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Constructing the Foundation for Market Valuations

Constructing the Foundation for Market Valuations. July 13, 2007. Deep Thoughts… by Jack Handey. “It doesn’t matter what god you pray, precious time is slipping away.” - Van Morrison. Market Valuation. Overview of Market Valuation (MV) process

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Constructing the Foundation for Market Valuations

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  1. Constructing the Foundationfor Market Valuations July 13, 2007

  2. Deep Thoughts… by Jack Handey “It doesn’t matter what god you pray, precious time is slipping away.” - Van Morrison

  3. Market Valuation • Overview of Market Valuation (MV) process • MPO determines that a project should be built as a toll project • RMA and TxDOT mutually agree on business terms • MV analysis performed by a third party • MPO determines whether toll project should be developed using business terms • RMA must do one of the following to build • Make an up front payment equal to MV • Commit to construct other projects in the region equal to MV by MPO • Commit to using surplus revenues to build additional transportation projects as identified in future by MPO

  4. SB 792 Market Valuation Flow Chart MPO determines need for Transportation Project/Funding Mechanisms RMA has 6 months to decide whether to exercise option to construct Project RMA has 6 months to begin environmental review (ER) District has 2 months to exercise option after RMA does not exercise option to construct Project or fails to meet deadline RMA & District determine if Project should be Tolled NO Project does not go forward as Toll Project YES NO YES RMA & District agree on Business Terms (including initial toll rates and toll escalation methodology) of Market Valuation (MV) RMA has 2 years after ER completion to enter into construction Contract and do one of the following: If RMA fails to enter Contract or agree on Funding commitment NO NO District to begin ER (if not already underway or complete) YES NO RMA & District agree which Entity (third party) will develop the MV Commit payment equal to MV into Toll Project sub account for regional projects RMA & District agree on new Business Terms YES District has 2 years after ER completion to enter into construction Contract and do one of the following: OR YES OR MV undertaken--approved, renegotiated and approved, or deemed approved after 90 days by RMA and District Commit to construct additional regional projects equal to MV MPO does not approve MV Business Terms OR Surplus Revenue from Project committed to other regional transportation projects NO RMA & District present approved MV to MPO for approval of Business Terms MPO approves MV Business Terms YES

  5. Constructing the Foundationfor Market Valuations July 13, 2007

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