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III. TRANSIT MEGA PROJECTS: AN OVERVIEW
Pages 4-11

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From page 4...
... The interviews helped identify key legal issues encountered The results of these interviews were combined with the desk- in transit mega projects and this digest describes lessons learned top legal research to provide five illustrative core case studies, by transit agencies. However, since every project is unique, and which serve as reference points for the balance of this digest.
From page 5...
... Therefore, attor These two basic elements -- valuation in excess of $1 billion, neys advising on transit mega projects must have a keen sense and the transit sector context itself -- inform a host of other fac- of all the parties involved and each party's nuanced role, as well tors that can generally be said to set transit mega projects apart as how the project's risk profile might evolve over time from from other capital projects. Most immediately, within transit, project conception through operations.
From page 6...
... Project Delivery Pilot Program.17 In addition, the IIJA directly the international transfer of technologies and the procurement provides $1.6 billion per year in advance appropriations as a of key components.10 supplement to annual appropriations for the CIG Program.18 Therefore, it is incumbent upon attorneys advising on transit Public transportation entities must apply for CIG funds, mega projects to have a clear sense of all the parties involved and which are awarded after a competitive, multi-step process.19 The the nuanced roles they may play within their respective jurisdic- FTA rates projects pursuant to statutory evaluation c­riteria.20 tions; for where one entity's authority ends, another's begins. Successful CIG applicants must also sign an FFGA, a key nexus by which a host of federal laws and requirements are incor2.
From page 7...
... Project Risks light rail services.25 The third key characteristic of transit mega projects is best Similarly, there are other federal programs that may be used considered under the umbrella of project risks. The high cost to fund and finance transit mega projects, such as the Rebuild- of transit mega projects is well correlated with a high degree of ing American Infrastructure with Sustainability and E ­ quity complexity.
From page 8...
... But, they are mega projects that offer critical 37   Project Profile: Eagle Project, supra note 31. insights into the inherent legal challenges faced by transit mega p ­ rojects.
From page 9...
... The Virginia Passenger Rail Authority (VPRA) , an inde The Atlantic Gateway Project was a $1.4 billion package of pendent authority, is the responsible transit agency for the rail and highway expansion projects that was funded through Transforming Rail in Virginia Initiative.53 The Virginia General a federal FASTLANE grant43 for $165 million, combined with Assembly created VPRA in 2020 "to promote, sustain, and ex$710 million in state transportation funds, and $565 million in pand the availability of passenger and commuter rail service in private investments.44 the Common­wealth and to increase ridership of such service by Since 2019, the Commonwealth of Virginia has acquired connecting population centers with passenger and commuter over 300 miles of railroad right-of-way and 200 miles of track rail service and increasing availability of such service."54 VPRA is in corridors that parallel I-95, I-64, and I-85.
From page 10...
... East Link Extension Project tion and acquisition of rights-of-way and the selection of a The East Link Extension Project is a 14.5-mile light rail franchisee; t­ransit and managed lanes system located in the Seattle, • Evaluate alternative high-speed rail technologies, systems ­Washington, metropolitan area.72 The East Link Project is part and operators, and select an appropriate high-speed rail of the larger Sound Transit system. It will connect to the existing system; light rail system in downtown Seattle, extend the system east to • Establish criteria for the award of a franchise; ­Mercer Island, Bellevue, and Redmond, while adding ten transit • Accept grants, fees, and allocations from the state, from ­stations to the system.
From page 11...
... The bulk of the project was funded and financed through NJ Transit covers a service area of 5,325 square miles, is the $1.086 billion in Sound Transit's tax revenues, $1.06 billion nation's third largest provider of bus, rail, and light rail transit in bond proceeds, and $1.33 billion through a TIFIA loan.79 services, and provides nearly 270 million passenger trips each Addi­tional sources include a $281.4 million cash contribution year.88 Among other things, NJ Transit's statutory authority may from Sound Transit, and federal and local grants: a $184.5 mil be found in New Jersey Statutes Title 27, Chapter 25.89 lion contribution from the City of Bellevue, and a $14 million The total HBLR project cost was $2.3 billion: MOS-I cost TIGER USDOT federal grant.80 $1.0 billion; MOS-II cost $1.2 billion; and MOS-III cost $100 Sound Transit and its partners are delivering the East million.90 Similar to other transit mega projects, the ­primary Link Extension Project through a combination of contracting source of funding was provided through FTA New Starts ­methods including DB and a construction manager/general FFGAs. The rest of the project was financed through revenue contractor (CM/GC)


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