Los Angeles County One Gateway Plaza 2i3.g Tel Metropolitan Transportation Authority Los Angeles, CA metro.net

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1 Metro Los Angeles County One Gateway Plaza 2i3.g Tel Metropolitan Transportation Authority Los Angeles, CA metro.net PLANNING AND PROGRAMMING COMMITTEE JULY 14,2010 SUBJECT: BUENA VISTA YARDS RECOMMENDED PUBLIC PRIVATE PARTNERSHIP ACTION: AUTHORIZATION TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT WITH THE RIBOLI FAMILY WINE ESTATES RECOMMENDATION Authorize the Chief Executive Officer to enter into a six-month Exclusive Negotiating Agreement (ENA) with the Riboli Family Wine Estates (Riboli) for a public-private partnership for construction of a covered MTA Rail Storage Yard ("Yard") and commercial development of air rights over and adjacent to the Yard. ISSUE MTA and Riboli are the owners of property, including the Gold Line right of way and land lying generally to the northeast of the right of way near the Gold Line Chinatown Station and adjacent to the Los Angeles State Historic Park. The combined properties total approximately 15 acres and are illustrated on the attached map (Attachment A). In June 201 0, MTA received an unsolicited public-private partnership proposal from Riboli (Attachment B) to develop an expanded MTA Rail Storage Yard as shown on Attachment A and the potential residential and commercial development that could occur if the Riboli property is made available to MTA for development of a covered storage yard with a platform above that would allow for mixed-use development and other activities on the air-rights above the yard. The proposal envisions a public-private development that can benefit MTA, the City of Los Angeles and the community, as well as provide a significant safety enhancement for the Gold Line tracks immediately adjacent to the State Park. After an analysis of the unsolicited proposal, including review of potential safety considerations and operating impacts, conformance with previous development studies, potential for future rail lines, storage capacity and other potential benefits to MTA, staff

2 recommends that the Board authorize entering into an Exclusive Negotiation Agreement (ENA) with Riboli to explore the above referenced project. POLICY IMPLICATIONS The Riboli proposal addresses certain safety and operational issues and would provide other benefits that are relevant to MTA. First, the adjacent 32-acre State Park, which has over 1 million estimated visitors per year and growing as recreational and entertainment programming increases, is immediately adjacent to the existing Gold Line tracks. While the tracks predate the park, the location of the tracks immediately adjacent to the park is not ideal from a safety and operational perspective. Providing a covered facility and deck would provide a significant safety enhancement and eliminate the safety risk associated with existing conditions, thus providing a significant public safety enhancement. Further, the proposal would provide MTA the opportunity to develop a covered storage yard using the Riboli property. The recommended action is consistent with the Board's Long Range Plan which assumed additional light rail transit lines and increased service frequencies throughout the light rail system. Increasing service frequencies countywide requires additional light rail vehicles, which in turn, requires additional yard space. MTA staff has been evaluating storage facility requirements and is pursuing options for additional storage facility sites. The proposed location is advantageous to MTA and would satisfy a need for additional storage space in addition to the safety enhancement. The recommended action is also consistent with the goals of the Joint Development Policies and Procedures approved by the Board at its April, 2002 meeting. The goals of MTA's joint development program are to promote and enhance transit ridership, enhance and protect the transportation corridor and its environs, enhance the land use and economic development goals of surrounding communities, conform to local and regional development plans, and generate value to MTA based on a fair market return on public investment. MTA staff has concluded that the proposal meets the goals contained in the policies and procedures. OPTIONS MTA could choose not to enter into an ENA with Riboli and delay or foreclose exploring the safety enhancement, storage and development option at this location. Staff is not recommending this option because the Riboli proposal provides a unique opportunity to enhance safety and to provide for a secure storage facility. The proposal also provides an appropriate development opportunity for the site, and creates a synergistic opportunity that cannot be achieved without both properties.

3 FINANCIAL IMPACT No funds will be expended as the result of approval of the ENA except for internal staff time for analysis and negotiation. If further action is recommended as a result of negotiations, staff will return to the Board with specific proposals. BACKGROUND The proposed project site is located immediately adjacent to the Los Angeles State Historic Park and just south of North Broadway Street, as shown in Attachment A. The Gold Line runs immediately adjacent to the Los Angeles State Historic Park at this location, and there is a grade change varying from 25 to 40 feet between the Gold Line and North Broadway. Further, the proposed site is north of the Chinatown station and within approximately 2 mile of Union Station. It is estimated that the 10s Angeles State Historic Park receives over one million annual visitors. As recreational, entertainment and special events programming for the park continues to increase, the number of visitors will further exacerbate the potential safety conflicts associated with the adjacent uses (the existing lines are immediately adjacent to and at grade with the Park). The lines and the park are separated only by fencing. The proposed project would provide a secure, covered site that separates the park from the rail lines, thereby substantially reducing the potential safety hazards. In addition, the proposed project would provide a significant rail car storage opportunity for MTA. MTA staff has been undertaking a significant effort to identify new storage and maintenance yard opportunities. Existing storage and maintenance yards are reaching capacity and cannot accommodate enough new vehicles to support significant increase in service. At the same time, additional light rail transit lines and increased service frequencies throughout the light rail system are planned and underway, including the expansion of the Gold Line, the Exposition Light Rail, Crenshaw corridor projects and the Regional Connector. The proposed site provides a unique opportunity that includes many high value characteristics for MTA storage facilities in addition to the significant benefits described above. First, the site is located along the existing Gold Line, and is in close proximity to Union Station. The site's location and access to multiple lines and branches fits in with future operation opportunities which consider sharing facilities between lines in order to capture cost and efficiency benefits. Second, the site can be developed soon enough to meet the known storage capacity needs. This option requires negotiation with primarily one property owner. Third, the site creates an opportunity to develop a covered and highly secure storage facility. In addition to the safety and operationallstorage benefits of the proposed project, there are numerous other benefits to the proposed site, including (a) the compatibility with its surroundings, (b) the opportunity to create a synergistic development opportunity, (c) the enhancement of the

4 aesthetics of the community, (d) the potential to create an event station at the location, that could serve special events at the State Park and at Dodger stadium, (d) increased ridership potential, (e) good street access and linkages with the surrounding uses, and (f) the fact that this proposal would not require displacement of any businesses. The proposed site presents a unique opportunity and warrants further negotiation. The granting of the ENA will allow MTA to further explore and refine the issues to insure that MTA's objectives can be met. The award of an ENA is not an acceptance of any proposal. NEXT STEPS After execution of an Exclusive Negotiation Agreement with Riboli, MTA staff will negotiate in good faith over a six-month period to determine the specific financial arrangements, engineering constraints and schedules for this development. At the end of the negotiation period, and after a more comprehensive evaluation of the site, staff will determine whether the site meets MTA's objectives, and if it does, staff anticipates presenting a draft Development Agreement for Board approval. MTA, however, is not obligated to enter into a Development Agreement if the development team does not meet the negotiation points to the satisfaction of the Board. ATTACHMENTS A. Map of Project Site B. Riboli Public-Private Partnership Proposal Prepared by: Robin Blair, Director - Central Area Team Diego Cardoso, Executive Officer, Countywide Planning and Development

5 Chief, Real Property ~ Kement & Development Executive Director, Countywide Planning and Development Chief Executive Officer

6 ATTACHMENT A

7 KINDERWOOD ATTACHMENT B W I N E R Y June 8,201 0 Mr. Arthur T. Leahy Chief Executive Officer Los Angeles County Metropolitan Transportation Authority One Gateway Plaza Mail Stop Los Angeles, California Re: Public Private Partnership - Chinatown Site Dear Mr. Leahy: The Riboli Family respectfully requests an exclusive right to negotiate for the development of a mutually beneficial Public Private Partnership (PPP) to develop a Metro Rail Storage Yard in the Midway Yards/Chinatawn area. The Riboli Fami ty awns property in Chinatown adjacent to the Gold Line and immediately north of the Chinatown Station that appears to be the ideal location for a new Metro rail storage yard. A mutually beneficial opportunity exists to provide The Los Angeles County Metropolitan Transportation Authority (Metro) with a secure storage site for Metro trains if we work closely together. This rare opportunity provides Metro, the City, the community and the Riboli family with a chance to combine their assets in a synergistic manner to enhance this area and have a positive ripple effect. This provides an excellent transportation and land use integration project that would satisfy a significant operationalfstorage need for Metro, while providing a once in a lifetime opportunity to enhance the community and build upon long term efforts to improve the area. The Riboli Family has reviewed concepts and the potential for development that could occur if the Riboli property is made available to Metro for development of a covered storage yard with a platform that allows for mixeduse development, access to the State Park from the west side of Broadway and other activities that can benefit Metro, the City of Los Angeles and the community. The Riboli Family proposes to enter into an exclusive negotiation agreement (ENA) with Metro to examine the potential for a PPP that considers the following issues: RlBOLl FAMlLY VINEYARD * SANTO STEFAN0 * ALIENTO DEL SOL MADDALENA VINEYARD * SAN SIMEON a SAN ANTONIO * LA Plaza San Antonio, 737 Lamac Street, Los Angeles, CA Te Fax

8 Mr. Art Leahy Los Angeles County Metropolitan Transpartation Authority June 8,2010 Page 2 Conveyance of certain rights to the Riboli Family property that is generally to the north of Cottage Street to Metro for development af the covered storage yard and platform. Examination of potential development above the covered storage yard and linkages between the State Park and the community. Initiation of the environmental and entitlement analysis for the project. We believe that a PPP between Metro and the Riboli Family provides an excellent opportunity for both parties to create a project that is in everyone's interest. We look forward to working with you on this interesting project. Sincerely, The Riboli Family of San Antonio Winery Steve Riboli CC. Councilmember Ed Reyes Douglas Failing, Metro Roger Moliere, Metro nbl~ - leahy. JAR

9 ATTACHMENT A

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