The Innovative Finance (IF) Program will further the department's desire to continuously improve transportation funding, financing options and fully utilize a wide array of alternative financing approaches in its annual investment program in an accountable, transparent and fiscally responsible manner.
What we doing?
The IF Program is exploring, assessing and utilizing new revenue streams, financing techniques and partnering approaches to help deliver transportation projects more quickly and cost effectively. More specifically, the IF Program is:
- Identifying, analyzing and accelerating projects that will benefit from IF options
- Developing and utilizing a complete set of IF tools and techniques
- Evaluating and seeking legal authority to pursue IF options, projects and programs
- Developing and executing a collaboration and communication plan to support IF activities
- Integrating IF into the department’s project planning, development and delivery processes
The IF Program has to date been instrumental in accelerating one project (TH 169/Bren Rd. Interchange); generating $9,240,000 in new revenue for transportation projects ($5M from United Health Group for 169/Bren Rd., $4M from DEED for the Transportation Economic Development Pilot Program); and achieving better value on two projects (Elk Run Interchange provision that requires city to repay Mn/DOT up to $3.65 million if specific job creation goals are not met and a “State Smart Transportation Initiative” technical assistance grant to help with the Corridor Coalition Initiative).
- Transportation Economic Development Pilot Program-The core goals for the pilot program are as follows:
- Accelerate projects that create and preserve jobs, provide statewide economic benefit and improve the transportation system
- Leverage greater private investment in state transportation infrastructure
- Demonstrate strong demand for a longer-term multimodal, multi-jurisdictional program with a new annual funding source
- Corridor Coalition Initiative – They collaborate with state highway corridor coalitions and other interested organizations to identify, assess and collectively pursue more effective approaches to addressing corridor issues and challenges. Mn/DOT is working with external transportation partners and other state agencies to develop this initiative and hold a two-part forum in the coming months. The goals of the first forum will be to listen and build understanding about corridor issues and challenges, as well as identify new approaches participants might be interested in learning more about during the second forum
- Public Private Partnerships (P3s)
- IF Legislative Initiatives
- Transportation Economic Development Program w/Petroleum Tank Storage Fee proposal as funding source
- Alternative Financing Authority
- P3 Authority – placeholder
- MnPASS Authority – placeholder
- TED Pilot Program – Applications will be due in November and evaluated in December. Projects will be ready to announce in late Dec./early Jan
- Corridor Coalition Initiative – The first of the two planned CCI forums will be held on Dec. 2nd at the Earl Brown Heritage Center in Brooklyn Center. The second forum will likely be held in Feb. Mn/DOT will have to give serious consideration to how it approaches new ideas for addressing corridor issues and challenges
- P3 Next Steps
- Continue IF project screening, tool and technique development, collaboration / communication and integration efforts. Other specific areas that the IF Program will continue to explore include rest areas and truck parking facilities, parking ramps, FIRST sponsorship, R/W revenue enhancement, PRT, value capture strategies, transit oriented development, passenger rail IF techniques, assessment districts, intermodal and freight facility fees, TZD revenue generation, and enhancing the attractiveness of our projects, programs, products and services to private investment