RD296 - Dulles Greenway Evaluation Pursuant to HB 1500, Item 430 - October 2, 2013

Executive Summary:
• Pursuant to the requirements of House Bill 1500, Item 430, the Office of Secretary of Transportation (Secretary’s Office) and the Virginia Department of Transportation (VDOT) have performed an evaluation of a potential purchase of Dulles Greenway, a privately owned toll road in Northern Virginia (Dulles Greenway)

• The purpose of this presentation is to provide background on the approach, assumptions and the results of the analysis

• The key focus of the analysis was to address the two questions posed in House Bill 1500:

• Question 1: Does the purchase price of the Dulles Greenway toll road exceed the fair market value of the asset?

• Question 2: Can the existing toll rates be reasonably expected to pay (i) in full and when payable the debt service on any bonds or obligations issued to acquire and, if necessary, improve or upgrade the Dulles Greenway; (ii) the ongoing costs of operating and maintaining the Dulles Greenway; (iii) the costs of purchasing and installing electronic tolling equipment or other equipment for the Dulles Greenway if such equipment is determined necessary; and (iv) ongoing necessary administrative costs relating to the Dulles Greenway? In addition, can the tolls for the use of the Dulles Greenway be reasonably expected to result in a debt service coverage ratio of at least 1.25 for any debt of other obligations proposed to support the purchase of the facility?

• Financing assumptions were discussed and confirmed with the Virginia Department of Treasury and the Virginia Department of General Services. Discussions on the tolling policy and tolling system with the Chairman of Loudoun County were also considered in the analysis

• In evaluating the potential purchase of Dulles Greenway, a series of assumptions were made, including toll rate schedule, user demand, financing terms, as well as capital, administrative and operating costs, which may or may not occur based on, among other things, market conditions, views of different investors and legislative actions

• This presentation is structured as follows:

• Evaluation approach & tolling scenarios
• Assumptions & results in relation to Question 1
• Assumptions & results in relation to Question 2
• Conclusions