$15 Million to $
2 Billion in 5 Years |
|
Joint
Venture |
A JV Partner(s) paying $15 million to engineer, to build a 1/4 mile test track as a prototype, apply for public vote and market to industry partners to build a Development Consortium. |
Building a Consortia |
To promote a public vote for an $88 million Operating Demo Model of 5 miles of one way track in Denver's Platte Valley. |
Local Loops |
From $30 to $100 million for typical loops that are 3 miles of one lane Guideway. |
Interstate Highways |
Cost $1.8 billion for 126 miles of dual track. We show ridership needed for 15% average ROI over 25 years is 20,000 p/day |
Phase
I - Funding
A $15,000,000 joint venture for Airpark
Village will build a marketing program via
a web site for the public vote campaign and to market the sales model
to investment bankers, venture capitalists, pension funds and insurance
companies. We will present them this information with the
inclusion of designs and testing of our prototype, packaged operating
franchises, configuration of the Guideway, test vehicles, accounting firm for
feasibility studies, and other completed studies needed to attract additional capital
for a variety of transport ventures. Our goal for $15,000,000 is to capture the imagination of American business by marketing a development consortium of
industrial companies. We have several sites on which to build a $100
million operating model to compete for the multi-billion of dollars in projects
we have modeled.
Consortium membership targets start
with the travel industry since access is their life blood. Targets include
airlines, resorts, hotels, credit cards, aerospace, and trade associations. The
sales model will take one year for entitlements (approvals); one year to
engineer, one year to build. Then it can begin demonstrating to the many sales
opportunities shown in the routes chapter. Within 3 to 5 years, billions of
dollars in sales are our goal, Connecting airports by automated ground
transport may well be a viable solution to the approaching airport gridlock.
Why
Privatization
The federal government controls a monopoly on mass
transit that is no longer working. Ridership is not attracted to the old
traditional rail technology and only a centralized bureaucracy afraid of
downsizing is served by the $350 billion dollars spent on subsidies for light
rail. If bureaucratic style approaches to mass transit can only attract 2% of
the travel market then it is time to try privatization and legalize competition.
Automation is the huge factor in profit potential and this project will prove
the feasibility of this profit potential. Federal funding is only available on a
competitive basis and it takes matching funds to be considered Lately up
to 50% in matching funds are needed to secure federal funding. This project
should serve as a financial test-bed for establishing new financing techniques. The following pages illustrates this
idea using Colorado as a conceptual model. The routes shown herein have not yet
begun any entitlement process with any local government.
Our
Privatization Concept
Automation opens the door to significantly
greater net revenue and we believe this will be large enough attract
private sector capital as at least interim investors. And with low construction
costs of approximately $10,000,000 per mile for Automated Guideway transport
versus $40,000,000 per mile for widening Interstates, the economic climate makes
it less difficult to attract capital. Eventually government should be the
ultimate owner but not the builder/developer or operator. The type of financing
will depend on ridership. Using Colorado as an example, we see three demand
levels: 1. Large (Interstate Routes) 2. Medium (Metro Airport Connectors) 3 .
Small (local neighborhoods/resorts) Ridership fares can support the larger area
systems best. The I-70 resort system can fund its development thru bonds. And the alternative traditional government financing also
has about 1/3 more costs due to all the federal mandates and regulations that go
with federal funding.
Station
Financing
Each Station can
be financed in a variety of ways: as an income property for commercial
real-estate ventures, as Tax Increment Financed Stations or as Business Improvement.
Some neighborhood stations may purchase docking rights either from a
transit authority or the Business Improvement District (BID) valued at $500,000
per bay desired. This price, up to $ 5,000,000 for a very busy neighborhood can
be financed at a reasonable cost over 25 years. For example the $50 mil
cost spread over 1 million sq., ft of land area (about 10 city blocks) is
amortized at 5 cents per sf per month. The BID will provide each station with
the subscribed number of bays as a part of the total trackage built. Each
station could also be sold as a condominium with an undivided interest in the
common infrastructure shared by all (The local Loop). Each station may be
privately owned by one or more landowners and he shall have the exclusive
docking rights within a small radius for 25 years in exchange for building
the station. All landowners in the BID have a vote.
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