Contact | Lloyd Goff (303) 671-5340 [email protected] |
Mission |
$5 Million to $ 2 Billion in 5
Years |
Joint
Venture |
A JV Partner(s) paying $5 million to engineer and to build a 1/4 mile test track as a prototype, apply for public vote and market to industry partners to build computer models fro specific routes. |
Building a Consortia |
To promote a public vote for an $88 million Operating Demo Model of 5 miles of one way track.. |
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 $5,000,000 joint venture will build a 1/4 mile test track 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 $5,000,000 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.