Arizona Department of Transportation Office of the Director ~ /::\CCT 206 South Seventeenth Avenue Phoenix, Arizona 85007-3213 Janice K. Brewer John A. Bogert Governor Chief of Operations John S. Halikowski December 13, 2010 Director John McGee Executive Director for Planning & Policy The Honorable Janice K. Brewer Governor, State of Arizona The Honorable Robert Burns President, Arizona State Senate The Honorable Kirk Adams Speaker, Arizona House of Representatives Members of the Legislature, and Citizens of the State of Arizona Pursuant to the requirements of Title 28, Chapter 21, Article 5 Arizona Revised Statutes, I am pleased to present the 2010 Annual Report for the Highway Expansion and Extension Loan Program (HELP). To date, 63 HELP loans have been approved with a total approved loan amount in excess of $665 million. Of the approved loans, 51 loans have been fully repaid with loan repayments totaling over $536 million. As loans are repaid, the funds become available to fund additional transportation projects. Though the HELP program is meant to be a funding tool to accelerate needed highway projects throughout the state, no new loans were approved during the year. Board Funding Obligations (BFOs) are an important part of the HELP capitalization and the current stress on the State's General Fund has impacted our ability to use BFOs as a funding source for new loans. Though $140 million of BFOs are authorized by statute to capitalize the HELP, the State Treasurer was required to call all outstanding BFOs in April 2009. Consequently, the State Transportation Board and the Department have suspended the HELP program given the uncertainty of a longterm funding source. Despite the funding challenges, the State Transportation Board, HELP Advisory Committee and Department staff look forward to continuing to assist with the financing of important highway and transit projects in the coming years. Sincerely, J&f!~ TABLE OF CONTENTS Page/ s INTRODUCTION 1 2010 HIGHLIGHTS AND LOANS 2 FINANCIAL CONDITION OF HELP FUND 3 - 13 HELP PROJECT LOCATION MAP 14 - 15 ¡ INTRODUCTION The Highway Expansion and Extension Loan Program (HELP) provides the state and its communities with an innovative financing mechanism to accelerate the funding of transportation projects. This mechanism is referred to as a State Infrastructure Bank (SIB) and was initially authorized by Congress in 1995. A SIB operates like a bank by providing loans or credit enhancement for eligible projects. HELP, Arizona’s SIB, was established in 1998, and is operated under the authority of the State Transportation Board. A seven member HELP Advisory Committee accepts loan applications, reviews and evaluates requests for financial assistance, and makes recommendations to the State Transportation Board on loan and financial assistance requests. The current members of the State Transportation Board are: Robert Montoya, Chair William Feldmeier, Vice Chair Felipe Andres Zubia Barbara Ann Lundstrom Victor Flores Stephen Christy Kelly Anderson Flagstaff Prescott Avondale Nogales Phoenix Tucson Maricopa The current members of the HELP Advisory Committee are: John Halikowski, Chair ADOT There are currently six vacant positions on the HELP Advisory Committee (two each appointed by the Governor, Senate President and House Speaker). 1 2010 HIGHLIGHTS HELP continues to be among the most active State Infrastructure Banks in the nation. The Federal Highway Administration (FHWA) collects loan activity data from the states and periodically publishes this information. As of the September 30, 2006 SIB loan activity report (the latest data available from FHWA), HELP ranked: • • • fourth in total number of approved loans (60); third in total amount of approved loans ($657 million); and second in loan amounts disbursed to recipients ($512 million). As a result of the repayment of all outstanding Board Funding Obligations in April 2009, no new HELP loans were approved in 2010. During the year, five of the previously outstanding loans were paid in full, and loan principal repayments totaling $15 million were received. 2 FINANCIAL CONDITION OF THE HELP FUND Arizona Department of Transportation Highway Expansion and Extension Loan Program Fund Statement of Net Assets For the fiscal years ended June 30, 2010 and 2009 (Unaudited) 3 FINANCIAL CONDITION OF THE HELP FUND Arizona Department of Transportation Highway Expansion and Extension Loan Program Fund Statement of Activities For the fiscal years ended June 30, 2010 and 2009 (Unaudited) 4 5 7/21/2000 12/18/2000 1/19/2001 Buffalo Soldier Trail 7th St. to SR 90 Salome Road Centennial Wash SR 260, Pinetop to Hon-Dah Construction Reconstruction Reconstruction Reconstruction CITY OF SIERRA VISTA LA PAZ COUNTY ADOT SANTA CRUZ COUNTY South River Road 5/19/2000 Various projects state wide Design, Right of Way ADOT 1/19/2001 3/17/2000 Center Street Construction TOWN OF CHINO VALLEY 2/18/2000 SR260, Show Low to Pinetop Reconstruction ADOT LOAN APPROVAL PROJECT LOCATION PURPOSE OF LOAN PROJECT SPONSOR 3.11% 2.93% 2.93% 4.00% 3.46% 4.50% 2.93% INTEREST RATE* $1,150,000 $8,400,000 $2,000,000 $1,970,000 $5,707,000 $300,000 $5,664,000 MAXIMUM LOAN Jan-07 May-03 Jan-04 Jun-03 Mar-04 Jan-05 Feb-02 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 STATEWIDE LOANS HIGHWAY EXPANSION AND EXTENSION LOAN PROGRAM (HELP) $643,827 $6,038,856 $1,448,568 $1,970,000 $5,165,861 $300,000 $4,666,837 DRAWS TO DATE Paid in full 09/27/2005 Paid in full 05/20/2003 Paid in full 05/31/2002 Paid in full 06/13/2003 Paid in full 03/16/2004 Paid in full 01/11/2005 Paid in full 02/25/2002 OUTSTANDING LOAN BALANCE 6 09/21/2001 1/18/2002 SR89A, Glassford Hill Section Rose Road & Sullivan Street Design, Right of Way Reconstruction TOWN OF MIAMI CITY OF YUMA ADOT Reconstruction TOWN OF PAYSON 5/18/2001 SR 260, Christopher Creek 6/15/2001 Reconstruction ADOT 5/18/2001 Paper Mill Road I-8, Giss Parkway - Redondo Drive TI Reconstruction TOWN OF TAYLOR 4/20/2001 Ave. A, 40th Street to Desert Avenue Reconstruction Reconstruction CITY OF YUMA 3/16/2001 Naha 'Ta' Dziil Rd Sanders TI 6/15/2001 Design ADOT LOAN APPROVAL PROJECT LOCATION McLane Road PURPOSE OF LOAN PROJECT SPONSOR 2.20% 1.76% 1.77% 3.56% 2.85% 3.42% 1.65% 3.32% INTEREST RATE* $80,000 $3,216,000 $2,000,000 $1,100,000 $41,900,000 $1,000,000 $1,000,000 $1,000,000 MAXIMUM LOAN Jun-05 Sep-03 Jul-06 Jul-06 Jul-05 Jun-05 Dec-06 Jan-05 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 STATEWIDE LOANS $80,000 $2,031,264 $2,000,000 $1,100,000 $37,678,400 $1,000,000 $1,000,000 $1,000,000 DRAWS TO DATE Paid in full 06/02/2005 Paid in full 09/17/2003 Paid in full 07/05/2006 Paid in full 06/30/2006 Paid in full 06/22/2005 Paid in full 06/02/2005 Paid in full 12/05/2006 Paid in full 01/20/2005 OUTSTANDING LOAN BALANCE 7 PURPOSE OF LOAN Construction Construction Construction Right of Way Design Reconstruction Reconstruction Construction PROJECT SPONSOR ADOT ADOT YAVAPAI COUNTY ADOT ADOT GILA COUNTY GILA COUNTY GILA COUNTY 4/19/2002 3/15/2002 SR 95, Parker to Lakeside Six Shooter Road and Bridge 3/15/2002 US 60/SR 79 Traffic Interchange 4/19/2002 3/15/2002 SR 89A, Glassford Hill Section Six Shooter Canyon Road 3/15/2002 Avenue 3E Traffic Interchange 4/19/2002 3/15/2002 SR 89A, Glassford Hill Section Fossil Creek Road LOAN APPROVAL PROJECT LOCATION 3.12% 1.81% 1.43% 1.14% 1.56% 1.83% 0.86% 1.35% INTEREST RATE* $487,500 $600,000 $1,237,500 $500,000 $4,000,000 $4,500,000 $9,900,000 $13,855,000 MAXIMUM LOAN Dec-08 Jun-08 Mar-09 May-05 Oct-04 Jun-05 Aug-04 Oct-04 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 STATEWIDE LOANS $487,500 $600,000 $1,237,500 $500,000 $2,691,459 $4,500,000 $9,900,000 $13,855,000 DRAWS TO DATE Paid in full 12/05/2008 Paid in full 06/13/2008 Paid in fill 03/19/2009 Paid in full 05/19/2005 Paid in full 10/19/2004 Paid in full 06/06/2005 Paid in full 8/19/2004 Paid in full 10/19/2004 OUTSTANDING LOAN BALANCE 8 PURPOSE OF LOAN Construction Construction Reconstruction Design Construction Construction Construction Reconstruction PROJECT SPONSOR ADOT YAVAPAI COUNTY CITY OF LAKE HAVASU CITY ADOT CITY OF SAFFORD TOWN OF THATCHER CITY OF KINGMAN CITY OF ELOY 6/21/2002 6/21/2002 6/21/2002 Fain Road Realignment SR 95, North City Limits Fort Grant Road Traffic Interchange 9/23/2005 11/16/2007 Sunshine Boulevard 8/16/2002 North Bank Street 20th Avenue 8/16/2002 5/17/2002 SR 260, Cottonwood to Camp Verde 20th Avenue LOAN APPROVAL PROJECT LOCATION 1.49% 3.11% 1.56% 2.42% 1.35% 1.18% 2.25% 1.99% INTEREST RATE* $3,200,000 $2,000,000 $2,000,000 $2,000,000 $650,000 $789,508 $4,500,000 $5,000,000 MAXIMUM LOAN Mar-14 Nov-11 Oct-07 Oct-07 Nov-06 Feb-05 Jun-06 Jun-06 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 STATEWIDE LOANS $3,200,000 $2,000,000 $2,000,000 $2,000,000 $650,000 $789,508 $4,500,000 $5,000,000 DRAWS TO DATE $1,591,350 $700,000 Paid in full 10/03/2007 Paid in full 10/02/2007 Paid in full 04/26/2006 Paid in full 02/01/2005 Paid in full 05/31/2006 Paid in full 06/19/2006 OUTSTANDING LOAN BALANCE 9 Reconstruction TOWN OF MAMMOTH 12/14/2001 - $334,800 $1,200,000 $2,400,000 To be Determined To be Determined $8,700,000 $150,000 $2,000,000 MAXIMUM LOAN To be Determined To be Determined 2.35% INTEREST RATE* - May-13 Oct-10 Jun-10 Nov-10 May-12 FINAL MATURITY * Interest rate will be determined by the State Transportation Board when the first construction draw is made. Main Street 3/21/2008 Reconstruction TOWN OF PAYSON Bonita Street, Phase II Reconstruction CITY OF BISBEE 9/21/2007 4/21/2006 Highway 91, Beaver Dam Wash Bridge Design and Construction MOHAVE COUNTY Arizona Street 11/18/2005 Yellow Jacket Way Construction CITY OF TOMBSTONE LOAN APPROVAL 12/21/2007 Reconstruction PINAL COUNTY PROJECT LOCATION Thornton Road PURPOSE OF LOAN PROJECT SPONSOR LOAN STATUS AS OF SEPTEMBER 2010 STATEWIDE LOANS Withdrawn - - - - $2,000,000 DRAWS TO DATE $1,000,000 - - - - - OUTSTANDING LOAN BALANCE 10 11/17/2000 Various: As stipulated in Senate Bill 1201 SR 51 Completion Union Hills L101 Regional Freeway System Regional Freeway System Purchase of Right of Way for Urban Freeway System Construction Right of Way, Construction Right of Way, Construction Design CITY OF MESA ADOT ADOT/ CITY OF PHOENIX ADOT ADOT CITY OF GOODYEAR I-10 Widening 11/15/1999 Red Mountain Freeway: Country Club to Gilbert New Construction Urban Freeway System 4/21/2006 11/21/2003 9/21/2001 3/20/1998 3/20/1998 Price Freeway: Warner to Frye New Construction Urban Freeway System CITY OF CHANDLER LOAN APPROVAL PROJECT LOCATION PURPOSE OF LOAN PROJECT SPONSOR 3.13% 1.44% 3.30% 2.48% 3.92% 4.41% 3.59% INTEREST RATE* $7,369,000 $80,500,000 $50,000,000 $22,500,000 $100,000,000 $24,000,000 $26,000,000 MAXIMUM LOAN Jun-10 Jun-09 Dec-08 Jun-05 Jun-01 Mar-03 Jul-02 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 MAG LOANS $6,783,964 $80,500,000 $50,000,000 $22,500,000 $90,324,109 $24,000,000 $26,000,000 DRAWS TO DATE Paid in full 06/10/2010 Paid in full 06/15/2009 Paid in full 04/17/2008 Paid in full 02/17/2005 Paid in full 06/28/2001 Paid in full 03/21/2003 Paid in full 11/30/2001 OUTSTANDING LOAN BALANCE 11 MC 85, 107th Ave. to 75th Ave. Dixileta Drive TI SR 101 - Union Hills Drive TI Design, Right of Way, Construction Design, Right of Way, Construction Design, Construction MARICOPA COUNTY CITY OF PHOENIX CITY OF PEORIA 5/16/2008 11/18/2005 3/21/2008 LOAN APPROVAL - - To be Determined INTEREST RATE* $9,910,000 $11,900,000 $25,700,000 MAXIMUM LOAN - - Jul-13 FINAL MATURITY * Interest rate will be determined by the State Transportation Board when the first construction draw is made. PROJECT LOCATION PURPOSE OF LOAN PROJECT SPONSOR LOAN STATUS AS OF SEPTEMBER 2010 MAG LOANS Withdrawn Withdrawn - DRAWS TO DATE - - - OUTSTANDING LOAN BALANCE 12 5/19/2000 6/15/2001 12/14/2001 12/14/2001 3/15/2002 8/16/2002 Various projects in Pima County 6th Avenue, Ajo Way to Rodeo Wash I-10 / I-19 Interchange Ajo Way, Country Club to Alvernon Shannon Road, Ina Rd to Magee Rd I-10 Mainline, Grant to Congress Tangerine Road Widening Design, Right of Way Street Improvements Construction Street Improvements Street Improvements Design Construction ADOT CITY OF TUCSON ADOT PIMA COUNTY PIMA COUNTY ADOT TOWN OF ORO VALLEY 9/21/2001 3/17/2000 6th Avenue, 19th Street to I-10 Street Improvements CITY OF TUCSON LOAN APPROVAL PROJECT LOCATION PROJECT SPONSOR PURPOSE OF LOAN 1.19% 0.86% 3.23% 3.23% 2.11% 2.91% 1.77% 4.50% INTEREST RATE* $1,716,000 $5,500,000 $1,400,000 $3,700,000 $62,500,000 $4,500,000 $5,285,000 $2,000,000 MAXIMUM LOAN Jul-05 Jun-06 Jul-07 Jul-07 Jan-06 Jan-06 Jun-05 Jan-05 FINAL MATURITY LOAN STATUS AS OF SEPTEMBER 2010 PAG LOANS $1,716,000 $4,098,869 $1,400,000 $3,700,000 $62,500,000 $4,500,000 $5,285,000 $2,000,000 DRAWS TO DATE Paid in full 08/01/2005 Paid in full 06/20/2006 Paid in full 01/17/2007 Paid in full 01/17/2007 Paid in full 04/18/2005 Paid in full 01/03/2006 Paid in full 06/22/2005 Paid in full 05/01/2001 OUTSTANDING LOAN BALANCE 13 Construction Construction Construction Construction Construction Construction Construction TOWN OF MARANA PIMA COUNTY CITY OF TUCSON TOWN OF ORO VALLEY ADOT CITY OF TUCSON TOWN OF SAHUARITA 11/19/2004 I-10, Pinal Air Park to Marana TI 9/23/2005 7/20/2007 La Canada Drive Widening La Canada Phase II 3/16/2007 Mountain Avenue, Roger Rd. to Ft. Lowell 8/20/2004 5/20/2005 Alvernon Way, River Rd. to Ft. Lowell Harrison Road 11/19/2004 2/20/2004 La Canada Drive Extension Thornydale Road LOAN APPROVAL PROJECT LOCATION - - - 3.20% 1.97% 3.06% 2.51% 2.52% INTEREST RATE* $3,900,000 $12,293,000 $18,500,000 $8,000,000 $14,000,000 $4,836,000 $7,000,000 $5,000,000 MAXIMUM LOAN - - - Aug-12 May-11 Jun-09 Mar-10 Feb-08 FINAL MATURITY * Interest rate will be determined by the State Transportation Board when the first construction draw is made. Construction PURPOSE OF LOAN TOWN OF ORO VALLEY PROJECT SPONSOR LOAN STATUS AS OF SEPTEMBER 2010 PAG LOANS Withdrawn Withdrawn Withdrawn $8,000,000 $13,400,000 $4,836,000 $7,000,000 $5,000,000 DRAWS TO DATE $2,513,133 Paid in full 05/03/2010 Paid in full 06/01/2009 Paid in full 04/21/2010 Paid in full 03/07/2008 - - - OUTSTANDING LOAN BALANCE HELP Projects Map and Table 14 Map Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Project Name SR260 Showlow to Pinetop Center Street Carr Canyon Rd. - Hunter Canyon Rd. Van’s Trading Pos t - Eas t of SR264 Lake Havas u Blvd - Old London Bridge Rd. US60 - SR79 TI Glas s ford Hill Ave 3E SR280 TI Buffalo Soldier Trail Salome Rd. Centennial Was h SR260, Pinetop - Hon-dah South River Rd. Naha Ta Dziil Rd / Sanders TI. Ave. A 40th s t to Des ert Ave Paper Mill Rd. SR260, Chris topher Creek McLane Rd. I-18 - Gis s Parkway - Redondo Dr. TI SR89A, Glas s ford Hill Section Ros e Rd. to Sullivan Street SR89A, Glas s ford Hill Section Avenue 3E TI. SR89A, Glas s ford Hill Section US60 - SR79 TI SR95 Parker to Lakes ide Fos s il Creek Rd. Six Shooter Canyon Rd. SR260 Cottonwood to Camp Verde Fain Rd. Realignment SR95, North City Limits Fort Grant Rd. TI 20th Avenue 20th Avenue Six Shooter Rd. and Bridge North Bank Street Highway 91, Beaver Dam Was h Bridge Yellow Jacket Way Arizona Street, Cole Ave to Hazard Street Suns hine Boulevard Bonita Street, Phas e II Thornton Road Project Description Recons truction Cons truction Des ign Des ign Des ign Des ign Des ign Des ign Cons truction Recons truction Recons truction Recons truction Des ign Recons truction Recons truction Recons truction Recons truction Recons truction Des ign Recons truction Recons truction Recons truction Recons truction Recons truction Recons truction Recons truction Recons truction Cons truction Cons truction Cons truction Cons truction Cons truction Cons truction Cons truction Cons truction Cons truction Cons truction Recons truction Recons truction Recons truction Recons truction Loan Amount $5,664,000 $300,000 $457,000 $500,000 $1,850,000 $600,000 $1,500,000 $800,000 $1,970,000 $2,000,000 $8,400,000 $1,150,000 $1,000,000 $1,000,000 $1,000,000 $41,900,000 $1,100,000 $2,000,000 $3,216,000 $80,000 $13,855,000 $9,900,000 $4,500,000 $4,000,000 $500,000 $1,237,500 $600,000 $5,000,000 $4,500,000 $789,508 $650,000 $2,000,000 $2,000,000 $487,500 $2,000,000 $8,700,000 $150,000 $2,400,000 $3,200,000 $1,200,000 $2,000,000 City / Location Showlow Chino Valley Cochis e Cty Coconino Cty Mohave Cty Pinal Cty Pres cott Valley Yuma Sierra Vis ta La Paz Cty Pinetop Santa Cruz Cty Apache Cty City of Yuma Town of Taylor Gila Cty Pays on Yuma Pres cott Valley Miami Pres cott Valley Yuma Pres cott Valley Pinal Cty Parker Gila Cty Gila Cty Yavapai Cty Yavapai Cty Mohave Cty Cochis e Cty Safford Thatcher Gila Cty Kingman Mohave Cty Tombs tone City of Bis bee City of Eloy Town of Pays on Pinal Cty 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 6th Avenue Project I-10 - I-19 TI I-10 Mainline Prince Rd. I-10 - I-19 TI th 6 Avenue Project Phas e II JCT I-10 / I-19 Phas e 1&2 Ajo Way - Country Club Rd -Alvernon Way Shannon Road: Ina Rd - Magee Rd. I-10 Mainline Grant - Congres s Tangerine Rd. La Canada Dr. Extens ion - Tangerine Rd. Thornydale Rd. Recons truction Alvernon Way - River Rd. - Lowell Rd. Mountain Ave, Roger Rd., Ft. Lowell Rd. La Canada Drive Widening Street improvements Des ign Des ign Des ign Street improvements Cons truction Street Improvements Street Improvements Des ign Cons truction Cons truction Recons truction Cons truction Recons truction Cons truction $2,000,000 $3,285,000 $1,000,000 $1,000,000 $4,500,000 $62,500,000 $3,700,000 $1,400,000 $5,500,000 $1,716,000 $5,000,000 $7,000,000 $4,836,000 $14,000,000 $8,000,000 Tucs on Pima Cty Pima Cty Pima Cty Tucs on Tucs on Pima Cty Pima Cty Pima Cty Oro Valley Oro Valley Town of Marana Pima Cty Tucs on Oro Valley 1 Red Mountain Country Club - Gilbert Cons truction 2 Price Freeway - Warner - Frye Cons truction Above two loans are not included in totals 3 Various : as s tipulated / MAG Right of way 4 SR51 Completion Union Hills - L101 Cons truction 5 Regional Freeway Sys tem / MAG ROW Cons truction 6 Regional Freeway Sys tem / MAG ROW Cons truction 7 I-10 Widening Des ign 8 MC 85, 107th Ave. to 75th Ave. Des ign, RWY, Cons t 15 $24,000,000 Mes a $26,000,000 Chandler $100,000,000 $22,500,000 $50,000,000 $80,500,000 $7,369,000 $25,700,000 Maricopa Cty Phoenix Maricopa Cty Maricopa Cty City of Goodyear Maricopa Cty Prepared By: Arizona Department of Transportation Financial Management Services Highway Expansion and Extension Loan Program Section 206 S. 17th Avenue, Suite 200 B Phoenix, AZ 85007-3213 Phone (602) 712-7441 * Fax (602) 712-6672