Financial Markets Very Positive About Denver International Airport Bonds

Denver Manager of Aviation Kim Day – Photo by Ellsworth Grant For DBEtoday

$856 MILLION OF DENVER AIRPORT REVENUE BONDS OVERSUBSCRIBED DURING PRICING

Denver Mayor Michael B. Hancock, Chief Financial Officer Cary Kennedy and Denver Manager of Aviation Kim Day announced today the highly successful sale of $856 million airport revenue bonds at a historically low interest rate of 3.69%.  The bond sale provides $394 million of funding for Denver International Airport’s South Terminal Redevelopment Program and other capital improvement projects and $462 million of refunding bonds to reduce debt service costs for the airport.

“Denver International Airport is a key element in our plan to make a great city even greater,” said Mayor Michael B. Hancock.  “The outstanding response to this sale is a testament to DIA as one of the most efficient, financially sound and beautiful airports in the world.”

The sale was conducted by a team of nine investment banks with Barclays serving as the lead firm for the transaction.  Some of the maturities were significantly oversubscribed due to the strong demand for the bonds from a broad cross-section of buyers from Colorado, along with national retail investors, bond funds, insurance companies, money managers and investment advisors.

“The entire city team is to be commended,” said Chief Financial Officer Cary Kennedy.  “This is such an excellent result when you consider that over $7 billion of municipal bonds are being sold into the marketplace this week.  With leadership from Mayor Hancock, the Denver International Airport and Denver Finance Department staff did a fantastic job of providing vital information to potential investors, which contributed to the high demand for the bonds.”

Patrick Heck, Chief Financial Officer for Denver International Airport (DIA), said, “This strong acceptance of DIA bonds demonstrates the market’s view of DIA as a financially strong airport with a great competitive position.”

The $856 million of bonds will be repaid from revenues of the airport and were sold in three separate series of bonds.  No assets of the City are at risk to repay the bonds.  The 2012A bonds totaling $315.8 million are subject to alternative minimum tax.  The 2012B bonds totaling $510.1 million are not subject to minimum tax.  Taking advantage of the historic low costs of borrowing at certain years, $30.3 million of bonds were issued as taxable bonds.

“The South Terminal Redevelopment Program is important to Denver and the entire metropolitan region,” said Kim Day, Denver Aviation Manager. “Building the DIA train station and hotel will provide many valuable construction jobs and on-going service jobs when these airport facilities open.”

Due to the oversubscribed situation, the yields on the bonds were able to be reduced from two to ten basis points on some maturities, resulting in the true interest cost of the bonds to be 3.69%, with bonds maturing through the year 2043.

The three series of bonds were sold to refinance outstanding commercial paper and previously issued bonds and to pay for capital improvements at the airport.  The refunding component portion of bonds will reduce future borrowing costs by $66.4 million, or 13% present of refunded bonds.  DIA bonds are rated A1, A+ and A+ by the three major credit rating services Moody’s, Standard & Poor’s and Fitch.

The underwriters who sold the bonds were Barclays and Citigroup, which served as co-senior managers, and D.A. Davidson & Co, George K. Baum & Co., Goldman, Sachs & Co., Loop Capital Markets, RBC Capital Markets, US Bancorp and Wells Fargo Securities as co-managers.

The train station and hotel, which will be managed as a Westin Hotel, are slated to open in 2015.

Denver International Airport is the 11th-busiest airport in the world and the fifth-busiest airport in the United States. With more than 50 million passengers traveling through the airport each year, DIA is one of the busiest airline hubs in the world’s largest aviation market.  DIA is the primary economic engine for the state of Colorado, generating more than $22 billion for the region annually.  For more information visit www.flydenver.com, check us out on YouTube, like us onFacebook and follow us on Twitter.

RTD Set To Receive $1 Billion Federal Grant To Help Finish FasTracks – Largest Transit Grant Yet From Obama Administration

Eagle P3 Project Map - Photo Credit: Jay Whyshak

 

by Scot Kersgaard via The Colorado Independent

RTD has received word that it will be receiving the largest transit grant yet awarded by the Obama administration–a cool billion dollars from the Federal Transit Administration toward completing the line to DIA and the line north to Arvada and Wheat Ridge. The grant will also help fund a maintenance facility.

Thursday marked the final day of a congressional review of the funding, with no move made to strike or reduce the grant. An official announcement may not be made for a few weeks as officials including Transportation Secretary Ray LaHood try to coordinate their calendars for an award ceremony to be held in the Denver area later this month or in August.

The award, totaling $1,000,030,450 will be doled out over a period of years as the line is built. The grant is expected to cover about half of the total cost of construction, said Pauletta Tonilas, spokesperson for the Regional Transportation District. Tonilas also confirmed the details.

“This is a huge step toward finishing the project,” Tonilas said.

Commuter Rail Car Model Display A Big Hit With Visitors

Ed Romero, Public Information Supervisor - Denver Transit Partners standing in the area designed for the proposed bicycle racks for commuter accessibility. Photo Credit: Jay Wyshak

Since it’s opening to the general public on Tuesday, visitors have been streaming in to have a look at the commuter rail car model now on display at Union Station through June 18th. Display model highlights includes seating arrangements of all types, examples of handles and storage  racks, wind screens and doorway – the model represents the front third of an actual rail car. Each car will have passenger capacity per car of 232 (90 seated, 142 standing), 85 feet long – 15 feet tall with overhead cantenary 25kV ac 60 Hz. These ultra-modern commuter rail cars will have a stainless steel exterior and operate at top speeds of 79 mph. The cars will be equip with efficient dynamic braking systems that can recover power for on-board accessories or other trains along with modern safety features including positive train control and vehicle monitoring system technologies. With security being a top concern in today’s environment, the cars will have enhanced security with video surveillance and real-time passenger information system – ADA-compliant level boarding at all doors (no stairs).

Commuter Rail Car Model Display Schedule Through June 18th., 2011

Commuter Rail Car Model Display - Photo Credit: Jay Wyshak

Denver Union Station (1701 Wynkoop, Denver 80202)
May 24 –June 18, 2011
May 24 –27, 2011: Monday –Friday 8 am to 7pm
May 28, 2011 : Saturday 10 am –4 pm
May 31 –June 18, 2011:Monday –Friday, 10 am –6 pm; Saturday 10 am –4pm

Frequently Asked Questions:

Who manufactures this train?

Hyundai RotemUSA, a leading railcar manufacturer that has produced more than 15,000 electric and diesel railcars. At least 60 percent of the vehicle will be made in America.

Why do you use two cars (married pairs?)

RTD will use married pairs for the East Rail Line, Gold Line and the initial segment of the Northwest Rail. Married pairs are more cost effective to use. They also allow a better use of space as an operating cab is not needed at each end of each car.

Why not use light rail vehicles?

The freight railroads whose corridors we are sharing require RTD to use heavier commuter rail cars that comply with Federal Railroad Administration safety standards.

What are the black strips on top of the seats?

These are ticketholders used by Philadelphia’s SEPTA transit agency, which has ordered a version of this same vehicle. RTD’s vehicles will not have them.

How much will the fare to the airport be?

The RTD Board will make that decision closer to opening day. RTD retains control on service standards such as fares, cleanliness, service frequencies, etc.

What are the opening dates?

Eagle P3 Project Map - Photo Credit: Jay Wyshak

West Corridor (light rail, not part of this project) – 2013

Denver Union Station – 2014

East Rail Line – 2016 January

first segment of Northwest – 2016 March

Gold Line – 2016 July

How many commuter rail vehicles will RTD get?

50 vehicles, joined in 25 married pairs for all lines. They can operate in two-or four-car trains.

What is the cost of a commuter rail vehicle?

Commuter Rail Car Details - Photo Credit: Jay Wyshak

Each unit costs $4 million

Why are there no poles or straps for standees, like light rail or the mall shuttle?

Our current design is based on use of the hand grips and rails for standees. One purpose of this display is to show the design to the public and receive feedback.

Will there be wifi on the cars?

Wifi is not in the current design.

What is the travel time and hours of operation on each line?

Entrance To Model Rail Car Display at Union Station - Photo Credit: Jay Wyshak

East Rail Line: 35 minutes between Union Station and Denver International Airport; operates 3 a.m. to 1 a.m. daily; every 15 minutes between 6 a.m. and 8 p.m., every 30 minutes before and after that time; same schedule on weekends.

Gold Line: 27 minutes between Union Station and Ward Road in Wheat Ridge; operates 4 a.m. to 12:30 a.m. daily; every 15 minutes between 6 a.m. and 6:30 p.m. on weekdays, and between 8 a.m. and 6:30 p.m. on weekends; every 30 minutes before and after those times.

Northwest Rail: 12 minutes between Union Station and South Westminster Station; operates 5 a.m. to 10:30 p.m. daily; every 30 minutes during morning and evening weekday peak hours, hourly in early morning, midday, evening and on weekends.

 

 

 

 

 

 

Denver Transit Partners Upcoming Contract Opportunities

RFQ# DTC-7-0061 (Concrete Tie Purchase)

Attention all interested DBE/SBE subcontractors:

Denver Transit Constructors (“DTC”) will be issuing a Request for Quote (“RFQ”) to all qualified DBE/SBE subcontractors. This solicitation will be for the purchase of Concrete Ties for the Eagle Project. All responding firms must have a current CDOT or City and County of Denver DBE or RTD SBE certification and have the proper work codes for Sanitation Equipment. Please contact Linda Wilson, DTP-DBE/SBE Liaison at linda.wilson@dtpjv.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 303-297-5286 for additional information.


RFQ# DTC-7-0060 (Rail Purchase)

Attention all interested DBE/SBE subcontractors:

Denver Transit Constructors (“DTC”) will be issuing a Request for Quote (“RFQ”) to all qualified DBE/SBE subcontractors. This solicitation will be for the purchase of Rail for the Eagle Project. All responding firms must have a current CDOT or City and County of Denver DBE or RTD SBE certification and have the proper work codes for Sanitation Equipment. Please contact Linda Wilson, DTP-DBE/SBE Liaison at linda.wilson@dtpjv.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 303-297-5286 for additional information.


RFP# DTC-B-0013 (Portable Restrooms & Wash Stations for Eagle P3 project)

Attention all interested DBE/SBE subcontractors:

Denver Transit Constructors (“DTC”) will be issuing a Request for Quote (“RFQ”) to all qualified DBE/SBE subcontractors. This solicitation will be for Portable Restrooms & Wash Stations for Eagle Project. All responding firms must have a current CDOT or City and County of Denver DBE or RTD SBE certification and have the proper work codes for Sanitation Equipment. Please contact Linda Wilson, DTP-DBE/SBE Liaison at linda.wilson@dtpjv.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 303-297-5286 for additional information.


RFP# DTC-S-0027 (Janitorial Services for Eagle P3 Project Field Office)

Attention all interested DBE/SBE subcontractors:

Denver Transit Constructors (“DTC”) will be issuing a Request for Proposal (“RFP”) to all qualified DBE/SBE subcontractors. This solicitation will be for Janitorial Services for Eagle P3 Project Field Office. All responding firms must have a current CDOT or City and County of Denver DBE or RTD SBE certification and have the proper work codes for Janitorial Services. Please contact Linda Wilson, DTP-DBE/SBE Liaison at linda.wilson@dtpjv.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 303-297-5286 for additional information.


RFP#  DTC-S-0014 (Denver Water Line Relocation)

Attention all interested subcontractors:

Denver Transit Constructors (“DTC”) has awarded RFP# DTC-S-0014 (Denver Water Line Relocation) to BT Construction. All qualified small businesses are encouraged to contact BT Construction for opportunities.

The DBE/SBE goal on this project is 20%.

BT Construction Inc.
Catherine Kornbrust
9885 Emporia Street
Henderson CO 80640
Phone: 303-469-0199
Fax: 303-466-8309

Denver Transit Constructors, LLC Invitation to Bid

Your company has been issued an invitation to bid on the project identified below for Denver Transit Constructors, LLC.

PROJECT Enterprise Park Janitorial Service
LOCATION Denver Metro Area Denver, CO
BID DATE Wednesday, February 23, 2011 TIME 02:00 PM MT
START DATE TBD END DATE TBD
PROJECT CONTACT Robert Bohnet -
DESCRIPTION
Janitorial Services for Enterprise Park Field Office for construction of the Eagle P3 Project.

To immediately indicate your interest to bid, click on the links above or click here to select individual codes.

To view the latest project Details, Plans and Specs, Click Here.

For help accessing this project, please refer to http://www.isqft.com/support or call us at 800.364.2059.

Project ID: 1248003

July 28, 2010 – Denver Transit Partners to Host Disadvantaged/Small Business Enterprise Open House Opportunity Event

The Denver Transit Partners includes multiple vendors and suppliers for the build-out of this vast project

Denver Transit Partners (DTP) will be hosting a Disadvantaged/Small Business Enterprise (D/SBE) Open House Opportunity Event on Wednesday, July 28th at the Denver Athletic Club,1325 Glenarm Place, Denver, CO 80204. The event starts at 7:30am.

MapDBE Event Invitation July 28 2010 (PDF)

DTP was recently selected by the Regional Transportation District to design, build, operate, maintain, and finance the Eagle P3 commuter rail project (Eagle Project) in the Denver metropolitan area.

The July 28th Open House will mark another in a series of outreach events for the disadvantaged, small, and woman owned contracting community. Attendees will receive information on contracting opportunities and will have an opportunity to interface directly with team members within various sub-contracting categories. Our team members will be on hand to prepare your firm on how to successfully bid on future contracting work. If you have not submitted the required DTP paperwork or have questions on how to complete the forms, visit the DBE/SBE Info page or visit our certifications resource table at the event.

“This is a long-term, six year design-build project and a 40-year operations and maintenance period in which to position your firm to provide support services” said DTP, DBE Liaison
Linda Wilson.

The DTP team has made a strong commitment to the DBE/SBE community and we look forward to meeting you in the near future. Following financial close on the project, DTP expects to begin early works in Fall 2010.

For more information on the event or the D/SBE certification process, please contact the DTP team by email at  dtp@fluor.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by phone at 303-297-7544.

Eagle P3 Project Expected to Deliver $119 Million Dollars in Contract Opportunities to DBEs & SBEs

PPP tapped to build, operate Denver commuter rail project  Denver Transit Partners for the single-largest FasTracks contract to build and operate commuter rail lines to Denver International Airport (rendering shown), Arvada-Wheat Ridge and south Westminster. Image courtesy of RTD.

by DJ Reetz edited by Ellsworth Grant

The recently awarded Eagle P3 project, part of the massive Fastracks light-rail build-out, means big opportunities for Denver area DBEs according to local business and community leaders involved in the project.  The Eagle P3 project proposed by the Denver Regional Transportation District was recently contracted to Denver Transit Partners (DTP); a conglomeration of firms led by Fluor Corporation and Macquarie Capital Group Limited. The winning team also includes Balfour Beatty Rail, Parsons Brinckerhoff, Balfour Beatty’s professional services arm, Ames Construction, Hyundai-Rotem USA (Hyundai), Alternative Concepts, Inc. (ACI), Fluor/HDR Global Design Consultants, PBS&J, Interfleet Technology, Systra, Wabtec and many others.

According to RTD, the project is set to begin the design/build phase of operations later this year.

Under the contract DTP will be responsible for the design, construction and maintenance of the East Corridor Light rail line running to Denver International Airport, the Gold Line running to Wheat Ridge, a segment of the North Corridor line, as well as a maintenance facility.  Additionally the contract stipulates that DTP provide rail cars as well as all necessary equipment to operate the light rail lines.

As a requirement of the contract, Denver Transit Partners is mandated to utilize DBE contractors in a portion of the design and construction process.

“This is going to mean a great opportunity for a lot of folks,” said Pauletta Tonilas, RTD Fastracks spokesperson. According to Tonilas, the project will require the creation of more than 5,400 jobs during the peak construction period between 2012 and 2013.

RTD Board Chair Lee Kemp

“This is a combination of direct construction jobs and factory, manufacturing and supplier jobs,” said Lee Kemp, Chair of the RTD Board of Directors.

Of these jobs RTD has mandated that a significant portion be allocated to DBEs.

According to both Tonilas and Kemp, RTD has required that Denver Transit Partners utilize DBEs for 19 percent of the design work in the project.  Additionally, DBEs are required to make up 20 percent of the construction contracts for the project as well.

SBEs were not forgotten in the design of the contracts either, receiving a mandatory 19 percent of contracts during the design phase and 18 percent during construction, as well as a 17 percent mandate for maintenance work after construction is complete.

Linda Wilson, the DBE/SBE liaison for Denver Transit Partners stressed the group’s commitment to meeting those goals.  Although, as Wilson pointed out, the contract has just recently been awarded and definitive plans have not yet been solidified, there will certainly be a plethora of opportunities for DBE’s arising from the project.

“There will be many, many opportunities,” Wilson said. The proposal originally submitted to RTD during the bidding phase of the project included over 50 contracts for DBE’s in the short term, Wilson said, although there may be more.

“50 will be a drop in the bucket compared to what it’s going to be [once the project is underway and plans are finalized,]” she said.

Total Contract Values by Ethnicity

$119 million dollars was allocated to DBE/SBEs in DTP proposal said Wilson. Contracts that will be spread around rather than awarded to a small number of companies in order to maximize the amount of opportunities available for businesses participating in the program.

Meeting the strict requirements for DBE use placed on the company by RTD is not a problem, Wilson said.

“We are committed to meet and exceed the DBE goals,” she said, emphasizing how aggressive DTP’s outreach program has been. “We have a huge outreach database.”

According to Wilson meeting the DBE numbers required by the contract is extremely important. “Fluor has an extensive history of exceeding well over the numbers [mandated for DBE’s,]” Wilson said.

The commitment to DBEs and SBEs was also  something that was very important in the selection of DTP for the multi-billion dollar contract, said RTD Board Member Angie Malpiede.

Malpiede emphasized RTD’s commitment to SBEs and DBEs; a commitment she wanted to ensure would be reflected by the choice of DTP for the project.

Helga Grunerud Executive Director of The Hispanic Contractors of Colorado and a Leading Advocate of DBE Inclusion

Helga Grunwald, Executive Director of the Hispanic Contractors of Colorado, said she has witnessed RTD’s dedication to the disadvantaged and under utilized business community first hand.

“RTD is very aggressive [pursuing the use of DBE’s,]” said Grunwald. As for the opportunities presented by the project for small and minority owned businesses, Grunwald says she is extremely optimistic.

“We’re so excited about this,” Grunwald said.  “We have a great relationship with RTD.”  Grunwald said she anticipates opportunities for minority owned businesses not just during the design and construction phase, but also during the decades to follow for maintenance work similar to what has already been done on the existing light rail lines.

The creation of Fastracks jobs means partnering with the community, said Tonilas.  As part of the project, RTD has joined forces with the Colorado Department of Transportation, the Environmental Protection Agency, the Department of Housing and Urban Development, as well as institutions such as the Community College of Denver to create the RTD Workforce Development Initiative.  The purpose of the program is to train members of the community for jobs that will be created by the Eagle P3 project, not just in construction but also in the operation and maintenance of the train lines.

Beyond the creation of jobs for the construction and maintenance of the train lines, the project will likely stimulate the economy in areas through which the routes will pass.

Director Angie Malpiede was sworn in as Director for RTD District C on March 9, 2010. She was selected by Denver Mayor John Hickenlooper and confirmed by the Denver City Council to fill the vacancy created by the resignation of Director Juanita Chacon. District C encompasses Northwest Denver and parts of Southern Adams County and Eastern Jefferson County.

Angie Malpiede said she sees the project as a great opportunity for economic growth in the Denver Metro area. “That’s the whole goal of this process,” Malpiede said.  The communities in the Denver Metro Area voted for the tax to pay for the endevour, “they should also reap the benefits,” she said.

Malpiede sees the light rail line as a trigger that will set in motion economic growth; growth such has already been seen along the existing light rail lines. “In my mind I’m seeing a variety of businesses that will begin,” Malpiede said.

According to Pauletta Tonilas, the light rail lines are expected to bring about 800 jobs every year for the first four years following the scheduled completion of the project in 2016, a number including not just jobs created directly by the train lines themselves, but also by businesses that will develop due to the influx of people.

The movement of people along the train lines is something Linda Wilson said she is hopeful will bring about new business and jobs.  “It’s going to snowball,” she said.

The Eagle P3 Project is set to begin later this year, presenting what all involved believe will be a great economic opportunity for the metro area.

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