Under a franchise agreement with the city of Indianapolis, Jakes Associates Inc. in San Jose, Calif., is developing a privately funded urban public transit system on a public right-of-way. The automated peoplemover (APM) is currently under construction and is scheduled to open in November 2002. The franchise agreement is unique in that it does not use public funding. The APM will link major hospitals and other redeveloped areas with an elevated, double guideway, bi-directional system. All stations and connecting overhead walkways will be elevated and fully enclosed. The 1.5-mile APM costs about $33 million. It is estimated that this exclusive right-of-way system will reduce unproductive staff labor time, resulting in annual multi-million dollar savings for Clarian Health Partner Inc., which is involved in the franchise agreement. The agreement between Clarian and the city of Indianapolis, Marion County, grants Clarian access to the system as necessary for construction, operation and maintenance between its member hospitals for an initial term of 25 years. Clarian has the option to renew the agreement for another 25 years. The lease agreement also grants Clarian the right to occupy the airspace right-of-way as necessary or advisable for construction, operation and maintenance to the transit system. — Andrew Jakes