PHOENIX – As it advances Governor Ducey’s initiative to expand high-speed internet across Arizona, the Arizona Department of Transportation is requesting input to inform potential public-private partnerships to install and-or operate broadband conduit along major interstate and highway routes.

Coordinating with the Arizona Commerce Authority, ADOT is exploring partnerships that would lead to the development of fiber-optic infrastructure across Arizona, creating more affordable opportunities for wired and wireless broadband connectivity in rural communities. Respondents have until mid-August to reply. ADOT encourages firms and other stakeholders to respond with information that would lead to a successful future request for proposal to expand connectivity along key interstate and state highway routes.

“Expanding fiber-optic connectivity along these corridors makes our highways safer and smarter while offering the potential for partners to help make rural Arizona a better place to live and do business,” ADOT Director John Halikowski said. 

“This project provides a foundation for significantly enhanced connectivity and tech-enabled infrastructure throughout Arizona, which will be critical for maintaining our state’s competitiveness in the global economy,” said Sandra Watson, Arizona Commerce Authority President & CEO.

In addition to the benefits to rural broadband connectivity, ADOT plans to use the fiber to provide “smart highway” technology such as overhead message boards, traffic cameras, weather stations and wrong-way driving detection technology. The infrastructure also will help lay the groundwork for emerging technology such as connected and automated vehicles. 

ADOT already has fiber-optic conduit along freeways in the Phoenix and Tucson areas, as well as a stretch of Interstate 10 near Eloy for a pilot dust detection and warning system. 

For more information, please visit P3 Initiatives. 

PHOENIX – Thanks to an innovative public-private partnership, construction is set to begin on turning the former site of a movie theater in Flagstaff into a new Arizona Department of Transportation facility while freeing up prime land for redevelopment.

The state’s first public-private partnership involving real estate brought together ADOT, the city of Flagstaff and Vintage Partners, a Phoenix-based development firm, to complete a three-way land swap that will result in a new ADOT North Central District headquarters and Motor Vehicle Division office.

“ADOT, Flagstaff and Vintage Partners all showed extraordinary perseverance to work through their own processes and requirements and get this project across the finish line,” ADOT Director John Halikowski. “This is a big win for the community and for ADOT’s customers.”

The idea for the project came about in 2012, when Flagstaff was looking for a way to complete two voter-approved road extension and realignment projects that ran directly through ADOT’s current complex on Milton Road. The ADOT office buildings, built in the early 1960s and 1970s, were outdated and inadequate, but ADOT did not have the budget for new facilities.

Using Arizona’s public-private partnership law, ADOT officials suggested swapping the Milton property for new facilities elsewhere in the city, freeing up the Milton land for redevelopment and the road improvements. Flagstaff also contributed a parcel adjacent to ADOT’s complex.

ADOT is scheduled to move into its new facilities at the end of this year at the former site of a Harkins Theatres location that relocated near the Flagstaff Mall as part of the deal. The site will house ADOT district offices, MVD and commercial driver license offices, and lab facilities.

The property of ADOT’s current offices on Milton Road will be redeveloped into student housing by Vintage Partners and allow Flagstaff to extend University Drive and reconfigure Beulah Boulevard, improving access through that part of town.

“This project is unique in Arizona and is one of only a handful of similar projects around the country,” said Gail Lewis, ADOT’s director of public-private partnership initiatives. “It showcases the creativity that can be brought to bear by bringing the public and private sectors together to solve problems.”

Due to the complexity of the transaction, the three-party agreement took five years to complete. After Vintage Partners built the new movie theater, the firm then had to develop a plan for ADOT’s current location on Milton Road and work with ADOT to plan the new facility.  Flagstaff had to approve all of the plans and permits for both the Milton property and the repurposed theater location.

For more information on public-private partnerships and ADOT, visit azdot.gov/P3. 

The Arizona Department of Transportation, in close collaboration with the Maricopa Association of Governments and the Arizona Division of the Federal Highway Administration, has selected the project delivery approach that will be used to construct the South Mountain Freeway in the event that the Final Environmental Impact Statement indicates a preferred alternative rather than the no-build option. The South Mountain Freeway will be procured as a single project using a public-private partnership approach. The Design-Build-Maintain delivery mechanism will include a long-term maintenance component but will not include a private finance option.

This decision was made after more than a year’s worth of analysis following the submission of an unsolicited proposal. The submission provided an opportunity for ADOT to explore several ways of delivering the project in the event the federal environmental impact process recommends a preferred alternative. This extensive analysis considered a traditional design-bid-build approach, several design-build options, and public-private partnership (P3) alternatives including those with maintenance options, private finance options, or both. Using a Value for Money approach, ADOT and its partner agencies determined which approach would provide the best value for Arizona taxpayers, which would allow the agency to mitigate risk most effectively, and which would provide the most efficient delivery option.

Nothing in this selection impacts the Final Environmental Impact Statement.  No further procurement activities will move forward until the Final Environmental Impact Statement is released in mid to late September. Following the release of the Final Environmental Impact Statement, if it recommends a build alternative, ADOT will release a Request for Qualifications. This will serve to notify the industry of the qualifications that ADOT and its partners are seeking in potential bidders. Responders will have approximately six weeks to submit their required qualifications and will be notified approximately four weeks later of those firms or consortia of firms that are selected for the short list of potential bidders.

PHOENIX – The Arizona Department of Transportation has released a Request for Information related to the proposal to construct the South Mountain Freeway as a public-private partnership, if the freeway is approved through the ongoing federal environmental process.

Those with an interest in the public-private partnership proposal are encouraged to submit responses to outlined questions to ADOT’s Office of P3 Initiatives by Feb. 25. Comments should focus on the construction of the proposed South Mountain Freeway as a public-private partnership, with an emphasis on procurement methods and structure of a public-private partnership arrangement.

The purpose of this Request for Information is to seek the industry’s perspective and feedback on specific questions, and to provide an opportunity for industry input on the overall procurement process for the proposed project. Interested organizations and individuals are encouraged to submit responses with detailed comments. The information contained in the responses to this Request for Information will help ADOT advance planning and development efforts for the project; help confirm or refine ADOT’s project procurement, financing and delivery approach; and may result in the launch of a formal Request for Proposals.

A forum for industry representatives will be held from 10 a.m. to noon Feb. 27 in the ADOT Auditorium, 206 S. 17th Ave. in Phoenix. Seating for the industry forum is limited, and reservations should be made by contacting [email protected].

This Request for Information is the next step for the unsolicited public-private partnership proposal submitted to ADOT in 2013 – the first unsolicited proposal for a highway public-private partnership submitted to the agency. Under state law, ADOT is required to conduct a review of the proposal before deciding if the concept merits an open solicitation for other companies to submit competitive proposals.

The South Mountain Freeway remains a corridor under study, and this public-private partnership proposal has no impact on the ongoing environmental impact statement that is scheduled to be finalized in 2014. The environmental impact statement must be completed and acceptable to the Federal Highway Administration regardless of how the proposed project is funded or constructed.

Public-private partnerships allow a private-sector entity to participate in the delivery of a transportation project. ADOT has authority to partner with the private sector to build or improve Arizona transportation facilities.

Submissions to the Request for Information for the South Mountain Freeway and RSVPs for the industry forum can be submitted electronically to [email protected].

For more information on ADOT’s public-private partnership program, or for a copy of the Request for Information, visit azdot.gov/P3.

PHOENIX – The Arizona Department of Transportation’s 14 rest areas will now be managed under one contract under the agency’s first active public-private partnership. The contract, which takes effect Oct. 1, will mean a better experience for travelers at the rest areas, and will generate additional revenue for ADOT that will help fund highway projects.

Under the five-year agreement, Infrastructure Corporation of America, a private company, will take over the maintenance and operations of all 14 rest areas and will also implement a sponsorship and advertising program to generate revenue. ADOT will continue to own all 14 rest areas.

Previously, ADOT managed and maintained all of the rest areas under 14 separate contracts with a private company. ADOT’s new contract with Infrastructure Corporation of America streamlines the process and provides travelers with quality service from a company well versed in rest area facilities and upkeep.

“I am pleased to see ADOT’s first public-private partnership get underway,” said ADOT Director John Halikowski. “This project shows that it’s possible to fund transportation projects with non-traditional funding sources. This partnership is an innovative approach to both business and transportation in which everyone benefits, especially those who use Arizona’s rest areas. Public-private partnerships are becoming more common in moving transportation projects forward as transportation funding decreases, both in Arizona and on a national level.”

The current rest area caretakers will be retained as part of this public-private partnership.

As part of the contract, Infrastructure Corporation of America will be able to pursue new amenities at the rest areas to provide a more comfortable experience for travelers. New features could include Wi-Fi access, dog-walking areas, charging stations for electric vehicles and ATM machines. The contract also calls for on-site staff at the rest areas for 16 hours a day.

Travelers will notice advertising signs in the rest areas and sponsorship signs along the highways leading up to the rest areas, which will generate revenue for both ADOT and Infrastructure Corporation of America. The vending machines will remain. The contract does not include adding food and beverage shops within the rest areas. Under federal law, ADOT is prohibited from adding restaurants and stores to rest area facilities.

Under the rest area contract, ADOT is guaranteed at least $1 million over the next 10 years from revenues generated from advertising and sponsorships. That money will go into the State Highway Fund for other transportation projects. This new contract will allow ADOT to better track and manage costs at the rest areas, and will enable the agency to focus on its core business of building and maintaining highways.

For more information about ADOT’s P3 program, go to azdot.gov/P3.

PHOENIX —The Arizona Department of Transportation is set to relocate to new offices in Flagstaff as part of a first-ever public-private partnership designed to acquire new facilities for the agency and free up prime land for local redevelopment.

ADOT recently selected Vintage Partners, an Arizona-based development firm, as the developer that will relocate and consolidate the agency’s offices in Flagstaff. This project, also known as a P3, will enable ADOT to move into new office space in Flagstaff, including new Motor Vehicle Division offices, at no cost to the department, in exchange for ADOT’s existing property at 1801 S. Milton Road.

The project is the first to get under way through ADOT’s public-private partnerships program, which enables the department to work with the private sector to bring projects forward by using private sector funding or expertise, or alternative procurement methods.

“This project is a great example of the value that a public-private partnership can bring to ADOT and the Flagstaff community, while creating a situation that benefits everyone,” said ADOT Director John Halikowski. “It shows how we worked through the challenges. Due to a lack of transportation funding, ADOT would not have been able to accommodate the city’s need for relocation or obtain new facilities to replace its 55-year-old workplace. Now, not only is the city able to proceed with its roadway improvements, but the project also opens up prime commercial property for redevelopment.”

The P3 project was initiated due to the need identified by the city of Flagstaff to improve roadways in the immediate area. The city partnered with ADOT throughout the process, adding city-owned property adjacent to ADOT’s property on Milton Road to the deal to create an 18-acre parcel at the corner of Milton Road and the city’s planned extension of University Drive. The city will provide available funds to extend University and reconfigure Beulah Boulevard, improving access through that area of Flagstaff.

ADOT and the city of Flagstaff negotiated with Vintage Partners, which led to a decision to move into a repurposed building at 1959 S. Woodlands Village Boulevard, currently the site of the Harkins Theatre. Harkins is continuing to evaluate locations on which to build a new expanded state-of-the-art cinema in Flagstaff. Once the deal is final, the existing theatre will be repurposed to house the Motor Vehicle Division’s offices, as well as ADOT’s Flagstaff District headquarters, construction sections, and two laboratories. 

Upon successful delivery of the new facilities, Vintage Partners will take ownership of the existing ADOT and city parcels and redevelop the land for commercial, retail, and possibly residential uses. Vintage will follow the regular city zoning and approval processes.

“We are very pleased to be working with ADOT and the developer on this exciting P3 project that will provide new MVD facilities, realign University Avenue, extend Beulah Boulevard, redevelop a major property along Milton Road, and provide other development activities,” said Jim Cronk, city of Flagstaff planning director. “We are looking forward to a successful effort to bring this project to reality for the benefit of both the private and public sectors.”

It is expected to take three to five years for all portions of this P3 project to be completed, since the project involves Harkins’ move to a new location, extensive renovation of the existing Harkins building, and the construction of the roadway improvements.

This is the first public-private partnership for ADOT since being granted legislative authority in 2009. Designed to reduce costs, explore creative solutions to funding challenges facing ADOT, and work more closely with private industry, public-private partnerships are being considered for a range of projects and services the agency provides. 

For more information, visit www.azdot.gov/P3.