AASHTO Journal - USDOT Issues Nearly $50M in Innovative Finance Grants

The U.S. Department of Transportation recently issued $49.46 million in grants to 45 local, regional, and state public entities through its Innovative Finance and Asset Concession or IFAC grant program, with more than 70 percent of the projects including transit-oriented development or TOD and downtown redevelopment initiatives.

[Above photo by USDOT]

The agency said in a statement that its IFAC program makes $100 million available over five years to help public entities scan existing assets in order to “unlock value” from them, particularly in terms of expanding the nation’s housing supply while lowering housing costs.

USDOT noted that awards can be up to $2 million, with no match required for the first million dollars.

The agency pointed out that technical assistance grant recipients will use the funding to enhance their 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.

The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.

Several projects overseen by state departments of transportation or state DOT divisions received funding via this round of IFAC grants:

The Maryland Department of Transportation received $1 million to perform an asset scan to evaluate potential TOD and parking optimization opportunities at commuter rail stations owned by the agency.
The North Carolina Department of Transportation received $750,000 for real estate land valuation and agreement planning for its Gateway Station Project. NCDOT owns two vacant parcels in uptown Charlotte that are proposed to be transferred to the city of Charlotte to support the development of the Charlotte Gateway Station. 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.
The Massachusetts Bay Transportation Authority – a division of the Massachusetts Department of Transportation – received nearly $1.2 million to procure advisors who would partner with MBTA to create and implement a comprehensive plan for the future of Alewife Station and Garage in Cambridge, MA. The transit agency is seeking skilled consultants to create a comprehensive plan for the future of this complex, including renovation, reconstruction, and “re-imagination” of the station, garage, and surrounding area.
The Michigan Department of Transportation will receive $2 million for its Michigan Innovative Finance Asset Scan for Transportation or “MI-FAST” program to conduct a statewide asset scan of complex highway, transit, real estate, intermodal, and other assets statewide; identify opportunities for asset concessions through public-private partnerships or P3s; analyze investment impacts in candidate assets through risk assessments, benefit-cost analyses, scenario development, and pricing analysis; and develop materials to communicate value of alternative project delivery methods.
The Indiana Department of Transportation received $1 million to evaluate four critical routes for freight movement. This project will develop impact studies for surrounding communities, and providing pre-procurement services that include financial modeling, value-for-money analysis, evaluation of P3 arrangements, revenue forecasting, funding and financing evaluation, public and stakeholder engagement, market sounding, and procurement regulation review.