1. EMPLOYMENT TRANSPORTATION Joblinks Initiative TRANSIT AND COMMUNITY REVITALIZATION: A NATURAL PARTNERSHIP Community Transportation Association of America June 2, 2008 Barry M. Goodman Presented by: The Goodman Corporation CTAACTAA EXPO 2008

2.  Transit Demand & Ridership are Increasing Dramatically along with the price of Gas  Gas Taxes that fuel the Federal Trust Funds, not increased since 1991, are Being Outstripped by rising construction & maintenance costs  Transit Systems in Small Urban & Rural Areas require Improved Equipment & Subsidies to cope with Demand  National & State Leaders are Still in Denial regarding the Impact of $3…$4…$5 per Gallon Gas  Transit & Communities Need to Work Together to create Added Value, Sustainability, & Economic Development through Transit  Transit Demand & Ridership are Increasing Dramatically along with the price of Gas  Gas Taxes that fuel the Federal Trust Funds, not increased since 1991, are Being Outstripped by rising construction & maintenance costs  Transit Systems in Small Urban & Rural Areas require Improved Equipment & Subsidies to cope with Demand  National & State Leaders are Still in Denial regarding the Impact of $3…$4…$5 per Gallon Gas  Transit & Communities Need to Work Together to create Added Value, Sustainability, & Economic Development through Transit Can Transit Meet the Challenge of the New Gas Age?

3. Federal Gas Tax Facts Date Tax Rate in Cents Per Gallon Purpose General Revenues Highway Account Mass Transit Account Other Trust Funds Jun 21, 19321.0 Jun 17, 19331.5 Jan 1, 19341.0 Jul 1, 19401.5 Nov 1, 19512.0 Jul 1, 19563.0 Oct 1, 19594.0 Apr 1, 19839.0 8.01.0 Jan 1, 19879.1 8.01.00.1 Sep 1, 19909.0 8.01.0 Dec 1, 199014.12.510.01.50.1 Oct 1, 199318.46.810.01.50.1 Oct 1, 199518.44.312.02.00.1 Jan 1, 199618.34.312.02.0 Oct 1, 199718.4 15.442.860.1

4. Date Percent Distribution of Gasoline Tax Revenues Since 1983 General RevenuesHighways Mass Transit Account Other Trust Funds Before 1983 100.0% Apr 1, 1983 88.9%11.1% Dec 1, 199017.7%70.1%10.6%0.7% Oct 1, 199337.0%54.3%8.2%0.5% Oct 1, 199523.4%65.2%10.9%0.5% Jan 1, 199623.5%65.6%10.9% Oct 1, 1997 83.9%15.5%0.5% Federal Gas Tax Facts - Usage

5. Communities & Transit Can Work Together Toward Mutually Beneficial Objectives  TRANSIT can Capture & Utilize Value provided within the Communities they Serve  Communities can benefit by using TRANSIT as a Tool for Community Revitalization  The Private Sector can use TRANSIT to Create More Value for their Developments  TRANSIT can Capture the Value of Private Sector Development  Partnerships = Increased TRANSIT Use + Economic Gain  TRANSIT can Capture & Utilize Value provided within the Communities they Serve  Communities can benefit by using TRANSIT as a Tool for Community Revitalization  The Private Sector can use TRANSIT to Create More Value for their Developments  TRANSIT can Capture the Value of Private Sector Development  Partnerships = Increased TRANSIT Use + Economic Gain

6. Livable Communities Initiative Improvements Before

7. Livable Communities Initiative Improvements Partial After

8. Livable Communities Initiative Improvements After

9. Livable Communities Initiative Improvements The Woodlands Town Center Water Taxi Galveston Island Rail Trolley Stop The Woodlands Town Center Waterway El Paso Union Plaza Transit Terminal/Parking Facility Photo Credit: Rosenblum

10. “Innovative Transit University” Downtown Intermodal Transit Terminal Parking/Retail Main Street Corridor Developer-Owned Land Park & Ride Private Sector Suburban Community CDBG Eligible LCI I mprovements 1,500’ City-Owned Land Public Improvement District Community of Innovative Transit Community of Innovative Transit LCI I mprovements 500’

11. Letter of No Prejudice (LONP) Capital Cost of Contracting (CCC) FTA Livable Communities Initiative (LCI) Value Capture Use of Overmatch Retail/Parking Revenues Sale of Air Rights Public Improvement District Federal/Federal Match Letter of No Prejudice (LONP) Capital Cost of Contracting (CCC) FTA Livable Communities Initiative (LCI) Value Capture Use of Overmatch Retail/Parking Revenues Sale of Air Rights Public Improvement District Federal/Federal Match Available Tools Innovative Transit Innovative Transit

12.  FTA Sections 5307 & 5309  FTA/FHWA Capital Development Funding  City Public Works Bond Program  City Community Development Block Grant (CDBG) Economic Development Funding  Developer-Owned Property  Public Improvement District  City-Owned Property  FTA Sections 5307 & 5309  FTA/FHWA Capital Development Funding  City Public Works Bond Program  City Community Development Block Grant (CDBG) Economic Development Funding  Developer-Owned Property  Public Improvement District  City-Owned Property Available Funding & Resources Innovative Transit Innovative Transit

13. 3-Year Capital Improvement Program Downtown Transit Terminal Suburban Park & Ride Lot (300 Spaces + Station) Park & Ride Transit Vehicles Main Street Transit Corridor Transit Parking General Parking Retail Space 150 spaces 20,000 sq. ft. Transit Terminal Construction Land Value (City-Owned) $5,000,000 $720,000 $5,720,000 Lot Development Developer Land Value $1,200,000 $300,000 $1,500,000 Vehicles (5 Over-the-Road @ $300,000 each) $1,500,000 LCI Improvements (30 Block Faces @ $100,000 each) Total Cost $3,000,000 $11,720,000 $1,260,000 $12,980,000 3-Year P&R Operating Cost (Deficit) Total Funding Required Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System (City-owned)

14. StakeholderResourceFY2007FY2008FY2009Total FTASection 5307$1,000,000 $3,000,000 FTASection 5309$2,000,000 $6,000,000 CityPublic Works/CDBG$500,000 $1,500,000 CityProperty Value-$720,000 (1) -$720,000 DeveloperProperty Value-$300,000 (2) -$300,000 TransitRetail Revenues$140,000 $140,000 (3) $420,000 TransitParking Revenues$112,500 $112,500 (4) $337,500 Stakeholders & Resources FY2007-2009 (1) Value based on 60,000 sq. ft. @ $12 per sq. ft. (2) Value based on 5 acres @ $60,000 per acre (3) Value based on $7 per sq. ft. x 20,000 sq. ft. (4) Value based on 150 spaces x $3 x 250 days Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System

15. Traditional Financial Approach Capital Program (FY2007-2009) Federal Resources (FY2007-2009) Local Resources (FY2007-2009) Federal (80%) Local (20%) Total Shortfall Net Operating Cost (Deficit) $9,376,000 $2,344,000 $11,720,000 Federal Local $3,000,000 $6,000,000 $9,000,000 $1,500,000 $757,500 $2,257,500 Total Shortfall $1,800,000 $540,000 FTA Section 5307 FTA Section 5309 Public Works/CDBG Terminal Parking & Retail Revenues Total Cost (Park & Ride) Farebox Revenue (30%) Operating Program (FY2007-2009) Total Capital Shortfall ($376,000) ($86,500) ($462,500) ($1,260,000) Total Local Cash Shortfall (City Subsidy) Total Operating Shortfall ($1,722,500) Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System

16. $1,500,000 $757,500 $2,257,500 Summary of Traditional Financial Approach Capital Development Available Federal Utilized Available Local Total Shortfall $9,000,000 (5307 + 5309) ($376,000) All (Public Works/CDBG) (Terminal Parking & Retail Revenues) Utilized ($86,500) ($462,500) Total Capital Shortfall Park & Ride Operations 3-Year Net Operating Cost Available Federal* Available Local Value Available Local Cash Available Terminal Revenues $1,260,000 $0 ($1,260,000) ($1,722,500) Total Local Cash Shortfall *Federal money used for capital development of facility Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System

17. Innovative Financial Approach Downtown Transit Terminal Total Cost Federal Share (80%) Local Share (20%) Land Value Net Local Cash Required $1,500,000 ($424,000) $1,076,000 Remaining Public Works/CDBG Funds Suburban Park & Ride $1,500,000 $1,200,000 $300,000 $1,144,000 $720,000 $5,720,000 $4,576,000 $424,000 Public Works/CDBG Funds Less Local Share Requirement Total Cost Federal Share (80%) Local Share (20%) (Donated Land) Net Local Cash Required $0 Great Main Street (LCI) Total Cost Federal Share (80%) Local Share (20%) $3,000,000 $2,400,000 $600,000 Net Local Cash Required $0 Public Works/CDBG Funds Less Local Share Requirement $1,076,000 ($600,000) $476,000 Remaining Public Works/CDBG Funds Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System

18. Innovative Financial Approach P&R Buses—Don’t Purchase—Use Turnkey Approach & FTA Capital Cost of Contracting Operating Program Private Turnkey (3 Years) Total Operating Cost Farebox Revenue Net Operating Cost $1,800,000 $540,000 $1,260,000 FTA Capital Cost of Contracting (40%) Net Remaining Cost $720,000 $540,000 (over 3 years) Remaining Local Resources Public Works/CDBG Terminal Parking & Retail Revenues $476,000 $757,500 Net Local Resources Less Operating Requirement $1,233,500 ($540,000) $693,500 Remaining Funds Total Federal Resources $8,896,000 Remaining Federal Funds $104,000 Total Surplus $797,500 Community of Innovative Transit – Small Urban System Community of Innovative Transit – Small Urban System

19. The Goodman Corporation Presented by: Barry M. Goodman President www.thegoodmancorp.com