Guide to Joint Development for Public Transportation Agencies: Appendices (2021) / Chapter Skim
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Appendix F FTA Joint Development Policy i TABLE OF CONTENTS 1.0 FTA Joint Development Policy Documents ........................................................................................ F-1 2.0 Background ........................................................................................................................................
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Appendix F FTA Joint Development Policy F-1 FTA JOINT DEVELOPMENT POLICY AND ITS EVOLUTION 1.0 FTA Joint Development Policy Documents Joint development falls within the jurisdiction of the Federal Transit Administration (FTA) only if it involves new FTA funding or the use of FTA-assisted real estate.
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Appendix F FTA Joint Development Policy F-2 • The 1997 FTA Policy addressed a threshold inconsistency between FTA's intended support of joint development and the operation of various statutory and regulatory provisions which tended to have the opposite effect. The 1998 FTA Appendix codified the 1997 FTA Policy and captured statutory changes enacted in TEA-21 (1998)
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Appendix F FTA Joint Development Policy F-3 of federal law and regulation limits the use of federally-assisted real property to its originally authorized purpose; it requires that when such land is disposed of or encumbered for any other purpose, the "federal interest" must be repaid to the affected federal agency.93 In the case of land acquired as part of an FTA-funded capital project, the federal interest is the percentage of the current fair market value corresponding to FTA's original share of project costs. Since the sale or lease of FTA-assisted property for joint development was understood to be a disposition, FTA's intended support of joint development was frustrated.
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Appendix F FTA Joint Development Policy F-4 bureaucratic process than FTA joint development approval, and the incentive of FTA funding for eligible joint development costs may not be realistically available, transit agencies sometimes seek FTA permission to dispose of the development site as excess property and transfer the proceeds to another project, rather than seeking approval as an FTA-assisted joint development project. (With respect to using new FTA funds for joint development, between 2014 and 2019, 16 FTA-assisted joint development projects were approved.
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Appendix F FTA Joint Development Policy F-5 b. FTA jurisdiction and FTA property interest.
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Appendix F FTA Joint Development Policy F-6 enhances the effectiveness of public transportation and is related physically or functionally to public transportation; or (II) establishes new or enhanced coordination between public transportation and other transportation; (iii)
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Appendix F FTA Joint Development Policy F-7 agency's capital program. Section 5309 discretionary grants for New Starts and Small Starts projects offer the opportunity to incorporate joint development into corridor planning and station location, but, by definition, only for projects that ultimately receive funding.105 e.
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Appendix F FTA Joint Development Policy F-8 (ii) If no new FTA capital assistance is proposed, the cross-cutting requirements are generally limited to the non-discrimination and non-disbarment provisions applicable by law to all federal programs.
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Appendix F FTA Joint Development Policy F-9 However, the grantee's chief executive was required to certify not only that this threshold was met but that the negotiated revenue was commercially reasonable and fair to the grantee, thus requiring a market analysis or appraisal. The Circular recognized that a joint development project consisting largely of publicly owned facilities or community services might be unable to generate sufficient rent to match the original FTA investment and consequently allowed an exception for such projects.111 2016 FTA Circular 7050.1A.
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Appendix F FTA Joint Development Policy F-10 certification" documenting any exceptions; the Joint Development Agreement; and a completed Joint Development Checklist (a standard exhibit included in the Guidance)
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Appendix F FTA Joint Development Policy F-11 requirement that tenants of FTA-funded buildings pay their fair share of operating costs through their lease agreements. The 2007 FTA Guidance made an explicit distinction between the long list of eligible costs, on the one hand, and two specific exclusions, on the other.
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Appendix F FTA Joint Development Policy F-12 whether the development rights to the parking lot are to be structured as an FTA joint development conveyance or an outright disposition of excess property.123 In summary, since 2014 three significant changes to FTA Joint Development Policy have been adopted. As a result of these changes, FTA policy: • allows the widest eligibility to date in the use of FTA capital funds to support joint development projects, including for the construction of commercial space; • expressly allows the conversion of FTA-assisted park & ride lots into joint development sites with less than 1:1 replacement, with the conditions for such approval clearly stated; • imposes no threshold revenue parameter on the terms of a joint development transaction and requires no extensive documentation of market value.
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