OPTIONS

The Board could choose not to adopt these policies and procedures.  Metro and its public and private development partners will continue to rely on the current Joint Development Policies adopted in January 1994.  Staff is not recommending this because the 1994 policy document is not as comprehensive and does not include Metro’s joint development planning and implementation procedures and project evaluation criteria.

FINANCIAL IMPACT

There is no financial impact directly associated with adopting the Joint Development Policies and Procedures.  Benefits are anticipated in efficiencies in joint development program management and coordination with potential development partners.

BACKGROUND

In preparing the recommended revised policies and procedures, staff reviewed joint development policies and procedures of the following public transit agencies in the U.S.:  Bay Area Rapid Transit District (BART), Dallas Area Rapid Transit District (DART), San Diego Metropolitan Transportation Board (MTDB), and the Washington Area Metropolitan Transit Authority (WMATA).  Staff also obtained information from the County of Los Angeles Department of Harbors and Beaches.  Further, staff conducted phone interviews with responsible joint/economic/planning staff at BART, DART, MTDB, and WMATA to clarify the agencies’ policies and procedures.  A summary of their policies and procedures is included in this report as Attachment B. 

Proposed Revisions

The key issues in the proposed Joint Development Policies and Procedures are as follows:

1. Balancing transit uses, community interests and financial returns.  The proposed revised Joint Development Policy and Procedures more clearly states that the Metro is looking for joint developments that implement four basic goals including increasing system ridership, enhancing and protecting the transportation system, enhancing the local community, and generating value to the Metro.  The policies state that, assuming a fair return can be met, the emphasis in recommending joint developments is on projects that enhance transit, maximize economic development potential and respond to community needs.  Value to the Metro can include financial and/or non-monetary return such as park-and-ride facilities or other project features that benefit the transit system.  Staff has included a new policy that encourages the provision of new or additional park-and-ride facilities at stations except in Downtown Los Angeles.

2.      Competitive solicitations or unsolicited proposals.  Metro’s existing policies call for competitive solicitations of proposals from the private sector except in the case of adjacent property owners or in cases where negotiating on a sole source basis would be in the best interest of the Metro.  Policies of other transit agencies vary: some permit staff to consider unsolicited proposals when doing so is in the agency's interest.  The proposed revised Joint Development Policy and Procedures continue to allow open competitive solicitation but permit the CEO to consider unsolicited proposals, subject to final Board approval, when the CEO determines that it would be in the Metro’s best interest.  The revised policies call for Metro to periodically publish a listing and description of available joint development sites and to circulate this to the development community.

3.      Market-driven/Strategic Marketing Approach.  For the past few years Metro staff has been attempting to actively market all available properties.  The revised policies indicate that the Metro will conduct market assessments of joint development sites, consult with local jurisdictions about land use efforts, and use this information to determine if and when active marketing of a particular site would best achieve Metro’s joint development goals. This is to assist in ensuring that market conditions will allow the intensity and types of land uses that will more fully implement local land use plans and maximize the enhancement of the transit system.

4. Market-defined or Specific Land Use.  Past Metro practice has been to conduct a limited land use study through a consultant.  This study was used to evaluate the probability of commercial success of competing proposals.  Staff did not attempt to specify preferred land uses in previously issued RFPs. The proposed revised Joint Development Policy and Procedures call for Metro to coordinate with local jurisdictions and encourage transit compatible land use plans for Metro-owned and surrounding properties at transit station sites and along transit corridors.  The proposed policies, however, do not suggest that Metro will conduct detailed site planning to determine detailed land uses and intensities for any particular site.  Rather, the policies suggest that Metro consult with local jurisdictions on urban design or other guidelines or any specific plans and include this information in any RFPs.  In addition, an RFP would outline Metro’s goals and evaluation criteria and provide general site information.

5. Design Review.  The proposed revised Joint Development Policy and Procedures call for Metro to include a design consultant or design academic professional (or urban design panel) when appropriate to either provide advisory services or be part of the evaluation panels reviewing development proposals.  Typically, this would be for larger development sites and/or sites that present coordination issues with existing surrounding developments.

In addition to these changes the proposed revised Policies and Procedures provide a more comprehensive definition of joint development goals and objectives. An Evaluation Checklist has been included to show more clearly factors to be used in evaluating and/or comparing proposed joint developments including the relative weights for these criteria.  The revised policies and procedures also more clearly define planning, implementation, and coordination functions and responsibilities throughout the joint development planning and implementation process.

NEXT STEPS

The adopted Metro Joint Development Policies and Procedures will provide direction to staff and Metro joint development partners.

ATTACHMENTS

A.        Joint Development Policies And Procedures

B.         Joint Development Policies and Procedures Comparison

Prepared by:            Nelia S. Custodio, Transportation Planning Manager

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James L. de la Loza

Executive Officer

Countywide Planning and Development

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Roger Snoble

Chief Executive Officer