LORDSTOWN USDOT RAISE Grant Application Narrative - July 2021 - Eastgate Regional Council of Governments
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LORDSTOWN TABLE OF CONTENTS SMART LOGISTICS HUB EXECUTIVE SUMMARY 1 PROJECT DESCRIPTION 2 PROJECT LOCATION 5 GRANT FUNDS, SOURCES & USES 8 SELECTION CRITERIA 10 ENVIRONMENTAL RISK REVIEW 25 BENEFIT COST ANALYSIS 29 CONCLUSION 30 SUPPLEMENTAL MATERIALS Supplemental materials to the application are available at: https://eastgatecog.org/smartlogisticshub/ USDOT RAISE GRANT ii Application Narrative
LORDSTOWN EXECUTIVE SUMMARY SMART LOGISTICS HUB PROJECT DESCRIPTION The Lordstown Smart Logistics Hub is an innovative, strategic initiative to capitalize on Lordstown’s location at the intersection of multiple modes of transportation, broadband, and electrification and position the area as the premier regional warehousing and distribution hub. Phase 1 includes: • A transfer yard for triple trailers at the Ohio Turnpike Lordstown interchange • Solar powered electric vehicle charging stations providing clean energy power source • “Smart Corridor” broadband along local freight routes to serve automated and connected trucks PROJECT LOCATION The project is located along the Trumbull County-Mahoning County border in rural Eastern Ohio Appalachia with access to the Ohio Turnpike (I-80), I-76, and the CSX National Gateway, proximate to high speed fiber optic connections, and 3,000 acres of shovel ready sites. GRANT FUNDS: SOURCES & USES The total project cost is $5,093,787. The RAISE funding request is $3,993,787. As project sponser Eastgate is committing a 21.6% non-federal match of $1,100,000 to the project. SELECTION CRITERIA The project advances each of the RAISE Selection Criteria: Safety State of Environ- Quality of Innovation Economic Partnership reduced Good Repair mental Life electric, fuel and DriveOhio truck crashes weigh in decrease job creation automated operational collaboration due to motion in toxic & increased & connected savings model AV?CV monitoring emissions property value technology Equitable Outcomes: The project will expand employment opportunities for low income and minority populations in the urban cores of Youngstown and Warren and eastern Ohio Appalachia. Climate Change Mitigation: Solar powered EV charging stations will improve air quality and reduce toxic emissions while helping reestablish the US as the global leader in climate change mitigation. ENVIRONMENTAL RISK REVIEW The project is low risk and repurposes existing underutilized roadway corridors (4 lanes, ADT
LORDSTOWN PROJECT DESCRIPTION SMART LOGISTICS HUB PROBLEM STATEMENT With a premier location at the crossroads of two major interstate east-west freight routes and the CSX National Gateway, Lordstown is strategically positioned to capitalize on not only superior transportation infrastructure but also on a 940-MW electric power plant and the Ohio Turnpike’s high-speed fiber optic line. All Lordstown lacks to become a premier logistics hub is a sustainable vehicle electrification technologically advanced freight infrastructure adjacent to its highway and rail connections. With the addition of smart mobility enhancements to its last-mile freight connections, Lordstown will be fully empowered to serve as the leading electrified regional logistics hub for Midwestern rural markets to the west and Appalachian rural markets to the east. As America responds to the COVID-19 pandemic, the need for resilient supply chains, particularly for traditionally underresourced rural markets, has only intensified. The Lordstown Smart Logistics Hub will address these problems and not only enhance rural supply chains, but also accelerate the EDA’s federal investment in the ongoing economic recovery of Eastern Ohio’s Mahoning Valley region as it rebrands itself as the new “Voltage Valley.” Mahoning Valley Timeline: Resiliency & Innovation LEGACY OF ECONOMIC SOARING TO NEW HEIGHTS! MANUFACTURING DECLINE ONGOING ECONOMIC RECOVERY The new A rich history in Global market forces Voltage industry... require innovation... Valley rises GM Lordstown Plant stronger! GM Lordstown Plant employees peak of 12,000 Ultium LLC closes in 2019 constructs battery plant TJX Warehouse Lordstown opens Motors purchases GM plant Steel Steel City USA Mills close 940MW Lordstown Energy Center opens USDOT RAISE GRANT 2 Application Narrative
LORDSTOWN PROJECT DESCRIPTION SMART LOGISTICS HUB THE SOLUTION The Lordstown Smart Logistics Hub will facilitate the region’s ongoing economic recovery through targeted investments in freight transfer and smart logistics that capitalize on electric, connected, and automated technologies to position Lordstown as the Mahoning Valley’s premier transportation and logistics hub. The project will create high-quality jobs, improve safety, protect our environment, and generate equitable economic opportunity through investments in emerging smart mobility technologies that will spark private investment at 3,000 acres of available shovel ready sites primed for logistics and distribution. NORTH Lake Erie: Port of Ashtabula | 68 miles ELECTRIC POWER INNOVATION Pittsburgh: McKees Rocks Intermodal | 73 miles Cleveland: Collinwood Intermodal | 66 miles “Voltage Valley” is anchored by BRITE Energy Innovators the Lordstown Energy Center, 45 actively empowers founders to launch energy technology 940 MW combined-cycle power plant solutions services CSX NATIONAL GATEWAY LORDSTOWN RAIL LINE SMART LOGISTICS HUB HIGH-SPEED FIBER OPTIC 241 miles Phase 1 Enhancements along OH TPK • Trailer Transfer Yard • Solar EV Charging 80 • Smart Corridor 76 Broadband OHIO TURNPIKE SMART MOBILITY WORKFORCE DriveOhio supports the design, Strong local 10-year job growth WEST development, testing, use and is projected in the electronics EAST regulation of automated and manufacturing (10.8%) & connected technologies specialty trades (8.1%) sectors SOUTH Ohio River: Wellsville Facility | 53 miles
LORDSTOWN PROJECT DESCRIPTION SMART LOGISTICS HUB PROPOSED IMPROVEMENTS The Lordstown Smart Logistics Hub is a strategic Electrification infrastructure initiative which capitalizes on Lordstown’s location at the intersection of multimodal freight transportation, broadband, and vehicle electrification that will position the area as the premier regional warehousing and distribution hub. Connected & Future-focus Automated-ready Transfer Yard The project embraces a three-pronged approach to Infrastructure smart logistics: (1) electrification, (2) connected and U LORDSTOWN automated-ready infrastructure, and (3) future-focused transfer yards. The project’s scope of work incorporates SMART LOGISTICS HUB Smart Logistics cutting edge technology to maximize the efficiency, reliability, and safety of freight mobility through multiple Please help the Western Reserve Port Aut components. to position Immediate needs to be addressed by Phase 1 of the Lordstown Lordstown Smart Logistics as the premier Hub include: Electric Auto Vehicles Ve The Lordstown Smart Logistics Hub is a strategic “Smart Corridor” Ta infrastructure initiative which capitalizes on Lordstown’s A transfer yard Solar poweredlocation electricat the intersection of multimodal freight ◾C broadband along SR for triple trailers at vehicle charging transportation, broadband, and vehicle electrification w 45, that will position the Hallock area Young as the premier Road, regional o the Ohio Turnpike stations providing clean warehousing and distribution hub in rural Eastern Ohio ◾ & Bailey Road to serve Lordstown interchange energy powerAppalachia. source O automated trucks G The project embraces a three-pronged approach to T smart logistics: (1) vehicle electrification, (2) connected ◾ Equitable Outcomes: The project will expand employment opportunities for low income and minority and automated-ready infrastructure, and (3) o populations in the urban cores of Youngstown and Warren and Eastern future-focused Ohio freight Appalachia. transfer yards - incorporating p cutting edge Climate Change Mitigation: The project’s solar EV charging will technology advance the to region’s maximizegrowing the efficiency, clean ◾ reliability, and safety of freight mobility and enhance O energy economy and aid in the economic recovery and create new jobs in logistics and distribution, supply chain resiliency. n electric vehicle and battery manufacturing, utilities and power generation, and construction trades. I Our project partners encourage you to use the provided ◾ talking points (see right) to stress the critical importance m of federal investment in the Mahoning Valley. USDOT RAISE GRANT 4 Application Narrative S Rob
LORDSTOWN PROJECT LOCATION SMART LOGISTICS HUB RURAL PROJECT with ONGOING ECONOMIC RECOVERY URBAN CORE BENEFITS Located along the Trumbull County-Mahoning County border in rural Eastern Ohio Appalachia, the Lordstown Smart Logistics Hub will help spark the region’s ongoing economic recovery by creating new jobs in logistics and distribution, electric vehicle and battery manufacturing, utilities and power generation, and construction trades. The project complements federal investment in the area by the EDA to fund an economic recovery strategy following the recent closure of the GM Lordstown Plant, where employment once peaked at 12,000. In a short time since then several major developments have launched in Lordstown that have marked the PROJECT LOCATION region’s resiliency and emerging position as a leader in electrification and logistics: • The opening of the $900 million Lordstown Energy Center, a 940-megawatt plant containing two gas turbines and one steam turbine with capacity to supply power to 850,000 homes and businesses. • A $170 million investment by TJX in a new Urbanized Areas 1.2-million square foot distribution facility will bring about 1,000 new jobs to Lordstown and have an annual payroll of about $27 million. • Purchase of the 6.2 million square foot former GM Lordstown facility by Lordstown Motors to produce electric pickup trucks aimed at industry and government markets with annual production capacity of 420,000 vehicles. • Ultium LLC, a joint venture by General Motors Co. and LG Chem of South Korea, recently constructed a $2.3 billion battery cell manufacturing plant for GM, Honda, and other’s electric vehicles. The opening of the facility is imminent with hiring and training underway and increased traffic to follow. USDOT RAISE GRANT 5 Application Narrative
LORDSTOWN PROJECT LOCATION SMART LOGISTICS HUB EQUITABLE OUTCOMES Expanding Job Access For Low Income & Minority Populations The project will enhance equitable outcomes by providing job access to advanced manufacturing, warehousing and distribution employment opportunities at the Lordstown Smart Logistics Hub for traditionally underresourced low income and minority populations residing nearby in the urban cores of the Mahoning Valley’s two major cities - Youngstown and Warren. Fixed route service for a transit- dependent workforce is provided through the Western Reserve Transit Authority (WRTA) transit center via the Lordstown Express Route (see below) serving an urban to rural “reverse commute”. LOW INCOME POPULATION (NATIONAL PERCENTILE) LORDSTOWN EXPRESS TRANSIT ROUTE WRTA Lordstown Transit Smart Center Logistics Hub MINORITY POPULATION (NATIONAL PERCENTILE) LORDSTOWN EXPRESS TRANSIT ROUTE WRTA Lordstown Transit Smart Center Logistics Hub USDOT RAISE GRANT 6 Application Narrative
LORDSTOWN PROJECT LOCATION SMART LOGISTICS HUB NATIONAL FREIGHT NETWORK The Lordstown Smart Logistics Hub sits geographically centered between the Cleveland and Pittsburgh metropolitans areas, and is directly accessible by multiple national freight corridors, including the Ohio Turnpike, Interstate 76, and a CSX National Gateway rail line at the Ohio Commerce Center. Located at the doorstep of the Lordstown Energy Center in the “Voltage Valley,” the project leverages large scale electric power generation, as well as a connection to the Ohio CSX Intermodal Turnpike’s 241-mile high speed fiber optic corridor. “The Lordstown Smart Logistics Hub LEVERAGING DEVELOPMENT will be a critical asset to the region and Abundant real estate development opportunities exist on a strong catalyst for further economic SR 45 and Bailey Rd along the proposed “Smart Corridor” investment. Team NEO will support the hub through data driven marketing freight route. Over 3,000 acres of industrial zoned, shovel and targeted outreach to companies ready sites with utilities will enable future private investment across the globe that would see value in distribution and warehousing facilities which will capitalize in unique assets this Hub represents.“ on a strategically central location midway between two Bill Koehler, Chief Executive major metro areas and providing efficient, safe, reliable, and Officer at Team NEO economical last-mile logistics service. FIBER CONNECTION OPPORTUNITY ZONE NEXUS BRITE HQ Downtown The proposed high-speed fiber connection will link the Ohio Warren Turnpike’s 241-mile fiber corridor with BRITE Energy Innovators , Ohio’s energy tech incubator, located in Downtown Warren’s certified Opportunity Zone. BRITE provides energy enterprises, tech startups, entrepreneurs and small businesses with access to advanced energy technology research and development PROJECT resources and professional business development support. AREA Their nearby location in an Opportunity Zone will encourage potential investors with unrealized capital gains to infuse capital into the next wave of entrepreneurship related to electrification of the Lordstown Smart Logistics Hub. Opportunity Zone USDOT RAISE GRANT 7 Application Narrative
to BRITE Energy Innovators & Downtown Warren Opportunity Zone OHIO 3 OVERVIEW MAP COMMERCE CENTER CSX 1 Salt Springs Rd TRAILER L TRANSFER YARD S VILLAGE OF LORDSTOWN Please help to positio 1 ULTIUM LLC LORDSTOWN 2 LORDSTOWN BATTERY ENERGY CENTER E MOTORS PLANT TJX DISTRIBUTION PLANT V Hallock Young Rd CENTER The Lordstown Sm NS SOLAR POWERED EV 2 infrastructure init location at the in TRUMBULL COUNTY CHARGING STATIONS transportation, b MAHONING COUNTY that will position warehousing and 241-mile Fiber Optic Appalachia. Corridor with 3 Automated Freight Testing The project embr JACKSON Bailey Rd smart logistics: (1 TOWNSHIP and automated-r 80 future-focused fr cutting edge tech reliability, and sa supply chain resil 45 SMART CORRIDOR Our project partn talking points (se 76 BROADBAND of federal investm Mahoning Ave FEDEX The U.S. DO FREIGHT
LORDSTOWN GRANT FUNDS, SOURCES & USES SMART LOGISTICS HUB PROJECT COSTS Project costs by project development category are summarized below: Project Cost Breakdown by Development Category Category Cost Percent of Total Project Capital Costs $4,429,380 87.0% Design & Construction Administration $664,407 13.0% Total Project Development Cost: $5,093,787 Project costs by project development category and project component are summarized below: Project Cost Breakdown by Development Category & Component Percent of Total Category Capital Cost Project Transfer Yard $2,845,303 55.9% EV Charging Stations $915,305 18.0% Smart Corridor Fiber & Roadside Units $668,773 13.1% Design & Construction Administration $664,407 13.0% Total Project Development Cost: $5,093,787 Detailed cost information by line item is provided with the supplementary information at: https://eastgatecog.org/smartlogisticshub/ SOURCE & AMOUNT OF PROJECT FUNDS The total project cost is $5,093,787. The RAISE funding request is $3,993,787. Eastgate Regional Council of Governments has committed a 21.6% non-federal match of $1,100,000 to the project. There are no other federal funds committed to the project. The source and amount of project funds are summarized below: Project Funding Sources Funding Category Funding Amount Percent of Total Project Non-Federal Funds (Match) $1,100,000 21.6% RAISE Request $3,993,787 78.4% Committed Federal Funds - - Total Project Cost: $5,093,787 USDOT RAISE GRANT 9 Application Narrative
LORDSTOWN GRANT FUNDS, SOURCES & USES SMART LOGISTICS HUB COMMITTED NON-FEDERAL FUNDS The non-federal funding commitment will be provided by Eastgate. A Commitment Letter is included in the supplementary information to the application. Non-Federal (Local) Match Summary Non-Federal Sponsor Use of Funds Funds (Match) Eastgate Regional Council of Trailer Transfer Yard, Solar EV Charging, Smart $1,100,000 Governments Corridor Broadband Total Match: $1,100,000 AMOUNT & USE OF FEDERAL FUNDS Amount and use of federal funds by project component and project development category are summarized below: Project Cost Breakdown Non-Federal Committed Category Funds (Match) RAISE Request Federal Funds Total Transfer Yard $614,441 $2,230,861 - $2,845,303 EV Charging Stations $197,659 $717,645 - $915,305 Smart Corridor Fiber & $144,421 $524,352 - $668,773 Roadside Units Design & Construction $143,478 $520,929 - $664,407 Administration Funding Totals: $1,100,000 $3,993,787 $0 $5,093,787 USDOT RAISE GRANT 10 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Exceeding Program Expectations The Lordstown Smart Logistics Hub will address each of the RAISE Selection Criteria as summarized below and detailed in Pages 12-24. For quantifiable benefits, detailed Benefit-Cost Analysis (BCA) calculations and methodology can be found in the BCA and BCA narrative at: https://eastgatecog.org/smartlogisticshub/ Safety State of Good Repair New triple trailer transfer Automated/connected trucks yard will reduce truck will decrease fatal & severe VMT, pavement damage & crashes maintenance Economic Competitiveness Environmental Protection Electric trucks and solar Electric trucks will decrease powered charging stations will fuel consumption & operating increase air quality & reduce costs pollutant emissions Quality of Life Innovation Project will aid in region’s Electrification & automated ongoing economic recovery & vehicles/logistics will enhance supply chain resiliency enhance Smart Mobility The project includes committed support from our Partnership numerous public & private partners, including several with technical expertise in Smart Mobility:
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Safety Decrease in Truck Crashes The Lordstown Smart Logistics Hub will reduce truck vehicle miles traveled (VMT) due to the installation of a new triple trailer transfer yard at Lordstown. A reduction in truck VMT will yield safety benefits through a reduction in truck crashes. High-speed truck crashes are generally fatal and severe in nature, so the focus of this benefit cost analysis for safety is based only $3M on fatal and severe crashes. Additional benefits can be expected from reductions in less severe crash types, but they are not quantified in the BCA. TOTAL SAVINGS Automation = Enhanced Safety FATAL & INJURY The use of automated and connected vehicles along the proposed “Smart Corridor” route will increase safety by CRASH eliminating the vast majority of crashes caused by driver error. In 2016, there were more than 300,000 crashes on Ohio roads, 94 REDUCTION percent of which were caused by driver error. Research indicates that 80 percent of those crashes could have been avoided or mitigated with automated and connected vehicle technologies. These technologies enable vehicles and the transportation infrastructure to constantly transmit, receive, monitor and respond to signals about road conditions, traffic flow, accidents, bad weather and other driving hazards. This type of vehicle-to- vehicle (V2V) and vehicle-to-infrastructure (V2I) data sharing helps drivers avoid dangerous situations and enable safer and better driving decisions. Total safety benefits are estimated at $3,044,540 in total over the 20 years after project construction is completed. These calculations are based upon the anticipated reduction of fatalities and injury crashes due to the reduction truck vehicle miles traveled. USDOT RAISE GRANT 12 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB State of Good Repair Reduced Pavement Maintenance 372 The Lordstown Smart Logistics Hub will result in a reduction in truck VMT due to the installation of a new triple trailer transfer yard at Lordstown. The reduction in VMT will reduce the damage of heavy freight loads on Interstate, state highway, and local THOUSAND road pavement and bridges. Heavy trucks are the primary source of road damage due to the ANNUAL stresses imposed by heavy axle loads. Virtually all pavement AVERAGE damage is created by heavy trucks, but the cost of repair is paid for by fuel taxes imposed on the public at large. REDUCTION IN A new triple trailer transfer yard at Lordstown results in a reduction of 372,081 truck highway miles driven per year. This TRUCK MILES corresponds to a projected total savings of $355,845 in road maintenance over the 20-year post-construction analysis period. TRAVELED Enforcement of Load Limits The installation of high-speed fiber optic and roadside units will allow for the integration of high-speed weigh-in-motion (HS_ WIM) technology to weigh vehicles dynamically in the travel lane $356K without the need for slowing down or stopping the vehicle. HS- WIM systems can automatically record and display wheel-load weights, axle weights, gross vehicle weights (GVWs) and other parameters. HS-WIM is well-suited for weight enforcement MAINTENANCE screening and monitoring of bridge loads to ensure that overweight loads are not compromising pavement integrity. SAVINGS USDOT RAISE GRANT 13 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Economic Competitiveness The installation of trailer transfer yard at Lordstown will reduce vehicle miles traveled by trucks with triple trailers that currently must exit the Ohio Turnpike at either SR 5 to the west or SR 7 to the east. As such, quantifiable efficiencies in transportation costs are realized by monetizing the reduction in shipping costs: • Travel Time (vehicle operators) Savings $1.4M • Vehicle Operating (fuel and vehicle maintenance) Savings TRAVEL Travel Time Savings TIME Travel time savings will result from the reduction in vehicles miles traveled as a result of the new transfer yard accommodating triple trailers at Lordstown. SAVINGS The total discounted travel time savings is $1,408,552 over the analysis period. Vehicle Operating Costs The project’s trailer transfer yard and solar EV charging stations will reduce 71,130 fuel usage by over 71,130 gallons of fuel annually, which will save shippers $234,017 annually based on the June 21, 2021 average diesel fuel prices of ANNUAL $3.29 per gallon. REDUCTION Economic Development GALLONS Local property values along the project corridors will increase due the implementation of cost-effective last-mile freight shuttle service to and DIESEL from the proposed trailer transfer yard. Job creation will result from the FUEL construction of new transportation and warehousing facilities at 3,000 acres of shovel-ready greenfield development sites in the area. While these CONSUMED benefits are not quantified for the purposes of the Benefit Costs Analysis, they do represent important tangible benefits to the local economy which suffered an unemployment rate increase of 4.4% upon closure of the GM Lordstown Plant in 2019. USDOT RAISE GRANT 14 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Environmental Protection Climate Change Mitigation Solar EV charging directly aligns with current federal efforts to address 1,037 the environmental and economic threats of climate change and fossil fuel reliance, the Lordstown Smart Logistics Hub will advance U.S. DOE Vehicle Technologies Office initiatives by planning for the electrification and charging of vehicles that: TONS • Improve the competitive position of U.S. industry and create jobs through American innovation; CARBON • Enhance energy security by reducing dependence on foreign oil; EMISSIONS • Save money by cutting fuel costs for American families and REDUCED businesses; and • Protect our health and safety by mitigating the impact of energy production and use on climate change. Air Quality Air quality improvements will result from decreases in toxic emissions $8,261 due to a reduction in truck VMT and a shift to more sustainable electric truck transport. Air quality will increase and pollutants will be reduced through the CARBON COST reduction of diesel emissions through use of electrified trucks utilizing SAVINGS the solar EV charging stations. These emission reductions will ensure air quality standards attainment with both the Ohio Environmental Protection Agency and US EPA. Reduced Energy Consumption The use of electrified freight service will reduce reliance on fossil fuels. The installation of trailer transfer yard at Lordstown will reduce vehicle miles traveled by trucks with triple trailers that currently must exit the Ohio Turnpike at either SR 5 to the west or SR 7 to the east. USDOT RAISE GRANT 15 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Environmental Protection FHWA Leveraging Alternative Uses of the Highway Right-of-Way Guidance The project will capitalize on recent FHWA guidance for leveraging highway right-of-way for renewable energy generation, electrical transmission and distribution projects, broadband projects, vegetation management, inductive charging in travel lanes, alternative fueling facilities, and other “appropriate uses. The underutilized right-of-way along the interstate system will provide new funding streams for our transportation infrastructure and maintenance. This would reduce dependence on the gas tax. Advancing the Clean Energy Economy Several of our local private sector partners are at the forefront of technological advancement in clean energy and vehicle electrification that rapidly evolved into a specialized industry cluster in Lordstown: Lordstown Motors Lordstown Motors Corp. designs and manufactures electric vehicles that revolutionize the way work gets done. The vehicles they build reduce burdensome costs, provide functional style for today’s job sites, and act as an extension of the worker—smarter, safer and more productive. Their manufacturing facility at the site of the former GM Lordstown Plant encompasses 6.2 million square feet of vehicle production space with an annual production capacity of 420,000 vehicles per year. BRITE Energy Incubators BRITE Energy Innovators – Ohio’s energy tech incubator – is dedicated to ensuring the success of startups driving innovation in energy tech by offering consultation services to startups & small-and- medium-size enterprises, lab space and equipment for device testing and R&D and affordable office space and coworking memberships. BRITE has 19 tenant companies in nearby Warren, and has assisted over 250 portfolio companies to innovate and grow since 2011 resulting in the creation of over 400 jobs and an investment of over $135 million in portfolio companies. USDOT RAISE GRANT 16 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Quality of Life PROJECTED 10-YR JOB GROWTH Continued Economic Recovery 10.8% The project complements federal investment in the area by the EDA to fund an economic recovery strategy following the GM Lordstown GAIN Plant closure which resulted in a 9.4% loss in Gross Regional Product. ELECTRIC EQUIPMENT & The Lordstown Smart Logistics Hub will bolster ongoing regional COMPONENT MANUFACTURING efforts to “get people back to work” by capitalizing on the rapidly emerging “Voltage Valley” electrification industry sector. Supply Chain Resiliency One of the immediate realizations of the current COVID-19 crisis is that efficient goods movement is critical to both the national economy and the national healthcare system. The Lordstown Smart Logistics Hub will enhance supply chain resiliency and improve connections to underserved rural markets by providing enhanced freight service at a rapid growing distribution hub filling a gap between the Cleveland COVID-19 Response and Pittsburgh markets. The project will leverage the Context Sensitive Solutions Mahoning Valley’s expertise in the additive manufacturing The Lordstown area is well-suited to leverage large-scale private sector to locally produce investment in transportation logistics and distribution facilities based medical supplies such as on the abundance of available undeveloped land already zoned for plastic fields shields through industrial use with utility infrastructure in place and excess roadway 3D printing, then efficiently capacity. This is consistent with the modern trend of locating logistics distribute the equipment hubs on the periphery of metro areas instead of their traditional nationwide. location in aging urban industrial centers surrounded by residential neighborhoods and landlocked from future spinoff development. Lordstown Compatible Land Uses: Lordstown (see left) has adequate space for spinoff logistics development, while intermodals in Cleveland and Pittsburgh (see below) are landlocked in urban neighborhoods. NS Collinwood - Cleveland CSX McKees Rocks - Pittsburgh
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Innovation Collaboration Model The Lordstown Smart Logistics Hub will apply the DriveOhio Collaboration Model to the project’s Smart Mobility elements drawing upon the vast technical expertise of DriveOhio Alliance. DriveOhio – an initiative of the Ohio Department of Transportation and the state’s center for automated and connected vehicles on the ground and in the air – is preparing Ohio for the future of smart mobility. The objective of DriveOhio’s statewide Smart Logistics initiative is to accelerate the evolution of Ohio’s logistics ecosystem by incorporating smart mobility solutions. The DriveOhio Alliance – consisting of partners and stakeholders across industry, government, education, and communities – collaborates to identify smart mobility use cases and solutions Project Application that will deliver significant improvements in transportation safety, mobility, access, and reliability, while preparing talent across our existing and emerging workforce, aligned with economic growth in our communities. The DriveOhio Smart Logistics Collaboration Model ensures that Ohio’s smart mobility initiatives incorporate feedback from three Regional Chamber critical groups of stakeholders: Fleet Owners 1. Logistics Industry (Chambers & Fleet Owners) 2. Technology Providers (Solution Developers & Researchers) Eastgate COG ASPIRE Ohio Turnpike The Ray 3. Public Sector (Infrastructure & Economic Developers) ODOT Outrider Port Authority Locomation Balancing input from these groups ensures validation of needs with logistics industry stakeholders, understanding the capabilities and limits of emerging smart mobility technology solutions, while LORDSTOWN also considering the current and future needs of the physical and SMART LOGISTICS HUB digital infrastructure assets across Ohio. Collaborative Approach USDOT RAISE GRANT 18 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Innovation Innovative Technologies Phase 1 of the Lordstown Smart Logistics Hub will focus on immediate smart infrastructure needs that will serve as the backbone of future technology enhancements. Using the DriveOhio Smart Logistics Collaboration Model, DriveOhio Alliance partners will utilize the infrastructure constructed in Phase 1 to implement several cutting edge smart mobility initiatives in future phases of the project that will be studied later this year through a $400,000 ODOT Statewide Planning & Research grant: • Future-focused Transfer Yard – DriveOhio Alliance partners would work with logistics industry stakeholders and technology providers to develop and deploy concepts for future yard operations and systems. Examples include electric charging depots, automated vehicle transition and handoff systems, and software-driven automation of yard operations. • Electrification - DriveOhio Alliance partners will leverage team assets and expertise to identify, evaluate, and deploy electric vehicle charging infrastructure and related technologies, with specific focus on logistics operations and electric trucks. • Connected and Automation-Ready Infrastructure – DriveOhio Alliance partners would conduct automation readiness road audits and identify suitable infrastructure to accommodate deployment of connected and automated vehicle systems, including future truck parking notification systems, that ODOT is ready to begin studying at the statewide level. Innovative Project Delivery The Ohio Turnpike and Infrastructure Commission (OTIC) is currently working with The Ray on a solar development pilot project along the 241-mile Ohio Turnpike corridor which bisects the project area and provides a high-speed fiber optic connection to the Voltage Valley and the Lordstown Smart Logistics Hub. OTIC recently released a Request for Information (RFI) to potential private partners to gauge interest in the potential leasing of Turnpike right-of-ways (including the Lordstown interchange area) to host solar arrays for renewable energy production. OTIC received 13 responses to the RFI and is moving forward with advanced discussions several respondents on deployment of a pilot project. An upcoming Request for Proposals (RFP) will evaluate opportunities to bring utility-scale solar to the region. Early interest in the project has shown private sector interest in solar for not only electric power generation, but also hydrogen fuel cells. It is anticipated that additional power grid revenues will be generated through future lease agreements and/or royalties with solar energy providers. USDOT RAISE GRANT 19 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Innovation Innovative Financing Western Reserve Port Authority Regional Transportation Under Ohio law Port Authorities are empowered to facilitate Improvement Project economic development and infrastructure projects by: (RTIP) • Lending monies at competitive rates and terms as a direct As a transportation infrastructure loan or a “pass-through” bond project centered almost evenly between two County lines, the • Constructing, owning and/or operating public infrastructure Lordstown Smart Logistics Hub is facilities as a component of a public-private partnership (P3) a logical application of the RTIP • Providing up-front savings of Ohio sales taxes on construction program authorized by Ohio materials by entering into a structured lease agreement. Revised Code Chapter 5595. This innovative financing mechanism The project’s “off-road” components (e.g. transfer yard) may allows a wide array of potential capitalize on Port financing through a P3 structured lease. revenue streams to be applied Ohio Turnpike and Infrastructure Commission towards the project: As part of its restructuring in 2013, the Ohio Turnpike and • Payments of Lieu of Taxes Infrastructure Commission now possesses the ability to fund not (TIF proceeds) only projects along the limits of its toll road, but also infrastructure • Municipal Income Tax Projects with a “nexus” to the Turnpike based on the project’s: • Joint Economic • Physical proximity and connectivity to the Ohio Turnpike Development District • Impact on Ohio Turnpike traffic and revenues (JEDD) Income Tax • Impact on movement of goods and services in the area • New Community Authority Revenue • Enhancement of access between the Ohio Turnpike and connected areas of population, commerce, and industry. • Sales Tax The Lordstown Smart Logistics Hub has a clear nexus to the • License Tax Ohio Turnpike and will play a major role in stimulating economic development and job creation in the northern Ohio Turnpike service area, making the project eligible for Turnpike funding. USDOT RAISE GRANT 20 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Partnership CONTINUING RECENT MOMENTUM ODOT Statewide Planning & Research Grant ODOT has granted Eastgate $400,000 in funding through the State Planning & Research program. This funding, combined with the $100,000 already committed by Eastgate, will be applied to a planned feasibility study for the advancement of future phases of the Lordstown Smart Logistics Hub project. Eastgate is partnered in this project with DriveOhio, ODOT District 4, and the Ohio Turnpike & Infrastructure Commission. Eastgate has put out a request for proposal to find a consultant who will conduct the study. The study will assess the feasibility of in-road electric charging, automated electric truck trailer transfers, solar charging within existing, underutilized right-of- way, and other emerging clean energy technologies such as hydrogen fuel cells. The findings of the study will refine the scope of future phases of the project that will build on Phase 1. Utility Regionalization Study Eastgate is preparing to assess the region’s various utility networks and provide feasible recommendations for utilization regionalization that will be implemented at the conclusion of the study to aid the region’s ongoing economic recovery effort. The project emphasis will focus on water, wastewater, and electric power (particularly renewable energy sources) utilities that increase the catalytic development potential of large-scale job creation at commercial/ industrial development sites. While the project will be regional in scope, the primary focus will be on areas most ripe for catalytic commercial/industrial development such as industrial parks, commercial corridors, and brownfield redevelopment sites. Special emphasis will be placed along the region’s primary logistics corridors in the vicinity of national freight routes along the Ohio Turnpike (I-80/I-76) in the vicinity of Lordstown. Regional Broadband Study Eastgate recently conducted a Regional Broadband Feasibility Study focused on providing enhanced and reliable internet service to rural areas lacking appropriate coverage, as well as urban centers that require increased speed and access, for the three-county region encompassing Ashtabula, Mahoning, and Trumbull Counties. Key recommendations include establishing a new Broadband Authority to assist in funding additional regional buildout. USDOT RAISE GRANT 21 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Partnership PUBLIC SECTOR DriveOhio DriveOhio, the state’s center for smart mobility, brings all of these organizations together under one umbrella, serving as the hub for automated and connected vehicles and infrastructure in Ohio. An initiative of the Ohio Department of Transportation (ODOT), DriveOhio also works to ensure Ohio’s regulatory environment and public policies are conducive to the development of the infrastructure and technologies needed for smart mobility. Simply put, DriveOhio is committed to advancing smart mobility in Ohio and being a one-stop shop for those looking to develop, test and deploy advanced mobility solutions in Ohio. Ohio Turnpike and Infrastructure Commission The Ohio Turnpike and Infrastructure Commission (OTIC) has an existing 241 miles of fiber optic cable connecting fifty-five (55) facilities along the Ohio Turnpike. A fiber equipment upgrade planned for 2021 will increase the bandwidth of the fiber network to 10/100 GB. OTIC recently installed and tested a 50-mile section of DSRC- equipped infrastructure for connected vehicle communication leveraging high- performance edge computing. In addition, they have partnered with Ford Mobility on a cellular-vehicle to- everything (C-V2X) proof-of-concept. The first phase will include deploying a smart phone application to disseminate Traveler Information Messages (TIMs) and Turnpike Specific Messages to a fleet of Ford vehicles at the OTIC. The second phase of the engagement will involve deploying C-V2X technology at a scale along a predefined stretch of the Turnpike. Ford and partners will work together to equip a fleet of vehicles with C-V2X OBUs. Ford will work with the OTIC to install C-V2X/DSRC bridging technology and use this infrastructure to broadcast real-time information to travelers via V2X technology. The deployed RSU’s and infrastructure will be used to create and test new concepts around toll fee collection and vehicle road usage calculations which will enable a futuristic approach to road usage and Turnpike access With the infrastructure, connectivity, and related assets, the OTIC is well positioned to provide complementary technology support for the project. USDOT RAISE GRANT 22 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Partnership CLIMATE CHANGE MITIGATION The Ray The Ray is a nonprofit foundation that facilitates, with partners in the federal and state government and the private sector, opportunities to demonstrate and socialize transportation technologies and innovations in an operational environment. Through a chartered relationship with the Federal Highway Administration and the Georgia Department of Transportation (GDOT), they explore the potential for safer and more efficient transportation infrastructure and execute projects on an 18-mile stretch of Interstate 85 that extends from the Georgia-Alabama state line to Exit 18 in LaGrange, Georgia. The Ray is a committed partner to Eastgate and will provide consultation and guidance as an extension of our established collaboration with Ohio Turnpike & Infrastructure Commission on their Solar Development Project. Renewable energy development at the Lordstown Smart Logistics Hub has the potential to help the State of Ohio reduce their energy costs, reduce their land maintenance costs, increase resilience and local energy security, create new revenue streams, and meet broader renewable energy and greenhouse gas emission targets. These benefits of solar energy will also align with the new federal administration’s emphasis on mitigating climate change. ASPIRE ASPIRE - Advancing Sustainability through Powered Infrastructure for Roadway Electrification - is headquartered at Utah State University and operated through strategic partnerships with Purdue University, University of Colorado Boulder, University of Texas at El Paso and the University of Auckland New Zealand. ASPIRE’s industry partners include ODOT and the Ohio Turnpike & Infrastructure Commission. As an extension of their existing partnership with ODOT and the Ohio Turnpike, Utah State University and ASPIRE will play an advisory role to Eastgate during the Lordstown Smart Logistics Hub project applying expertise from current and past projects in planning for the electrification of light duty through heavy duty vehicles and accompanying charging infrastructure development. USDOT RAISE GRANT 23 Application Narrative
LORDSTOWN SELECTION CRITERIA SMART LOGISTICS HUB Partnership Unified Regional Coalition Eastgate recently hosted a series of virtual presentations as part of National Infrastructure Week in May. Senator Sherrod Brown spoke about the importance of the Lordstown Smart Logistics Hub as part of his featured presentation. WA S H I N G TO N , D.C . V I R T U A L F LY - I N Bipartisan Congressional Support AGENDA The Youngstown-Warren Regional Chamber recently hosted a SUBJECT TO CHANGE 8:15 AM Welcome Remarks from Guy Coviello and Vito Abruzzino President and CEO: Youngstown/Warren Regional Chamber Virtual DC Fly-in in June where bipartisan support for the project was clearly evident. Executive Director: Eastern Ohio Military Affairs Commission (EOMAC) 8:20 AM Introductory Remarks from James Tressel President: Youngstown State University 8:30 AM Meeting with Senator Rob Portman (R-OH) The Mahoning Valley’s congressional delegation including Senator Introduced by Mark Lamoncha, President: Humtown Products 9:00 AM Meeting with Rep. Tim Ryan (D-OH-13) and Brigadier General William Kountz, Air Force Reserve Command Sherrod Brown, Senator Rob Portman, Congressman Tim Ryan, Introduced by Vito Abruzzino, Executive Director: Eastern Ohio Military Affairs Commission (EOMAC) 10:00 AM Meeting with Rep. Bill Johnson (R-OH-6) 10:30 AM Introduced by Jon Arnold: J. Arnold Wealth Management Company Meeting with Rep. Marcy Kaptur (D-OH-9) Congressman Bill Johnson, and Congressman Anthony Gonzalez Introduced by Vito Abruzzino, Executive Director: (EOMAC) 11:00 AM Meeting with Rep. Anthony Gonzalez (R-OH-16) Introduced by Chuck George, CEO: Strangpresse all recognized the importance of infrastructure investments in 11:30 AM 11:35 AM Video Message from Rep. Dave Joyce (R-OH-14) Conversation with D.C. Lobbyists Jenny DiJames and Michael Beer the Lordstown Smart Logistics Hub as a catalyst for job creation, sustainability, and supply chain resiliency. Introduced by Guy Coviello, President and CEO: Youngstown/Warren Regional Chamber 12:00 PM Meeting with Rep. Sherrod Brown (D-OH) Introduced by John Moliterno, Executive Director: Western Reserve Port Authority 12:30 PM Lunch 1:30 PM Fireside Chat with Col. Jeffrey Van Dootingh, YARS Commander. Hosted by by Vito Abruzzino, Executive Director: (EOMAC) 2:00 PM Closing Remarks and Recognition of Sponsors from Guy Coviello 4 USDOT RAISE GRANT 24 Application Narrative
LORDSTOWN ENVIRONMENTAL RISK ASSESSMENT SMART LOGISTICS HUB OVERVIEW The Lordstown Smart Logistics Hub is a low risk infrastructure project that creatively repurposes existing and underutilized roadway pavement and public right-of-way to create a more efficient, resilient, and technologically advanced transportation system. Based on engineering review and preliminary traffic analysis, no significant negative transportation/ traffic effects will result from the proposed improvements. Detailed traffic studies will be completed in conjunction with project final engineering. DriveOhio, the state’s center for smart mobility, has committed to providing technical, legislative and procurement advisory support relative to implementation of electrified, connected, and automated freight vehicles and infrastructure. The Lordstown Smart Logistics Hub is prepared to begin preliminary engineering immediately upon receipt of RAISE funds. Conceptual planning is already underway and is expected to be completed in 2021, well in advance of the obligation deadline. The entire project is located within existing public right-of-way or on properties under project partner under control. Maximum Flexibility: Repurposing Excess Roadway Capacity All of the primary roadways along the Smart Corridor freight route currently have excess pavement width (four travel lanes) and roadway capacity with Average Daily Traffic (ADT) volumes less than 8,000. This available roadway capacity will allow for maximum flexibility to accommodate any required refinements without the need for design exceptions, utility relocations or right-of-way acquisition ensuring the project is developed on schedule and under budget. SR 45 Hallock-Young Rd Baliley Rd 4 lanes | ADT 6,221 4 lanes | ADT 2,041 4 lanes | ADT 7,333 USDOT RAISE GRANT 25 Application Narrative
LORDSTOWN ENVIRONMENTAL RISK ASSESSMENT SMART LOGISTICS HUB PROJECT SCHEDULE Eastgate Regional Council of Governments brings proven track record of developing projects on time and under budget. The timeline belows indicates that all RAISE funds will be obligated well before the September 30, 2024 obligation date. The project will be completed well in advance of the September 30, 2029 deadline to expend all RAISE funds. Milestone Date Notice of Funding Award November 2021 Obligate Federal Funds (PE & Design) May 2022 Complete Preliminary Engineering December 2022 Complete NEPA March 2023 Complete Detailed Design April 2023 Advertise for Bids June 2023 Obligate Federal Funds (Construction) July 2023 Award Construction Contract August 2023 Begin Construction September 2023 Project Completion July 2024 REQUIRED APPROVALS Compliance with Local, Regional & State Plans The Lordstown Smart Logistics Hub will advance redevelopment and infrastructure goals of the following local, regional, and statewide initiatives: • Eastgate Broadband Feasibility Study, 2021 • Eastgate Comprehensive Economic Development Strategy, 2020 • ODOT Access Ohio 2045, 2020 • Eastgate Regional Rail Plan, 2018 • Eastgate 2040 Metropolitan Transportation Plan Update, 2018 • Eastgate FY2019-2023 Transit Development Program, 2018 • Transport Ohio, Statewide Freight Plan, 2017 • Team NEO’s Aligning Opportunities in Northeast Ohio, 2017 • Northeast Ohio Development Finance Agency Rail Plan, 2016 • Fund for Our Economic Future’s Northeast Ohio Additive Manufacturing Cluster, 2016 • Northeast Ohio’s Sustainable Communities Consortium’s Vibrant NEO 2040, 2014 USDOT RAISE GRANT 26 Application Narrative
LORDSTOWN ENVIRONMENTAL RISK ASSESSMENT SMART LOGISTICS HUB REQUIRED APPROVALS No Additional Legislation Required for Smart Mobility Governor’s Executive Order 2019-26D The Lordstown Smart Logistics Hub smart logistics can be implemented without the need for additional state or local legislation through Ohio Governor Mike DeWine’s Executive Order 2019-26D signed on October 24, 2019 that authorizes automated vehicle testing in Ohio and lays out a roadmap for how the automotive industry can test their technologies in the state. Executive Order 2018-04K establishes guidelines for testing automated vehicles testing on any Ohio public road or highway. Companies that want to test automated vehicles must register with DriveOhio, assure their vehicle can operate safely, and comply with all traffic laws. There must be a designated operator onboard who is responsible for the vehicle at all times. This initiative enables DriveOhio to connect Eastgate and Lordstown to companies looking for the optimum locations in Ohio, to deploy their advanced transportation and logistics technologies. Stakeholder Engagement INBOUND FREIGHT Transportation Logistics Survey ORIGINS Cleveland The Youngstown/Warren Regional Chamber of Commerce Pittsburgh enjoys a longstanding working relationship with private Long Beach LORDSTOWN freight logistics operations along the project corridors Baltimore in Trumbull and Mahoning Counties. As part of the New England stakeholder discovery process, and in the initial stages of project development, the Regional Chamber developed OUTBOUND FREIGHT a 38-question transportation logistics survey that was DESTINATIONS Pittsburgh distributed to freight users in and around the project Detroit corridors. The survey included questions regarding the Mexico LORDSTOWN business operation, employment levels, future expansion UK plans, shipping challenges/needs, primary trade partners, China modes of transport, vehicle types, delivery frequency, and shipping costs. The results of the survey were used to scope this project. Consensus user requirements include efficient first-mile/last-mile transport of containers, real- time delivery data, and adequate space and infrastructure 89% 78% 2 of 3 DESIRE RECEIVE HAVE PLANS to support on-site or local expansion, all of which REALTIME PACKAGED FOR LOCAL addressed in this proposal. ETA PRODUCTS EXPANSION USDOT RAISE GRANT 27 Application Narrative
LORDSTOWN ENVIRONMENTAL RISK ASSESSMENT SMART LOGISTICS HUB ASSESSMENT OF PROJECT RISKS & Smart Mobility Support DriveOhio is committed to providing MITIGATION STRATEGIES technical, legislative, and procurement The Lordstown Smart Logistics Hub is a low-risk project support of the Lordstown Smart from the environmental, technical feasibility, and project Logistics Hub project and will: development perspectives: • Convene P3s with prospective • Work limits are located in existing public right-of- electrified automated freight service way or land controlled by project partners. vendors and fiber and wireless carriers to connect infrastructure • The region’s MPO and project sponsor, Eastgate, within the Lordstown Smart Logistics has a proven track record of project management, Hub; development & financing. • Work with vendors to implement • Project partner DriveOhio will champion Smart best practices for the incorporation Mobility initiatives (see left) and technology partner of in-cab wireless communication recruitment. devices and placement of any Low Risk Project necessary roadside charging equipment and sensors; There is essentially no risk to timely completion and delivery of the project, as the Lordstown Smart Logistics • Coordinate roles and responsibilities Hub utilizes low-volume roadways with excess vehicular for collection and dissemination capacity. Eastgate will administer the project and ensure of traffic monitor information and NEPA compliance. DriveOhio will provide Eastgate with performance data with the Eastgate, technical, legislative, and procurement support relative to Ohio Turnpike, and other project smart logistics. partners; Lack of Environmental Red Flags • Advise Eastgate in developing the project in accordance with the The project limits are within public right-of-way and Governor’s Executive Order avoiding property controlled by project partners thus reducing the need for local legislative/ real estate easement acquisition costs and minimizing regulatory action; schedule delays. The project has received letters of support from and letter of intent to contribute land • Assist in the procurement process necessary to complete the project. No additional right-of- for AV and technology vendors; and way acquisition is required. • Guide the region in preparing for connected and automated vehicles. USDOT RAISE GRANT 28 Application Narrative
LORDSTOWN BENEFIT COST ANALYSIS SMART LOGISTICS HUB DEMONSTRATED RETURN ON INVESTMENT A Benefit Cost Analysis (BCA) of the project was performed in 1.67:1 accordance with USDOT’s Benefit Cost Analysis Guidance for Discretionary Grant Programs, dated January 2020. The Lordstown Smart Logistics Hub will address each of the RAISE Selection Criteria. Quantitative benefits for the project BENEFIT-COST results in a 1.67:1 Benefit-Cost Ratio as detailed in the BCA. RATIO A breakdown of project benefits by Selection Criteria is summarized in the table below. The BCA Narrative and Spreadsheet can be found at: https://eastgatecog.org/smartlogisticshub/ Quantifiable Selection Total Benefits Criteria Benefits Discounted (7%) Safety Reduced truck crashes resulting from “Smart $3,044,540 Corridor” truck automation & reduction in VMT State of Good Reduced maintenance costs resulting from $355,845 Repair decrease in truck VMT with new transfer yard Economic Fuel savings from vehicle electrification and $4,078,453 Competitiveness reduced operating costs from reduction in VMT Environmental Climate change mitigation through clean energy $8,261 Protection electric vehicle charging Quality of Life Increased employment in areas of consistent poverty& property values n/a Enhanced supply chain resiliency Innovation Higher multiplier effect for innovation industries n/a resulting in regional economic growth Partnership Efficiencies in project development through n/a coordinating design, testing & deployment USDOT RAISE GRANT 29 Application Narrative
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