A. Gilcrease Expressway West / Tulsa, Oklahoma. The Oklahoma Turnpike Authority and a partnership of AECOM and Duit Construction Co. achieved commercial and financial close on an agreement for the design, construction, and financing of a new five-mile, four-lane toll highway beginning where the existing Gilcrease Expressway connects with Interstate 44. The total contract value is approximately $261 million, and financing for the project was partially achieved by a $125,000,000 conduit issuance of tax-exempt bonds and a loan through the USDOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program. Substantial completion is estimated to occur in November 2022.
B. PR-22 & PR-5 Secondary Market Equity Purchase / Puerto Rico. In March 2020, Ullico purchased from Goldman Sachs Infrastructure Partners a 49% stake in the Puerto Rican toll road concessionaire controlling PR‑22 and PR‑5. Albertis retains a 51% interest in the same.
C. Miami-Dade County Civil and Probate Courthouse / Miami, Florida. Miami-Dade County and a consortium of Plenary, Johnson Controls, and Tutor Perini Corporation achieved financial close on an approximately $260 million, availability payment concession agreement engaging the consortium to design, build, operate, finance and maintain a new civil and probate courthouse. The term of the agreement is 34 years. Miami-Dade County is expected to make a one-time project contribution of up to $50 million upon substantial completion, which will be financed through a general obligation bond issuance of the County. An earlier procurement for this project was cancelled after the Miami-Dade County Board of County Commissioners rejected all responses to the initial RFQ.
D. University of Iowa Utility System PPP / Iowa City, Iowa. The University of Iowa (“UI”) closed on a 50-year agreement, valued at more than $1 billion, with ENGIE and Meridiam to operate UI’s utility facilities, including electrical systems, steam, domestic water, chilled water, sanitary and storm sewer, high quality water, utility network maintenance, energy control center, environmental compliance, and related distribution systems serving the Main and Oakdale campuses. Under the agreement, the UI received an upfront payment that was used to repay existing utility-related debt and fund UI’s endowment. UI will make annual availability payments of $35 million for the first five years, after which will increase by 1.5% annually thereafter. ENGIE and Meridiam have committed to helping UI become coal-free by January 1, 2025, and the transaction is expected to allow UI to invest an additional $15 million per fiscal year toward UI’s strategic plan and core mission of teaching, research, and scholarship. As discussed below in Part II, this transaction has spurred a flurry of similar university-sponsored energy PPP transactions.
E. Arizona State University Student Housing PPP / Phoenix, Arizona. The University of Arizona and Capstone Development Partners successfully closed on a new mixed-use, student housing PPP project for Arizona State University’s Downtown Campus. This is the third PPP student housing transaction between Arizona State University and Capstone Development Partners. The project’s total development cost is approximately $118 million, and it is projected to open in the fall of 2021.
F. Texas A&M University Medical Building and Student Housing PPP / Houston, Texas. The Board of Regents of the Texas A&M University System selected a consortium of American Triple I Partners and Medistar as the preferred proponent to lead the construction of a new student hosing tower and an integrated medical plaza, as well as the renovation of third engineering and medical facility. The total contract value is approximately $546 million, with a duration of 60 years.
1. St. Louis Lambert International Airport / St. Louis, Missouri. In December 2019, citing a lack of public and local business support for the transaction, the Mayor of the City of St. Louis pulled her support for the City’s procurement for a private operator of the St. Louis Lambert International Airport, effectively cancelling the procurement that was nearly two years in the making. One month earlier the City issued an RFQ and received 18 responses, and the City had successfully negotiated a new Use Agreement with signatory airlines pending the successful procurement for a private operator.
2. John F. Kennedy (JFK) Airport Terminal One Development and Expansion / New York City, New York. The Port Authority of New York and New Jersey (“PANYNJ”) approved the lease agreement for the DBFOM of the JFK Terminal One Development and Expansion project, and the $7.1 billion financial close is anticipated in the second quarter of 2020. The new Terminal One will cover the existing footprint of T1 and T2, as well as that of the former T3. The project’s lead equity sponsor is the Carlyle Group, and the primary airline partners are Air France, Japan Airlines, Korean Air, and Lufthansa. The Terminal One project is a part of the larger $13 billion plan to redevelop JFK’s other existing terminals.
3. AirTran Newark Replacement Project / Newark, New Jersey. The PANYNJ issued an RFQ in connection with the design, construction, operation and maintenance of a new automated people mover system at Newark Liberty International Airport, and an announcement of shortlisted teams is expected in May 2020. The term of the DBOM Agreement will be 30 years, structured through an initial term of 10 years and, if the PANYNJ elects, up to two additional 10-year terms. The total project cost over the 30-year term is anticipated to be $2.05 billion.
1. University of Maryland Power Plant Renewal Project PPP / College Park, Maryland. The University of Maryland (“UMD”) released an RFQ in connection with its procurement of a private partner to expand, upgrade, and modernize UMD’s existing power, heating, and cooling facilities, as well as developing/incorporating “green” technologies to improve UMD’s renewable energy supply. The RFQ contemplates a 30-year term and three potential commercial structures: (i) a conduit issuance and loan of tax-exempt bonds, (ii) an availability payment concession, or (iii) a hybrid structure of (i) and (ii).
2. University of Idaho On-Campus Utility System PPP / Moscow, Idaho. The University of Idaho shortlisted ENGIE and a consortium of Plenary and Sacyr in response to the University’s concession for its energy and utility system, which is expected to require approximately $200 million in capital expenditures. In total, 12 bidders submitted responses to the University’s RFQ. The RFP was scheduled to be issued March 31, 2020, but as of early May 2020 it appears to still be pending.
1. Maryland I-495/I-95 Capital Beltway and I-270 Congestion Relief Improvements / Maryland; Washington D.C. Metro Area. The Maryland Transportation Authority, the Maryland Department of Transportation and the State Highway Administration (collectively, the “State”) jointly released the RFQ for Phase 1 of the State’s I‑495/I‑95 Capital Beltway and I-270 Congestion Relief Improvements PPP. The project is expected to be procured in three phases, with the first addressing only the improvements to I-270. Under the current structure, the State would offer a toll concession to design, build, operate, finance, and maintain the Phase I work, and at this time the State does not anticipate providing any public funding for Phase I. Initial responses to the RFQ were extended to May 20, 2020, due to the COVID-19 pandemic.
2. Georgia SR 400 Express Lanes PPP / Atlanta, Georgia. The Georgia Department of Transportation (“GDOT”) issued an RFQ in connection with the design, construction, financing, and maintenance of approximately 16 miles of variably priced express lanes along SR 400. RFQ responses are due in early May 2020, with an expected announcement of shortlisted teams in June 2020. GDOT anticipates issuing the Final RFP in March 2021. The total contract value is anticipated to be $1.3 billion, with an availability payment structure covering a 35-year maintenance term.
