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FEATURE ARTICLE
An insider's look at the three most popular bike trail financing
options for park districts and forest preserves BY CRAIG WILLIAMS Few will disagree that bike trails are wonderful additions to a community. Yet, like any capital improvement, they aren't free. Fortunately, there are numerous sources of funding for these kinds of improvements. Hopeful agencies should be aware that the grant application process and the planning and designing process varies widely for different programs. This article will help guide the applicants through the three most popular sources and address the differences in the programs. It's important to realize, too, that every project is different. For example, with longer bikeways, an agency may have several partners that have jurisdiction over different segments of the trail and with which the agency may need to (and should) cooperate. Perhaps more importantly, however, is that certain projects are more appropriate for particular funding sources. And, certain funding sources are more appropriate (or cash-friendly) for some agencies and their respective budgetary strengths. For example, agencies need to especially be aware of the cash flow requirements necessary to support larger projects. Its great to think that the local share of a $500,000 project might only be $50,000 (assume 80 percent Illinois Department of Transportation and 10 percent Illinois Department of Natural Resources), but it's another thing to ask your board to support the month-to-month costs of engineering and then construction of your project. Some of the pizzazz evaporates when you get into the realities of the local share or actual cash flow. The Lost Bridge Trail Example When I chaired the Rochester, Illinois, park board, everyone was gung-ho for an extension of the Lost Bridge Trail until they considered local share and cash-flow requirements. We managed to convince the board to proceed, but only after many hours spent producing a spreadsheet that shows each step of the project and the cash outlay and reimbursement schedule for each month, then a serious presentation to the village board. It helped that with Illinois Department of Transportation (IDOT-funded) projects, IDOT pays the contractor directly and bills the local agency for its 20 percent. The Rochester board would have choked at the thought of paying out $100,000 a month for four months straight during the construction phase, and then waiting for reimbursement.
Another fact in our favor was that the Illinois Department of Natural Resources (IDNR) funds could be used to provide 50 percent of the local match. In the case of the Lost Bridge Trail Extension, IDNR funds were anticipated to pay for $50,000 of the $100,000 local share. Some agencies may not have to worry about cash flow, but many do. The spreadsheet helped in several ways. It showed the board that the bigger expenditures would be a year or two (or more) away and they could budget for the expenses and certainly know when reimbursement would occur. The board had just completed an IDNR Open Space Lands Aquisition and Development (OSLAD) project and were waiting for completion of the project and reimbursement; they were gun-shy about the outstanding cash outlay and were annoyed about the delayed reimbursement because the project hadn't been wrapped up. Again, every agency will have different expectations and it's important to know what to expect. Great Expectations When I worked at the Illinois Department of Transportation and federal ISTEA funds were first available, the differences between IDOT and IDNR funding sources and implementation processes quickly became apparent. IDNR had been in the bike trail business for nearly a decade and many agencies were May/June 2002 19
TOP 3 BIKEWAY GRANT PROGRAM COMPARISON
20 Illinois Parks and Recreation familiar (and happy) with the process. IDNR allowed projects to be implemented on the local level, with minimal oversight. Plans were drawn intended for a local letting. When the projects were complete, IDNR would reimburse the agency for 50 percent of the cost. Everyone understood the process and IDNR was very good with coaching the grant recipients about the process.
As soon as the ISTEA funds were available, however, many agencies clamored for the new IDOT money, mainly because there were no limits on the funding available; the federal share was 80 percent, and there was a lot of demand with many large projects on the shelves waiting for the cash. Agencies lined up at the door, and the first round of enhancement funding, even with approximately $70 million available, saw some $300 million worth of projects submitted. In brief, the ISTEA funds brought together many new partners and allowed many projects to be built that might never have happened. In retrospect, however, the learning curve was steep for all parties involved. IDOT learned about working with park districts and with bikeway projects as other new projects. Local agencies learned how to hire consultants who understood the federal highway process that these new projects had to follow. They learned that the process was more complicated, more elongated and expensive than it was with IDNR. Consultants that were familiar with the highway process learned how to design bikeways. Projects ended up costing more (sometimes much more) than originally anticipated. We all know more now. Almost ten years later, the demand for bikeways continues to grow, and funding for bikeways is available from more sources. Each, however, has different rules and caveats. Hopefully, this summary will provide some understanding of the three most popular programs and speed-up your agency's learning curve. CRAIG WILLIAMS is a principal planner for Edwards and Kelcey, specializing in bikeway and trail planning and design. Williams was the bikeway coordinator for the Illinois Dept. of Transportation for nine years prior to joining Edwards and Kelcey in 2000. Contact Williams at cwilliamsSekmail.com or 312.251. 3000. Williams is developing a bike trail funding pocket guide in cooperation with the Ilinois Association of Park Districts, scheduled for release this summer. Look for more information in the July/August issue of Illinois Parks & Recreation magazine.
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