In 2004, the Florida legislature modified state law to allow FDOT to procure transportation projects on a P3 basis. This project delivery method permits a private partner to finance, design, construct, operate, and maintain a project on a long-term basis-taking on greater responsibility compared to conventional project delivery methods. FDOT used this approach in 2009 to deliver both the Port of Miami Tunnel and the I-595 reconstruction project in Fort Lauderdale. Local contractors had encouraged FDOT to consider using this approach for both of those large project, and FDOT was open to replicating this process in Orlando given the similarities with the I-4 Ultimate project.
Using traditional pay-as-you-go funding, FDOT estimated that it would take 27 years to complete the I-4 Ultimate, as it would need to break the project into smaller contracts that would be awarded as funding became available in future budget cycles. However, pursuing a P3 approach would allow FDOT to design and construct the project in less than seven years. The private partner would raise upfront financing based on milestone payments during construction, final acceptance payments following construction, and periodic payments from the state based on roadway performance and upkeep called availability payments. A P3 procurement would also allow FDOT to benefit from private sector design innovations, which was particularly attractive given the complexity of the I-4 Ultimate project.
While it appeared that the project could generate a significant amount of toll revenue, traffic and revenue studies found that they could only cover approximately half the project's cost. However, FDOT could make up part of this revenue shortfall because I-4 was part of the state's Strategic Intermodal System program, making it eligible for funding from certain taxes collected when properties are sold in the state. These taxes are a significant source of public revenue in Florida, which has no state income tax. The milestone, final acceptance, and availability payments are not tied directly to the amount of toll revenue collections.
Under Florida's P3 law, P3 procurements must be approved by the Governor, followed by a 14-day period of consultation with the state legislature. With the federal ban on tolling I-4 lifted in mid-2012, Governor Rick Scott approved the use of a P3 procurement in February 2013. The state legislature concurred with his decision shortly thereafter, clearing the way for FDOT to launch the procurement process.