Aerotropolis Georgia Transportation Infrastructure Bank (GTIB)
Loan Implications Analysis
CLIENT: ATL Airport Community Improvement Districts
Purpose of Project
The Georgia Transportation Infrastructure Bank (GTIB) Loan Implication Analysis intended to determine if it would be cost-effective to get a GTIB loan to fund all or a portion of the Camp Creek Parkway and/or Virginia Avenue corridor enhancements. Consideration was made for cost of labor and materials, interest rates, duration of project delivery, likelihood of securing funding from other sources, and return on investment (ROI) of the project.
Our Role on the Project
As the prime consultant, MMP reviewed the Georgia State Road and Tollway Authority’s (SRTA) updated GTIB loan terms, calculated project cost savings due to advancing construction and economies of scale when constructing adjacent segments at one time, calculated loan costs (interest) based on 5- and 10-year loan terms and determined if there were any cash flow implications. The final recommendations were to proceed with a 5-year GTIB loan for all three segments of Camp Creek Parkway, which will allow the AACIDs to complete construction of all three segments by the end of 2026, approximately 6 years ahead of the CIP schedule.
It is challenging to make decisions about projects early in the planning process when much about the project is unknown such as total construction cost, right-of-way requirements, utility relocations, etc. MMP used their experience in transportation infrastructure planning, design, and construction to develop cost estimates. MMP built in contingencies and escalated construction cost to year of expenditure based on historical increases. This allowed for comparison between traditional funding and GTIB loan funding to provide AACIDs with the best recommendation to streamline project delivery.