INVESTING IN AMERICA: Merced County wins funds for Inland Port
WASHINGTON – The U.S. Department of Transportation (DOT) is awarding $49.46 million in grants to 45 local, regional, and state public entities through the Innovative Finance and Asset Concession Grant Program (IFACGP), made possible by President Biden’s Bipartisan Infrastructure Law. More than 70 percent of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives, including projects that support the Biden-Harris Administration’s efforts to boost housing supply and lower costs.
“Through the bipartisan infrastructure package, the Biden-Harris Administration is helping cities, states and transit agencies develop projects on underused properties—including tens of thousands of housing units over the next decade,” said U.S. Transportation Secretary Pete Buttigieg. “The grants we’re announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets, and get more housing and other public benefits and services completed more quickly.”
The program makes $100 million available over five years to help public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, e.g., the Build America Bureau’s Transportation Infrastructure Finance and Innovation Act (TIFIA) low-cost loan program. Awards can be up to $2 million, with no match required for the first million dollars.
“Today’s announcement is what the Investing in America Agenda is all about,” said Acting Undersecretary of Transportation for Policy Christopher Coes. “Not only will this funding lead to greater access, opportunity, and economic growth through good transportation infrastructure, but it will catalyze the development of safe, affordable housing in communities across the country.
“This is a transformative program that is focused on unlocking value from underutilized assets,” said Build America Bureau Executive Director Morteza Farajian. “The goal of this innovative program is to facilitate partnerships between private and public entities to deliver community benefits in a more efficient and cost-effective manner. The selected recipients represent a wide range of projects that are good candidates for public-private partnerships.”
The Build America Bureau administers the financing program, which provides technical assistance and expert services grants. View the interactive map to learn more about the selected projects. Several examples of grant recipients include:
- Capital Metro (CapMetro) in Austin, Texas, will use $1 million in IFACGP funding to explore an Equitable TOD pilot site. Building off their experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.
- Merced County, California is producing a blueprint to modernize and expand operational capacity of the Castle Commerce Center Inland Port, a 1,912-acre multi-modal freight transportation hub located less than 100 miles from the ports of Oakland and Stockton. With $450,000 of IFACGP funds, the County will partner with expert advisors to identify financing and private sector investment opportunities.
- The City of New Rochelle, New York, will use $1 million in IFACGP funds to scan city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities.
- Rhode Island Public Transit Authority (RIPTA) is working to reimagine its Kennedy Plaza outdoor bus hub into a modern mixed-use development that includes a new transit center, housing, and commercial development. With $2 million from IFACGP funding, and $1 million contributed by RIPTA, this $3 million study will position RIPTA to engage private sector developers to deliver the project.
The technical assistance grant recipients will use the funding to enhance their organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling, and other activities considering innovative finance and delivery, including asset concessions. The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.
Today’s IFACGP awards are the latest action by the Biden-Harris Administration to explore innovative finance and delivery options for public entities, create more housing to lower costs for Americans, and support communities with technical assistance. In addition to today’s announcement:
- Last month, DOT’s Build America Bureau released new guidance to help potential borrowers access TOD financing, including FAQs and recorded webinars.
- Earlier this year, DOT announced funding for 112 under-resourced communities to receive hands-on assistance to secure federal infrastructure funding and then deliver on those projects.
- Last fall, the Biden-Harris Administration announced new actions to support the conversion of high-vacancy commercial buildings to residential use through new financing and technical assistance.
The new IFACGP program joins the Rural and Tribal Assistance Pilot Program, Regional Infrastructure Accelerators Program, Thriving Communities Program, and other technical assistance opportunities at DOT that seek to ensure communities have the tools they need to access federal funding and financing for transformative infrastructure projects. Additional DOT technical assistance resources can be found on the DOT Navigator.