The U.S. Department of Transportation on Sept. 17 reported awarding $49.46 million in grants to 45 projects in 25 states under the Innovative Finance and Asset Concession Grant Program (IFACGP). Among the award recipients: New York Metropolitan Transportation Authority for the planned Interborough Express (IBX) light rail service and Merced County, Calif., for expanding the Castle Commerce Center Inland Port.
“Through the bipartisan infrastructure package, the Biden-Harris Administration is helping cities, states and transit agencies develop projects on underused properties—including tens of thousands of housing units over the next decade,” U.S. Transportation Secretary Pete Buttigieg said during the announcement. “The grants we’re announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets, and get more housing and other public benefits and services completed more quickly.” More than 70% of the award-recipient projects include transit-oriented development and downtown redevelopment initiatives, according to the USDOT.
The Department’s Build America Bureau administers the IFACGP program, which is said to assist “public entities in exploring innovative financing and delivery opportunities, including facilitation and evaluations of public-private partnerships for Transportation Infrastructure Finance and Innovation Act (TIFIA)-eligible projects.” There are two types of grants:
- Technical Assistance Grants: Recipients use funding to improve “organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling, and other activities considering innovative finance and delivery, including asset concessions,” USDOT said.
- Expert Services Grant: Awardees use funding to hire advisors, who will “analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships,” USDOT said.
Eligible applicants are public entities that “own, control, or maintain assets that could be enhanced through TIFIA credit assistance,” according to USDOT.
Following are among the new recipients of Expert Services Grants (18) and Technical Assistance Grants (27):
- New York Metropolitan Transportation Authority (MTA) will use a $1 million Expert Services Grant to “procure an outside finance expert to advise the MTA on the optimal role of the private sector in the construction of the IBX—a 14-mile high-capacity light rail transit link on an existing freight right-of-way,” according to the USDOT. “The project will include background analysis of statutory and regulatory framework at agency, state, and federal levels; analysis of current macro and micro-economic trends; identification of debt and equity instruments that could contribute financing; recommendations on compensation structures such as availability payments, milestone payments, interest payments, and fare-box revenue sharing; and cost-benefit analysis, including an assessment of risk from construction, integration, and lifecycle factors.”
- North Carolina Department of Transportation (NCDOT) will use a $750,000 Expert Services grant to “leverage consulting services for real estate land valuation and agreement planning for the NCDOT Gateway Station Project,” USDOT reported. “NCDOT owns two vacant parcels in uptown Charlotte that are proposed to be transferred to the city of Charlotte (City) to support the development of the Charlotte Gateway Station (CGS). Consultant services will advise NCDOT on the optimal market valuate of the assets, on permitting documentation, on contract negotiations, and environmental assessments. the grant funds will be used to cover administrative activities, including activities associated with acquiring deeds and permits, and NCDOT personnel labor.”
- Louis Armstrong New Orleans (La.) International Airport (MSY) will use a $3 million Expert Services Grant to “explore the planning, development, financing, construction, maintenance, and operation of an Airport Automated People Mover (APM) System,” USDOT said. This project will connect the North Airport Campus, the South Airport Campus, and, upon its completion, Amtrak Intercity passenger rail serving Baton Rouge and New Orleans. The airport’s system will include four intermodal centers: North Campus – North Terminal; South Campus – Employee and Passenger Long Term Parking Garage; South Campus – Car Rental Center; and Intercity Rail Connection at the southernmost portion of the property.
- Merced County, Calif., is producing a blueprint to modernize and expand operational capacity of the Castle Commerce Center Inland Port, a 1,912 acre multi-modal freight transportation hub located less than 100 miles from the ports of Oakland and Stockton, according to the USDOT. Using a $450,000 Expert Services Grant, the County “will partner with expert advisors to identify financing and private sector investment opportunities.”
- Capital Metro (CapMetro) in Austin, Tex., will use a $1 million Technical Assistance Grant “to explore an Equitable TOD pilot site,” USDOT reported. “Building off their experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.”
- The City of Saint Paul, Minn., will use a $805,139 Technical Assistance Grant to “hire experts to conduct an asset scan of city-owned properties near fixed guideway transit stations and Union Station Depot,” USDOT reported. “In addition to the asset scan, external experts will perform zoning, valuation, modeling, and financial analyses. At project completion, the City will have a geospatial map that includes these assets with key information.”
- The City of Evanston, Ill., will use a $985,000 Technical Assistance Grant “to build organization capacity to assess city-owned parcels near the Noyes and Foster stations on the Purple Line of Chicago Transit Authority’s ‘L’ system for innovative finance and delivery options,” USDOT reported. “The City will hire staff who lead the project, manage external experts, streamline City approval and formation of public-private partnerships, and coordinate with state, regional, and federal government partners. External experts will conduct necessary analyses and develop recommendations to facilitate an asset management strategy.”
- The Maryland Department of Transportation (MDOT) will use a $1 million Technical Assistance Grant to “perform an asset scan to evaluate potential TOD and parking optimization opportunities at commuter rail stations owned by MDOT,” USDOT said. “With the State of Maryland currently lacking in TOD, its existing transit assets and stations are not optimized to fulfil their role in connecting people, jobs, and opportunities. As a catalyst in driving TOD, MDOT is building a joint development program whereby it pursues TOD development on State owned land adjacent to its transit systems. Currently, MDOT has over 300 acres of State-owned land adjacent to transit that is primarily serving as free parking lots for transit riders and adjacent uses.”
- The Massachusetts Bay Transportation Authority (MBTA) will use a $1,195,800 Technical Assistance Grant to “procure advisors who would partner with the MBTA to create and implement a comprehensive plan for the future of Alewife Station and Garage (‘Complex’),” USDOT reported. “Alewife Station and Garage, located in Cambridge, Mass., is the north terminus of the Red Line. The station is a popular stop on the Red Line and four bus routes; it provides access to Downtown Boston and the rest of the MBTA system in and around Boston. The station and particularly the garage are aging and past its useful life, requiring frequent and expensive maintenance. Therefore, the MBTA is seeking skilled consultants to create a comprehensive plan for the future of Alewife Station and Garage. These plans will provide the MBTA with choices for how to move forward with the redevelopment of the Complex. Plans will include renovation, reconstruction, and reimagination of the station, garage, and surrounding area, including transit-oriented development.”
According to USDOT, the IFACDP program makes available $100 million over five years (FY 2022-26). Awards can be up to $2 million, with no match required for the first million dollars.
