HighLight Heading
August 2009
Value Capture study featured at transportation funding and finance forum
Tom Sorel
Margaret Donahoe
University of Minnesota research was featured at "The Future of Transportation Funding and Financing Alternatives" forum held May 1. The event provided an opportunity to hear from national, state, and local experts and explore options for Minnesota.
During the forum luncheon, Zhirong (Jerry) Zhao, assistant professor in the Hubert H. Humphrey Institute of Public Affairs, presented highlights from the recently completed "Value Capture for Transportation Finance" study (see Study identifies value capture strategies to raise transportation revenue).
The forum began with welcoming remarks from Robert Johns, director of CTS, who also moderated the morning sessions; Margaret Donahoe, executive director of the Minnesota Transportation Alliance; and Tom Sorel, commissioner of the Minnesota Department of Transportation (Mn/DOT).
Donahoe said the goal of the forum was "to start a conversion about all the possibilities—the whole universe of ideas for dealing with our transportation system." Sorel cited three key options for consideration: public-private partnerships, vehicle-miles traveled (VMT) fee systems, and value capture. Value capture can be "very transformational," he said. "It will be a key part of our future."
The forum then turned to a panel discussion of federal funding and finance. Kathy Ruffalo, a member of the National Surface Transportation Infrastructure Financing Commission, relayed some of the commission's recommendations. (To read the commission's final report, which was released in February, see http://financecommission.dot.gov.)
Donahoe returned to the podium to present Minnesota's priorities (online at www.transportationalliance.com) for the federal surface transportation authorization bill now under debate in Congress.
Lea Shuster, executive director of Transit for Livable Communities, shared highlights from the blueprint issued by Transportation for America, a broad coalition of housing, business, environmental, public health, transportation, equitable development, and other organizations.
The second panel looked at highway funding and finance in Minnesota. Brad Larson, director of traditional and innovative finance in Mn/DOT's Office of Financial Management, noted a number of funding sources (e.g., VMT fees, value capture sources, emissions fees) and financing techniques (e.g., private financing) not now utilized in the state. "We'll need to tap into all of these," he said, and "align them with the right types of projects." Dave Sonnenberg, legislative liaison for the City Engineers Association of Minnesota, and Mike Sheehan, county engineer with Olmsted County, presented city and county priorities, respectively.
The next panel, focusing on Minnesota transit funding and finance, featured Arlene McCarthy, director of transportation services with the Metropolitan Council; Peter McLaughlin, chair of the Counties Transit Improvement Board; and David Tripp of the Minnesota Public Transit Association.
The final panel focused on private funding and finance. Katie Nees of Jacobs Engineering said that while the private sector offers needed financing experience, it expects return on investment. Lee Norris of CityGate discussed the possibility of the public sector partnering with a "master developer" to create planned communities along transportation corridors, and Luke Taylor of Macquarie Capital described the growing use of concession agreements in Australia.
Forum sponsors were the American Council of Engineering Companies of Minnesota, Associated General Contractors of Minnesota, CTS, Mn/DOT, Minnesota Public Transit Association, Minnesota Transportation Alliance, and Transit for Livable Communities. The forum was the first of the education/outreach efforts resulting from the Mn/DOT Commissioner's Forum on Innovative Transportation Finance held in December 2008.