MOU with Maryland DOT for New Carrollton Metrorail Station Transit-Oriented Development
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1 Joint Development and Real Estate Committee Item III-D June 24, 2010 MOU with Maryland DOT for New Carrollton Metrorail Station Transit-Oriented Development Page 33 of 41
2 Washington Metropolitan Area Transit Authority Board Action/Information Summary Action Information MEAD Number: Resolution: Yes No TITLE: MOU with Maryland DOT for New Carrollton TOD PURPOSE: Request Authorization to (1) include Metro properties on the north and south sides of the New Carrollton Metrorail station with adjoining Maryland Transit Administration ("MTA") properties in a joint solicitation, and (2) execute a Memorandum of Understanding ("MOU") with the Maryland Department of Transportation ("MDOT"), and (3) advertise offering based on Metro`s Joint Development Policies and Guidelines (the "Guidelines"). DESCRIPTION: This item supports the following strategic goals: 1) Deliver quality service by improving the station as a multi-modal transportation facility, 2) Use every resource wisely by developing Metro`s property to its highest and best use, 3) Maintain and enhance Metro`s image by creation of a Transit Oriented Development ("TOD"). On May 4, 2010, the Prince George`s District Council passed a Transit District Development Plan for the New Carrollton area that calls for over 2.7 million square feet of commercial development and up to 3,000 residential units, starting with the Metro core. The draft MOU before the Board for approval, similar to the Montgomery County MOU the Board approved for Wheaton Metrorail station, sets out the basic parameters for Metro and MDOT to cooperate in this effort. Metro will lead in the developer selection process. A development team would be selected using Metro`s Request for Qualifications ("RFQ") process. It is the preferred choice because there are many open items to be resolved including, but not limited to, possible expansion of the New Carrollton Metrorail station, determination of the number and location of bus bays to accommodate future growth, integration of the Purple Line and location of new streets and open spaces. The stakeholder planning process, with active leadership by Metro, will be used to resolve these and other issues. The selected developer will be required to fund the cost of hiring outstanding consultants to facillitate stakeholder input and coordination. Any redevelopment of Metro`s property will be in accordance with Metro`s standards and procedures. Metro, in its sole judgment, will be responsible for the quantity, quality, and design of its facilities, and the standards for safety, operations, and access. The cost of replacing existing Metro facilities will be reflected in the valuation contained in the ultimate Page 34 of 41
3 agreement between Metro and the selected developer. Metro would not be required to proceed if the costs of constructing the replacement facilities exceed the financial return to Metro. Metro would continue to own, or retain perpetual easements for, its operational facilities. Future Board approvals would include: developer selection, any subsequent agreements related to the sale or lease of Metro property, and approval of the staff report if a Compact public hearing is required as a result of the final plan. In addition, Federal Transit Administration approval of an eventual transfer would be required. FUNDING IMPACT: There is no current impact on funding. Assuming the process contemplated by the MOU is successful, there will be future agreements which, if approved by the Board, would likely generate revenue and/or improve station access. However, there are no immediate financial consequences of executing the MOU. Office of Station Area Planning & Asset Management Project Manager: Gary Malasky RECOMMENDATION: Authorization to (1) include Metro properties at New Carrollton Metrorail station with adjoining Maryland Transit Administration properties in a joint solicitation and (2) execute a Memorandum of Understanding with the Maryland Department of Transportation, and (3) advertise offering based on Metro`s Joint Development Policies and Guidelines. Page 35 of 41
4 Washington Metropolitan Area Transit Authority Memorandum of Understanding with Maryland Department t of Transportation for New Carrollton Metrorail Station Transit Oriented Development Joint Development and Real Estate Committee June 24, 2010 Page 36 of 41
5 Overview Metro Metro MTA New Carrollton Metrorail Station Page 37 of 41
6 Comparison of Metro RFQ to MOU Process Metro Request For Qualifications (RFQ) Metro MOU with MDOT Approval to Offer Approval of MOU/ Approval to Offer Developer Selection Developer Selection Approval of Plan Price/Term Sheet Price/Term Sheet Joint Development Agreement Joint Development Agreement Compact Hearing Compact Hearing Page 38 of 41
7 MOU Summary Metro leads the joint solicitation Metro standards apply to Metro operational facilities After site plan is created, if development on Metro and MTA properties is linked, proceeds will be shared based on third party appraisal of each property, based on its highest and best use After site plan is created, if developments are not linked, MOU ends and each party moves forward according to its own process Page 39 of 41
8 Recommendation Authorize staff to: include Metro properties at New Carrollton Metrorail station with adjoining Maryland Transit Administration ( MTA ) properties in a joint solicitation for Transit Oriented Development execute a Memorandum of Understanding with the Maryland Department of Transportation advertise the offering based on Metro s Joint Development Policies and Guidelines Page 40 of 41
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