Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBOM All Public Finance
# of Projects: 1
100% of the Results

Background informationProject Created: June 13, 2017

Project Name: State Street (W. Lafayette, Ind) Redevelopment Project
Year in Operation: 2018
Sector: Transportation
Subsector: Roads
Status: Design / Construction
Type: Substantial Alteration of Existing Facility
Description: The State Street Redevelopment Project will modify traffic patterns on State Street through the Purdue University campus, and downplay the corridor’s historical use as a highway through‐route. The project will establish the corridor as a destination for residents, students and visitors, promoting multimodal travel, bike paths and pedestrian walkways, while improving safety for pedestrians, cyclists and drivers. The project is a DBFOM project being performed by Plenary Group American affiliate (headquartered in Australia), and claims to be the first US Availability Payment P3 Project to reach financial close where the winning partner's bid included a privately place bond with fixed credit speads. The project is billed as a Build-Operate-Transfer arrangement, with an established budget, developer guaranteed price and schedule for design and construction, with no availability payments coming from the public sponsor until the project is completed. The Developer is responsible for O&M during the term, including a 28-year pavement performance guarantee. In addition to substantial modification to State Street, the project includes Perimeter Parkways at Airport Road, McCormick Rd., W. Stadium Ave., Willisams St., and North and South River Roads.
Delivery Method as described in the country where it's located: Build Operate Transfer
Is the project still active: Yes
Comments:

Project Locations

Address: State St and U.S. 231
City: W. Lafayette
State: Indiana
Country: United States of America

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Long term commitment of Purdue University and City of W. Lafayette to make availability payments during the contract term - beginning after the completion of initial design and construction of the project by Plenary Group.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: Approximately $120 Million in total investment by Purdue University and City of West Lafayette. $60 M comes from the City's TIF 1, and $62.7 M from Purdue, via the Purdue Research Foundation, which backstops the development of TIF 2.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: Plenary Group placed $72.5 million in privately placed bonds to finance the initial design and construction of the project. This liability will be paid off through availability payments from the City and from Purdue over the 25 year term term of the BOT arrangement.

Checkbox Checked

From Producers as Equity: It is likely that Plenary Group has made an equity contribution. The amount is not known. Plenary Group was selected on Feb. 22, 2016. Governor Pence approved the project's PPP agreement on March 3, 2016, and Financial close was reached on March 15, 2016.

Project Delivery & Finance Method

Project Delivery:
Design Build Operate Maintain (All Public Finance). Public Sponsor contracts for initial design, construction, and for long term operations and maintenance with a single entity. At the end of the term, Public Sponsor regains control of the facility.
Is there an independant checking engineer? Yes
Project Finance Method: All By Public Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals
Design Build Operate and Maintain
X
X
Project Component
Yes
No
Is Negotiation of the Price Permitted After Selection of the Winner?
X
Is Negotiation of the Scope of Services Permitted After Selection of the Winner?
X
Are the fees (tolls) to be charged to users over the term an evaluation factor user in Selection of the Winner?
X

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
25
0
Forms
Description
Other
Negotiated between public sponsor and Plenary Group. Operations term is 22 years after project completion. 

Project Value (If and As Known)

Date of Estimated Project Value: June 17, 2016
Project Value
Hard Cost
Hard & Soft Costs
Pre-Feasibility (Public Sponsor Expense)
(none)
> $50 Million US
Construction
< $100 Million US
< $100 Million US
Total
< $200 Million US
< $200 Million US

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