The primary objective of the research project is to identify creative financing tools for the proposed train stations in Rhode Island. The focus will be on public-private partnerships that would be appropriate for financing of the train station infrastructure and the economic development of its surrounding area, given Rhode Island’s institutional and legal systems. The public-sector stakeholders would include: municipal government, state government and agencies (i.e., Rhode Island Department of Transportation, Rhode Island Public Transit Authority, Airport Corporation, Rhode Island Economic Development Corporation), redevelopment agencies, and the federal government. In conjunction with the public sector stakeholders, the private partners such as developers, lenders and landowners may serve many purposes including involvement in the planning, designing, developing, financing, construction, management, and operation of the train station project and its surrounding developments.
Public-Private Partnerships would be classified into two groups: (i) revenue-sharing arrangements and (ii) cost-sharing arrangements. Some initiatives work on the revenue side, benefiting the public sector (i.e., local and state governments and agencies) by securing a stream of revenue, whereas others aim to relive the public sector of some of the cost burden of constructing and maintaining transit facilities. Examples of revenue- sharing include land leases; air rights development; and station interface or connection-fee programs; concession leases; and benefit assessment districts. Cost-sharing examples include sharing construction expenses; incentive-based programs that provide benefits (i.e. density bonuses) in return for off-loading construction costs.
Intermodal
Public-Private Partnerships represent a cooperative, flexible, and unique financial solution to implementing the train station infrastructure and the development of its surrounding area. Public-Private Partnerships can have many different forms including partnerships where the public and private sector jointly exist, the private sector is minimally involved, the private sector takes primary responsibility of the project, or the private sector retains control and operates the project.
This project is designed to study the challenges of developing intermodal transportation stations in Rhode Island, in particular at T.F. Green Airport and Wickford Junction. Challenges include developing creative financing tools for the train station infrastructure and the area around it as well as addressing the institutional and legal barriers to proposed financing alternatives in Rhode Island.
The researchers will first draw upon existing intermodal studies of T.F. Green Airport and Wickford Junction, follow up with studies of similar intermodal station development projects across the country, and finally develop a creative finance “toolbox”. This toolbox will contain “best practices”, pros and cons of public-private partnerships, and the suitability of various financing tools for the development of intermodal stations, given Rhode Island’s unique institutional and legal environment. It is suggested that partnerships that pool resources, share risks, and nurture close working relationships among public and private sectors are essential to the implementation of successful intermodal transportation station projects in Rhode Island.
The research project will use a case-study approach to accomplish its objectives. The analysis will be descriptive and evaluative using primary data collected through interviews of public and private stakeholders within the State of Rhode Island and outside and site visits as well as secondary data collected from the existing literature. Specifically, the project will be organized into four tasks as described below:
Task 1: Review selected case studies and best practices from across the country that have effectively addressed the creative financing of train station infrastructure and economic development of its surroundings using the Public-Private Partnership approach.
Task 2: Identify barriers to the practice of the proposed financing tools in Rhode Island. The barriers would be divided into institutional and legal groups.
Task 3: Develop a creative finance “toolbox”, containing descriptions, pros and cons, and the suitability of various financing tools for the development of train stations and their surrounding areas in Rhode Island, given the state’s unique institutional and legal environment. The financing tools would be classified into two groups: revenue-sharing and cost-sharing arrangements.
Task 4: Recommend strategies to deal with the removal of institutional and legal barriers to allow and encourage the practice of the proposed financing tools in Rhode Island.
It is expected that the project will begin in January 2005 and end in December 2005. The following schedule will be used to complete the research project. A graduate student will be involved in every aspect of the project.
·Literature collection, review and analysis: January 2005
·Data collection and analysis of the proposed train stations in Rhode Island: March 2005
·Interview key partners in the development of the proposed train stations in Rhode Island: April 2005
·Review selected case studies and best practices from across the country that have effectively addressed the creative financing of train station infrastructure and economic development of the area surrounding the station: June 2005
·Visit one or two case studies: June 2005
·Identify institutional and legal barriers: September 2005
·Develop a creative finance “toolbox”: October 2005
·Recommend strategies for the removal of barriers: November 2005
·Submit final report: December 2005
$90,358.68 ($90,359.00 Yearly)
One half-time graduate assistant will work on this project.
As described in the URITC Form “Prior URITC Funded Research History”, Farhad Atash has worked on two projects funded by URITC. Both projects focused on the linkage between transportation and land use planning in Rhode Island. The first project focused on the redevelopment potential of the Worcester-Quonset Point Corridor and included a team of URI faculty and outside consultants. The second project focused on the development and application of a TransCAD model for Aquidneck Island to test the impact of growth and land use changes on the transportation system. The current project has a multimodal focus and will revolve around the theme of land use and transportation planning connection in Rhode Island.
The key benefit of funding this project is that the newly gained knowledge of creative financing tools will be a major technology transfer. Because the Rhode Island Department of Transportation will be an active participant in the proposed project, the findings will be useful to RIDOT in its planning and project decisions for the proposed train stations in Rhode Island. Also, the benefits gained from the project will be shared with the Rhode Island Statewide Planning Office, Rhode Island Public Transit Authority (RIPTA), Rhode Island Economic Development Corporation (EDC), Airport Corporation and other state and local agencies involved in the future development of the train stations in Rhode Island. It is also expected that the findings of this research project will lead to two presentations at regional or national conferences and a publication in a juried journal.
The research project is timely because the State of Rhode Island is planning to build at least two train stations in the next several years in Warwick and North Kingstown. Also, the Town of East Greenwich is considering the development of a commuter train station and the City of Pawtucket is actively pursuing a commuter rail station stop. Lessons learned from this research project have the potential to be useful in the development of the proposed train stations in Rhode Island. Policy makers, engineers, and planners can benefit from a study that has a planning focus, which would address possible partnerships with private entities.
Public Transit, Financing, Public Private Partnerships/Ventures, Infrastructure, Innovative Finance, Intermodal Transportation Planning, Transit Station Planning, Consessions.