HomeMy Public PortalAbout03 March 27, 2006 Property Committee76235
RIVERSIDE COUNTY TRANSPORTATION COMM/SS/ON
PROPERTY COMMITTEE
(Commissioners Marion Ashley, Alex Bias, Robin Lowe, John Tavaglione, Roy Wilson)
11:15 a.m.
Monday, March 27, 2006
Riverside County Transportation Commission
Conference Room "B"
4080 Lemon Street, 3'd Floor, Riverside
AGENDA
1) CALL TO ORDER
2► PUBLIC COMMENTS
3) APPROVAL OF RELEASE OF SOQ/RFP FOR THE JOINT DEVELOPMENT
OF THE RIVERSIDE -DOWNTOWN STATION
Overview
This item is for the Committee to:
1) Approve the release of the Statement of Qualifications (SOO)
followed by the Request for Proposals (RFP) for the Joint
Development of the Riverside -Downtown Station; and
2) Forward to the Commission for final approval.
4) ADJOURNMENT
11.36.09
AGENDA ITEM 3
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E : .
M a r c h 2 7 , 2 0 0 6
T O :
P r o p e r t y C o m m i t t e e
F R O M :
S t e p h a n i e W i g g i n s , R e g i o n a l P r o g r a m s D i r e c t o r
T H R O U G H :
A n n e M a y e r , P r o g r a m m i n g a n d A d m i n i s t r a t i o n D i r e c t o r
S U B J E C T :
A p p r o v a l o f R e l e a s e o f S O Q / R F P f o r t h e J o i n t D e v e l o p m e n t o f t h e
R i v e r s i d e - D o w n t o w n S t a t i o n
S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i t t e e t o :
1 ) A p p r o v e t h e . r e l e a s e o f t h e S t a t e m e n t o f Q u a l i f i c a t i o n s ( S O Q ) f o l l o w e d b y
t h e R e q u e s t f o r P r o p o s a l s ( R F P ) f o r t h e J o i n t D e v e l o p m e n t o f t h e
R i v e r s i d e - D o w n t o w n S t a t i o n ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a p p r o v a l .
B A C K G R O U N D I N F O R M A T I O N :
C o m m u t e r r a i l s e r v i c e h a s b e e n a g r o w i n g s u c c e s s i n R i v e r s i d e C o u n t y s i n c e i t s
i n c e p t i o n i n 1 9 9 3 w i t h t h e R i v e r s i d e L i n e t o L o s A n g e l e s . T h e S o u t h e r n C a l i f o r n i a
R e g i o n a l R a i l A u t h o r i t y , k n o w n a s M e t r o l i n k , i s r e s p o n s i b l e f o r o p e r a t i n g t h e
c o m m u t e r t r a i n s a s w e l l a s m a i n t a i n i n g t h e t r a c k r i g h t - o f - w a y a n d r e l a t e d f a c i l i t i e s .
w h i l e l o c a l a g e n c i e s a r e r e s p o n s i b l e f o r b u i l d i n g a n d m a i n t a i n i n g M e t r o l i n k s t a t i o n s .
I n 1 . 9 9 3 , R C T C c o n s t r u c t e d t w o M e t r o l i n k s t a t i o n s , R i v e r s i d e - D o w n t o w n a n d
P e d l e y . I m p l e m e n t a t i o n o f c o m m u t e r r a i l s e r v i c e o n t h e I n l a n d E m p i r e - O r a n g e
C o u n t y ( I E O C ) l i n e i n 1 9 9 5 b r o u g h t t h e c o n s t r u c t i o n o f t w o m o r e s t a t i o n s t o t h i s
r e g i o n , R i v e r s i d e - L a S i e r r a a n d W e s t C o r o n a . I n 2 0 0 3 , t h e C o m m i s s i o n
c o n s t r u c t e d t h e N o r t h M a i n C o r o n a s t a t i o n t o s e r v e t h e . I E O C a n d 9 1 l i n e s . T o d a y ,
R C T C o w n s a n d o p e r a t e s t h e s e f i v e M e t r o l i n k s t a t i o n s l o c a t e d i n W e s t e r n R i v e r s i d e
C o u n t y ,
J o i n t , D e v e l o p m e n t a n d T r a n s i t O r i e n t e d D e v e l o p m e n t
T r a n s i t O r i e n t e d D e v e l o p m e n t ( T O D ) a n d t r a n s i t - a d j a c e n t d e v e l o p m e n t t e r m s :
r e f e r r i n g t o a f o r m o f u r b a n p l a n n i n g t h a t c o n n e c t s d e v e l o p m e n t w i t h l o c a t i o n s
n e a r p u b l i c t r a n s p o r t a t i o n p r o p e r t i e s i s g r o w i n g i n i t s p o p u l a r i t y a s t r a n s i t
s y s t e m s t a k e a n i n c r e a s i n g l y a c t i v e r o l e i n t h e p r o c e s s a l o n g w i t h d e v e l o p e r s a n d
local governments.' Over the .past five years, public transit agencies have been
stepping up efforts to capitalize on underused agency properties that can be used
for TOD in an effort to boost ridership, revenues, or for other benefits. In an era of
tightening budgets, the agencies are looking for greater non-farebox revenues,.
which may be TOD.
Metrolink Station Area Development Activities
Over the last three years, the Metrolink system has begun to experience the trend
in transit oriented and joint development interest as well. The following Metrolink
station cities are engaged in various stages of planning for and implementing mixed
use transit -supportive development projects that leverage the existing Metrolink rail
station infrastructure, which fully integrates the train service into the revitalization
and development plans.2
Anaheim Stadium Station
Burbank
Chatsworth
Claremont
Covina
Downtown Pomona
El Monte
Fontana
Impact to RCTC
Fullerton
Glendale
Irvine
Laguna Niguel/Mission Viejo
Lancaster
Los Angeles Union Station
Montclair
Newhall
Norwalk/Santa Fe Springs
Orange
Palmdale
Pomona North
Riverside -La Sierra
San Bernardino
Santa Ana
Tustin
As the Metrolink system begins to prove attractive to developers who recognize
the potential revenue stream that can be generated by locating their developments
near rail stations, these developments may generate additional revenue potential for
RCTC, provide benefit to existing passengers who frequent these stations, and
encourage new transit ridership.
At its June 2005 meeting, the Commission approved the Rail Station Joint
Development Guidelines and authorized staff to develop and a SOQ/RFP for Joint
Development of the La Sierra Station. Currently, the Joint Development solicitation
is in the RFP phase. The evaluation process involves staff from the City of
Riverside Redevelopment and Planning agency as well as Metrolink staff and RCTC
staff. It is anticipated that the results of the evaluation process will be presented
to the Property Committee at its June meeting.
American Public Transportation Association
2 Southern California Regional Rail Authority, March 2005
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T h e C i t y o f R i v e r s i d e s t a f f h a s n o t i f i e d R C T C s t a f f o f t h e i n t e r e s t i n p o t e n t i a l
d e v e l o p m e n t p r o j e c t s a d j a c e n t t o a n d / o r o n t h e R i v e r s i d e - D o w n t o w n S t a t i o n
p r o p e r t y . I n o r d e r t o p r o v i d e a n . o p e n c o m p e t i t i v e s e l e c t i o n p r o c e s s , R C T C d o e s
n o t a c c e p t u n s o l i c i t e d p r o p o s a l s . T h e r e f o r e , s t a f f r e c o m m e n d s t h a t t h e P r o p e r t y
C o m m i t t e e a u t h o r i z e t h e r e l e a s e o f a S O Q f o l l o w e d b y a n R F P f o r t h e J o i n t
D e v e l o p m e n t o f t h e R i v e r s i d e - D o w n t o w n S t a t i o n .
T h e g o a l s o f t h e R a i l S t a t i o n J o i n t D e v e l o p m e n t G u i d e l i n e s a r e t o :
" . P r o m o t e a n d e n h a n c e r a i l t r a n s i t r i d e r s h i p ;
" . E n h a n c e a n d p r o t e c t t h e c o m m u t e r r a i l s t a t i o n a n d c o r r i d o r ;
" E n c o u r a g e c o m p r e h e n s i v e a n d c o m p l e m e n t a r y p l a n n i n g a n d d e v e l o p m e n t
a r o u n d R C T C - o w n e d s t a t i o n s i t e s ;
" R e d u c e a u t o u s e a n d c o n g e s t i o n t h r o u g h e n c o u r a g e m e n t o f r a i l t r a n s i t -
l i n k e d d e v e l o p m e n t , c o n s i s t e n t w i t h C o m m i s s i o n p o l i c y t o p u r s u e
t r a n s p o r t a t i o n a l t e r n a t i v e s t h a t e n h a n c e o r c o m p l e m e n t e c o n o m i c
d e v e l o p m e n t ; a n d ,
" D e m o n s t r a t e a f i s c a l b e n e f i t t o t h e C o m m i s s i o n b a s e d o n a f a i r m a r k e t
r e t u r n o n p u b l i c i n v e s t m e n t .
A t t a c h m e n t : R C T C R a i l S t a t i o n J o i n t D e v e l o p m e n t G u i d e l i n e s a n d J o i n t
D e v e l o p m e n t I m p l e m e n t a t i o n P r o c e s s
RCTC Rail Station Joint Development Guidelines. June 2005
Riverside County Transportation Commission
Rail Station Joint Development Guidelines
June 2005
PURPOSE
These guidelines are issued under the authority of the Riverside County Transportation
Commission (RCTC) which seeks to enter • into joint development partnerships to
enhance the financial retum and overall patronage of the Commission's significant rail
'transportation infrastructure investment For purposes of these guidelines, joint
• development is defined as a real property asset development and management
program intended to secure the most appropriate private and/or public sector
. development on RCTC-owned property at and adjacent to Metrolink commuter rail
stations and corridors. Joint development also includes coordination with local
jurisdictions in station -area land use planning in the interest of establishing development
that enhances rail transit use.
It is the intention of the RCTC to realize the maximum benefits from and utilization of
property owned and acquired by the Commission consistent with transportation mobility
and community development objectives.
GOALS
The RCTC joint development guidelines seek to:
1. Promote and enhance rail transit ridership;
2. Enhance and protect the commuter rail station and corridor;
3. Encourage. comprehensive and complementary planning and development
around RCTC-owned station sites;
4. Reduce auto use and congestion through encouragement of rail transit -linked
development, consistent with Commission policy to pursue transportation
alternatives that enhance or complement economic development; and
5. Demonstrate a fiscal benefit to the Commission based on a fair market return on
public investment.
POLICIES
The basic construct of joint developmentguidelines encourages comprehensive
planning of station -area development. Thesepolicies are limited to solicited proposals.
To facilitate coordinated transportation and land use decisions, RCTC will:
RCTC Rail Station Joint Development Guidelines, June 2005
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1. Consult and work cooperatively with local jurisdictions, redevelopment agencies,
developers, and other public and private sector entities to facilitate land use
policies and plans which encourage intensive, high quality development at
current and planned RCTC-owned stations and surrounding properties;
2. In consultation with local jurisdictions, prepare conceptual development
strategies specific to each joint development site that articulate the intensity and
types of land use that the RCTC envisions for that site as well as anyof the
desired transit facility features;
3. Encourage transit • compatible land use plans that enhance RCTC's regional
mobility, air quality, economic development, ridership and revenue goals;
4. Consider joint development opportunities in the location of new station sites for
future rail corridors, and construction of station.facilities;
5. Encourage and allow surrounding property owners/developers, at their expense,
to construct direct connections to stations from their property/buildings, in
particular, pedestrianconnections which enhance the overall pedestrian flow of
the project area; and
6. Any modifications of these guidelines may be made by the RCTC Property
Committee.
Additionally, the RCTC shall consider new joint development projects based on the
following • standards:
1. Projects shall be evaluated for consistency with development strategies as
delineated in site -specific Request for Qualification/Proposals (RFQ/RFP) issued
by the Commission;
2. Projects shall not negatively impact present or future public transportation.
facilities;
3.= Projects shall be evaluated for consistency with regional and local jurisdictions
policies and plans;
4. Projects must demonstrate, at a minimum, fair market value return to RCTC;
5_ if there are •multiple proposals for the same site, selection between projects will
be based on those which meet the above criteria and additionally demonstrate:
a. The greatest potential to increase rail transit ridership and enhance the
transit system environment;
b. The greatest economic development potential to the community consistent
with adopted land use plans; and
c_ Responsiveness to community needs for employment, services, housing
or other facilities.
6. Projects are encouraged which create a long-term source of revenue for the
RCTC and allow the RCTC to participate in the increase in value of its real estate
assets over time. This will generally take the form of a long-term lease. Under
some circumstances, the Commission may consider the sale of property if it is
determined to be in RCTC's best interest
7. Projects are encouraged which require no commitment of RCTC financial
resources, minimize any investment risk, and maximize asset security for RCTC;
8. Where appropriate, as defined in the site -specific conceptual development
guidelines enumerated in the RFP, projects are encouraged which provide new
or additional station parking facilities; and
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RCTC Rail Station rant Deivlop i entGuidelines, Jane 2005
9. Projects • must allow RCTC to retain station facility and related transportation
service design and location authority and access to all necessary station
operational facilities.
Rail Station Joint Development implementation Procedures
RCTC will periodically prepare conceptual development strategies. for RCTC-owned
properties at Metrolink commuter rail stations. The RCTC will also consult with local
jurisdictions regarding local land use development . efforts. These conceptual
development strategies and consultations with local jurisdictions shall provide the basis
for establishing project priorities and implementation approaches to ensure maximum
attainment of RCTC's joint development goals.
RCTC will be open and competitive in marketing its properties. RCTC shall solicit
competitive proposals for joint development of its properties. The standard RCTC
procurement procedures shall be used as the general guideline for determiningthe
appropriate process for solicitation. RCTC shall not accept unsolicited written proposals
for joint development on RCTC owned property.
• Proposal Solicitation and Evaluation Process
RCTC may periodically initiate a process to solicit development proposals for specific
properties owned by RCTC. In soliciting joint development proposals, the RCTC shall
provide available relevant site information including the conceptual development
strategies for the site and encourage developers to seek information or consult with
local jurisdictions regarding current and planned land uses in the project area. The
RFQ/RFP will outline the minimum qualifications and project selection criteria,including
any unique capabilities or credentials which would berequired of the proposer. Pre -
proposal conferences may be held, as deemed necessary by RCTC.
The solicitation process will consist of two distinct stages — an -assessment of
qualifications and an assessment of development- proposals. The , first stage, the
Qualifications Assessment, involves a request for qualifications (RFQ). This stage
establishes the fitness of potential development teams to .present formal development
proposals to the RCTC for the specific site. During this stage, development teams are
to be evaluated on two major criteria:
1.. the Experience and Qualifications of the Development Team
2. the Financial Capacity of the Development Team
Publicnotice of the RFQ issuance will be posted at least 30 days prior to the date set
for receipt of Statements . of Qualification. Development teams; that meet the
predetermined minimumrequirements for both evaluation criteria will be invited by
RCTC to participate in the second stage of the development solication process.
The second stage of the development solication / RFP process is an Assessment of
Development. Proposals. During this stage, the set of pre -qualified development teams
will be given. the opportunity to prepare a proposal for development on the. site in
question. The proposals shall include: -
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RCTC Rail SIaiianJamt Develgiwenr Guidelines, June 2005
1. A description of the project (program and schematic site plans)
2. A description of the approach to implement the proposed project
(management plan, schedule, and financial terms).
Proposals shall be evaluated by a review panel selected by the Executive Director. It is
anticipated that the panel will include representatives from the local jurisdiction and
RCTC. staff. Additionally, an urban design panel may be used to evaluate projects in an
advisory capacity to the review committee. The RCTC shall notify, Proposers within.30
days following their proposal submittals as to the estimated time frame for proposal
review. It is the intent of the Commission to review proposals as expeditiously as
possible, and review periods may be dependent on the volume and complexity of the
proposals. The review committee will use the Rail Station Joint Development Checklist
to evaluate the initial submittals and make recommendations to the Commission on the
selected developer/proposal to be considered for advancement to .the Exclusive
Negotiations Agreement phase.
Exclusive Negotiations Agreement
Upon recommendation and approval of the Commission, the Executive Director may .
enter into an Exclusive. Negotiations Agreement (ENA) with the selected developer for
period of 180 days or such other term that is mutually acceptable to the parties.
A. Requirements of proposer/developer under the ENA:
1. Developer shall provide the Executive Director with a "good faith refundable'
deposit," in the amount of $25,000 in the form of cash or certified check or an
alternative amount determined by the Executive Director or his designee:'
The amount shall be sufficient to cover reasonable expenses incurred by the
RCTC in carrying out the analysis of the proposal.
2. Developer shall have 120 days to provide the Executive Director with the
following information:
a. A preliminary site plan showing building: layout and dimensions,
parking; landscaping and access. -
b. Project development schedule including milestones for site control,
financing commitments, design and environmental clearances,
entitlements, construction and completion.
c.. Cost estimates and project data for the proposal in sufficient detail to
permitadequate financial analysis.
d. Evidence of a firm commitment from key managerial members or
tenants of the proposed projects.
e. A comprehensive list of previous experience in the specific project area.
and of like projects for both construction' and operation of the said
project type, as well as disclose full credit and litigation history under
penalty of perjury.
3. Evidence of a firm financial plan, including: "
a. Evidence of construction financing.
b. Evidence of long-term financing.
c. Evidence of other financial sources necessary to carry out the project.
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RCTC Rail Station Joint Development Guidelines, June 2005
Evidence shall consist of a letter of commitment from a financialinstitution or
any reasonably acceptable party providing development capital. The financial
plan shall include a proforma statement of project retum adequate to enable
the Commission to evaluate the economic feasibility of the proposed project.
4. Developer shall provide a written offer to the RCTC for fee purchase of land,
purchase of lease rights, or other development rights as appropriate to the
proposal.
5. Evidence of control . of any propertiesnot owned by RCTC but considered
essential to the project. Evidence shall be in the form of letters of intent from
each of the owners stating commitment of land, economicterms and costs
basis as well as a detailed action plan and schedule relating to the acquisition
of the properties.
B. Responsibilities of the RCTC under the ENA: .
1. The RCTC shall approve no other joint development proposals for the land in
question during the period of the ENA. The ENA shall.. serve as proof of
control of land for acquiring letters of financial commitment by the developer.
2. The Executive Director shall place the "good faith" deposit in an interest -
bearing account, and shall have the right to draw down from the account
payment for reasonable expenses incurred by the RCTC for such items as
land and development rights appraisals, materials, data and other information
costs, and other administrative and consultant costs expended in the
evaluation of the proposal.
3. The RCTC shall provide the developer with an appraisal for the fair market
value of the fee interest or lease rights or other development rights
appropriate to the project.
4. The RCTC shall deliver, within 30 days of receipt of written request, any
existing RCTC-owned information, studies, reports, .,site and construction
plans or. other documents requested by the developer to facilitate project
design at cost to the developer. .
5. lf, at the conclusion of the ENA period, the proposal is terminated, the
Executive Director shall return any remaining balance of, the "good faith
deposit," including. any interest accrued thereon to the developer.
6_ lf, at the conclusion of the ENA, a Development Agreement is entered into,
the remaining balance of the "good faith deposit," including interest accrued
thereon, shall be subtracted from the cost of land,lease or other development
rights conveyed to the developer by the RCTC. .
Extension of ENA -
Either the developer or the Executive Director may request from the Commission an
extension of the 180-day exclusive negotiation period. • The ,Commission will determine
whether sufficient progress has been made toward fulfillment of the above requirements
in their consideration of extension.
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RC7C Rail Station Joint Development Guidelines. June2005
Environmental Documents
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The developer shall bear the responsibility and costs associated with. the .preparation
andcertification of any required environmental clearance.. It is••generally assumed that
the local jurisdiction will be the lead agency in the preparation of any required
environmental clearance for the. development.
Conclusion of the Rail Station Joint Development Evaluation` Process
Upon satisfactory fulfillment of all the development requirements in the ENA, the RCTC
may enter into a Joint Development Agreement for the implementation of the project.
Joint Development Agreement
The Joint Development Agreement shall describe the rights and responsibilities of both
parties and shall contain, but not be limited to the following elements:
1. Identification of the parties to the agreement including prohibition against change,
transfer or assignment of ownership, management and/or control of developer;
2. Description of the site including a map. If the subject of the lease is an air space
development placement of supports shall be included on the map;
3. Requirement that the developer must secure from appropriate local agencies: all
necessary permits and approvals;
4. The terms and conditions of the lease (if applicable) including but not limited to:
• Lease price and payment schedule;
• Conveyance and delivery for possession;
• Payment of taxes and insurance requirement;
• Condition of site at time of beginning and end of lease;
• Financial statement of developer;
• Hold harmless and indemnity clauses;
• Limitations of use and terms of. lease; and
• Schedule of the RCTC approval of all plans.. and • drawings.
5. If the development incorporates a sale of property, the conditions and terms of
such sale including but not limited to:
• Sale or purchase price and payment schedule;
• Escrow instructions;
• Conditions, covenants, restrictions and other limitations of use as
terms of sale;
• Conveyance: and delivery of possession;
• •Form of deed as approved by RCTC counsel; -
• Condition of title and insurance of title;
• Time and place for delivery of deed;
• Taxes, assessments, and insurance. requirements;
• Condition of site at time of sales;
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RCTC Rail Station Joint Development Guidelines, June 2005
• Financial statement of developer, and
• Prohibition of transfer without prior Board approval.
6. The scope of the development of the site including: .
a. Schedule for submission of concept, schematic, construction, grading
and landscaping plans and drawings;
b. Schedule for local agency and the RCTC review, and approval of plans
and drawings. The staff review will include but not be limited to:
(1) Design of site and improvements;
(2) Relationship to the urban design of the community
both form and scale;
(3) Architectural design and visual continuity;
(4) Effects on railway operations;
(5) Type and quality of building materials;
(6) Structure location, height and lot coverage;
(7) Parking requirements and design;
(8) Streetscape and landscaping; and
(9) Vehicular circulation.
c. Schedule of performance; and .
d. Insurance requirements.
6. Failure of either party to perform including defaults, remedies and termination
by either party;
7. Ownership of improvements constructed upon leased land upon the
expiration or termination of lease term;
8. Requirements to restore leased property to original •condition upon expiration
or termination of lease term;
9. Possible performance bond requirements; and
10.Any other general or special provisions which are deemed necessary by the
Commission.
Use of Revenue
Revenue obtained from joint use and development of property including concessions
and advertising will first be applied to the maintenance and operation of RCTC-owned
facilities from which the revenue is generated, with any additional revenue being applied
to any other RCTC commuter rail operations.
Applicability of•Guidelines
Nothing in these guidelines shall 1) require RCTC to enter into any agreements or
commitments or 2) invalidate any action of the Commission, .or 3) require any action by
the Commission.
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RCTC jointly develops
conceptual development
strategy for site with
local jurisdiction.
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Riverside County Transportation Commission
Joint Development Implementation -Process -
Evaluation by Review
Panel
RCTC Issues Request
for Qualifications
30
days
RCTC Issues Request
for Proposal to Pre -
Qualified Firms
Statement of
Qualifications Submitted
As of 6/2/05
e0
days
Solicited Proposal (s)
Submitted to RCTC
•
Evaluation by Review
Panel
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Developer:
• Conceptual design including Site
Plan &Sections
*Schedule
• Environmental Clearance
" Financing Plan w/Pro-forma
Operating & Construction, Cost &
Revenue Projections -
*Business Term Sheet
4--
120
days
Extend
Negotiations
Period
(Up to 180
days)
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RCTC:
* Approve no other proposals
* Place deposit in interest -
bearing account
* Use deposit for related costs
*Negotiate in Good Faith
RCTC Evaluation & Negotiations
(incl. coordination w/local jurisdiction)
4
Maybe
Exclusive Negotiating
Agreement; Developer
Good Faith Deposit
8
80
days
Board
Decision
End Process with
Developer
Yes
Implement
Joint
Development
Agreement