<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:st1="urn:schemas-microsoft-com:office:smarttags" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 11 (filtered medium)">
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="place"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="PlaceName"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="PlaceType"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="State"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="country-region"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="City"/>
<!--[if !mso]>
<style>
st1\:*{behavior:url(#default#ieooui) }
</style>
<![endif]-->
<style>
<!--
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman";}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{color:purple;
text-decoration:underline;}
p.MsoPlainText, li.MsoPlainText, div.MsoPlainText
{margin:0in;
margin-bottom:.0001pt;
font-size:10.0pt;
font-family:Arial;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:Arial;
color:windowtext;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>On Thursday the Michigan Department of Transportation (MDOT)
joined Governor Snyder, the Office of Public-Private Partnerships, the Legislature,
LARA, BS4BP, Mr. Rodgers, BEP, and the EOC, in support of the Snyder Administration’s
initiative WORK-TO-WELFARE for the blind of <st1:State w:st="on"><st1:place
w:st="on">Michigan</st1:place></st1:State>. As if it were not bad enough to take
away employment from a qualified blind person at the Anderson House of Representatives
office building, the Capitol, and the Port Huron Vending Facility, the administration
is targeting <st1:State w:st="on"><st1:place w:st="on">Michigan</st1:place></st1:State>’s
rest areas for a public-private partnership, for the development and construction
of restaurants at the rest areas. The administration’s idea is to cut cost
and raise revenue for the state. Just as the cut of the Michigan Business Tax
was done on the back of Michigan retirees with the new pension income tax, this
public-private business partnership will no doubt result on the back of blind vendors,
ultimately costing 22 rest area blind vendors their livelihood, and likely the
remaining 56 blind snack bar and cafeteria vendors their livelihood, moving them
from WORK-TO-WELFARE.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><st1:place w:st="on"><st1:State w:st="on"><font size=2
face=Arial><span style='font-size:10.0pt'>Michigan</span></font></st1:State></st1:place>
rest stops could get restaurants as state considers public-private partnerships<o:p></o:p></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><st1:City w:st="on"><font size=2 face=Arial><span
style='font-size:10.0pt'>LANSING</span></font></st1:City> -- The Michigan
Department of Transportation is seeking interest from private companies who may
want to improve the <st1:place w:st="on"><st1:PlaceName w:st="on">Houghton</st1:PlaceName>
<st1:PlaceType w:st="on">Lake</st1:PlaceType></st1:place> rest area,
potentially adding a restaurant. <o:p></o:p></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>A
pair of rest stops in northern <st1:place w:st="on"><st1:State w:st="on">Michigan</st1:State></st1:place>
could be revamped to include fast food restaurants or coffee shops as the state
considers relying more heavily on the private sector to manage public
infrastructure projects.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>The
Michigan Department of Transportation hopes to find private businesses to
improve rest areas near Houghton and Higgins lakes on U.S. 127 in <st1:place
w:st="on"><st1:PlaceName w:st="on">Roscommon</st1:PlaceName> <st1:PlaceType
w:st="on">County</st1:PlaceType></st1:place>. The deteriorating facilities
could be salvaged through an arrangement where a business -- perhaps a food or
beverage vendor -- would take over operation and maintenance of the facilities.
<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>None
of <st1:State w:st="on">Michigan</st1:State>'s 81 rest areas have restaurants
like those in <st1:State w:st="on">Ohio</st1:State> and <st1:place w:st="on"><st1:State
w:st="on">Illinois</st1:State></st1:place> toll plazas. Recent federal
legislation gives states more flexibility to manage and fund rest areas along
certain routes.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>MDOT
is not looking to privatize freeways into toll roads, but it is poised to delve
into public-private partnerships -- or P3s -- to improve highway rest stops,
replace freeway lighting and bridges, and provide timber management along
highways.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>"It
just is a new business model that we think is worth including in how we go
about our business," said Joe Pavona, Gov. Rick Snyder's special advisor
for public-private partnerships.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>MDOT
on Thursday requested letters of interest from businesses to gauge appetite for
several proposed projects. (<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>"This
is an information-gathering stage, the first step to starting a conversation
about what's possible in financing and building infrastructure,"
Transportation Director Kirk T. Steudle said in a statement. <o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Traditionally,
the state has hired private contractors to design and construct public
infrastructure projects. They pay the contractors along the way with available
funds or by issuing bonds.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>P3s
rely on private businesses to finance, maintain and potentially operate the
facilities. Officials said it's not considered full-blown privatization since
the state would maintain ownership of the bridges, rest stops and other assets.
The state would repay investors over time. Revenue -- from a rest stop
restaurant, for example -- would offset that debt. "When the P3 model is
used correctly, they're better, faster and cheaper," Pavona said.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>And
letting private investors handle the up-front financing would allow the state
to leverage its available money on other projects, he said. P3s have been used
in other countries and <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>
states, but not to this degree by MDOT. The planned DetroitWindsor bridge would
be a P3 in conjunction with <st1:place w:st="on"><st1:country-region w:st="on">Canada</st1:country-region></st1:place>.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>While
some investors and planners hail P3s as innovative solutions for states or
financially struggling municipalities like <st1:place w:st="on"><st1:City
w:st="on">Detroit</st1:City></st1:place>, the arrangements can be
controversial. Critics say such projects can hurt taxpayers. They point to
problems that have arisen under <st1:City w:st="on">Chicago</st1:City>'s
parking meter system run by a private company, or a <st1:place w:st="on"><st1:City
w:st="on">San Diego</st1:City></st1:place> toll road that went bankrupt.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>PROPOSED
PROJECTS:<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Rest
areas: <st1:PlaceName w:st="on">Higgins</st1:PlaceName> <st1:PlaceType w:st="on">Lake</st1:PlaceType>
and <st1:PlaceName w:st="on">Houghton</st1:PlaceName> <st1:PlaceType w:st="on">Lake</st1:PlaceType>
facilities along US-127 in <st1:place w:st="on"><st1:PlaceName w:st="on">Roscommon</st1:PlaceName>
<st1:PlaceType w:st="on">County</st1:PlaceType></st1:place>.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Rest
Areas<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Why
were these two specific rest areas chosen?<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>The
new federal highway authorization bill, MAP-21, gives states greater
flexibility<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>to
use<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>innovative
techniques to manage and fund rest areas that are located along the interstate<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>highway<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>system.
These two rest areas already had been identified as locations requiring
additional<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>review<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>by
MDOT due to their proximity to other rest areas, low usage and poor condition.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>What
type of usage does the department expect a private entity to propose?<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>MDOT
is looking to start a conversation with private industry to determine if
alternate<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>uses
are<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>available
for these rest areas that would benefit both the traveling public and MDOT.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>No
specific<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>types
of usage are being targeted.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>What
types of services will be provided at these rest areas?<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>That's
unknown and is one of the objectives of the requests for letters of interest.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>It's
anticipated,<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>however,
that any P3 project would provide enhanced facilities and services to the<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>public
beyond<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>what's
currently available.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>What
will happen if no private entities express interest in the rest areas?<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>If
there's no interest expressed in managing or operating the rest areas, MDOT
intends<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>to<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>permanently
close the <st1:place w:st="on"><st1:PlaceName w:st="on">Higgins</st1:PlaceName>
<st1:PlaceType w:st="on">Lake</st1:PlaceType></st1:place> rest area on
southbound US-127 later this year.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>The<o:p></o:p></span></font></p>
<p class=MsoPlainText><st1:place w:st="on"><st1:PlaceName w:st="on"><font
size=2 face=Arial><span style='font-size:10.0pt'>Houghton</span></font></st1:PlaceName>
<st1:PlaceType w:st="on">Lake</st1:PlaceType></st1:place> rest area on
northbound US-127 will remain open; however, MDOT will<o:p></o:p></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>continue
to monitor its usage, condition, and operational and capital costs to determine<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>long-term<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>plans
for the facility. Prior to making these decisions, though, it's important for<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>MDOT
to<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>examine
opportunities for alternate uses of the existing rest areas.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Would
MDOT consider expanding this opportunity to other rest areas?<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>Where
allowed by the Federal Highway Administration (FHWA), and based on the interest<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>and<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'>results
from these pilot projects, MDOT would examine the use of its other rest areas.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> <o:p></o:p></span></font></p>
</div>
</body>
</html>