National Academies Press: OpenBook
« Previous: III. CONCLUSIONS
Page 15
Suggested Citation:"APPENDIX A. CASE STUDIES." National Academies of Sciences, Engineering, and Medicine. 2021. Joint Development Agreements Using FTA Funds or FTA-Funded Assets. Washington, DC: The National Academies Press. doi: 10.17226/26268.
×
Page 15
Page 16
Suggested Citation:"APPENDIX A. CASE STUDIES." National Academies of Sciences, Engineering, and Medicine. 2021. Joint Development Agreements Using FTA Funds or FTA-Funded Assets. Washington, DC: The National Academies Press. doi: 10.17226/26268.
×
Page 16
Page 17
Suggested Citation:"APPENDIX A. CASE STUDIES." National Academies of Sciences, Engineering, and Medicine. 2021. Joint Development Agreements Using FTA Funds or FTA-Funded Assets. Washington, DC: The National Academies Press. doi: 10.17226/26268.
×
Page 17
Page 18
Suggested Citation:"APPENDIX A. CASE STUDIES." National Academies of Sciences, Engineering, and Medicine. 2021. Joint Development Agreements Using FTA Funds or FTA-Funded Assets. Washington, DC: The National Academies Press. doi: 10.17226/26268.
×
Page 18

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

TCRP LRD 56 15 development. This had to be constructed as a private street, because the developer was unable to build it to Fairfax County, VA standards. • This joint development includes comingled facilities. The parking garage built to replace the Metro station parking also serves the retail portion of the development. However, WMATA and the developer chose to have the retail and parking facilities served by entirely separate utility feeds, as WMATA’s standards for its facilities are different than the county’s. • WMATA emphasized the need to be as clear-cut as pos- sible with all joint development partners about the transit agency’s needs and requirements for facility construction, including the importance of having safe facility access in keeping with the Americans with Disabilities Act (ADA) requirements.67  Resources • Stakeholder interview with WMATA, June 8, 2020 • Metro, Dunn Loring, https://www.wmata.com/business/ real-estate/Dunn-Loring-Real-Estate.cfm   LA Metro’s Chavez/Soto Project The joint development agreement for the Chavez/Sotto, Boyle Heights, Los Angeles, California affordable housing TOD was approved by the LA Metro Board in 2017. LA Metro issued a multi-part RFP for multiple sites that it felt were “ripe” for joint development, and selected Abode Communities, an affordable housing developer, to be their partner in this project, includ- ing the Chavez/Soto station area. Because of the complexities involved in the joint development process, LA Metro signed an Exclusive Negotiation Agreement with Abode Communities. This allowed the developer to work through the joint develop- ment process with the locality and the FTA without fear that changes to the project plan would result in the termination of their partnership prior to the joint development agreement execution. The project, located on an approximately two-acre site, will include 77 apartments, 76 of which are considered afford able (for families earning between 30 – 50 percent of area median income), and 8,000 square feet of ground flood retail. This project must meet the environmental regulations outlined in the California Environmental Quality Act (CEQA)68, which adds another layer of review for developments like this one. Key Takeaways • Deal Structure: LA Metro is planning on issuing on a 67- year ground lease to Abode Communities once all entitle- ments are in place. • The Exclusive Negotiation Agreement signed with Abode Communities is a precursor to the joint development agree- ment, which cannot be executed until all regulatory hurdles are cleared and entitlements are in place. 67 Americans with Disabilities Act of 1990, Pub. L 101-336, 104 Stat. 327. 68 Cal. Pub. Res. Code §§ 21000-21189.70.10 (2021). APPENDIX A. CASE STUDIES WMATA’s Dunn Loring-Merrifield Station Joint Development Originally, WMATA partnered with Mill Creek Residential Trust in 2005 to develop a little over 15 acres of land, includ- ing a WMATA parking lot, adjacent to the Dunn Loring Metro Station on WMATA’s Orange Line, in Vienna, Virginia. How- ever, the project was put on hold due to the 2008 economic recession. The project was restarted in 2015, and completed in 2017, resulting in 628 units of multifamily residential develop- ment, and 65,000 square feet of retail development, including a Harris Teeter grocery store. Neighborhood shops, totaling an- other 60,000 square feet, are located around the perimeter of a new parking garage built for WMATA as part of the project. The new garage includes 1,963 new and replacement parking spaces serving both the station and the adjacent development. Key Takeaways • Deal Structure: The joint development agreement signed by WMATA was a hybrid lease/sale: WMATA leased the prop- erty developed with retail to the developer (a 99-year lease) and sold it the multifamily residential property. - The joint development agreement was signed with WMATA and Trammell Crow Residential, which under took the original entitlement process. However, Trammell Crow went out of business during the reces- sion, and a new joint development agreement was signed with Mill Creek Residential Trust. • Financing: WMATA is legally prohibited from investing its own capital into joint developments. However, WMATA can contribute funds towards replacement facilities. Mill Creek Residential Trust and its equity partners financed the residential and retail developments and put $50 million in escrow for the replacement parking facilities for WMATA.  • FTA Involvement:  The FTA reviewed and issued con- currence on the joint development agreement between WMATA and Mill Creek Residential Trust. - WMATA has worked closely with the FTA to draft their joint development agreement template to ensure that it is consistent with FTA requirements. - WMATA maintains regular communication with its re- gional FTA office. However, they meet at least once per month to discuss ongoing joint development and other matters. Project Challenges/Lessons Learned • According to WMATA, it is important to engage with the FTA early in the process. FTA staff was very receptive to reviewing information about the project before it was final- ized and giving comments and suggestions. • The developer for this project did have to go through a sig- nificant entitlements process, so budgeting time for that is key. • Part of the plan for this joint development included a pedestrian-friendly “main street” through the center of the

16 TCRP LRD 56 • FTA Involvement:  The FTA issued concurrence on the lease with Columbia Ventures for the underutilized surface parking lot. Project Challenges/Lessons Learned • Like other agencies involved in FTA-assisted joint develop- ment, MARTA noted that consistent communication and cooperation with the FTA was essential for smoothing the concurrence process. • MARTA emphasized the importance of providing “social infrastructure” as part of their joint development projects; they recently formed a partnership with Soccer in the Street, a non-profit that provides free soccer training to area youth. In order to do this, they had to submit an incidental use request to the FTA for review and concurrence. They noted that the FTA has been quite willing to work with them and provide guidance on such requests. • MARTA noted that, in the past, it has disposed of surplus property through the FTA process that, in hindsight, may have been useful for joint development. This has caused the agency to think more critically about potential innovative uses for their existing property portfolio going forward.  Resources • Stakeholder interview with MARTA, January 6, 2020 • MARTA, Edgewood/Candler Park Station TOD, https:// courbanize.com/projects/edgewood-candler/information • Invest Atlanta, Request for Proposals, Edgewood Candler MARTA Station Transit Oriented Development, https:// res.cloudinary.com/courbanize-production/raw/upload/ v1465932076/mmmwhw73nkio4tpf4znh.pdf • Invest Atlanta, Board Approves Support for Affordable Housing Developments Near Atlanta BeltLine and MARTA Transit, April 18, 2019, https://www.investatlanta.com/ impact-insights/board-approves-support-for-affordable- housing-developments-near-atlanta-beltline-and-marta- transit • Tasnim Shamma, MARTA breaks Ground on First Transit-De- velopment Project, WABA, Aug, 23, 2016, https://www.wabe. org/marta-breaks-ground-first-transit-development-project/ • Sean R Keenan, Edgewood-Candler Park MARTA Station plows ahead with next transit development, July 9, 2019 https://atlanta.curbed.com/2019/7/9/20687404/edgewood- candler-park-marta-parking-transit-oriented-development Austin Capital Metro’s Saltillo Development This large-scale, mixed-use development at the Plaza Saltillo commuter rail station in East Austin, Texas, which is owned and operated by Austin Capital Metro, covers nearly eight city blocks (10 acres), and includes 800 apartments (at least of 17 percent of which will be designated as affordable housing), 110,000 square feet of retail, 140,000 square feet of office space, and 1.5 acres of park/open space. Austin Capital Metro is the public trans- portation authority operating bus, paratransit, and commuter rail services in the greater Austin, metro area. Planning began • Financing: Abode Communities financed the develop- ment through Low Income Housing Tax Credits and other sources of funding. Because Abode is building affordable housing, it will receive a discount on its ground lease rent, which acts a subsidy for what is considered a public good. • FTA Involvement:  LA Metro and its regional FTA office have had an ongoing dialogue about the project, and the FTA con- ducted a preliminary review of the draft joint development agreement. However, the full agreement cannot be executed, and reviewed for concurrence by the FTA until all regulatory requirements (including those of CEQA) are met. Project Challenges/Lessons Learned • LA Metro emphasized the importance of engaging with the FTA early in the process and requesting preliminary review/feedback. • LA Metro did note that some of language in FTA C 7050.1A was confusing. • The entitlements process for the developer has been some- what lengthy, but Abode Communities has been proactive about community engagement and outreach, which has helped smooth the process somewhat. Resources • Stakeholder interview with LA Metro representative, June 3, 2020. • Metro, Joint Development-Boyle Heights, https://www. metro.net/projects/jd-boyle-heights/. MARTA’s Edgewood Candler Station TOD MARTA partnered with Columbia Ventures in 2014 to rede- velop 6.4 acres of underutilized surface parking adjacent to the Edgewood/Candler Park subway station on the Blue and Green lines. The mixed-use development, scheduled for completion in 2021, will ultimately include 10,000 square feet of retail, 224 apartments (20 percent of which will be affordable housing), 20,000 square feet of cultural space, and a half-acre park. The estimated total project cost is approximately $40 million. The City of Atlanta has also struggled to contain “suburban sprawl” in recent decades, and this TOD serves as a model for a more walkable, compact, dense urban development. The city’s hope is that developments like this one will reduce Atlanta residents’ heavy reliance on private automobiles in the future.  Key Takeaways • Deal Structure: MARTA executed a 99-year lease with the developer. The lease received FTA concurrence. The devel- oper was able to sell its position to a third-party investor, generating a significant return on its investment. • Financing: Invest Atlanta, the city’s development authority, issued the RFP for the project. Invest Atlanta and MARTA entered into a letter agreement that allowed the authority to facilitate the project. Invest Atlanta is financing the project through lease purchase bond financing and New Markets Tax Credits.

TCRP LRD 56 17 for this project in 2007, when the city released its Plaza Saltillo TOD Station Area Plan. The city worked closely with residents and stakeholders to draft a plan that would prioritize promot- ing transit use and create much-needed affordable housing. The developer, Endeavor Real Estate, was selected by Austin Capital Metro as the project partner. The development was completed in April of 2020, and the retail and office uses are fully leased as of this writing. Key Takeaways • Deal Structure: Austin Capital Metro entered into a 99-year lease with Endeavor Real Estate. • Financing: Construction was financed privately by the developer with no public funding. • FTA Involvement:  Because the 10-acre parcel was origi- nally acquired using FTA funds, the FTA had to approve the lease between Austin Capital Metro and the developer. • The approval process of the 99-year lease by the FTA took several months. • Regular communication between the regional FTA office and Austin Capital Metro was important for moving the process along and minimizing review time. Project Challenges/Lessons Learned • The negotiations for the ground lease took longer than Austin Capital Metro originally expected, so becoming familiar with the FTA process for negotiating leases to third parties prior to undertaking negotiations is recommended. • Austin Capital Metro originally entered into the joint devel- opment process with several internal different committees assigned with moving the process forward, but found that streamlining the development and review process internal to their agency increased their efficiency and efficacy. • There were several historic structures on the site, but Austin Capital Metro worked closely with the Texas Historical Commission to move one of the structures. The structure remaining onsite underwent an adaptive re-use process and is now a bar/restaurant. Resources • Interview with Austin Capital Metro, June 1, 2020. • Tony Cantu, Planning Commission Approves East Austin Plaza Saltillo Development Project, Patch, Jan. 11, 2017, https://patch.com/texas/eastaustin/planning-commission- approves-east-austin-plaza-saltillo-project. • City of Austin Neighborhood Planning and Zoning Dept., Plaza Saltillo TOD Station Plan, https://austintexas.gov/ sites/default/files/files/Planning/Urban_Design/Plaza_ Saltillo_Final_SAP_Lo_Res.pdf. • Adolfo Pesquera, Two East Austin Affordable Housing Projects Vie for State Tax Credits, Towers, March 22, 2018, https://austin.towers.net/two-east-austin-affordable- housing-projects-vie-for-state-tax-credits/. • Weston Solutions, Plaza Saltillo TOD-Downtown Rail Yard Siting and Licensing, TX, https://www.westonsolutions. com/markets/local-government/economic-development- authorities/plaza-saltillo-tod-downtown-rail-yard-siting- and-licensing-tx/. Denver’s Union Station Joint Development Located in downtown Denver, this TOD around Denver’s historic Union Station, completed in 2014 includes 1.9 million square feet of office space, 250,000 square feet of retail, 2,800 residential units, and 750 hotel rooms in and around the station. The actual FTA-assisted joint development project that forms the core of this TOD is at Union Station itself. Union Station is Denver’s major intermodal hub, and serves light rail, commuter rail, Amtrak, and regional buses, as well as providing pedestrian and bicycle infrastructure. The project was originally envisioned in the 2004 City of Denver Union Station Master Plan, and the property was rezoned to Transit-Mixed-Use by the city, to better facilitate future redevelopment. Because there were multiple developers involved in this project, a separate organization was formed, the Union Station Alliance, to better manage the development process. The origi- nal deal included the outparcels, as well as the historic Union Station building property, but community pushback caused the Regional Transportation District (RTD) transit agency to issue a new RFP separating out the historic building from the rest of the property. This allowed the RTD to maintain more control over the process, and ensure that adequate public access to the historic station was provided. Key Takeaways • Deal Structure: RTD entered into a 99-year lease agreement with the Union Station Alliance, which received concur- rence by the FTA. • Financing: The Union Station TOD was developed utilizing $500 million in public investment, jointly funded by RTD, the City and County of Denver, the Colorado Department of Transportation, and the Denver Regional Council of Governments. The developer was responsible for ongoing capital maintenance. Through their FasTracks program, RTD’s voter-approved transit expansion program, RTD was able to contribute to the cost of restoring the historic station. • FTA Involvement:  The FTA’s direct involvement in this joint development process was limited to review and con- currence of the 99-year ground lease. However, there was significant engagement with the regional FTA office on the FasTracks program. Project Challenges/Lessons Learned • RTD emphasized the importance of maintaining open and regular communication with their regional FTA office • Because Union Station is an historic building, the developers had to go through a somewhat lengthy Section 106 review process69 69 National Historic Preservation Act of 1966, Pub. L. 89-665, Sec. 106, 80 Stat. 915, 917.

18 TCRP LRD 56 • RTD also emphasized the importance of community in- volvement in the joint development process: community advocates were instrumental in the selection of a devel- oper who was able to redevelop the historic Union Station building in a way that allowed it to be easily accessible to the public. RTD also worked with retail and restaurant ten- ants to ensure that the station’s amenities would stay open at least 18 hours per day, to accommodate passengers travel- ing through the station who may want an early cup of coffee or a late meal. Resources • Stakeholder interview with RTD, June 16, 2020 • RTD, Union Station TOD, https://www.rtd-denver.com/ projects/union-station-tod-project • RTD, Union Station, Facts and Figures, https://www. rtd-denver.com/reports-and-policies/facts-f igures/ denver-union-station

Next: APPENDIX B. STAKEHOLDER INTERVIEW QUESTIONS »
Joint Development Agreements Using FTA Funds or FTA-Funded Assets Get This Book
×
MyNAP members save 10% online.
Login or Register to save!

In the United States, transit oriented development (TOD) is now recognized as a critical element in the planning, development, and execution of transit projects. Recent legislation has been designed to streamline the approval processes for new transportation projects, focus more on safety, and establish new programs to advance critical freight projects.

The TRB Transit Cooperative Research Program's TCRP Legal Research Digest 56: Joint Development Agreements Using FTA Funds or FTA-Funded Assets aims to clarify the Federal Transit Administration (FTA) assisted joint development process and attempts to separate public perceptions (and misperceptions) about TOD from reality. It is an update to TCRP Legal Research Digest 12:The Zoning and Real Estate Implications of Transit-Oriented Development.

Appendix C incudes sample model agreement forms, developed from Washington Area Transit Authority’s Office of Real Estate and Station Planning Templates.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!