Portlands Airport MAX Extension

1. Portland's Airport MAX Extension October 2-6 Washington, D.C. Joe Walsh, TriMet Thanx for oppy - stealth projet to date Very General - cover as much of the project as possible in short Talk a bout - How we put the project together Where we are now, Lessons learned Thanx for oppy - stealth projet to date Very General - cover as much of the project as possible in short Talk a bout - How we put the project together Where we are now, Lessons learned

2. Airport MAX Logo Slide Note logo - not an eyecatcher, but a point of pride for particiapants - shows the commitment that was established and has been maintained over last 2 1/2 years Note logo - not an eyecatcher, but a point of pride for particiapants - shows the commitment that was established and has been maintained over last 2 1/2 years

3. Project Summary Added 5.5 miles to extg. 33 miles of LRT $125m fast track project Key innovative aspects expanding ground access options to PDX nontraditional funding - PFC�s, private dollars design/build delivery Opened 9/10/01 We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more

4. Alignment goes from extg. TC, follows pre-est median route (25yr) crosses fwy, and thru greenfield adj to roadway into PDX ROW either physically sep,(205) or set aside thru Master PlanAlignment goes from extg. TC, follows pre-est median route (25yr) crosses fwy, and thru greenfield adj to roadway into PDX ROW either physically sep,(205) or set aside thru Master Plan

5. Local Context PDX as economic growth engine Access challenges - roadway capacity and parking LRT key to land use/growth management 12 mile, $1 billion LRT measure rejected at the polls 11/98 Like elsewhere - airport as focus of tremendous growth Brings access challenges - cost and impacts problematic PR - transit as one of the keys to growth mgmt PDX one of the many fast growing regional facilities - freight as well as passengers go from 6m to 26 m in 25 yr Like elsewhere - airport as focus of tremendous growth Brings access challenges - cost and impacts problematic PR - transit as one of the keys to growth mgmt PDX one of the many fast growing regional facilities - freight as well as passengers go from 6m to 26 m in 25 yr

6. LRT - one part of balanced approach - highway capy. Express & shuttle bus, etc - Benefits of LRT - reliability, expandability All agreed we needed addl, capy to airport, some questioning but primarily by our cadre of loyal opposition LRT - one part of balanced approach - highway capy. Express & shuttle bus, etc - Benefits of LRT - reliability, expandability All agreed we needed addl, capy to airport, some questioning but primarily by our cadre of loyal opposition

7. Project Highlights Multi-jurisdiction and private partnership Prior planning Innovative funding Real estate venture Airport funds Risk allocation/management

8. The Deal Unsolicited proposal from Bechtel Mix of local funds, including PFC�s Private participation Bechtel/Cascades to invest $28m in return lease/development deal on 100+ acres Bechtel Infrastructure to design & build project

9. Partnership TriMet City of Portland Port of Portland Bechtel/Cascades

10. TM lions share, but still very unique for 3 non-traditional sources for surface trans, esp transit Each party has real $$ - $20-$30m enuf to get attentionTM lions share, but still very unique for 3 non-traditional sources for surface trans, esp transit Each party has real $$ - $20-$30m enuf to get attention

11. Partnership, cont. Public funds - multiple sources No new revenues All locally directed Private participation Associated real-estate venture Regional buy-in Even tho all w/in corporate Ptld, still needed regional buy-in - pol consensus, use of TM (regional) $$ 18 mi, $1b effort failed a key ballot test midway - that was further impetus smaller low $$/mi private $$ other keys - no new rev. sources all local - better able to dictate pace & programEven tho all w/in corporate Ptld, still needed regional buy-in - pol consensus, use of TM (regional) $$ 18 mi, $1b effort failed a key ballot test midway - that was further impetus smaller low $$/mi private $$ other keys - no new rev. sources all local - better able to dictate pace & program

12. Partnership, cont. Project Dynamics Strong political leadership General alignment on goals Differing timelines Key agreement is Framework Agreement - TM, Port, City, & Cascades - cascades is RE venture of Bechtel, partnered w/TC - establishes roles & responsibilities, financial shares, and �governance� TM designated to build LRT for the other partners, - under an executive level Project Cttee. By contrast TM very little involvement in RE - Cascades, w/some program & reg oversight by City/Port PFC & UR $$ are limited by geography and scope - only spent certain areas, certain things 2 fungible sources = $74m Key agreement is Framework Agreement - TM, Port, City, & Cascades - cascades is RE venture of Bechtel, partnered w/TC - establishes roles & responsibilities, financial shares, and �governance� TM designated to build LRT for the other partners, - under an executive level Project Cttee. By contrast TM very little involvement in RE - Cascades, w/some program & reg oversight by City/Port PFC & UR $$ are limited by geography and scope - only spent certain areas, certain things 2 fungible sources = $74m

13. Partnership Mechanics Partners� Framework Agreement Roles & responsibilities Funding commitments Key Inter-party Agreements Port-Cascades Master Lease Cascades-City Development Agreement TriMet - Bechtel Design Build contract Numerous financing-related documents

14. Project Structure Risk allocation - play to strengths real estate risk - Cascades LRT construction risk - Tri-Met, Port FAA funding - Port Rolling commitments � dollars at risk Financial guarantees on real estate & infrastructure

15. Management Structure Policy group � Mayor, General Manager, etc. Executive group � formal project oversight Project Management group - informal Tri-Met manages LRT design/build

16. Cascade Station Development Bechtel contributes $28.3m from development proceeds 120 acre/85 year lease from Port of Portland 15 yr. development program- 400,000sf retail, 1200 hotel rooms, 1million sf office Infrastructure funding assistance - City, Port Here's tricky part - how to bring in the private $$ Bechtel/Cascades will take the risk of developing a difficult site Expect to throw off $28m in addition to reasonable rate of return Devt cost - Cascades, but City/Port share in public infrastructure Here's tricky part - how to bring in the private $$ Bechtel/Cascades will take the risk of developing a difficult site Expect to throw off $28m in addition to reasonable rate of return Devt cost - Cascades, but City/Port share in public infrastructure

17. Slide an amazing graphic effect but also shows location of the site - next to freeway & AW LRT align - 2 stations Earlier MP, but basically similar Used PD route thru reg process transit as addl benefit - not strict TOD infra & reg process harder than bechtel expected - overall not that badSlide an amazing graphic effect but also shows location of the site - next to freeway & AW LRT align - 2 stations Earlier MP, but basically similar Used PD route thru reg process transit as addl benefit - not strict TOD infra & reg process harder than bechtel expected - overall not that bad

18. LRT Project Delivery Summary Unsolicited Proposal/Sole Source for LRT project Design/Build Fast Track Back to LRT - how we are building Bechtel package in �97 - cont. $28m in return for devt rights and contract to buld LRT Offer predicated on D/B Fast track necessary to tie into PDX expansion schedule, keep $$ down Back to LRT - how we are building Bechtel package in �97 - cont. $28m in return for devt rights and contract to buld LRT Offer predicated on D/B Fast track necessary to tie into PDX expansion schedule, keep $$ down

20. Schedule Summary 4/97 - Bechtel Proposal to local partners 9/98 - Local approvals, PE, price proposal, completed 10/98 - Sign Design/Build Contract 1/99 � Complete NEPA 4/99 - Begin construction 7/99 - Close financing 9/01 - Line opens Maintain momentum has been essential - keep moving on mutliple fronts - design, fund, even build Did PE & FE at risk of cratering 10/98 and 5/99 commitments, with off ramp Started heavy construction 5/1/99, w/PFC approval outstanding PFC ok, and closings 6/1599Maintain momentum has been essential - keep moving on mutliple fronts - design, fund, even build Did PE & FE at risk of cratering 10/98 and 5/99 commitments, with off ramp Started heavy construction 5/1/99, w/PFC approval outstanding PFC ok, and closings 6/1599

21. Local approval steps Public Review Committee advises local partners Partner board/commission approvals - sole source, Design/Build contract, ground lease and development agreements Parties commit �at risk� dollars - total of $16m before closing How get to �go� ?? Needed to take to Comm., get reaction to key Q�s - also, 1 stop shopping for policy call, w/so many decisions & regulatory actions Est a 9 member Cttee - blue ribbon, rep key stakeholders - 6 comm meetings - good debates - most strongly in favor - luggage & service plan Each local - lead on key action - TM for D/B, City on UR $$ & rel devt. Agmt., Port on lease & PFC app W/so many moving parts - NEPA, PFC, devt deal - had to keep moving on LRT to keep Bechtel on board Parties OK risk $$ in increasing amt from 12/98 to 5/99 - $16m before closing How get to �go� ?? Needed to take to Comm., get reaction to key Q�s - also, 1 stop shopping for policy call, w/so many decisions & regulatory actions Est a 9 member Cttee - blue ribbon, rep key stakeholders - 6 comm meetings - good debates - most strongly in favor - luggage & service plan Each local - lead on key action - TM for D/B, City on UR $$ & rel devt. Agmt., Port on lease & PFC app W/so many moving parts - NEPA, PFC, devt deal - had to keep moving on LRT to keep Bechtel on board Parties OK risk $$ in increasing amt from 12/98 to 5/99 - $16m before closing

22. Key Strengths Prior planning PDX alignment in all adopted plans ROW reserved in freeway median Public experience with Airport congestion Partners� past experience together

23. Key Challenges FAA Approval for PFC funds, land deal Design/Build Private participation through Unsolicited Proposal/Sole Source Now - more about 3 most intriguing aspects - FAA, D/B and how we handled the sole source aspectNow - more about 3 most intriguing aspects - FAA, D/B and how we handled the sole source aspect

24. FAA Approvals Revenue Use PFC Process Bond financing

25. Private participation Time value/Time constraints Profitability requirement Narrower focus than public partners

26. Design/Build Approach Preliminary documents by Tri-Met - concept design, specs, program narrative Two-step process to final package: PE & cost estimate by Bechtel D/B contract including fixed price Basis for D/B was our extg standards - just completed 18 mi extension - concept design, specs + a narrative that laid out the performance standards that had to be met, - codes to esthetics, run times to work hour restrictions We started with an initial contract for PE & cost estimate - that got us to the go-no-no fall 98Basis for D/B was our extg standards - just completed 18 mi extension - concept design, specs + a narrative that laid out the performance standards that had to be met, - codes to esthetics, run times to work hour restrictions We started with an initial contract for PE & cost estimate - that got us to the go-no-no fall 98

27. Design/Build Contract Lump sum, fixed price Unique risk allocation Special restrictions for Airport work Unique aspect - risk allocation Bechtel - usual - labor plus design errors, but also �direct� permits (UBC, Fwy const) and subsurface TM took typical like scope growth, del ROW but also 404, environmental permits, Port dictated sep set of restrictions on PDX vicinity work - road closures, coord w/PDX contractorsUnique aspect - risk allocation Bechtel - usual - labor plus design errors, but also �direct� permits (UBC, Fwy const) and subsurface TM took typical like scope growth, del ROW but also 404, environmental permits, Port dictated sep set of restrictions on PDX vicinity work - road closures, coord w/PDX contractors

28. Unsolicited Proposal/Sole Source Established procedures for Tri-Met, City, Port Due diligence by each public partner Pricing fair? Benefits > costs? �Open Book� for public & critics Probably trickiest part to transfer each partner well prepared w/established procedures - unsol prop - requires analysis & findings no counters TM - D/B pricing Port - land valuation, deal value PDC- tax increment & infrastructure loans share in a general way Single challenge - ABC opposed to Bechtel�s use of union labor basis - at prime & 2d tier - challenged the award based on add cost., sued, dismissed by Ore Court of Appeals - TM history Probably trickiest part to transfer each partner well prepared w/established procedures - unsol prop - requires analysis & findings no counters TM - D/B pricing Port - land valuation, deal value PDC- tax increment & infrastructure loans share in a general way Single challenge - ABC opposed to Bechtel�s use of union labor basis - at prime & 2d tier - challenged the award based on add cost., sued, dismissed by Ore Court of Appeals - TM history

29. Current Status - CascadeStation Infrastructure complete Letter of Intent for 40 a. retail development Economic downturn, 9/11 have hurt leasing prospects

30. Current Status � LRT Solid ridership � 10% over projections, despite fewer airline passengers Higher proportion of leisure travelers than projected Terrific public acceptance

31. Challenges Deal complexity/deal fatigue Regulatory hurdles Size and scope of LRT implementation Complexity/profitability of real estate deal Driving decisions among all parties # issues, # agreements, regulatory hurdles, + tight schedule = pressure and fatigue Reg hurdles inc local + NEPA/404 - add time pressure TM - D/B was al ot of pressure - conservative owner, short staffed CT was easy comp to tech issues By contrast, RE was even tougher - no model, cyclical & speculative nature of RE market, hard to quantify risk Port as very conservative owner/dealmaker contrast - pluses# issues, # agreements, regulatory hurdles, + tight schedule = pressure and fatigue Reg hurdles inc local + NEPA/404 - add time pressure TM - D/B was al ot of pressure - conservative owner, short staffed CT was easy comp to tech issues By contrast, RE was even tougher - no model, cyclical & speculative nature of RE market, hard to quantify risk Port as very conservative owner/dealmaker contrast - pluses

32. Strategies for Success Public support Terrific political leadership Prior planning - design, land use plans Integrated, interagency project management - virtual organization Real partnering - financial stake, financial risk increase motivation Finalo analysis - comes back to pol lship - had it from the beginning Also - we had the good luck to have ducks in a row on alignment - ROW ready & waiting, alignment reflected in every adopted plan, and a good conceptual level of design PM�s and exec level from each entity have been working together, formally & informally from the beginning - recognition that each project needs the other to be successful Finalo analysis - comes back to pol lship - had it from the beginning Also - we had the good luck to have ducks in a row on alignment - ROW ready & waiting, alignment reflected in every adopted plan, and a good conceptual level of design PM�s and exec level from each entity have been working together, formally & informally from the beginning - recognition that each project needs the other to be successful

33. Moving to 10k � - what can we conclude generally ?Moving to 10k � - what can we conclude generally ?

34. Lessons learned Solve a widely understood problem Pick good partners Move fast 10k foot level - we have a problem that folks understand - airport access we have terrific partners, w/good pol. Alignment moved fast - harder to hit a moving target10k foot level - we have a problem that folks understand - airport access we have terrific partners, w/good pol. Alignment moved fast - harder to hit a moving target

36. Hiawatha Light Rail Project Minneapolis, MN October 20-22, 2002

37. Project Summary 11.6 miles with 17 stations. Connects downtown Minneapolis, Minneapolis/St. Paul International Airport and the Mall of America $675.4 million (2002 dollars) Design/Build delivery Full revenue service to begin late 2004 We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more

39. Project Status Ground was broken January 17, 2001 Bombardier-built vehicles are now in production with delivery of the first vehicle scheduled for early 2003 Overall design/build project completion is more than 55% [Oct. 2002]

40. Funding Summary Federal Transit Administration $334.3 m State of Minnesota $100.0 m Metropolitan Airports Commission $ 87.0 m Hennepin County Regional Rail Authority $ 84.2 m Congestion Mitigation & Air Quality Grant $ 49.8 m MnDot $ 20.1 m Total $675.4 m We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more We consist of 3 local government entities - TM, Port and City thru its urban renewal agency Pretty Intermodal - rail, plane, freeway as of �98 TM system @ 33 miles, 9/01 this will add 5.5more

41. Project Details Ridership Projections 19,300 per day in 2004 24,800 per day by 2020 Park & Ride Locations 900 spaces near Fort Snelling Station 200 spaces at Mall of America Airport tunnel Two tunnels, 1.4 miles in length (north & southbound) Yard & Shop: 26.5 acres including Metro Transit LRT Operations & Maintenance Facility

42. Vehicle Details Bombardier Light Rail Vehicles 22 to 26 cars, 94� long low-floor, ADA compliant 66 seats per vehicle, maximum capacity 187 passengers Equipped with luggage racks and bicycle storage hangers Power is 750 V DC Top speed is 55 miles per hour, average is 35 MPH. Slower speed in downtown