An FTA Update on Joint Development Kate Mattice Deputy Associate Administrator Office of Budget and Policy

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An FTA Update on Joint DevelopmentKate
MatticeDeputy Associate AdministratorOffice of
Budget and Policy
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Joint Development Efforts at FTA

• Proposed Circular
• To be published for public comment
• Single guidance document for grantees
• Incorporates MAP-21 provisions
• FTA Defines Joint Development (JD)
• Clarifies FTA Policy
• Provides Framework for Analyzing JD Projects

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Joint Development Defined
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Joint Development FTAs Policy
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Areas of Interest to FTA

• When FTA is presented with a joint development
  project, there are typically two categories of
  issues that we must consider
• Eligibility issues associated with the use of FTA
  grant funds or program income for a capital
  project and
• Issues associated with the acquisition, use, and
  disposition of real property that was or will be
  purchased with FTA funds.

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What is an Eligible FTA Joint Development
Project?
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• Enhanced economic development
• Adds value to privately or publicly funded
  economic development activity occurring in close
  proximity to the transit facility.
• Incorporates private investment
• Any joint development that incorporates private
  investment will satisfy this criteria.
• Remember, joint development may involve public or
  non-profit partners, not just the private sector.
• Private investment does not need to be monetary.
• May be in the form of real property or some other
  contribution to be generated initially or over
  the life of the JD.
• FTA will not set a monetary threshold for private
  investment.
• The amount and form of private investment is up
  to the grantee and its partner(s)

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• Joint development projects must include a transit
  function existing or new.
• The project must have a physical or functional
  relationship to transit
• Physical relationship Provides a direct
  physical connection to transit services or
  facilities
• Functional relations Enhances the use of,
  connectivity with, or access to transit
• Or, the project establishes new or enhanced
  coordination between transit and other modes of
  transportation.
• Examples proximate or shared ticket counters,
  park ride lots, taxicab bays, passenger
  drop-off points, waiting areas, shared or
  coordinated signage, schedules, ticketing, bike
  paths/walkways connecting transit to another mode
• Projects that shorten the distance between
  transit and another mode are considered to
  enhance coordination.

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• Fair Share to be determined by the transit
  agency/grantee.
• Not limited to cash payments to the transit
  agency.
• May take the form of an increase in (indirect)
  revenue the transit agency receives in its
  capacity as landlord, or as a result of increased
  transit ridership due to the joint development
  project.

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• The tenant must cover its fair share of operating
  and maintenance costs
• Again, FTA will not define fair share of the
  costs nor will it impose any valuation
  methodology.
• FTA will accept any reasonable valuation
  methodology used by the grantee to determine a
  fair share of the costs of the facility.

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FTA Funding for Joint Development

• Since joint development is a transit project,
  generally all FTA planning and capital program
  funds are available for use!
• Planning Activities
• FTA/FHWA Metropolitan and Statewide
  Transportation Planning
• Other Federal community development funding
  programs
• Capital Activities
• Urbanized Area Formula Section 5307
• Fixed Guideway Capital Investments Section 5309
• Elderly and Disabled Formula Section 5310
• Rural Area Formula Section 5311
• Bus and Bus Facilities Formula Section 5339

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Activities Eligible for FTA Funds

• Standard capital project activities
• Property acquisition,
• Demolition
• Site preparation
• Utilities
• Building Foundations
• Walkways
• Pedestrian/bike access
• Renovation and improvement of historic
  transportation facilities
• Open space, site amenities, streetscape elements
• Parking that links to transit use

• Construction of new or improvement to intermodal
  transfer facility or transit mall
• Facility that incorporates community services
  such as daycare or health care
• Construction of commercial space
• FTA funds cannot outfit the space
• Safety and security equipment/facilities
• Project development activities
• Professional services

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Activities Ineligible for FTA Funds

• Outfitting commercial space
• Except for intercity bus and rail
  stations/terminals
• Public facility not related to transit
• Only public facilities having some physical or
  functional relationship to transit may be
  eligible for FTA funding as a joint development
  project.
• The purpose of the public building is not
  necessarily determinative of its eligibility for
  FTA funding.
• FTA may not fund a part of a public facility that
  is not related to transit.
• Note A non-transit public buildings
  relationship to transit must be more than mere
  geographic proximity
• A de minimis connection is insufficient to be
  considered joint development.
• Just because a public facility is located within
  walking distance to transit does not provide a
  functional relationship.

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Can I do Joint Development onan Existing Park
and Ride?

• FTA policy does not prohibit development of a
  parking facility constructed with FTA funds
• The only requirements are that
• FTA must approve of any change in use (or
  disposition) of an asset before the end of its
  useful life.
• The change in use from parking to joint
  development must benefit public transportation.
  (i.e., higher ridership)
• If project was constructed under the New Starts
  program, the new use for the parking spaces does
  not negatively impact the user benefits that were
  promised in the FFGA. 
• A change in use from parking to joint development
  may trigger the need for additional National
  Environmental Policy Act (NEPA) analysis.

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Joint Development and Real Estate

• Joint development projects often involve real
  property in which there is a federal interest
  that is transferred or leased by the transit
  operator to a third party.
• Real Property requirements
• Primarily governed by the Uniform Act (Uniform
  Assistance and Real Property Acquisition Policies
  Act of 1970, as amended), 49 U.S.C. 4335(h) and
  the Common Grant Rule.
• Strict regulations on acquisition, use and
  disposal

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Real Estate Requirements and Regulations
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Other Cross-CuttingFederal Requirements

• Planning
• Environmental (NEPA)
• Procurement
• Leases and conveyances
• Civil rights
• Labor protection
• Other
• All covered in the proposed circular

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FTA Review of Joint Development

• Eligibility
• Like any other transit project, FTA will review
  and approve any joint development activities to
  ensure the elements are eligible under FTA law.
• This may involve providing FTA project-specific
  documents
• Use of Real Property
• Insofar as the joint development project uses
  real property, FTA will need to concur that the
  acquisition, use, and disposal are consistent
  with real estate laws and regulations.

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FTA Review Proposed Process

• ?
• FTA is seeking idea on how we conduct our review
  process
• What will work?
• What wont work?
• What areas should we provide technical assistance
  and/or sample documents?
• Submit your ideas!

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Joint Development CircularNext Steps

• Federal Register publication Proposed Circular
• 30 day review and comment period
• Submit comments on proposed circular
• Submit suggestions for joint development project
  review process
• Industry listening sessions
• Issue Final Circular
• Outreach and Technical Assistance

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Questions/Comments?

• Contact your regional office
• FTAs Website
• www.fta.dot.gov/livability
• Legal Questions
• Jayme Blakesleyjayme.blakesley_at_dot.gov
• Policy Questions
• Sharon Pugh Sharon.pugh_at_dot.gov