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2021 T R A N S I T C O O P E R A T I V E R E S E A R C H P R O G R A M TCRP RESEARCH REPORT 224 Research sponsored by the Federal Transit Administration in cooperation with the Transit Development Corporation Subject Areas Economics Guide to Joint Development for Public Transportation Agencies Alden S. Raine AECOM Boston, MA i n a s s o c i a t i o n w i t h James Gast AECOM Arlington, VA Robert Cervero University of California Berkeley, CA Dena Belzer Strategic Economics, Inc. Berkeley, CA Todd J. Poole 4ward Planning, Inc. Philadelphia, PA
TCRP RESEARCH REPORT 224 Project H-57 ISSN 2572-3782 ISBN 978-0-309-67391-4 Â© 2021 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FTA, GHSA, NHTSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. Cover photo credit: Alden S. Raine NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transporta- tion Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the Transit Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturersâ names or logos appear herein solely because they are considered essential to the object of the report. TRANSIT COOPERATIVE RESEARCH PROGRAM The nationâs growth and the need to meet mobility, environmental, and energy objectives place demands on public transit systems. Cur- rent systems, some of which are old and in need of upgrading, must expand service area, increase service frequency, and improve efficiency to serve these demands. Research is necessary to solve operating prob- lems, adapt appropriate new technologies from other industries, and introduce innovations into the transit industry. The Transit Coopera- tive Research Program (TCRP) serves as one of the principal means by which the transit industry can develop innovative near-term solutions to meet demands placed on it. The need for TCRP was originally identified in TRB Special Report 213âResearch for Public Transit: New Directions, published in 1987 and based on a study sponsored by the Urban Mass Transportation Administrationânow the Federal Transit Administration (FTA). A report by the American Public Transportation Association (APTA), Transportation 2000, also recognized the need for local, problem- solving research. TCRP, modeled after the successful National Coop- erative Highway Research Program (NCHRP), undertakes research and other technical activities in response to the needs of transit ser- vice providers. The scope of TCRP includes various transit research fields including planning, service configuration, equipment, facilities, operations, human resources, maintenance, policy, and administrative practices. TCRP was established under FTA sponsorship in July 1992. Pro- posed by the U.S. Department of Transportation, TCRP was authorized as part of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). On May 13, 1992, a memorandum agreement outlining TCRP operating procedures was executed by the three cooperating organi- zations: FTA; the National Academies of Sciences, Engineering, and Medicine, acting through the Transportation Research Board (TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit educational and research organization established by APTA. TDC is responsible for forming the independent governing board, designated as the TCRP Oversight and Project Selection (TOPS) Commission. Research problem statements for TCRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the TOPS Commission to formulate the research program by identi- fying the highest priority projects. As part of the evaluation, the TOPS Commission defines funding levels and expected products. Once selected, each project is assigned to an expert panel appointed by TRB. The panels prepare project statements (requests for propos- als), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooperative research programs since 1962. As in other TRB activities, TCRP project panels serve voluntarily without compensation. Because research cannot have the desired effect if products fail to reach the intended audience, special emphasis is placed on disseminat- ing TCRP results to the intended users of the research: transit agen- cies, service providers, and suppliers. TRB provides a series of research reports, syntheses of transit practice, and other supporting material developed by TCRP research. APTA will arrange for workshops, train- ing aids, field visits, and other activities to ensure that results are imple- mented by urban and rural transit industry practitioners. TCRP provides a forum where transit agencies can cooperatively address common operational problems. TCRP results support and complement other ongoing transit research and training programs. Published research reports of the TRANSIT COOPERATIVE RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America
The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. The Boardâs varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.
C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR TCRP RESEARCH REPORT 224 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Gwen Chisholm Smith, Manager, Transit Cooperative Research Program Lawrence Goldstein, Senior Program Officer Antony Avery, Senior Program Assistant Eileen P. Delaney, Director of Publications Natalie Barnes, Associate Director of Publications Sreyashi Roy, Editor TCRP PROJECT H-57 PANEL Field of Policy and Planning Sharon Greene, InfraStrategies LLC, Laguna Beach, CA (Chair) G. B. Arrington, GB Place Making, LLC, Portland, OR Richard G. Bickel, Jr., Econsult Solutions, Inc., Ardmore, PA Adam Cohen, University of California, Berkeley, CA Lucy Galbraith, MetroTransit, Minneapolis/St. Paul, MN Susan M. Herre, Susan Herre Architecture + Urban Planning, St. Louis, MO Daniel J. Horner, Port Authority of New York and New Jersey, New York, NY Steve Meyer, Bountiful, UT (consultant) Gary Prince, King County Metro Transit, Seattle, WA Andrew J. Scott, Washington Metropolitan Area Transit Authority, Washington, DC Walt Stringer, Mineta Transportation Institute, CA John T. Crocker, FTA Liaison Daniel Edwards Schned, FTA Liaison Richard A. Weaver, APTA Liaison (retired) Jennifer L. Weeks, TRB Liaison
TCRP Research Report 224 is designed to advance the successful use of joint development projects in North American transit systemsâaddressing the volume and variety of projects undertaken, the diversity of transit agencies participating, and the quality of outcomes achieved. The guide is aimed particularly at agency leadership, and at professional staff working as practitioners in joint development and the more encompassing field of transit- oriented development. The guide is intended for transit systems spanning the full range of geography, technology, and ridership, including those in the early stages of joint development activity or still contemplating it. The guide defines joint development as real estate development that occurs on transit agency property or through some other type of development transaction to which the transit agency is a party. Joint development is physically or functionally connected to transit facilities; and it involves coordinated, mutually beneficial actions by the transit agency and the developer. While joint development is almost always transit-adjacent, its emergence as transit-oriented depends on decisions made by the parties and by local land use authori- ties. That joint development should be intentionally transit-oriented is a core principle of the guide. The guide rests on a substantial research effort, including in-depth surveys with 32 transit agencies, 18 local or regional government entities, and 17 private sector companies. The research team, led by AECOM, also undertook an extensive survey of relevant literature from both academic and practical sources. The research findings, referenced throughout the guide, are presented in their entirety in a series of nine appendices, Appendices A to I. These appendices are available in TCRP Web-Only Document 73, downloadable from the TRB website. The contents are divided into two main sections. The first section (Chapters 2 to 5) addresses the sequential stages of the joint development process, from program development through site planning, developer selection, and project execution. At each stage, the reader finds an explicit focus on best practicesâthose that have proven effective in real-world application, that minimize risk to transit agency interests, advance widely accepted joint development goals, and are consistent with good public policy. The choice of best practices reflects the research findings, the literature, the research teamâs judgment, and the review of the project panel. Best practices are presented not as âone-size-fits-allâ solutions, but as proven approaches that each agency can adapt to its own circumstances. The second section (Chap- ters 6 to 8) addresses strategic issues that cut across the sequential stages of the process. Here, too, best practices are an organizing framework. This section also describes the role of FTA and addresses the critical need to coordinate with local governments, F O R E W O R D By Larry Goldstein Staff Officer Transportation Research Board
from planning through execution, to secure favorable zoning, timely approvals, and appropriate development incentives. There are extended discussions of the economics of joint development projects, particularly the tradeoffs that a transit agency faces in defining and evaluating its financial return and the critical role that two issuesâaffordable housing and parkingâhave come to play in the economics and policy parameters of many joint development projects. A number of emerging business models are described which serve to expand the horizon of joint development prac- tices. These include development of hub stations and transit centers; opportunities to partner with off-site developers and sister land-owning agencies; value capture districts that fund transit improvements; planning new and extended corridors with an intentional focus on joint development opportunities; and development of non-station assets. Transit agencies undertake joint development for three primary reasons: to monetize a real estate asset; to generate increased ridership; and to influence sustainability, equitable development, and transit-oriented place-making in station areas and corridors. The conclu- sion of the guide addresses how transit agencies can turn these goalsâin whatever order of priority they may adoptâinto metrics that help define the desired outcomes of their joint development activities and evaluate actual outcomes. The products of this study also include TCRP Web-Only Document 73, two PowerPoint presentations that provide resource material for decision-makers as they consider under- taking joint development projects, and a separate executive summary describing the process in terms suitable for wide distribution to a varied audience. All of the products are available on the TRB website at www.trb.org and can be found by searching for âTCRP Research Report 224.â
ES-1 Executive Summary 1 Chapter 1 Introduction 1 1.1 About This Guide 1 1.2 Navigating the Guide 3 1.3 Definition and Purpose 6 1.4 Research Effort 8 1.5 Roadmap of the Literature 10 1.6 Best Practices 14 Endnotes 15 Chapter 2 Creating a Joint Development Program 15 2.1 Introduction and Summary of Best Practices 16 2.2 Legal Tools 17 2.3 Organizing for Success 21 2.4 Inventory of Potential Joint Development Sites 22 2.5 Transit-Oriented Development/Joint Development Policy 27 Endnotes 29 Chapter 3 Planning a Joint Development Project 29 3.1 Introduction and Summary of Best Practices 29 3.2 Site Readiness and Prioritization 33 3.3 Predevelopment Site Planning 42 3.4 Community Acceptance 44 3.5 Parameters of Potential Transaction 48 Endnotes 50 Chapter 4 Choosing a Developer 50 4.1 Introduction and Summary of Best Practices 50 4.2 Choosing a Solicitation Format 52 4.3 Writing and Implementing an Effective Solicitation 58 4.4 Unsolicited Proposals 60 Endnotes 61 Chapter 5 Executing a Joint Development Project 61 5.1 Introduction and Summary of Best Practices 62 5.2 Joint Development Agreement 65 5.3 From Joint Development Agreement to Closing 69 5.4 Overseeing Construction after Closing 70 5.5 Durable Governance Framework 77 Endnotes C O N T E N T S
79 Chapter 6 Joint Development and FTA 79 6.1 Introduction and Summary of Best Practices 79 6.2 FTA Jurisdiction 80 6.3 FTA Joint Development Policy 86 6.4 Transit Agencies and Joint Development Processes 86 6.5 Expanding Opportunities 89 Endnotes 91 Chapter 7 Economics of Joint Development 91 7.1 Introduction 92 7.2 Goals, Perceptions, and Expectations 94 7.3 Strategies to Enhance Feasibility 99 7.4 Parking and Joint Development 105 7.5 Affordable Housing and Joint Development 111 Endnotes 113 Chapter 8 Joint Development Horizon 113 8.1 Introduction 113 8.2 Hub Stations and Transit Centers 119 8.3 Sister Land Owning Agencies 122 8.4 Adjacent Private Land Owners 125 8.5 Joint Development and District Value Capture 127 8.6 New and Extended Corridors 130 8.7 Non-Station Assets 132 Endnotes 135 Chapter 9 Conclusion 135 9.1 Goals and Outcomes 135 9.2 Defining and Measuring Outcomes 138 9.3 Unwanted Outcomes: Managing Risk 141 9.4 Final Word 141 Endnotes 142 Glossary of Terms 157 Ancillary Materials 158 Summary of Appendices