Utilizing Right of Way to Generate Revenue

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1 Utilizing Right of Way to Generate Revenue Requested by: State of Georgia Survey Deadline: November 15, Does your state have any Alternative Uses that generate a revenue stream. 2. If yes, please briefly describe the use and provide contact person that would be available for further discussions. No. ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA Yes. Caltrans has an Airspace lease program based upon 23 CFR , enabling state legislation Streets & Highway Code eq sec, and our R/W Manual, please see the attached hotlink: In Fiscal Year (FY) 2010/11 total revenue was $26.2 million, up from $25.0 million the prior year. Airspace revenues for ground leases grossed $ 19.8 million, while the wireless Site License program generated an additional $6.4 million. Examples of long term lease development program include: cell phone sites, mini storage facilities, commercial parking structures, warehouse buildings, homeless shelters, small commercial office buildings, and a motel. A majority of our inventory is day parking ground lease operations located in high density urban locations and are rented via competitive bid on 2 year leases. We have identified approximately 1,000 sites that have Airspace development potential and are often approached by parties who are interested in using sites not within the existing Airspace inventory. There are 650 active tenancy accounts. Each potential airspace lease is reviewed and must be approved by the District Airspace Review Committee (DARC). The DARC is a standing team of department senior professional staff representing the following functions: Traffic Operations, Landscape Architecture, Project Development, Maintenance, Systems Planning, Structures, Hydraulics, Storm Water and the State Fire Marshall who review the proposals to determine if the secondary commercial use does not conflict with traffic safety and future growth of the transportation facility. Two future uses not currently allowed are under study. Commercial Billboards (static and digital) and photo voltaic solar facilities to be located at operational facilities such as; maintenance stations and park & ride facilities that are located outside, but adjacent to, the operating R/W. Rev 11/29/11 1

2 For more information, please do not hesitate to contact, Charles Crosby, Senior R/W Agent, Real Property Services Unit COLORADO Yes. Colorado Department of Transportation alternative revenue streams from use of State highway Right of Way include: Lease of dark fiber (funds are reinvested in the program); Permit fees for off premise roadside advertising; Roadside Memorials Sign Program (the fees cover about 15% of the program cost); Annual fees for Tourist Oriented Directional Signs (TODS) and Specific Information and Business Signs (LOGO); Mineral rights leases; Property (excess ROW) disposals; Cell tower leases; and Vacant land leases. CDOT Contacts: Fiber Optics: Ken DePinto (303) Signs: Jerry Miller (303) Property Management: David Fox (303) CONNECTICUT DELAWARE DISTRICT OF COLUMBIA FLORIDA GEORGIA HAWAII IDAHO ILLINOIS INDIANA IOWA KANSAS KENTUCKY Rev 11/29/11 2

3 No. LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA Yes, MnDOT does at times lease R/W for non highway uses (Alternative Uses), a very modest revenue stream. You may contact Bonnie McCabe for follow up. 651/366/3476. None at this time. MISSISSIPPI MISSOURI MONTANA NEBRASKA NEVADA No We have looked into the potential of leasing to cellular sites, but this would require a change in state law. There have been discussions regarding the use of our R/W to provide opportunities for solar power or possibly using our R/W for the re charging of electric vehicles. These discussions have just started and may not be intended to create an income stream for the Department. We do lease our R/W to adjacent property owners if we get a request and own the R/W in fee. Leasing R/W to adjacent property owners does not create a significant income stream or a consistent one, in this current economy. NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEW YORK Rev 11/29/11 3

4 NORTH CAROLINA NORTH DAKOTA OHIO The Ohio Department of Transportation has 3 revenue streams which involve the use of Right of Way and excess land. 1. Cell tower site rental 2. Oil and Gas leases 3. Long term leases of land The Cell Tower Site Leases include Right of Way and excess land. These leases are mostly along major highways in urban and suburban areas due to limitation of available sites. Oil and Gas leases include Right of Way and excess land. In Ohio various acres are pooled, joined together, to form a polling unit for drilling. ODOT Oil and Gas leases include Right of Way and excess land. Our leases are Non Drill Leases which allows ODOT parcels to be included in the pooling unit but the Tenant is not allowed to enter upon the leased property. Long term land leases include a variety of purposes involving Right of Way and excess land. Lease uses can range from farming crops to railroad access above or below the Right of Way. I am the contact for this AASHTO survey question. Respectfully, Larry Hamilton Ohio Department of Transportation Property Management, Office of Real Estate, 4th Floor 1980 West Broad St. Columbus, Ohio Larry.Hamilton@dot.state.oh.us OKLAHOMA OREGON The State of Oregon does lease inactive right of way that has been deemed excess to the State's needs to generate income. It does not typically allow private enterprise to co exist in active right of way for the generation of income. However, the State of Oregon has recently been involved with others to place Solar Panels in State's active right of way. The State of Oregon has entered into agreements with certain power companies to allow Solar panels to be constructed at selected locations to generate electricity that can be directed into the electrical grid to off set the electrical needs of the State's highway system. This effort is being spear headed through the Rev 11/29/11 4

5 Oregon Innovative Partnership Program. The contact for this effort is Allison Hamilton. Her phone number is (503) PENNSYLVANIA Yes. After highway construction is completed, long term leases of right of way of areas above, beneath, or outside the traveled way are possible depending on the timeframe that the right of way property is needed, if at all, for future development. Individuals or organizations interested in leasing right of way need to contact the District Executive of the Pennsylvania Engineering District in which the property is located. The applicant must submit the Application to Lease Real Property, Form RW 670A to the District Executive. The applicant must provide a detailed description of the proposed use of the property to be leased. Most of the uses of right of way property being leased today that generate some form of revenue include private residences, parking facilities including park and rides, hotels and motels, public play areas, and land used for farming. PUERTO RICO RHODE ISLAND SOUTH CAROLINA SOUTH DAKOTA South Dakota has not generated revenue by innovative utilization of the ROW. TENNESEE TEXAS UTAH VERMONT VIRGINIA WASHINGTON In response to your below regarding revenue generating activities here in Washington. 1. Washington does have alternative uses that generate revenue (leasing revenues of approximately 3 4 million/year). 2. There are multiple uses allowed, e.g., crops, parking, landscaping and many others. The head of our Airspace leasing program is Randy Johnson, who can be contacted at the address above. Or, you can contact me, as I am the Property Management Program Manager for the Washington State Department of Transportation. We would be more than happy to answer any questions you may have. Randy can also be reached at (360) and I can be reached at (360) Thanks, Cynthia Tremblay, Property Management Program Manager Rev 11/29/11 5

6 WSDOT Real Estate Services (360) WEST VIRGINIA West Virginia currently does not have a program for Alternate Uses of Right of Way to generate a revenue stream. WISCONSIN WYOMING Rev 11/29/11 6