Development Update
Our engineers, Huitt-Zollars and LNV have continued with the Project’s design. They have been integral to supplying information and answers to questions that have and may come up during the bidding process. Huitt-Zollars has surveyed all of the parcels where we have the Right of Entry. As an update, only nine (9) parcels of the fifty-two (52) needed for the Project have not granted the Right of Entry. We have also, where permitted by the Right of Entry, done all the Geo-Technical evaluations that will be necessary for the Construction bidders to efficiently incorporate the soil conditions and ultimately, the pavement design into their bids.
Environmental
Our environmental consultant, aci consulting(“ACI”) has been working diligently on the Environmental Assessment (“EA”) for the Project. The purpose of the EA was to identify and minimize any known environmental effects as a cause of the Project. ACI delivered the draft EA to the City for comments. Upon receiving any clarifications to the EA, ACI will incorporate the changes and finalize the EA for the Project. The EA will then be distributed to the various resource agencies. To be clear, while some landowners have not allowed us on their property for study and inspection, that has not prevented ACI from developing the EA.
ACI performed Phase I – Environmental Site Assessments (Hazmat Investigation) on properties where studies were allowed. Previously in July, the Phase I studies were delivered to the City. Performing the Phase I studies was an effort we decided to undertake to minimize Project risk, even though this was beyond the scope of our Development Agreement.
Construction Bid Process
As you will remember, on January 31, 2019, a preproposal meeting was held, and the RFP process was begun with participating contractor partners, Kiewit, Austin Bridge and Road, J.D. Abrams, Walsh/Archer-Western, and McCarthy (the “Contractors”). The RFP was issued on March 18, 2019. Initially, the design engineer Huitt-Zollars (“HZ”) provided the existing design schematic with typical sections and all design files in ‘.dgn’ format for contractor use. Since that time, HZ has then developed cross sections to determine more accurate earthwork quantities. The design has been advanced to the point where estimated quantities could now be provided for more accurate bidding. We have been able to clarify and answer any specific design questions. Their final bids are due near the end of August.
Schedule and Financial
You will find attached to this Memo a copy of the letter from the USDOT that thanks us for our June 5, 2019 application requesting an allocation of private activity bond (PAB) authority for the Cibolo Parkway and Cibolo Expressway project. It also states that the Department of Transportation has approved our bond allocation request for $200 million in PAB authority. We made an application to the Build America Bureau for this allocation and were the last group granted allocation out of a $15 billion program. This tax-exempt feature may be very beneficial to the financing structure of the Project.
Currently we are scheduled for an October 2019 debt issuance/equity issuance with a November Financial Closing.
Toll System
The City sent a letter of intent to the Central Texas Regional Mobility Authority (“CTRMA”) requesting that an interlocal agreement be developed to allow the CTRMA and/or its vendors to provide toll system services for the planned toll road. The item was discussed by the full board of the CTRMA on July 24, 2019, AGENDA ITEM #17, Briefing and discussion regarding a potential tolling systems agreement with the City of Cibolo. The agreement would be similar to the interlocal agreements the CTRMA has signed with various Regional Mobility Authorities around the state. A draft of the agreement will be sent to City for review and comment. It would be expected that all costs associated with providing the Toll System Services would be borne by Cibolo Turnpike LP as developer on behalf of the City of Cibolo’s interests. The interlocal agreement would be brought to the CTRMA Board for consideration at its next meeting.
Acquisition of ROW
As we previously reported, after the Initial Financial Closing, we had raised additional funds to start acquiring options for the Project ROW. An “option agreement” is a contract gives the right to purchase property for an agreed upon price up to a certain time frame. We are pleased to report that we have executed the first Option Agreement and Memorandum of Option Parcel #41. We are negotiating with other landowners and have numerous other offers in the queue. Our process is being handled by CobbFendley a professional engineering company specializing in ROW acquisition, along with the law firm, Ross Molinos Oliveros, PC. CobbFendley’s representatives are making offers, agreeing to a price and then documenting with the Option Agreement.
The City of Cibolo in conjunction with Cibolo Turnpike LP are proposing the Cibolo Parkway in Cibolo, Guadalupe County, Texas. This notice advises the public that the Cibolo Turnpike and the City of Cibolo will be receiving public comment on the Public Review Draft Environmental Assessment.