Posts Tagged ‘infrastructure’

Metrorail: A Long-Term Solution

April 20th, 2015 12 comments

Metrorail has had a huge impact on the region, but as we’ve seen with the Silver Line, it can take decades to get from concept to execution.

One of the questions I hear most often as a planner for Metro is When will a Metro station open in xyz neighborhood, “in Georgetown”, or “at BWI”? It was the first question at the March Citizens Association of Georgetown meeting. My response — “Decades” — often elicits audible groans.

Given last summer’s opening of the Silver Line, we have a case study that can provide insight on how long it takes to plan, fund, and construct large infrastructure projects. The Dulles Corridor Metrorail Project has done a phenomenal job of maintaining a project timeline. Since the region has many recent newcomers, it is helpful to revisit many of the key milestones, as shown below. It is also helpful to remind readers that the Metropolitan Washington Airports Authority (MWAA) was the ultimate developer of the Silver Line (both Phases I and II) and that the project “only” required cooperation among the Commonwealth of Virginia, MWAA, Metro, the federal government, and Fairfax and Loudoun Counties. While just one example, the Silver Line’s long story is not vastly different from other mega-projects happening in the region and across the country.

Timeline for Planning, Environmental Process, Legal and Financing, and Constructing the Silver Line

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Funding Metro 2025 – Beyond Buzzwords

July 31st, 2014 No comments

Fancy financing and accounting gymnastics won’t ride to the rescue for Metro 2025.

Public Private Partnerships.  Tax Increment Financing.  Infrastructure Banks.

These are among the many ideas discussed today as panaceas for public infrastructure funding, including major transit investment projects in the region and the nation.  Certainly they can be helpful tools, especially in an era of declining federal funds and a renewed emphasis on local fiscal austerity.  But can these tools be useful in funding or financing Metro 2025?

Spring Hill Silver Line station.  The Silver Line was financed in part by special tax districts.

Spring Hill Silver Line Metrorail station. The Silver Line was financed in part by special tax districts.

Metro leadership wanted to find out, so between November 2013 and January 2014, Metro gathered leading experts in real estate, transportation and municipal financing from academe, management consulting, policy advocacy and government to solicit the best ideas for innovative ways of addressing Metro’s challenge.  We learned that each of these financing techniques has differing strengths, weaknesses, and potential applications to capital projects.  We also learned that none of the techniques actually provides new funding. Which is, ultimately, what is necessary to make Metro 2025 a reality.

The distinction between financing and funding cannot be overstated, and is a key concept that often confuses the dialogue surrounding how to execute major capital projects such as transit investments.  Techniques such as Public-Private Partnerships, Infrastructure Banks, and Value Capture rely on existing sources of funding to channel and make more available monies to public entities to pay for varieties of projects.  These existing sources of funding are often taxes – either on households, businesses, or property owners – and backstopped by jurisdictional guarantees to tap into general funds or issue general obligation bonds should the stream of cashflows become unstable.  These financing techniques do not generate new monies nor eliminate the ultimate obligations of the public sector to provide the monies to contribute to the cashflows, either upfront or over time.  

You can read more in the attached report, and know that Metro’s leadership is committed to evaluating any and all options to fund Metro 2025.  Leaving no stone unturned, we conclude that as of this moment in time, regional leaders must step up to the plate and commit resources to Metro in order to make much-needed projects like eight-car trains, core station improvements, and the Metrobus Priority Corridor Network, leap off of the page and become part of the region’s transit network. 

Download:  Metro – Creative Financing (PDF, 1MB)