enhancing unavailable in the short-term; and million represents transit dollars. Michigan’s secondary commercial net- Through September 30, 1999, 28 ❖ Establish a revolving loan fund that work, mitigating the impacts of trans- states have loaned a total of $377 mil- is self-sufficient, adequately capital- portation improvements, building new lion to assist in the financing of 96 ized, and addresses customer needs transit facilities, and financing a new projects. These loans are supporting $2.9 in a timely and flexible fashion. passenger ferry. billion in construction, a leveraging ratio of 7.6:1. Of the loaned amount, states State Infrastructure Bank Pilot Program have dispersed $234.7 million. Financial Activity (as of September 30, 1999) Although states are limited in expand- ing Federal capitalization of their SIBs Total Federal Obligations Total Loans Under Agreement (with the exception of the four TEA-21 $566 million $377 million pilot states), some states are enhancing capitalization with non-Federal rev- enue sources. Arizona enacted com- Transit Balance to be Disbursed prehensive legislation (SB 1201) in the $24 million $142 million spring of this year to enhance funding through a combination of additional state highway funds, general fund appropriations, and capital borrowings from the State Treasurer. Florida is moving forward with a legislative pro- posal to increase SIB capitalization with state funds, and Michigan is con- sidering additional state capitalization as an option, as discussed below. Ohio Highway Disbursements has also utilized state appropriations to $542 million $235 million complement Federal SIB dollars to meet loan demands. Since its inception, the SIB has This issue of IFQ places the spotlight The average loan made by the Michigan approved $15 million in loans to 20 on two SIB programs – Michigan and SIB is $795,000 with loans ranging transportation projects. The total cost Puerto Rico. These two SIB programs from $35,000 to $2.5 million. The of these projects is $34 million. The demonstrate the implementation flexi- interest rate for all loans is four percent SIB has focused its marketing efforts bility states have as each program has per year with an average repayment term on local units of government, county been tailored to meet the specific of eight years. Because of limited road commissions, and transit agencies needs in their respective states. resources available, the SIB has estab- that have dedicated transportation rev- lished as a guideline a maximum loan Michigan SIB enue sources that can be accessed by the amount of $2 million with repayment Michigan Department of Transportation Michigan began its SIB program in within 12 years. As a result, the SIB is 1998 with an $11 million Federal cap- (MDOT) in case of payment default. being utilized by local agencies to meet italization grant. The strategic objec- MDOT has approved loans to six project financing gaps, to reduce the costs tives of Michigan’s SIB are to: cities, six villages, four county road of borrowing, and to accelerate project commissions, and four transit agencies. continued on page 5

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SIB, continued from page 4 delivery. On average, SIB financing The SIB-supported bonds were issued ❖ $30 million in highway and bridge has enabled local transportation agen- in July 1998 as 30-year Subordinated improvements to PR-148, a linch- cies to reduce total project costs by Transportation Revenue Bonds at a net pin of PRHTA’s “Access to the seven percent and to reduce the time interest rate of 5.17 percent. Moody’s Mountains” program, which signifi- required to construct a project by 18 and Standard & Poor’s rated these cantly enhances mobility and eco- months to two years. bonds as Baa1 and A-, respectively. nomic growth opportunities in the The greatest challenge facing Michigan’s Under the SIB Trust Fund concept, the mountain town of Naranjito; SIB is the need for new capital. balance is slowly freed up to act as ❖ An $18 million bridge project over Michigan has committed over $3 mil- security for other debt as the original the San Antonio Channel, provid- lion in state highway funds to meet the bond issue is repaid. Accordingly, it ing enhanced access to the inter- loan demand in FY 1999. The SIB, effectively becomes a “revolving fund,” modal port facility in historic Old however, expects to receive $20 million available to support similar bond issues San Juan and improved mobility in loan requests in FY 2000. Options or other borrowing in the future. along the entire Seaport-to-Airport currently being explored include a state Corridor; and capitalization grant and bonding. Michigan is also supporting changes in Leveraging SIB Dollars ❖ An $8 million bridge on PR-165 Federal law to allow states to use TEA- just west of San Juan, which dra- 21 funds to capitalize their SIBs. Billions of matically improves access to San Dollars $2.9 billion Juan from its western suburbs, Puerto Rico SIB 3 including a key industrial area. Leveraging Factor Most states with SIB programs are pro- 7.6:1 PRHTA has enthusiastically supported viding SIB assistance in the form of 2 the SIB program and views the pro- direct loans. Puerto Rico’s SIB program gram as a resounding success. Based is unique in that the SIB monies have 1 on its favorable experience to date, been leveraged to support the issuance $377 million Puerto Rico is considering expansion of of highway bonds. The Puerto Rico its SIB to support additional bond 0 Highway and Transportation Authority issues or other borrowings for vital SIB Loans Total surface transportation projects in the (PRHTA) used $15 million in com- (as of Sept 30, 1999) Project Costs bined Federal and SIB “seed” money to Commonwealth. establish a SIB Trust Fund at the Government Development Bank (GDB) for Puerto Rico. This Trust Fund was As a result of this $75 million bond issue, Contacts: used as partial support for a $75 mil- Puerto Rico effectively doubled its FY Michigan SIB – Kris lion PRHTA bond issue sold to finance 1998 Federal-aid program and advanced Wisniewski, MDOT, critically-needed highway and bridge several vital highway and bridge projects 517/335-2614; Puerto Rico SIB – projects throughout Puerto Rico, creat- by two to four years. The following Frederick J. Werner, FHWA, Southern ing a leveraging ratio of 5:1. were among the projects accelerated: Resource Center, 404/562-3680.

SIBs on the Currently, five states are maintaining web pages for their SIB programs. Some of these sites contain sample Internet applications and guidance material that may be of interest to IFQ readers. We encourage you to take a look.

Arizona Oregon http:://www.dot.state.az.us/about/fms/help.htm http::/www.odot.state.or.us/fsbpublic/otib.htm Ohio Texas http:://www.dot.state.oh.us/sib1/ http::/www.dot.state.tx.us/revexp/sib/sibtoc.htm Vermont http::/www.aot.state.vt.us/planning/sibinfo.htm

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GRANT MANAGEMENT TECHNIQUES Tapered Match May Provide a Better Project Fit Many of the questions FHWA receives Tapered match may be useful when FHWA issued a guidance memoran- related to project financing involve the the government sponsor lacks the dum on tapered match on July 7, matching requirement. For most funds needed to match a Federal-aid 1999. In the interest of effective man- Federal-aid projects, Federal law project at the start, but will accumu- agement of Federal funds, the policy requires that 20 percent of the costs be late the match over the life of the pro- guidance limits the use of tapered derived from a non-Federal source (10 ject. For example, this technique may match to situations that result in expe- percent for most Interstate highway facilitate a project when a local gov- diting project completion, reducing projects). These percentages are ernment has recently enacted a local project costs, or leveraging additional reduced in states with large portions of transportation tax. Using tapered non-Federal funds. The guidance Federally-owned land, adjusted by match, the project can move forward memorandum is available on FHWA’s what is referred to as “sliding scale.” immediately using 100 percent Federal home page at www.fhwa.dot.gov/tea21/ Under current law, state and local gov- funds, allowing time for the transporta- tea21new.htm. Just scroll down to ernments have more flexibility in tion tax revenues to accumulate. The Section 1302. meeting the non-Federal match require- local revenues would be used to fund Contact: ment. In addition to non-Federal cash, the final 20 percent of project costs Max Inman, FHWA, the value of donated land, materials, (see chart below). 202/366-0673. and services may also be contributed toward the match. States may earn Tapering the Federal Share credits for toll revenues used for high- way construction and for state funds used on off-system bridges. These cred- Project Cost (millions) Project Reimbursements its may be substituted for the non- Federal share on Federal-aid projects. 200 - Federal Another technique, called “tapered Federal - State match,” was made possible by TEA-21. 150 Share The Act removed a long-standing pro- 80% Federal vision that limited payments to the 100 100% Federal state for the Federal share of project Federal 80% Federal 100% costs incurred by the state during each 50 0% billing cycle. Tapering allows the State Share 20% Federal share to vary at different stages 0 of the project, as long as the non- Year 1234 Federal share requirement is satisfied Cumulative Federal $40 $120 $160 $160 by the time the project is completed. Dollars State $0 $0 $10 $40 For example, the Federal share could (millions) $40 $120 $170 $200 start at 100 percent and taper off to Total zero at the end of the project.

TECHNICAL CORNER New Mexico Corridor 44 Project Warranty The New Mexico State Highway way warranty can be combined to Koch Industries to design, manage, and and Transportation Department develop a project on an unusually fast construct the expansion of Highway 44 (NMSHTD) is breaking new ground schedule with notable cost savings and from two to four lanes of traffic. This in both the financing and construction improved performance. The financing expansion is to be accomplished no of its highways. The Corridor 44 pro- of the 121-mile section of Corridor 44 later than November 2001. A roadway ject, a primary trade and tourist route through GARVEE bonds was featured performance warranty is one of the into northwest New Mexico, exempli- in the Summer 1998 issue of IFQ. To innovative features of this contract. fies how innovative financing, design/ build the project, NMSHTD ventured construction management, and road- into a contract with a subdivision of continued on page 7

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New Mexico, continued from page 6

For a one-time cost of $62 million, spring and at the end of the 20-year between USDOT’s Research and Koch is guaranteeing the overall perfor- warranty period. Preventive mainte- Special Programs Administration mance of the highway pavement for 20 nance will be performed either by con- (RSPA) and NMSHTD to validate cost years from the date of completion, and tractors obtained through New Mexico’s savings to the government by deter- will also warrant the bridges, drainage, procurement procedures or will be per- mining the advantages of this innova- and erosion control features of the formed by NMSHTD’s maintenance tive approach of providing warrantied highway for 10 years. The warranty is crews and reimbursed for the expense by highway improvements. The agreement secured by a $114 million surety bond. Koch. Corrective maintenance will be is called New Mexico’s Road-Lifecycle The state will perform normal non- performed by contractors obtained Innovative Financial Evaluation (LIFE). pavement maintenance along the road- through the state’s procurement process. While warranties have been used in way, such as mowing, snow removal The warranty also is a means for the Europe and have proven to be cost effec- and signage. NMSHTD estimates that state to capture the true, long-term tive, in the U.S. New Mexico is “paving the state will save $89 million in main- cost of highway infrastructure and to the way” to innovation in road mainte- tenance costs over the 20-year period. ensure the long-term maintenance of nance with the Corridor 44 project. The warranty requires the equivalent the highway. This avoids the deferral of of a Pavement Serviceability Index rat- maintenance which causes roads to ing of 3.0 or better for the entire term deteriorate prematurely and wastes sig- Contact: of the warranty. nificant taxpayer dollars. John Fenner, NMSHTD, 505/827-5446. Both preventive and corrective mainte- The Secretary of Transportation recently nance will be scheduled as needed. announced a 20-year research agreement Measurements will be taken every Conference Highlights Innovative Finance Solutions

More than 200 financial experts from outlined a number of Federal invest- political, institutional, and legal barri- the public and private sectors attended ment incentive programs – generally ers to implementation. the 1999 State/Federal Transportation categorized as regulatory incentives The private sector perspective focused Finance Conference in Dallas, TX from (flexible matching concepts and on strategies for encouraging private July 19 to July 22. Organized and spon- design-build contracting procedures), participation in the development and sored by the Texas DOT and FHWA, tax incentives (enterprise zones, tax financing of toll facilities. Presentations the conference shared best financial credit bonds, and tax-exempt financ- ranged from taxable market transactions practices and explored new innovative ing) and credit incentives (direct loans, for new toll facilities to the financing of finance solutions to long-standing loan guarantees, and standby lines of intelligent transportation system pro- transportation issues. Financial strate- credit) – and demonstrated the varying jects and shared resource opportunities. gies highlighted included innovative potential for leverage realized through financing at the Federal, state, and each type of incentive program. Frederick Werner, FHWA Innovative local levels; leveraging of scarce trans- According to Mr. Seltzer, it is innova- Finance Specialist, chaired a session portation funds; financial management tive finance in combination with focusing on Latin American privatization. practices; electronic efficiencies; pri- innovations in technologies, procure- The lessons learned from these efforts vate sector financing of transportation ment, or operations that collectively could provide an important resource projects; strategies for reducing motor improve a project’s economics. for U.S. financial managers as this coun- try charts its own course in privatization. fuel tax evasion; and lessons learned State and local finance initiatives high- from Latin American privatization. lighted at the conference covered a Through this sharing of information Following opening remarks by state broad spectrum of program develop- and best practices, state DOTs and and Federal officials, Anthony R. Kane, ment stages, from the selection of pro- transportation authorities are better Executive Director of FHWA, delivered jects and analysis of potential funding positioned to successfully implement the keynote address for the conference. alternatives in Oregon, to the SIB pro- new financial solutions to meet critical Mr. Kane highlighted the bold steps gram in Arizona, and the GARVEE transportation needs. and leadership that are positioning bond programs in Arizona, Arkansas, states to meet the financial challenges and New Jersey. The state and local of the 21st century. perspective provided attendees with Contact: insight into the practical application Max Inman, FHWA, David Seltzer, FHWA Senior Advisor on 202/366-0673. Project Finance, presented the Federal of innovative finance techniques, perspective on innovative finance. He including measures taken to overcome

7 FHWA's TRANSITIONS AND NEW TEAM MEMBERS

Quarterly David Seltzer, a member of the innova- Harvard Law School and a B.S.E. in tive finance team since 1996, will be aeronautical engineering from Princeton SUZANNE H. SALE, FHWA leaving FHWA at the end of October University, where he was elected to Phi CO-MANAGING EDITOR 1999. Mr. Seltzer is to be commended Beta Kappa. He received an LL.M. from 602/379-4014 FAX: 602/379-3608 for his significant contributions to Georgetown University. [email protected] Federal project finance initiatives. In Also joining the innovative finance MAX INMAN, FHWA particular, he has been instrumental in CO-MANAGING EDITOR team is Mark Sullivan after five years in 202/366-0673 the development and implementation of USDOT’s Office of Intermodalism. He FAX: 202/366-7493 the TIFIA program and the advancement will serve as Project Finance Coordinator. LAURIE L. HUSSEY, CS MANAGING EDITOR of the GARVEE bond financing mecha- Mr. Sullivan has wide experience in pas- CAMBRIDGE SYSTEMATICS, INC. nism. With TIFIA now up and running, 617/354-0167 senger and freight transportation issues, FAX: 617/354-1542 Mr. Seltzer has decided to pursue oppor- from regulatory and economic analysis to [email protected] tunities outside the agency. He will be facility planning and development. At missed by all members of the team. the Office of Intermodalism, he worked Reproduction (in whole or in part) and In this transition, Robert Clarke Brown closely with FHWA and the Federal broad distribution of IFQ is strongly will undertake the challenge of continuing Railroad Administration to support the encouraged. Permission from FHWA, Mr. Seltzer’s notable work, and will serve Alameda Corridor, the seaport access the editor, or any other party as Capital Markets Advisor for FHWA. project in southern California which is not necessary. Mr. Brown comes to the team from Key received a USDOT loan of $400 million. Capital Markets in Cleveland, OH, This led to his involvement with the where he was the head of the public USDOT working group to implement finance department. Recently, President the TIFIA provisions of TEA-21. Clinton renominated Mr. Brown to serve Previously, Mr. Sullivan was with the A REMINDER TO READERS on the Board of Directors of the Port of Seattle, responsible for business Metropolitan Washington Airports planning, marketing, and facility devel- FHWA DOES NOT MAINTAIN A MAILING Authority. Previously, he was a senior opment for cruise ships and passenger fer- LIST AND DOES NOT DISTRIBUTE IFQ investment banker at Lehman Brothers and ries. Mr. Sullivan also worked for the DIRECTLY. IFQ IS AVAILABLE AS AN a former top official of the Ohio DOT. New York City Department of Ports INSERT TO THE AASHTO JOURNAL, He chaired the Study Advisory where he managed a variety of planning AND IS AVAILABLE ELECTRONICALLY Committee, which advised the Secretary studies, development projects, and lease THROUGH FHWA’s WWW HOME on Maglev applications in the U.S. He is negotiations for marine and aviation PAGE: a member of the Transportation Research facilities in New York City. Mr. Sullivan http://www.fhwa.dot.gov/ Board’s Committee on Taxation and holds bachelor degrees in Journalism innovative finance/ Finance, and has served in leadership and History from the University of positions in both the American Public Washington where he was elected to IFQ IS ALSO PROVIDED TO THE FOLLOW- Transit and the American Road and Phi Beta Kappa and a Master in Public ING ORGANIZATIONS FOR REDISTRIBUTION Transportation Builders Associations. Policy from Harvard University’s Early in his career, Mr. Brown served as Kennedy School of Government. AND/OR AS INFORMATION FOR THEIR a staff member in USDOT’s Office of MEMBERSHIP: the Secretary. He earned a J.D. from • American Public Works Association (APWA) • Surface Transportation Policy Project (STPP) Contributors to Vol. 5, No. 2 of IFQ include: • National Governor’s Association Patrick Balducci, Cambridge Systematics, Inc. (NGA) Roger Berg, Cambridge Systematics, Inc. • National Association of State John Fenner, New Mexico State Highway and Transportation Department Treasurers (NAST) Max Inman, FHWA • National Association of State Phyllis Jones, FHWA Auditors, Controllers, and Jennifer Mayer, FHWA, Western Resource Center Treasurers (NASACT) Suzanne H. Sale, FHWA • National Association of Regional David Seltzer, FHWA Council’s (NARC’s) Association of MPOs (AMPO) Esther Strawder, FHWA Frederick Werner, FHWA, Southern Resource Center Kris Wisniewski, Michigan Department of Transportation

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