Matt Shands, MnDOT - Minnesota Department of Transportation

Report
Transportation Economic Development (TED)
Project Solicitation
Informational Meetings
March 2012
TED Overview
• Collaboration between MnDOT, DEED, and the Public
Facilities Authority for highway improvement projects
that support economic development
• Seeking projects that will assist development of new
business or expanding existing businesses
–
Target industries: manufacturing, technology, warehousing and distribution, research and
development, agricultural processing, bioscience, tourism/recreation, industrial park
development
• Looking for projects that will improve the statewide
transportation network
TED Phase 1 Projects Selected:
Job Growth Supported
Community
Project Description
5 Yr Job Estimate
St. Charles
I-90 & CSAH 74 Industrial Park
45
Zumbrota
VersaCold/Hwy. 52 & CSAH 68 Reconstruction
25
Two Harbors
North Shore Manufacturing Hwy 61 Access
125
Worthington
I-90 & Hwy. 59 expansion for Bus./Ind. Park
450
Marshall
Hwy 68 & Lake Road Industrial Park
75
Aitkin County
American Peat Co. CSAH 5 Reconstruction
4
Stewartville
Hwy. 63 Business Park Expansion
250
Perham
Hwy. 10 & CSAH 34 Interchange
280
St. Cloud
Hwy. 15 & 33rd St. Interchange
165
Bloomington
I-494 & 34th Avenue Interchange
Minneapolis
I-35W & 4th St. Interchange
3,264
170
2010 TED Projects
Local and Private Funds Leveraged
Community Project Description
St. Charles
Zumbrota
Two Harbors
Worthington
Marshall
Aitkin County
Perham
St. Cloud
Bloomington
Minneapolis/
Hennepin Co.
I-90 & CSAH 74 Industrial
Park
VersaCold/Hwy. 52 & CSAH
68 Reconstruction
North Shore Manufacturing
Hwy 61 Access
I-90 & Hwy. 59 expansion
for Bus./Ind. Park
Hwy 68 & Lake Road
Industrial Park
American Peat Co. CSAH 5
Reconstruction
Hwy. 10 & CSAH 34
Interchange
Hwy. 15 & 33rd St.
Interchange
I-494 & 34th Avenue
Interchange
I-35W & 4th St. Interchange
TOTAL
Local / private
/ other funds
2010 Awards leveraged
% Leveraged
Non-TED Funding
Sources
$570,000
$ 2,030,000
78.1%
TIF, State Aid, Local Bonds
$1,148,225
$ 1,148,225
50.0%
$912,400
$460,000
33.6%
City and County funds
IRRRB, DEED; Two Harbors,
Lake County
$3,300,000
$1,420,000
30.1%
Local Funds, Mn/DOT
$ 575,000
$247,500
30.1%
Local Bonds
$ 138,750
$416,250
75.0%
$ 3,997,480
$2,356,601
37.1%
$ 8,400,000
$4,000,000
32.3%
Local funds
Hospital, KLN, Offut
contrib; Ottertail county
local 1/2 cent sales tax,
local funds
$ 4,200,000
$1,800,000
30.0%
MAC contrib., local funds
$ 9,358,375
$4,046,400
30.2%
Hennepin Co.
$ 33,083,455
$18,410,976
35.8%
= TED Other
= TED Interchanges
TED Phase 1 Projects Not Selected
• 23 Projects requesting $84 Million for $280
million of projects
Ramsey County
Big Lake
Sandstone
East Grand Forks
Carlton County
Glencoe
Duluth
Maple Plain
Chisholm/Hibbing
Maplewood
Albertville
St. Louis Park
Mankato
Ramsey
Jackson
Rochester
Roseville
Sauk Rapids
Le Sueur
Cottage Grove
Chaska
Mankato
Moorhead
TED Funding
• $20-30 million available
– Trunk Highway Fund, up to $20 million
– $10 million in GO Bonds in 2012 Governor’s Bonding Bill
– If TED does not receive 2012 bonding
• Greater MN Business Development Public Infrastructure (BDPI) funds
may be available
• Innovative Business Development Public Infrastructure (BDPI) funds
may be available
TED Funding
• $7 Million maximum award
• Up to 70% of total infrastructure project costs
– Max grant could be less based on state law and policies
– TED contribution could limited to comply with MnDOT cost
participation policy
• Remaining funds from private and other sources
• Funding split between Metro and Greater MN
– Greater MN proposals reviewed separately from Metro
TED Funding
• Trunk highway bonds used for eligible costs in
trunk highway
• DEED funds required to be spent outside trunk
highway
• BDPI/Innovative funds require 50% match
– Greater MN BDPI only in Greater MN
– Innovative BDPI must meet Innovative definition
TED Funding Timeline
• February 15 – Solicitation announced, application
available
• March 6-9 – Informational sessions held
• April 27 – Applications due
• May 18 – Projects selected
• May – October – Confirm project readiness
TED Eligible Applicants
• Must be a government entity as defined by state law
– Trunk Highway fund and proposed TED GO Bonding eligible
applicants include any government entity
– Greater Minnesota BDPI eligible applicants include statutory
home rule charter cities and counties located outside the
metropolitan area. (Chisago County is eligible)
– Innovative BDPI eligible applicants include counties, cities,
special districts, public higher education institutions, or other
public political subdivisions or public corporations throughout the
state (including the metropolitan area)
TED Phase 1 Application Scoring
• Eligibility Criteria
– Must answer yes to all to be eligible
• Prioritizing Criteria
–
–
–
–
35 Points – Transportation System
35 Points – Economic Development
20 Points – Financial Plan
10 Points - Readiness
TED Application
• General Information
–
–
–
–
Basic applicant and project information
Brief project narrative
Project Costs (just transportation and infrastructure costs)
Project funding sources and status of commitment
TED Application
• Transportation System (35 Points)
– Enhances safety of statewide transportation system
– Improves mobility access
– Supports modal integration
TED Application
• Economic Development (35 points)
– Leads to private investment and job creation/retention in
manufacturing, technology, or other identified business types
– Names of impacted businesses
– North American Industry Classification System (NAICS) Codes
– Jobs created in 2 & 5 years
– Wages of created jobs
– Building and equipment investments within 2 years
– Effect on tax base
TED Application
Economic Analysis Data Table
Company
NAICS # of
CODE Jobs
(2
Years)
# of
Jobs (5
Years)
Avg.
Wages
Building
Cost
Building
Type
Building
Completion
Timing
Equipment Equipment
Cost
Type
Equipment
Purchase
Timing
Minnesota
Manufacturing
Inc.
123467
100
$45,000
per year
$5,000,000
Industrial
12/31/14
$1,000,000
3/1/15
30
Communications
Equipment
TED Application
• Financial Plan (20 points)
– Identify all funding sources
– If not committed, explain steps to get commitment
• Project Readiness (10 points)
–
–
–
–
Can project be let by 1/1/15
Project schedule (earlier the better)
Current status for planned development (including environ.)
Community support from private and public partners – (Letters of
support are encouraged)
TED Application Submission
• Application Deadline: 4:30 p.m. on 4/27/12
• Submit two copies of the General Project Information
Form and Application
• Mail to Matt Shands at MnDOT
TED Application Tips
•
•
•
•
•
•
•
•
Retail is not an eligible business
Businesses should not be overly speculative
Higher private and/or non-TED leverage will score better
More secure leverage will score better
Mature projects with developed planning will score better
Not just interchanges
Must be state trunk highway for Mn/DOT funds, not for DEED funds
For NAICS see www.census.gov/eos/www/naics/index.html
Project Examples:
Perham – Highway 10 Interchange
•Better access to Barrel O’Fun, Tuffy’s Pet
Foods, Kenny’s Candies and a new hospital
•Creation of 240 jobs
•$270,000 of private funds
•$4 million of TED funds
•Total project cost is $6,711,762
Project Examples: Perham
Examples:
•Penn Ave and I-494 – Bloomington
$21 million for interchange providing direct access
to Best Buy headquarters
State, City, and private participation (Best Buy)
•Bren Road and TH 169 – Minnetonka
Interchange access to Opus Business Park (United
Health Group)
Potential for ~4,000 new high paying jobs
Project Examples:
St. Cloud – Highway 15 & 33rd Street Interchange
•Currently an 8 mile stretch of I-94 in St. Cloud without direct access
or frontage roads
•5 mile circuitous route through one of St. Cloud’s busiest
intersections (TH 15 and TH 23)
•Better access to 400 acres of prime industrial land
•In less than 10 years following the construction of the I-94 and
Opportunity Drive Interchange, 1,521 jobs were created in the area.
Project Examples: St. Cloud
Examples:
•Penn Ave and I-494 – Bloomington
$21 million for interchange providing direct access
to Best Buy headquarters
State, City, and private participation (Best Buy)
•Bren Road and TH 169 – Minnetonka
Interchange access to Opus Business Park (United
Health Group)
Potential for ~4,000 new high paying jobs
Project Examples:
Bloomington– 494 & 34th Avenue Interchange
• Upgrade from a diamond interchange to a diverging diamond
interchange
• Reduce queue crashes
• Improve access for
• Corporate offices
• Minneapolis International Airport
• Mall of America
• The total project cost is $6 million.
Project
Examples:
Examples:
Bloomington
Project Examples:
Zumbrota – Northwest Industrial Development –
Versa Cold Expansion
• Accommodates further industrial development along TH
52
• Key safety enhancement by closing high crash access
to freeway
• Convert existing local route with direct access to TH 52
to 10 ton capacity
• Accommodates expansion of existing business
(VersaCold Logistics)
Project
Examples:
Examples:
Zumbrota
TED Contact Information
TED Website: http://tinyurl.com/positivelyminnesota2012TED
TRLF Website: http://www.dot.state.mn.us/planning/program/trlf.html
Matt Shands
(651) 366-4893
[email protected]
Jeremy LaCroix
(651) 259-7457
[email protected]

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