$15 Million Colorado AGT Development Consortia 

Consortia are groups of companies pooling resources to jointly pursue large scale opportunities such as AGT (Automated Guideway Transport) in research and product development. By working in strategic partnerships, these companies can leverage their research into more development opportunities plus realize savings in production. With today’s costs, going it alone is less viable. Over the past 10 years federal & state government sponsored over 1000 consortia. Examples abound such as Covisint was started by a collection of the world's largest automakers, including DaimlerChrysler, Ford, General Motors, Nissan, and Renault. In the aerospace industry, Exostar started out with companies such as BAE Systems, Boeing, Lockheed Martin, and Raytheon that are used to handling multibillion-dollar defense contracts. Transora started with a who's who of the consumer products industry: Coca-Cola, Eastman Kodak, General Mills, Gillette, Johnson & Johnson, Kellogg, Kraft Foods, Nabisco, PepsiCo, Proctor & Gamble, and Sara Lee. The Seattle monorail team, http://www.teammonorail.com/ has established a consortia for its project.

SmartSkyways is proposing a Colorado AGT consortium that funds and builds the 5 mile Platte Valley operating  demo as an $88 million test track growing into a state model. This project will develop the technology, financing and management for future routes in Colorado worth billions. These members get  strategic partnerships to supply the products/services used in the demo configuration and in future sales.         

Propulsion Systems               
Credit Cards processing 
Voter Campaigns
Travel Reservations              
Cargo Integration
Underwriting Docs              
Station Development
Economic Feasibility
Power Distribution
Raw Concrete & Steel 
Money Management
Guideway Fabrication
Seat Laptop Advertising
Vehicle Assembly
Automation Systems
Construction Management

First Project

Funding is estimated at $88 million in revenue bonds and equities that maximize the return to investors. This demo route links up to 30,000 parking spaces in the Platte valley  to downtown, event centers, AHEC campus and regional connections. A 50% parking occupancy generates estimates of  22,000 riders per day returning a 15% (average per year) over 25 years before taxes. Winning a public votes puts the consortium in business to raise private sector funds.

Phase I Operating Demo Assumptions

  $1 per day for unlimited ridership 
3.5% annual growth rate
$3 per day parking for 12,000
4% royalty to Smartskyways
22,000 daily ridership to start   
25% operating costs 
3% replacement costs

Other Markets

America is hungry for next generation solutions to congestion with more than 100 transport opportunities on the drawing boards and seeking funding. We see a “New Economic Model for America” that generates trillion dollar markets in both AGT and pedestrian villages. AGT initial buyers will be malls, campuses, resorts, office parks, airports, attractions and others that have need of a lower volume, and in expensive, pedestrian circulator. But the metro circulators offer the added feature of pedestrian villages and thus the greatest returns.                             

Marketing Plan
There are many active situations where we can submit a proposal. These are markets we are studying and feel there is opportunity.

Winter Park
Grand Canyon
St Thomas
Myrtle Beach
Ft Lauderdale

The Operating Demo and Sales Model
Once we have public approval for the operating demo ROW (rights-of-way), we will need  to apply to the municipalities involved for a building permit.  In two years, perhaps sooner, we will need the  $88 million. The joint venture partner may provide all additional financing or may choose to utilize a development consortia method. 

When  the joint venture provides the minimum capital backing , we will make an offer to the the Platte Valley Landowners, to serve as our demonstration model. This will be on the route of our choice in exchange for rights-of-way. Within one year, recipient must conduct a vote to authorize the system. We reserve the right to  charge  fares of our own choosing, profits can be made on a daily pass of $1.00 for unlimited daily ridership. During this same period we will operate and conduct off-hours testing and use the system as a demonstration model for future sales.







Guideway, Propulsion, Site prep- 5.5 miles  


Vehicles (300) six passenger  @ $68,000 ea  


 Track and power Pick Up  
  $2,480,000 Electrical Power Distribution  


Automation Controls  


12 stations + 4400' ramps + maint. facility  


Admin, local agreements, ROW, planning, $88 Million purchases


Design, Engineering, Supervision 85% Ownership


General Conditions and Tweaking.  


Contingency at 9%  


Underwriting fees @ 6%  


Working Capital @5%  


Provided by  Private Investors  

Platte Valley Proposed Local Loop Demonstration Model

The Platte Valley has 30,000 parking spaces built for the venues: football, basketball, baseball, Aquarium and other entertainment uses. These are virtually empty during the day and could be used as a parking reservoir for downtown's 110,000 employees and 183,000 daily visitors. Today downtown has 48,200 parking spaces averaging $6 per day with nearly 60% of these people arriving by car. This demo will charge $3 per day for parking and $1 p/d for unlimited use and pay the parking lot owners 50% of the parking's net income amounting to a windfall.




A $3.5 Billion Colorado Backbone Network of 300 miles and the Consortia
The Consortia  charges a minimum of 3% mark up to get its capital returned with a minimum 3% royalty over 25 years to operate each route and give the route investors  up to 97% of the profits. These route all require a public vote. We  plan to sponsor routes where we can generate early support:                    

          Route                       Cost            3% of Construction        % Royalty-25 yrs

          DTC Local Loop        $55 mil             $  1.65 mil                   $  13.7 mil

          Platte Valley Loop      $88 mil             $  3.0 mil                     $  26.2mil

          DIA Loop                    $60 mil             $  1.80 mil                   $  21.7 mil

          Interstate – 70            $1.8 Bil            $54.00 mil                   $279.6 mil

          Interstate –25             $1.8 Bil            $54.00 mil                   $120.0 mil*             

                                             $3.8 Bil             $114.5 mil                  $461.2 mil (before Taxes)

Membership Benefits

The initial capital of $12 million from  Consortia partner(s) would be entitled to 75% of these figures  and our management team would earn  a 25% profits interest.  We hope to win a preliminary vote that will authorize a demonstration model, but each route would still have to be packaged, voted on and financed separately. Although we are demonstrating how transport could earn profits (estimated 9% to 12% after taxes) instead of requiring subsidies, it is still not an easy sell. That is why the demonstration model is key. The initial $88 million investment can also be rolled over dozens of  times and used to build small local loops. These Consortium funds will provide for a the sales model to be built in the Platte Valley,

The joint venture partners will market membership  to form a development consortium that builds the sales model and then other routes. The cash flow profit  potential  shown above is more than $880 million in royalties (over 25 years) from $3.2 billion in front range projects.. Consortium members will share future development expenditures but will not share in the profits from the initial capital joint venture. Consortia membership may take the form of general partnerships. Our financing model shows the level of business needed for the joint venture to earn the royalties shown above over 25 years on a Colorado full build out of 300 miles. 

Consortium Members as General Partners:
The Joint Venture will offer alliances to be formed under Colorado law that give exclusive rights to provide services and components for each member. Targets for the consortium.  Members will not be entitled to a  share of the earnings, tax benefits, and cash flow of the Joint Venture . A take out strategy may be triggered when the Consortium grows into financing any line haul system as a shareholder corporation in Phase Three. The Consortium collectively will have  options for a preferred percentage of any new public offering  such as any Interstate system or other opportunities describes in Routes.

The Managing Partners: The Joint Venture Managing Partners will be Smart Skyways LLC and the initial joint venture partner Smart Skyways LLC will be a for profit Limited Liability Corporation whose stock is held by the founders/principles and by designers. The Managing Partners are contributing three assets to the partnership: 1) administrative experience in transit matters. 2) a new transit technology business plan. 3) a prototype on-line global voting and information service. The Managing Partners have the authority to act on behalf of the partnership for all management and administration of the partnership’s affairs. An incentive royalty of 3% annually of gross revenues for   any operating system will be shared by all management including future management.

Cash Flow -Tax Benefits



Smart Skyways LLC

  25% Profits interest


Development Consortium






Main Compensation for Consortium: The main source of revenues to the consortium members will be a split of  the sales for our Skyways Technology. In addition, an amount of any public offering shares will be allocated to the Consortium members if a public offering is made. The Managing Partner may also convert into a prorate percentage (as is their 25% profits interest) in the outstanding shares of any Public Offering at the time of conversion. If the funding of Phase Three does not occur, there will be no buyout.

Dissolution and Termination: The Joint Venture will remain active after formation of the first operating system for Colorado and will resell the technology (and packaging of the privatization methodology, management, etc.) to other communities world wide. The Development Consortium will be the permanent vehicle for commercializing  Automated Transport.

Investor Targets: This could be a community partnership of business and industry. Those that will benefit the most from sponsoring the project: airlines, hotels, car rental, travel agencies, airports, railroads, banking, attractions, resorts, retail, civic organizations, transit agencies, and airports

Board of Directors: Each investor (with a minimum of $5 million) will offered a director seat on the board that plans the project. From this group of directors a candidates will be selected for the subsequent Board of Directors for other franchises.

Subordination: Management requires a non taxable event to enter  this joint venture. If  required by tax laws, the managing partners will subordinate their interest in profits to a maximum per annum payment to each investor in the amount of capital invested. This will include subordination of assets so that the joint venture partners will own all of the assets until they receive the minimum agreed return on their investment.

Agreement of Joint Venture: This Summary should be read in the context of the General Partnership Agreement, which shall govern the operation of the Partnership and the rights and obligations of the Partners there under.

  Land Banking Optional ($60 Million)
This includes a series of convertible debentures promissory notes from early investors that who may want to assemble  land used for infrastructure, such as  the station stops.  Terms of the notes will include designer bond (a three year, zero coupon, with the right to convert in the later public offering at a preferred rate). Land  will be offered as collateral.