Good afternoon and welcome to the city club of cleveland where. Im the chief executive here ad its my privilege to introduce our speakertoand to ask him a few questions as well. Brian moynihan, the c. E. O. Of bank of america. As the country and world grapple with the aftermath of the pandemic, inflation, the Banking Industry has felt its share of, well call it volatility. In march, three small to midsized u. S. Banks failed, leading to a chain of events that we now refer to as the 2023 banking crisis. And on top of this, add to this the widespread calls for increased equity, access to Economic Opportunity and the increasing reliance on emerging technologies, its evident that the world of bank and financial is changing quite a bit. Brian moynihan becamed c. E. O. Became the c. E. O. In 2010 which feels like a century ago. It was a long time ago. Its the Second Largest Bank in the u. S. Youre all wondering whats the first, its jpmorgan chase. He lead as team of approximately 215,000 emp
Clearly, the p3 developer and the short term lenders are anxious for an on time or early delivery of the project and early delivery of the project also saves the p3 developer money and increases the potential. And i would also say that again, we are looking at a p3 with a design contract component to achieve greater certainty in terms of cost control and delivery schedule and i will mention that i worked on a p3 project for a toll road in northern virginia, 1. 9 billion, and it opened this year, not one single change order in that contract. Very important in terms of cost certainty and delivery. We mentioned risk allocation. And brian mentioned the fact that Hazardous Materials and now that was actually a factor in procidio for the military base and that was a list that the cal trans, typically accepts, but the list here for the project sponsor, with the high water table and so one of the risk allocations could be if there is a leakage in the tunnel it would not be available for the tr
P3 developer, could be as many as 30 firms in a joint venture group. But the p3 developer forms a limited Liability Corporation ration. And the people often ask me if, a private entity will have a higher Interest Rate charge, and a higher cost of capitol than a public agency. And i will tell you that the procedio parkway with the Short Term Bank construction loan with the loans, short term and long term as well as the equity by the developers and the weighted average cost of the capitol, and less than 2. 5 percent. And obviously they are very competitive with the tax exempt financing. Now clearly there is a repayment obligation on the part of the project sponsor and that is the upper righthand side to repay, i am sorry, below that to repay the stake holders to pja to flow all of the funds to pay for the payment of the p3 developer and to whoever receives the fund and allocates those funds and to the design bill contractor and as well as the main nens provider and the design contractor
Northern and southern book ends and the idea was that the early funds would be used to deliver, high speed rail, related up grades that could be completed and delivered to the public earlier, than the over all high speed rail system and so also, as part of this mlu it was negotiated that the funds that go to the Northern Book end would go to complete the cal train electric identification and positive train control because those are important regional projects and certainly relate to the Transbay Program as well in terms of the dtx and the benefits that were included in the mlu. And included in the reference to mtc resolution, 3434, which included the dtx in the transit expansion and it reiterated that it will be the northern terminus and all of the partis that signed on to work joinly. And to get all of the needed up grades from it. And in terms of the Transbay Program as part of this the negotiation it was agreed that the dtx would be designated as a regional priority for the federal
Funding Grant Agreement you get a guaranteed amount for the federal funding for construction and it is a significant amount of funding and so, that opened up the two shots in the pipeline, and it was a long term goal for tjpa to get one of these designated. And it is falling away and the largest funding stream that exists for this type of a transit expansion, those are made officially made in the regional plan and the most recent version was named, plan bay area and in the plan bay area, the dtx was designated for the regional priority as well as the second half of the project and as part of the plan of the area, and Investment Strategy and mtc led a negotiation to put together a regional funding plan for the dtx and we wanted to show this to you and provide this quick refresher because you are going to see the numbers in the potential Revenue Sources that could be in the npthree approach and so with that i am going to turn it over to jim, who is with spary consulting and is he part of