The Art of Financing and Implementing

Intermodal Transit Stations:

Lessons Learned

Sharon Greene

Sharon Greene + Associates

Going to San Bernardino: A Symposium on Intermodal Transit

Stations and Transit-Oriented Design

Jack R. Widmeyer Transportation Research Conference

November 6, 2009

Overview

•Transportation Center Audience Response System

•Definition of Key Terms

•Factors Supporting the Use of Value Capture in Transit

•Types of Value Capture Techniques

•Revenue Sharing Arrangements

•Cost Sharing Arrangements

•Objectives of Major Participants

•Transportation Center Examples

•Strategies for Success

Denver Union Station

Denver Union Station

Anaheim ARTIC Station

Anaheim ARTIC Station

San Jose Ohlone Chynoweth Station

San Jose Ohlone Chynoweth Station

Emeryville Station

Emeryville Station

Oakland Fruitvale Station

Oakland Fruitvale Station

San Diego American Plaza

San Diego American Plaza

Albuquerque Alvarado Transportation

Center

Albuquerque Alvarado Transportation

Center

Which of these 7 multimodal transit centers

provide a vision for San Bernardino?

1. Denver Union Station

2. Anaheim ARTIC Station

3. San Jose Ohlone Chynoweth Station

4. Emeryville Station

5. Oakland Fruitvale Station

6. San Diego American Plaza

7. Albuquerque Alvarado Transportation Center

And Now Let’s Vote

1. Denver Union Station

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

2. Anaheim ARTIC Station

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

3. San Jose Ohlone Chynoweth

Station

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

4. Emeryville Station

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

5. Oakland Fruitvale Station

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

6. San Diego American Plaza

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

7. Albuquerque Alvarado

Transportation Center

What is your opinion?

1 2 3 4 5

0% 0% 0%0%0%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

Value Capture

Recoup the value that investments in transit add to adjacent land and improvements

Transit Oriented Development

Development near or oriented to public transit facilities

• Characterized by “3-D”

o Density

o Diversity of land uses

o Design supportive of transit and pedestrian activity

Definition of Key Terms

Value Capture TOD

the 4th “D” ($$$$)

To qualify for FTA funding, TOD/JD must:

• Have a physical and functional relationship to

transit

• Provide a financial return – either cash or other

benefits

• Enhance the highest and best transit use

Definition of Key Terms

• Need for additional revenues

• Receptive FTA policy

• Livable Communities concepts

• Changes in FTA Joint Development policy

o More permissive interpretation of federal grant rules

• FTA New Starts Criteria

o Land Use rating: Transit-supportive policies and plans

o Financial rating: Financial capacity and commitment

Factors Supporting Use of Value

Capture Techniques for Transit

• Demographic and economic factors

• Demand side

o Growth in niche consumer markets for neighborhood

housing situated near transit, mixed-use development,

quality of life features

• Supply side:

o Positive impacts on property values, rents, absorption

rates, returns on investment

• Congestion levels and patterns

Factors Supporting Use of Value

Capture Techniques for Transit

Revenue Sharing Arrangements

oLand sales

oLeases

oAir and subterranean rights

oConcession leases

oFacility connection fees

oStation interface fees

oBenefit assessment districts

oSpecial improvement districts

oTax increment financing districts

oNegotiated payments (proffers)

oIn-kind contributions

oNaming rights

Types of Value Capture Techniques

oTransit impact fees

oParking revenues

oRental car tax revenues

Taxed Based Revenue Sharing Arrangements

oTransient occupancy tax revenues

oAdmission fee on event tickets

Types of Value Capture Techniques

oSliding scale impact fees

oGrants

oLoans

oTax abatement and credits

oDirect financial participation

oCreative financing

Cost Sharing Arrangements

oVoluntary agreements

oIncentive-based agreements

oMandatory-based agreements

oJoint use/construction of

facilities

oOperational assistance

Types of Value Capture Techniques

oLand assembly

oLand swaps

oEmpowerment

zones/enterprise zones

oSale or lease of development

rights

Land Based Cost Sharing Arrangements

oTransfer of development rights

oSliding scale impact fees

oTax abatement and credits

oDirect financial participation

oCreative financing

Types of Value Capture Techniques

• Transit Agency Objectives

• Increase transit ridership

• Enhance farebox revenues

• Promote transit-friendly development: compact, higher density, mixed use

• Generate supplementary, non-operating revenue stream

• Reduce development-associated costs by sharing revenues and costs with private developers and/or other public entities

Objectives of Major Participants

• Local Government Objectives

• Promote Livable Communities

• Provide catalyst for development and

redevelopment

• Improve urban form

• Increase property tax and sales tax revenues

• Foster advanced planning

Objectives of Major Participants

• Landowner and Developer Objectives

• Enhance value of development

• Reduce uncertainties and risks

• Increase profit margins

• Reduce project costs

• Share development-associated costs with transit agency (infrastructure, foundations, parking)

• Receive density bonuses in return for public benefit development

Objectives of Major Participants

• Local Agency Roles & Responsibilities

Objectives of Major Participants

Denver Union Station

Rail Bus Other COMMUTER AND

INTERCITY RAIL REGIONAL BUS

COMMERCIAL

CARRIERS

FASTRACKS •RTD Regional Bus •Taxi

•East Corridor•Commercial Bus

(Greyhound)•Rental Cars

•Northwest

Corridor•Tour Buses

•Vans and Shuttle

(Super Shuttle)

•Gold Line •Charter Buses •Ski Area Shuttles

•North Metro OTHER BUS •Van Pools

AMTRAK •RTD Local Bus •Limos

•Ski Train •16th Street Mall

ShuttleOTHER MODES

•North Front Range

Intercity Service

(Future)

•Bike Station

LRT •Pedicab

•Southeast

Corridor (existing)

•Horse Drawn

Carriage

•Southwest

Corridor (existing)•Pedestrian Plaza

FASTRACKSON-SITE PUBLIC

PARKING

•West Corridor•Commercial Parking

Facility (150 spaces)

Denver Union Station

Location Potential Uses

South Wing Ground floor retail; office above (75,000 SF)

North Wing Ground floor retail; office above (75,000 SF)

Triangle Office or hotel; ground floor retail (200,000 SF)

A Block Office , residential and retail (500,000 SF)

B Block Office , residential and retail (500,000 SF)

Parking Garage 685 spaces

Denver Union Station

Components Costs

LRT Facility $35 M

Regional Bus Facility $205 M

Commuter Rail Facility $168 M

Street & Utilities $23 M

Plaza & Public Spaces $29 M

DUS Renovation $17 M

Total Costs $477 M

Revenue Source Funding

FasTracks Sales Tax $35 M

RTD SAFETEA-LU Earmark $2 M

RTD FTA Section 5309 Bus

Discretionary Earmark$7 M

CDOT SAFETEA-LU Earmark

(PNRS)$40 M

CDOT SB-1 Grant $17 M

Metropolitan District $25 M

Surplus Land Sale $38 M

City Obligation Revenue $121 M

Other Sources $19 M

Total Revenues $477 M

Anaheim ARTIC Station

Rail Bus Other

Amtrak OCTAAnaheim Resort

Transit Shuttle

Metrolink

High-speed rail

California-Nevada

Maglev

Anaheim ARTIC Station

Location Development Underway

Platinum

Triangle Mixed

Use Overlay

Zone

Condominiums: 1,500 units

Apartments: 8,400 units

Retail: 327,000 sq feet

Restaurant: 7,840 sq feet

Office: 882,000 sq feet

Hotel: 130 rooms

Anaheim ARTIC Station

Revenue Source Funding

Renewed Measure M--Project T

Bond Proceeds$81.6 million

Measure M Transit Revenue $6.0 million

2008 State Transportation

Improvement Program$29.2 million

Proposition 116 $58.8 million

Federal Earmark $3.2 million

Total Revenues $178.8 millionComponents Sq Feet

Ticket and Waiting Areas 49,000

Event Space and Retail 42,000

Baggage 30,000

Operations 15,000

Bike Station 6,000

Total 142,000

San Jose Ohlone Chynoweth Station

Rail Bus Other Two VTA light-rail

linesVTA Bus

Alum Rock - Santa

Teresa

Ohlone/Chynoweth -

Almaden

San Jose Ohlone Chynoweth Station

Related Land Uses

240 park-and-ride spaces

330 units of affordable housing

4,400 sq. ft. of retail

Day care center for children

San Jose Ohlone Chynoweth Station

Revenue Source Funding

Tax-exempt bonds $14.5 M

Tax Credit Equity $10.5 M

City Loan $5.2 M

FTA Improvement $824,000

Affordable Housing grant $500,000

State Proposition 1 $350,000

Total Revenue $31.9 M

Emeryville Station

Rail Bus Other

Amtrak AC TransitEmery Go-Round

Shuttle

California Zephyr,

Coast Starlight

San Joaquin,

Capital Corridor

Emeryville Station

Related Land Uses

20-acre mixed-use transit-oriented development

3-building 550,000 sq ft complex of office and ground-floor

retail,

101 condominium units

over 1,000 parking spaces

Oakland Fruitvale Station

Rail Bus Other

Richmond to

FremontAC Transit

Fremont to Daly

City

Dublin/Pleasanto

n to Daly

City/Millbrae

Oakland Fruitvale Station

Related Land Uses

Daily, Extended Weekend, Carpool, Long Term Parking

Bike racks and Storage

Retail 39,707 Sq Ft

Office 114,510 Sq Ft

Residential 42 Units

Oakland Fruitvale Station

Revenue Source

Equity: including FEMA, Ford Foundation, Goldman

Fund, Levi-Strauss, PG&E, Neighborhood

Reinvestment Corp

City of Oakland: including EDA, Measure K, CDBG,

EPA, City Library, Tax Increment Allocation

FTA/MTC/ BART: including FTA grants for pedestrian

paseo, pedestrian plaza, bike facility, station

Interest/Miscellaneous: including interest and bond

fund interest

Debt: including 501©(3) bonds, Unity Council

permanent and bridge loan, City Section 108,

Citibank Subordinate, City Housing loan,

Source Revenue

Total Project $53.86 million

Equity 2.79 million

City of Oakland $16.70 million

FTA/MTC/BART $5.76 million

Interest/Miscellaneous $0.82 million

Debt $27.80 million

• Planning & Development Strategies• Incorporate principles of Transit Oriented Development (TOD) in

the jurisdiction's general plan

• Amend zoning rules and regulations to foster joint development around transportation centers and rail stations

• Acquire land adjacent to the site to enhance joint development potential

• Assemble land sufficient for transportation center with allowance for growth

• Identify and pursue opportunities to combine and coordinate transit with adjacent development

• Combine different land uses to encourage greater residential, employment, retail and entertainment activity

Strategies for Success

• Planning & Development Strategies• Local government should lead the way by creating incentives like

offering special tax credits, designating TOD area, creating redevelopment area as well as administering the planning and zoning process critical to joint development

• Locate transit center in prime nodes of regional and community acticity attractive to normal market forces

• Reflect into the transit center design, and architectural material the unique cultural elements of the city in which the system is located

• Incorporate aesthetics and environmental treatment of streetscape around the center

• Pursue an aggressive and focused policy commitment to accomplish joint development in conjunction with transit center

Strategies for Success

• Transportation Strategies• Combine a variety of transit modes to maximize the center's transit

ridership

• Phase in related modes over time

• Allow for sufficient parking to accommodate the overall needs of the project and associated development

Strategies for Success

• Financial Strategies• Secure federal grant(s) at the initial stage which can be used as a

project "kick-off"

• Conduct realistic assessments of the market for development

• Secure tenants with guaranteed source of revenue that can assist in securing project financing

• Use multiple sources of fund to create a financial package with which to finance the center

Strategies for Success

• Consensus Building Strategies• Coordinate with local government, transit agencies, financial and

development community and the public

• Work with the neighborhoods to identify and achieve community based goals

• Increase project visibility by organizing public policy outreach programs

Strategies for Success

s.greene@sharongreene.org