Trains, Planes and Automobiles: An Infrastructure Discussion

Transcription

1 Trains, Planes and Automobiles: An Infrastructure Discussion Keith Stauber, SIOR, JLL Chris Clemente, Comstock Companies John D. Porcari, Gateway Program Development Corporation Charles Renner, Husch Blackwell LLP Darrell Wilson, Norfolk Southern

2 Speakers Chris Clemente John D. Porcari Charles Renner Darrell Wilson Comstock Companies Gateway Program Development Corporation Husch Blackwell LLP Norfolk Southern CEO Interim Executive Director Partner Assistant Vice President, Government Relations

3 Keith Stauber, SIOR Managing Director, Ports Airports & Global Infrastructure

4 P3 WIN WIN WIN HARBOR PERFORMANCE ENHANCEMENT CENTER (HPEC)

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6 Helps solve congestion issue Shares upside with all parties Provides main risk takers/investors with a minimum return guarantees

7 John Porcari Interim Executive Director Gateway Program Development Corporation

8 STRATEGIC INVESTMENTS TO PRESERVE & EXPAND NEC

9 PROJECTS OF NATIONAL SIGNIFICANCE

10 NORTHEAST CORRIDOR: AN ECONOMIC POWERHOUSE

11 GATEWAY BENEFITS FAR EXCEED COST A benefit cost analysis determined benefits of the Gateway Program greatly exceed its costs even under the most conservative assumptions. Gateway compares favorably to other major infrastructure projects across America and around the world. Gateway Program ( ) 7% Discount Rate 3% Discount Rate Benefit Cost Ratio Project BCA Ratio / Range Gateway Program London s Crossrail Project California High Speed Rail

12 THE MOST URGENT PROJECT IN AMERICA Busiest section of NEC is between Penn Station New York & Newark, NJ (450 trains, 200k trips/day) constrained by two-track bottleneck North River Tunnel, Portal Bridge & other infrastructure dates to early 1900 s PSNY regularly operates at capacity (1,300 train movements daily on 21 tracks) Capacity constraints + aging infrastructure = increased risk to 10% of U.S. GDP Super Storm Sandy accelerated degradation, increased urgency

13 Chris Clemente CEO Comstock Companies (Nasdaq: CHCI) Developing and redeveloping real estate creating transitoriented and mixed-use communities in partnership with local governments

14 DC S METRORAIL EXTENSION THROUGH NORTHERN VIRGINIA AND DULLES INTERNATIONAL AIRPORT HAS SPARKED COMSTOCK S PUBLIC PRIVATE PARNTERSHIP ACTIVITY RESTON STATION, Reston, Virginia 4.5M SF of mixed-use, transit oriented development on acres on Washington DC METRO s SILVER LINE Heart of a new neighborhood in America s most successful planned community The first fully-integrated transit oriented community in the Dulles Corridor LOUDOUN STATION, Ashburn, Virginia 2M SF of mixed-use transit oriented development at the terminus of Washington DC METRO s Silver Line A new neighborhood in the heart of the Internet Capital of the World and the US s wealthiest and fastest growing County Loudoun County s first and only Metro-connected community HISTORIC DOWNTOWN HERNDON, Herndon, Virginia 30 years in the making - residential and retail redevelopment of one of Virginia s historic treasures, Town of Herndon s downtown MOMENTUM at Shady Grove Metro, Rockville, Maryland Transit oriented, AFFORDABLE AND WORKFORCE DWELLING UNITS

15 RESTON STATION TRANSIT CENTER Reston, Virginia $110M, 1.5M SF P3 Fairfax County, Virginia

16 RESTON STATION Reston, Virginia Office Building by Helmut Jahn

17 Reston Station on Metro s Silver Line

18 Darrell Wilson Assistant Vice President, Government Relations Norfolk Southern Corporation

19 NORFOLK SOUTHERN: 200 YEARS OF SERVING AMERICA

20 NORFOLK SOUTHERN S STRATEGIC CORRIDORS

21 NORFOLK SOUTHERN S HEARTLAND CORRIDOR

22 RICKENBACKER INTERMODAL FACILITY AND LOGISTICS PARK

23 FOREIGN TRADE ZONE #138

24 BUSINESS IMPERATIVE OF PUBLIC-PRIVATE PARTNERSHIPS

25 Why Do P3s Matter To Your Business? $57 trillion in projected infrastructure needs Growing in use Taking normal business / Threat to traditional practices Get in now or get out of the way

26 P3: Distinguishing Elements

27 Top 6 Risks

28 Case Study KCI Terminal Modernization Project $1 billion+ project to completely rebuild KCI Favored proposer didn t win the opportunity Factors: - Understanding of P3 complexities and procurements is essential - Must compensate for lack of expertise in P3 financial and legal structuring with the right advisors - For flagship projects, there is no substitute for a team with the necessary experience

29 Case Study Vista Ridge Pipeline $3.4 billion, 30-year water pipeline project 1 st large scale water delivery P3 Garney Construction transitioned from role of service provider to taking an equity stake and leading the deal as developer when original developer declared bankruptcy What Garney did right: - Recognized market shift and seized the opportunity - Brought on subject matter experts to mitigate risk outside their core competences - Positioned themselves to play to their strengths

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