Public Infrastructure Financing: A Strategic Investment Approach September 25, 2013 By DJ Heffernan Daniel Heffernan Company.

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Presentation transcript:

Public Infrastructure Financing: A Strategic Investment Approach September 25, 2013 By DJ Heffernan Daniel Heffernan Company

Overview Infrastructure Financing Context Land Use Planning Constraints Private Investor Constraints Financing Tools/Constraints Strategic Investing 2

Infrastructure Investment Needs Washington State Infrastructure Grade: C on/washington-overview/ on/washington-overview/ Bond Banks: Supply Side Solution to Demand Side Problem Insert link on HH income to debt ratios OR stat on HH income loss 3

Land Use Planning Issues Plan Provides Strategic Vision but… Plan vs. Implementation: Regulatory Disconnect Where did the land go? Where did the capacity go? 4

Investor Constraints ROI Horizon Holding Costs Strategic Assets vs. Market Assets? 5

Financing Tools Washington State’s Tool Box Local Tool Box LID’s, Sales and Use Tax Districts Community Renewal Districts B&O Taxes 6

Financing Constraints Competing Demands: New Assets vs. Capital Maintenance The “We don’t have any loose change” Problem Impact Fee/Concurrency Dilemmas 7

Strategic Solutions Land Use: Define Strategic vs. Market Land Regulate accordingly Link land use plans to TIP Strategies Plan Investor Risks: ROI and Holding Costs Ports? Reserve Capacity? Tax Incentives? Knots? 8

Strategic Solutions Financial Public Dialog/Consensus on Strategic Infrastructure Investments (new vs. replacement assets) Reduce Private Sector Cap-rate for fees Get creative – use the tool kits! 9

Daniel Heffernan Company Contact Information: DJ Heffernan (503)