1. Innovative Finance for Passenger Rail through Transportation Oriented Development September 24, 2013www.forestcity.net presented by James H. Richardson, III, Senior Vice President Forest City Enterprises

2. $11 billion to fund the High Speed Rail Vision Multitudes of passenger rail projects were in planning We discussed value capture ideas as a way to provide more funding options Last Time We Met @ SCORT in Jacksonville, FL 2010…

3. ‘ObamaRail’ vision was killed in the US House of Representatives – Rail grants to states are dead PRIIA 209 is forcing higher intercity passenger subsidies on the States States are increasingly committed to urban and intercity rail expansion projects—but lack funding Nearly 3 years later in Columbus, OH…

4. The country should commit to a national incremental program to achieve an urban and intercity High Performance Passenger Rail Network  It needs bipartisan support! A clear funding program should be a part of that initiative. We suggest: 1)Limited grants to the states be revived 2)Innovative Finance through TIFIA/RRIF 3)A Major New Value Capture Initiative Innovative Finance in 2013 – A Program

5. HR 1544, introduced by Republican Transit Subcommittee Chairman Tom Petri and Rail Subcommittee Democrat Bill Lipinski is the bill to get behind. A Robust Value Capture Initiative is the Key

6. It is bipartisan and sponsored by senior Members of Congress who know transportation It will generate substantial and predictable cash flows to passenger rail projects on commuter routes, streetcar lines, state intercity passenger rail corridors and public interest freight projects that will benefit communities along rail lines We know it works! It is based on the P3 models unfolding in Denver and Atlanta today What is HR 1544?

7. The Secretary of Transportation establishes a National Transportation Oriented Development Initiative –A national Development Planning Advisor will work with a DOT coordinating committee to set criteria for TOD construction projects that will contribute to rail corridor development funds. The program is discretionary  States and local authorities petition the Secretary to establish TOD areas What does HR 1544 Do?

8. State/Local TOD Authorities will submit qualified projects for federal incentives The TOD Authority with Local neutral Planning Developers will establish guidelines for community planning At state and local levels the Authorities will create Assessment Districts and Rail Development Funds Qualified commercial development projects that provide revenues to rail corridor infrastructure and operations will be eligible for TIFIA/RRIF financing How does 1544 Work?

9. HR 1544 is the only option for innovative finance that will provide a significant stream of revenue to expand passenger rail service, streetcar projects, bus operations and bicycle lanes Both the Atlanta Multi-Modal Passenger Terminal and the Denver Union Station projects are living examples of how H.R. 1544 can benefit the entire nation Why HR 1544?

10. How about some examples?

11. IMPORTANCE OF NATIONAL TRANSIT ORIENTED DEVELOPMENT

12. Union Station – Denver, CO TRANSPORTATION HUBS Transbay Terminal – San Francisco, CA

13. WHAT IS THE GEORGIA MMPT? The Georgia MultiModal Passenger Terminal, or MMPT, will bring together various ground and rail transit services in a centralized downtown Atlanta location. It will provide passengers with greater connectivity options to the various transit services that exist today, and serve as a hub for future transit. The MMPT will also be a catalyst for overall development in metro Atlanta while creating jobs, connecting neighborhoods and facilitating economic growth in the region.

14. INNOVATIVE P3 PROCESS VisionConcept DevelopmentRefinementImplementation Plan Development ScopingAlternativesImpact AssessmentApproval Environmental This process is envisioned in HR 1544 and is being implemented for the Georgia MMPT planning, resulting in time savings (3+ years), cost savings, as well as a more robust, market tested plan.

15. THE GEORGIA MMPT STUDY AREA (ATLANTA, GA) CNN Philips Elliott St Pub Deere Lofts Fire Station 5 Points

16. ONE PROJECT – MULTIPLE GOALS TRANSIT HUB / AFFORDABLE MOBILITY TRANSPORTATION EFFICIENCY REAL ESTATE CATALYST ECONOMIC ENGINE RETURN ON PUBLIC & PRIVATE INVESTMENT $$$

17. TRANSIT HUB

18. AFFORDABLE MOBILITY Trains PedestriansBus Streetcars

19. Deere Lofts Elliott St. Pub 5 Points Philips CONCEPTUAL ROADWAY NETWORK Mitchell Nelson Peters COP MMPT TRANSPORTATION EFFICIENCY

20. REAL ESTATE CATALYST

21. VALUE CREATION THROUGH ECONOMIC IMPACTS (GEORGIA MMPT EXAMPLE) Type of ImpactImpact - Taxes / year Jobs 66,000 Full Time 25,700 Temporary SF Development11.6 million SF State Income Tax$ 80.3 million / year Sales Tax Revenues $ 11.9 million / year Property Taxes$ 53.7 million / year Hotel Tax$ 12.7 million / year ECONOMIC ENGINE HR 1544 can help realize this faster and with benefits to local/national government These and other taxes/fees generate $170+ million per year to public entities Benefits occur w/o raising taxes

22. RRIF EXPANSION TO REAL ESTATE SECURED LOANS 11.8 million SF of Development Approximately $2.9 billion in Real Estate at cost Generates $26 million / year in RRIF expansion fees Need $1.7 billion in loans @ 60% LTV HELPS PAY FOR STATION CONSTRUCTION AND MAINTENANCE HELPS PAY FOR STATION CONSTRUCTION AND MAINTENANCE WITHOUT RAISING TAXES RETURN ON PUBLIC & PRIVATE INVESTMENT $

23. Let me show you a quick video on the Georgia Multimodal Passenger Terminal… Innovation in Progress

24. We urge AASHTO to Study HR 1544 carefully, and become part of the conversation on Transportation Oriented Development Financing Thank you! Questions?