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Genna AuteriCoordinator, Research & Technical AssistanceCouncil of Development Finance Agencies



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CDFA is not herein engaged in rendering legal, accounting, financial or other advisory services, nor does CDFA intend that the material included herein be relied upon to the exclusion of outside counsel or a municipal advisor. This publication, report or presentation is intended to provide accurate and authoritative general information and does not constitute advising on any municipal security or municipal financial product. CDFA is not a registered municipal advisor and does not provide advice, guidance or recommendations on the issuance of municipal securities or municipal financial products. Those seeking to conduct complex financial transitions using the best practices mentioned in this publication, report or presentation are encouraged to seek the advice of a skilled legal, financial and/or registered municipal advisor. Questions concerning this publication, report or presentation should be directed to [email protected].



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Lindsay MillerAssociate AttorneyIce Miller

Angela SieferExecutive DirectorNational Digital Inclusion Alliance

Greg DunnPartnerIce Miller



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Chris MillerPartnerIce Miller

Chris MagillEconomic Development DirectorIce Miller

James SnyderPartnerIce Miller



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The State of Broadband Access and Adoption

Lindsay MillerAssociate AttorneyIce Miller



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The State of Broadband Access and Adoption

Angela SieferExecutive DirectorNational Digital Inclusion Alliance

Angela Siefer

Executive Director

National Digital Inclusion Alliance

[email protected]

The State of Broadband

Access and Adoption

9

An overview of the broadband landscape in the U.S. and the contributors to digital inequities in urban and rural markets

Lindsay Miller

Associate Attorney

Ice Miller LLP

[email protected]

What exactly is broadband?

“Broadband” is not a single technology, but rather a term that describes a range of technologies that provide high-speed internet access.

10

“Future-Proof”

Bandwidth can be increased without having to change infrastructure unlike

digital subscriber line (DSL)

Fiber-optic reaching capabilities

Single employer

Major development

Fiber ring that circles an entire city

Bandwidth to carry enormous amounts of data

The fastest commercially available technology is fiber-optic cable


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“. . . but in order to have fiber-optic service, one needs to live in proximity to where the network already exists; currently, [fiber] availability is mostly limited to dense urban areas with high incomes.”


12

Microwave Connectivity

Point-to-point connection

Between a tower and roof mount on building

Point-to-multipoint connection

Cost-effective

Wi-Fi Connectivity

Fiber optics wireless internet connectivity

In-building infrastructure connected to high bandwidth connection, such as

fiber optics

What exactly is broadband? Fixed wireless has improved significantly in recent years

13

Mobile wireless is a complement, not substitute

High-band spectrum for Fifth Generation (5G) mobile wireless

expansion

Will require small and numerous towers and antennas

“Small cells”

To become the mobile wireless standard

Provide large amounts of bandwidth

Various connection capabilities

Wired or wireless connections5G

What about my cell phone?

14

Fixed and Mobile Wireless Infrastructure

Tall Sites - Lattice Towers, Monopoles, Roof Mounts, Steeples, Bell Towers, Water Towers

15

Medium Sites -Monopoles, Roof Mounts, Stadium

Lighting, Flag Poles, and other types of

Infill Sites

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Small Sites – Street Light Poles, Building Mounts, Utility Poles, Mast Antennas, Roof Mounts, Flag Poles, and other Unique Sites (Micro Cells, Nano Cells,

Distributed Antenna Systems [DAS], Microcell Networks, etc.)


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Despite all of this infrastructure . . .

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The Need for Connectivity

Internet of Things (IoT) will create unprecedented

new uses for internet-enabled devices and

heighten demands for high-speed connectivity

Technology/ innovation always outpaces policy.

Broadband considered a “4th utility” in several markets.

Transformative technologies driving major initiatives:

Smart Cities bring intelligent transportation

systems, traffic control, public safety, utility

monitoring, and more

5th generation mobile connectivity: the next wireless

telecommunications standard; will support the

proliferation of Internet of Things and Smart Cities5G

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The Need for ConnectivityPrivate Industry

GPS soil mapping; seed & fertilizer counts; irrigation & grain-

bin monitoring; precision-farming apps.

Faster communication between operations centers &

production sites; remote generation monitoring; energy

savings sensors.

Just-in-time supply chain management; autonomous vehicles

& transit; monitoring of traffic patterns and traffic data

collection; product sensor-tags.

3D printing; design simulation; agile scheduling; real-time

inventory management; optimal material handling; training (e-

learning); sales management; social media product-marketing.

Agribusiness

Energy & Natural Gas

Transportation & Logistics

Manufacturing20

Access to healthcare and telehealth services.

Equitable educational opportunities provide a more

skilled workforce and better employee pool.

Connectivity allows for more entrepreneurial

opportunities; increased access to home-learning; and

bandwidth to utilize multiple devices.

Access to food and grocers; access to retail and

increased retail & e-retail activity.

Healthcare

Education

Entrepreneurship & Entertainment

Food & Retail

The Need for ConnectivityCommunity

21

NDIA is…A unified voice for home broadband access, public broadband access, personal devices and local technology training and support programs.

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NDIA Affiliates

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Digital Equity Individuals and communities have

IT capacity for full participation in

society, democracy and economy.

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Digital Inclusion Activities necessary for full participation:• Affordable home broadband

• Appropriate devices

• Digital literacy

• Tech support

• Applications

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20 MillionHouseholds with no home broadband

U.S. Census American Community Survey28

Guidebooks1. Digital Inclusion Startup Manual

2. Discount Internet Guidebook

3. Digital Inclusion Coalitions Guidebook

32

Digital Inclusion

Trailblazers

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Community of

practitioners,

academics and

advocates34

We work collaboratively to craft, identify and disseminate financial and operational resources for digital inclusion programs while serving as a bridge to policymakers and the general public.

36

Digitalinclusion.org/join

37

PCs for People, St. Paul, MN 38

Byte Back, Washington D.C. .39

City of Austin, TX 40

Free Geek, Portland, OR 41

City of Seattle, WA 42

Fresno Housing Authority, CA 43

Kramden Institute, Durham, NC 44

Nashville Public Library, TN 45

Human-I-T, Los Angeles, CA 46

Connecting for Good, Kansas City 47

Tech Goes Home, Boston, MA 48

Morton County Library, KS 49

Questions?

50

Thank you for joining us.

This PowerPoint presentation is for educational and general informational purposes only. It is not specific legal advice. You should seek

legal advice from your counsel in an attorney-client relationship

Lindsay M. Miller

Associate Attorney

Ice Miller LLP

[email protected]

614.462.1136

Angela SieferExecutive Director

National Digital Inclusion [email protected]

@netinclusion@angelasiefer

mailto:[email protected]




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Interested in learning more about Broadband? Check out the CDFA-TEDC Webinar: Rural Broadband – Financing the Last Mile on December 18on our website cdfa.net



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Opportunities for Expansion and Steps to Access

Greg DunnPartnerIce Miller



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Opportunities for Expansion and Steps to Access

Chris MillerPartnerIce Miller

Opportunities for Expansion

and Steps to Access

54

December 4, 2019

Gregory Dunn

Partner

Ice Miller LLP

[email protected]

Christopher Miller

Partner

Ice Miller LLP

[email protected]

Your Community, Your Broadband

Approaches to Funding Broadband Access

55

Steps to Access

• Create an Asset and Gaps Inventory

• Determine Network Ownership

• Conduct a Cost-Benefit Analysis56

Create an Asset and Gaps Inventory

Gaps

Residential Service Gaps

Commercial Service Gaps

Community Anchor Institution Gaps (schools, libraries, healthcare, etc.)

Assets

Existing Publicly/ Privately-owned Fiber

Publicly/ Privately-owned Vertical Real Estate

Right-of-Way Provisions & Policies

Municipal/ Community-owned Buildings

Federal, State & Local Zones/ Incentive Designations

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Determine Network Ownership

Locally owned, municipal network;

Work with private telecommunications providers for

expansion;

Use a combination public-private partnership (“P3”)

approach;

State or university-owned telecommunications networks.

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Long-term contractual arrangement with regulatory component

Not a full legal asset sale (i.e., maintain public ownership)

Designed to secure value or control costs for the public sector

Private sector contractor accepts risks and responsibility for (some or all of) design,

build, finance, operate and maintain

Public sector retains strategic control over service delivery and certain risks that it is

able to handle more efficiently than private and cedes revenue generated from asset or

pays for performance

Payment to the private sector either comes directly from the project (revenue risk), or is a

performance-based payment from the government (availability payment)

*Deloitte, Public-Private Partnerships: Evolution & Maturity, 2016 Engineering & Construction Conference June 15–17, 2016, Austin, TX

Public-Private Partnerships

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Public-Private Partnerships

Public Sector Benefits

Private sector expertise

Physical and financial assets of the private sector partners

Enhanced service delivery to the local public

Private Sector Benefits

Expedited processes

Access to public infrastructure

Access to data

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What it all comes down to . . .

RISK

CONTROL

Potential Financing SourcesPublic-Private Partnerships

61

Conventional delivery model = most long-term risks borne by public

P3 model = public agency transfers some of the risks to private entity,

relieving it of bearing cost of risks it cannot manage (construction cost

overruns construction delays, long-term maintenance)

Public agency efficient risk allocation creates "good deal" for society

Private party efficient risk allocation is key to ensuring that project is

financeable and has attractive risk-return ratio.

HOWEVER, allocating risks efficiently is extremely challenging! (e.g.,

valuation difficulty; projecting risks 30-40 years into future) * International Institute for Sustainable Development, https://iisd.org

Risk-Reward Allocation: The Heart of a P3

Potential Financing SourcesPublic-Private Partnerships

62

Conduct a Cost-Benefit Analysis

• Understand current spend on

telecommunications services

• Understand how current

spend will augment over

coming years

• Determine the cost, public

sector and private sector

benefit of the broadband

project

• Understand available

financing, partnerships and

contributions from the private,

public and not-for-profit sector

• Understand federal, state and

local incentive programs

63

Questions?

64




Gregory Dunn

Partner

Ice Miller LLP

[email protected]

614.462.2339

Christopher Miller

Partner

Ice Miller LLP

[email protected]

614.462.5033





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Innovative Financing and Opportunities for Funding

Chris MagillEconomic Development DirectorIce Miller



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Innovative Financing and Opportunities for Funding

James SnyderPartnerIce Miller

Innovative Financing and

Opportunities for Funding

68

December 4, 2019

James Snyder

Partner

Ice Miller LLP

[email protected]

Christopher Magill

Director of Economic Development

Ice Miller LLP

[email protected]

Ice on Fire

Federal Communications CommissionConnect America Fund (CAF)

Newly proposed RDOF program

E-Rate Program

Rural Healthcare Program

USDA Rural Utilities ServiceReConnect Loan and Grant Program

Telecommunications Infrastructure Loan and Loan Guarantee

Rural Broadband Access Loan and Loan Guarantees

Community Connect Grant Program

Distance Learning and Telemedicine Grant Program

Part 3: Other Financing ToolsExamples of Federal Programs

69

Ice on Fire

Department of Commerce, Economic Development AdministrationPublic Works & Economic Adjustment Assistance

Partnership Planning

Local Technical Assistance

Department of Housing and Urban DevelopmentCommunity Development Block Grants

Section 108 Loan Guarantees

Public Housing Capital Fund

Choice Neighborhoods Program

New Market Tax Credits

Appalachian Regional CommissionPartnerships for Opportunity and Workforce and Economic Revitalization (POWER)

Telecommunications and Technology Program

Part 3: Other Financing ToolsExamples of Federal Programs

70

Ice on Fire

Bonds• Utility Revenue Bonds

• General Obligation Bonds

• Lease/ Appropriation Bonds

Tax Increment Financing• Not expressly included in definition of public improvement under 5709.40

• Clearly fundable under 5709.41

Port Authority Common Bond Fund Revenue Bonds

Special Taxing Districts• Innovation Districts – O.R.C. 5709.45-.47

o 10-acre districts

o Urban Settings

o Redevelopment Charges plus TIF

• New Community Authorities

• Special Improvement Districts

Part 3: Other Financing Tools Examples of State/ Local Programs

71

Ice on Fire

Uncertain federal incentives/ unclear state incentives create demand for innovative funding solutions.

A P3 represents significant private sector participation in a community’s growth and innovation –such private sector participation is a community asset.

A P3 may allow a community to access cutting-edge technologies that may not otherwise be accessible due to local budget constraints.

A P3 allows a community to leverage private sector’s expertise and resources while freeing up finances and potentially improving performance.

Part 3: Other Financing ToolsPublic-Private Partnerships

72

Ice on Fire

P3s are often used in combination with other funding sources

mentioned earlier:

Government bonds and financing

Special taxing districts and tax increments

Grants, financing and loans

Economic incentives


73

Ice on Fire

Privatization of municipal assets

A low-cost funding solution

A low-quality delivery model

The right solution for every project

*Association for the Improvement of American Infrastructure, https://aiai-infra.info/resource-center/

A Public-Private Partnership is NOT necessarily…


74

https://aiai-infra.info/resource-center/

Ice on Fire

Monetizing network infrastructure

Revenue share

Data opportunities

Fare collection/ variable fees

Fleet management cost savings

Part 3: Other Financing ToolsRevenue Generation

75

Questions?

76




Christopher Magill

Director of Economic Development

Ice Miller LLP

[email protected]

614.462.1141

James Snyder

Partner

Ice Miller LLP

[email protected]

312.726.7127





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Question and Answer





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Ice Miller Broadband & Telecom Team

Do you want to learn more about Smart Cities, why a P3 could be a great solution and how Ice Miller can help? Click here for Ice Miller's P3 for Smart Cities resources and recorded Webinars

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Upcoming CDFA Events


Intro Food Systems Finance WebCourseDecember 11-12, 2019Daily: 12-5 PM Eastern

CDFA // BNY Mellon Development Finance Webcast Series: Sourcing Local Capital for Community ProjectsDecember 17, 20191:00 PM Eastern

CDFA-TEDC Webinar: Rural Broadband – Financing the Last MileDecember 18, 201910:00 AM – 11:30 AM Central



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Genna AuteriCoordinator, Research &

Technical Assistance614-705-1303

[email protected]

This webcast is designed to provide accurate and authoritative information in regard to the subject matter covered. It is available with the understanding that CDFA and the panelists are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

cdfa-ice miller broadband financing bootcamp€¦ · chris miller partner ice miller. opportunities...

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