Northwest Indiana Rail Projects Update November 2018 Project - - PowerPoint PPT Presentation

▶
northwest indiana
SMART_READER_LITE
LIVE PREVIEW

Northwest Indiana Rail Projects Update November 2018 Project - - PowerPoint PPT Presentation

Jan 24, 2023 1.05k likes •1.25k views

Northwest Indiana Rail Projects Update November 2018 Project Overview TRANSFORMING THE SOUTH SHORE LINE INTO A MODERN COMMUTER RAIL SERVICE West Lake : Establish commuter rail service between Dyer, Indiana and Millennium Station in Chicago,

slide-1
SLIDE 1

Northwest Indiana Rail Projects Update

November 2018

slide-2
SLIDE 2

2

Project Overview

TRANSFORMING THE SOUTH SHORE LINE INTO A MODERN COMMUTER RAIL SERVICE

West Lake: Establish commuter rail service between Dyer, Indiana and Millennium Station in Chicago, with a new Gateway Station in Hammond and additional stations in South Hammond, Munster and Dyer. Construction cost estimated at $712 million. Double Tracking: Extend parallel tracks from Gary to Michigan City to allow for express routes and increased reliability. Install high level platforms at all stations to reduce boarding

  • times. Re-route tracks in Gary, South Bend and

Michigan City to speed up commuting times. Construction cost estimated at $376 million.

slide-3
SLIDE 3

3

Economic Development Objectives

  • Innovative approach to leveraging transit for economic development across an entire region
  • Region-wide value capture will catalyze private development
  • $2.3 billion in private investment by 2040
  • More than $500 million in state/local matching dollars already secured
  • Meets demand for more effective and efficient transportation to/from Chicago labor market

$0.0 $1.0 $2.0 $3.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Billions

$2.7 Billion Total Investment; $2.3 Billion Private Sources

South Bend Michigan City Portage/Ogden Dunes Gary Miller Gary Metro East Chicago Munster Dyer Munster Ridge Road Hammond South Hammond Gateway

Estimated Cumulative Station-Area Development Investment

slide-4
SLIDE 4

4

Economic Development Objectives

  • The rail projects will produce an estimated 5,700 ongoing jobs and $3 billion in economic activity

by 2048

  • Approximately 1,000 annual jobs are supported during the construction period from 2020 to 2024

Rail Projects Economic Impact on Northwest Indiana

  • $500

$1,000 $1,500 $2,000 $2,500 $3,000 $3,500

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000

Economic Output (Millions) Employment

Incremental_Jobs_per_Projects Incremental_Economic_Activity

slide-5
SLIDE 5

5

Economic Development Objectives

slide-6
SLIDE 6

Status Report & Forthcoming Actions

slide-7
SLIDE 7

7

History and Background

  • Submitted rating applications both rail projects in September 2017
  • Received feedback from FTA on WL financial plan in February 2018
  • State of Indiana, NICTD, RDA, and IFA took FTA focused on FTA requirements
  • Over the last nine months, we have made significant progress:

 New legislation (House Enrolled Act 1374) provides significant financial enhancements and procurement flexibility to the projects, and should decrease financing costs  Indianan pledged Next Generation Trust Fund ($250 million) to support Grant Anticipation Notes (GANs) in order to maximize financing proceeds  Enhanced team structure with Northwest Indiana RDA, Indiana Finance Authority and State Budget Agency  Agreed to detailed term sheet for governance agreement  Hired additional resources and advisors  Performed independent review of prior FTA applications  Performed independent review of all cost estimates, ridership and revenue forecasts, and financials

slide-8
SLIDE 8

8

New Team Structure

  • Aligns with flow of funds and financing structure (see next slide)
  • NICTD is applicant and is strengthened by its project partners
  • Closely imitates FTA organizational structure for CIG program candidate projects
  • Each agency has its own advisors for independent validation and verification, QA/QC
  • Exclusive fiscal officer for projects
  • Broad powers to develop TODs
  • Provides state and local funding for

construction

  • Provides operating subsidy on WL
  • Reports to Governor’s office
  • Project oversight
  • Advisors: Policy Analytics, KPMG, Louis

Berger, Faegre Baker Daniels Consulting, Ice Miller

  • Owner and operator of South Shore

Line for 25+ years

  • FTA applicant and procuring agency
  • Responsible for all technical elements
  • f project delivery
  • Reporting requirements to FTA, State,

RDA, and IFA

  • Advisors: HDR, Bose McKinney & Evans,

and Harris Welsh & Lukmann

  • State’s financing agency – will issue

debt for both projects

  • AAA credit rating, manages $2.5 billion

in appropriation backed/revenue bonds

  • Experienced in project finance
  • Reports to Indiana Office of

Management and Budget

  • Project oversight
  • Advisors: PFM, Barnes & Thornburg
slide-9
SLIDE 9

9

Governance Approach

  • Outlines roles and responsibilities of the agencies

– NICTD is lead FTA applicant/project sponsor – RDA and IFA are project partners, provide funding and financing and oversight – State Budget Agency provides support and oversight

  • Helps ensure that decisions are being made in a

coordinated manner

  • Focuses on cost containment, on-time project

schedule, meeting FTA grant requirements, reducing financial risks, market acceptability, and maximizing economic development

  • Enhances funding and financing commitments
  • Protects against cost overruns, schedule delays, funding

shortfalls (e.g., enhanced oversight, step-in rights, etc.)

  • Incorporates extensive FTA review and approval rights
  • Similar to other governance frameworks for multi-

agency projects (e.g., East End Crossing project)

GOVERNANCE FRAMEWORK

slide-10
SLIDE 10

10

Project Funding Overview

  • Lease appropriation financing structure with IFA as issuer of all debt
  • Structure widely accepted by financial markets
  • Financing plan has been approved by RDA, NICTD and Indiana Finance Authority boards

RDA Bonds (IFA) State Appropriation Bonds (IFA) Grant Anticipation Notes (IFA) Next Generation Trust Fund Project Trust Accounts Local Cash Contributions RDA Revenues State Appropriations FTA Grants

Financing Funding Credit Enhancement

slide-11
SLIDE 11

11

Timeline and Next Steps

March 2018

November 2018 July 2018 September 2018

01 05 03 02 04

August 2018 Begin revisions to FTA applications and financial plans State Budget Committee approves financing packages Receive rating for eligibility for FFY19 funding NICTD, RDA, and IFA boards approve financing packages Submit West Lake FTA application

Next steps:

Conduct technical meeting with FTA to discuss evaluation feedback and proposed solutions FTA appoints liaison to assist with application-specific issues RDA Board approves financing packages IFA approves financing packages July 19 NICTD approves financing packages July 20 State Budget Committee approves financing packages in August 2018 NICTD submits application on or before September 1, 2018 FTA requested to provide interim rating West Lake project eligible for FFY19 funding

slide-12
SLIDE 12

12

Next Steps: Double Tracking

  • We are working to develop a competitive submission for a project rating and Entry

into Engineering in the New Starts Program in the Spring of 2019.

  • NICTD is in the process of developing a high-quality submission which includes

technical documentation and a solid financial plan approved by NICTD, IFA, RDA and the State Budget Committee, that shows committed state and local funding and that no further action is required.

  • Meanwhile, NITCD continues the technical work necessary to transition the Double

Track project from the Core Capacity program to New Starts program.

  • NICTD received approval for its Environmental Assessment and Finding of No

Significant impact from the FTA on November 1, 2018.

  • The Capital Investment Grants (CIG) program is a competitive process. Critical

competitive factors in the eyes of the Trump Administration are public-private partnerships (P3s) and value capture, both of which have been incorporated into the West Lake and Double Track projects.

  • Under statute, the FTA must obligate 85% of the appropriated federal CIG funds

within fifteen months of the end of the federal fiscal year.

slide-13
SLIDE 13

13

Indiana’s Largest Commuter Rail Project in its History

  • Connectivity is a crucial part of every major

urban economy

  • Indiana’s leadership recognized that bold,

region-wide steps were needed to capitalize

  • n demand for better access to Chicago
  • West Lake and Double Tracking will leverage
  • ne of NWI’s most unique assets, proximity to

Chicago, in a way never done before in Indiana

  • State and local support for this project are

unprecedented in Indiana. More than $500 million in state/local funds secured to match federal funds.

  • Commuter rail expansion will create new

businesses and approximately 6,150 permanent jobs in Northwest Indiana,

  • ffering the opportunity for more than $2

billion in new private development over the next 20 years