peña station project phase...

Peña Station Project Phase II

TIGER VI Discretionary Grant Application Project Narrative

Contact Info: Tom Blickensderfer

Grants Manager Denver International Airport

Airport Office Building 8500 Peña Boulevard

Denver, CO 80249 (303) 342-2402

[email protected]

TIGER VI DISCRETIONARY GRANT APPLICATION Peña Station Project Phase II

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TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................................................... 1

I. PROJECT DESCRIPTION .............................................................................................................................. 3

II. PROJECT PARTIES ...................................................................................................................................... 7

III. GRANT FUNDS AND SOURCES/USES OF PROJECT FUNDS ........................................................................... 8

IV. SELECTION CRITERIA ................................................................................................................................ 10

A. PRIMARY SELECTION CRITERIA .............................................................................................................................. 10 B. SECONDARY SELECTION CRITERIA .......................................................................................................................... 19 C. RESULTS OF BENEFIT-COST ANALYSIS ..................................................................................................................... 20

V. PROJECT READINESS ................................................................................................................................. 22

A. PLANNING & ENVIRONMENTAL APPROVALS ............................................................................................................ 22 B. PROJECT FEASIBILITY ........................................................................................................................................... 26 C. PROJECT SCHEDULE ............................................................................................................................................ 27

VI. FEDERAL WAGE RATE CERTIFICATION ....................................................................................................... 28


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EXECUTIVE SUMMARY Denver metro residents voted to support the FasTracks rail system in 2004. Because of budget issues, the Regional Transportation District (RTD) requested proposals for a public-private partnership (P3) to design, build, finance, operate and maintain the East Rail Line from downtown Denver to Denver International Airport (DIA), the Gold Line from downtown Denver to northwest suburbs, an electrified segment of the Northwest Rail Line, and a commuter rail maintenance facility in one project (the Eagle P3 Project, shown in Figure 1). Denver Transit Partners (DTP) won the bid, but their design removed the double track from the commuter rail approaching DIA along Peña Boulevard. This change in scope from RTD’s original FasTracks proposal prohibited the implementation of Peña Station (formerly known as 61st and Peña Station or Aviation Station) and any other station along Peña Boulevard to take advantage of the rail line to spur economic development and growth in the areas surrounding the airport. Figure 1: Eagle P3 Project

Source: Eagle P3 Project Website The City of Denver intervened in the RTD project by agreeing to contribute over $50 million to add back double tracking and grade separation of the rail line from major arterials keeping open the option to add stations when alternative funding or market demand warranted it. Seeking to leverage the City's large investment in the rail line, DIA published an RFP to large land holders along the Peña Boulevard Corridor to bid on public-private partnership opportunities to construct a rail station that would catalyze future development surrounding the station. L.C. Fulenwider Company (Fulenwider) subsequently won a bid to locate the station at 61st & Peña Boulevard (Peña Station) and has been working with DIA and the City to design and engineer the Peña Station Area Plan, secure entitlements and obtain financing. • This grant application, sponsored by the Department of Aviation for the City and County of

Denver, Colorado, seeks a TIGER Discretionary Grant of up to $14 million to fund a portion of the basic infrastructure (Peña Station Project Phase II) that will catalyze transit-oriented development (TOD) adjacent to the Peña Station.

http://www.rtd-fastracks.com/main_1


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• The complete Peña Station Project (Phase I and Phase II) is neither part of the FasTracks Program nor the Eagle P3 Project. However, the Department of Aviation has been tasked with being the sponsor of project because it recognizes the economic benefits of the project being constructed at the same time as the rest of the Eagle P3 Project.

• The Peña Station Project includes development of a transit station at the 61st & Peña stop of the East Rail Line; infrastructure improvements such as utilities relocations, streets and streetscapes; public green spaces; and access to open space.

• The Peña Station Project Phase II will enable transit-oriented development adjacent to the station area that will result in a multi-use development that will be an economic generator for the Denver region.

• Project sponsors include the Department of Aviation, L.C. Fulenwider Inc., the Smith Metropolitan Districts # 1-4, and the Aviation North Metropolitan Districts # 1-6.

• The design and preparation of the Peña Station project is well in place and will meet all TIGER deadlines, in particular, the deadline to have all award funds under contract by June 30, 2016.

• The entire cost of the Peña Station Project is $45.5 million. DIA requests up to $14 million in TIGER VI Discretionary Grant funding, with the intention of funding for approximately 70% of the balance in a match broken out as follows: $14 million by DIA Between $13.8 and $17.5 million by Fulenwider

http://www.rtd-fastracks.com/print_2?corridor=ep3


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The Pena Station Project Phase II will provide a

catalyst for transit-oriented development within walking distance of the Pena Station,

including retail and office spaces, affordable housing,

and public greenspaces.

I. PROJECT DESCRIPTION The development of the transit station at 61st Avenue and Peña Boulevard (Peña Station) and related infrastructure improvements (Peña Station Project), will be the catalyst for transit-oriented development (TOD) that is planned to ultimately (through 2046) include approximately 515,000 square feet of retail space, 2,083,000 square feet of office space, over 2,500 residential units, 1,085 hotel rooms, and 2,000 revenue – producing commuter parking spaces. In addition, the businesses in and around the Peña Station TOD are estimated to employ approximately 5,500 workers and increase the number of permanent jobs in the Denver region1. Peña Station is the first stop east of Denver International Airport (DIA) on the East Rail Line, which connects DIA and Denver Union Station (downtown). The East Rail Line is a 22.8-mile commuter rail transit corridor, which will travel through employment areas and neighborhoods along the Interstate 70 East Corridor, including River North, Cole, Elyria-Swansea, Clayton, North Park Hill, Stapleton, Morris Heights, Gateway, Montbello and Green Valley Ranch. The line has six planned intermediate stations, located at 38th and Blake streets, 40th Avenue and Colorado Boulevard, Central Park Boulevard, Peoria Street, Airport Boulevard and 40th Avenue, and 61st and Peña Boulevard. Figure 2 below provides an overview of the East Rail Line from Denver Union Station to DIA. Figure 2: East Rail Line and Location of Peña Station

1 Fulenwider, April 2014.

Peña Station


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The East Rail Line travels south and west from Green Valley Ranch through some of Denver’s most multi-racial and multi-cultural -- and also some of the most impoverished – neighborhoods, as it makes its way to Denver Union Station. The Peña Station will be at the northern end of the Green Valley Ranch neighborhood in northeastern Denver. Green Valley Ranch is a neighborhood rich in ethnic mixture composed of 37% Latino, 28% African-American, 24% non-Latino White, and 6% Asian residents2 in an area where 68% of the children qualify for free and reduced school lunch programs. The population of Green Valley Ranch more than tripled between 2000 and 2010, from approximately 8,000 to approximately 29,0003. Of those in the labor force, Green Valley Ranch has 5.6% unemployment or approximately 1,000 persons4. Though the median household income in 2011 was approximately $60,000, 3% of the residents of Green Valley Ranch live below the poverty level5. Despite being in the midst of a burgeoning growth spurt from 2000 to 2010, there were 1,000 foreclosure filings in the area in 2008, out of 8,000 homes6. Although there is a regular bus schedule connecting the neighborhood to the rest of the Denver metro area, 91% of the individuals in the Green Valley Ranch neighborhood either use their individual vehicles or carpool to get to and from work. The average commute time of 35 minutes exceeds the average commute of other Denver residents by about 10 minutes.7 As the East Rail line travels south and east toward downtown Denver, it travels through Denver’s Park Hill neighborhood, and the Swansea/Elyria, Globeville, and River North Art District (RiNo) neighborhoods north of Downtown Denver. These neighborhoods are strongly Latino and African American communities. The unemployment rate for these various neighborhoods ranges from 6.6% to 9.8% of the employable labor force, and 27.2% of these individuals are in circumstances where they live below the poverty line.8 RiNo and Swansea/Elyria play host to a new and vibrantly young population who have pushed the bounds of the urban frontier from Downtown Denver to the north – over 70% of the population for the neighborhoods are age 40 or younger. Figure 3 provides an overview of the neighborhoods nearest to Peña Station on the East Rail Line.

2 Piton Foundation, 2010 Neighborhood Survey - Green Valley Ranch. 3 Meyer, Jeremy. (2012, March 12). “Growing Green Valley Ranch, Highland Neighborhoods Exemplify Denver’s Transformation”. Denver Post. Retrieved from www.denverpost.com. 4 U.S. Department of Commerce, Bureau of the Census; Selected Economic Characteristics 2008-2012. 5 www.zipskinny.com; Zip Code 80249. 6 Meyer, Jeremy. (2012, March 12). “Growing Green Valley Ranch, Highland Neighborhoods Exemplify Denver’s Transformation”. Denver Post. Retrieved from www.denverpost.com. 7 http://neighborhoods.findthebest.com/l/2414/Green-Valley-Ranch-Denver-CO. 8 www.zipskinny.com; Zip Codes 80205 and 80216.

http://www.zipskinny.com/

http://neighborhoods.findthebest.com/l/2414/Green-Valley-Ranch-Denver-CO

http://www.zipskinny.com/


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Figure 3: Peña Station Neighborhoods

DIA has undertaken the obligation of designing and constructing the Peña Station Project. The project builds upon planning completed by RTD for the FasTracks Program. In addition, DIA has teamed with a local developer and landowner, L.C. Fulenwider, Inc. (Fulenwider) to plan and construct the rail stop and adjacent plaza, streets, and utilities from nearby Tower Road to Peña Station. Fulenwider secured the bid for developing the station platform and associated space in a Request for Proposals (RFP) process in January 2012. The Fulenwider team committed to create a more urban, pedestrian-scale street and block network within 1/2 mile of the transit station. Building the infrastructure to support that vision is a significant challenge given the greenfield nature of the land surrounding the station. With completion, however the payoff is clear with extensive development and revenue opportunities for the private and public landowners as well the surrounding regional communities. Construction of the Peña Station Project is divided into two phases: Phase I includes the design and construction of the rail platform and public plaza and Phase II includes design and construction of infrastructure improvements such as wet and dry utilities, roadway extensions, overall street grid, bike trails, and pedestrian paths. This TIGER Discretionary Grant application seeks to obtain an award for a portion of the funding necessary to construct the Peña Station Project Phase II. Peña Station is located more than a half mile from any existing supporting infrastructure and therefore, a significant investment in basic road and utility infrastructure is necessary to place the station in service. The TIGER Discretionary Grant funds will be matched by significant investment from DIA and the private land owners in the station area. These


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investments, along with the proposed TIGER Discretionary Grant funds, will enable the construction of the basic infrastructure to kick start the development of transit-oriented housing, retail, and office spaces. The Peña Station Project Phase II includes 60th Avenue and 61st Avenues, in their entirety for more than a half mile each to connect the station location to Tower Road, the closest regional connecting road. The project will also fund roads connecting 60th and 61st Avenue to each other and to the station area. Since the land surrounding the station has no existing infrastructure, the grant funds will also be used to build new water mains, sewer mains, a sewer pump station, storm water mains, water quality management facilities, 800 parking spaces adjacent to the station, streetscapes including a station plaza and street lighting, parks, bike trails, walking paths, and other public and green spaces planned for the Peña Station transit development area. Figure 4 presents the planned street grid for the Peña Station Project Phase II. Figure 4: Peña Station TOD and Potential Street Grid

Source: Station Area Plan


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Denver International Airport is the sponsor for this TIGER

Discretionary Grant application. DIA has joined forces with Fulenwider to

create a public-private partnership to fund and finance the Pena Station

Project utilizing its own cash reserves, as well as special

financing available through the Special Districts.

Through DIA and its project partners, the Peña Station Project Phase II will provide the infrastructure necessary to catalyze airport and transit oriented development for a wide variety of customers: business travelers, airport employees, and area residents whose lives and livelihoods exist and revolve around DIA and its surrounding neighborhoods. The Peña Station Project will be a demand generator, as well as an organizing principal for dense, development of a greenfield site. Peña Station, public plaza, and associated infrastructure provide a central location for resident, employees and visitors to the Denver region. Peña Station creates numerous development opportunities, including market-rate multifamily housing, workforce and affordable housing, commercial-office, hotel/hospitality, retail, and airport related office space. Peña Station will also provide a model for public-private partnerships, creating a vibrant, sustainable, transit-oriented community and a critical element in Denver’s mission to responsibly manage growth and to create a world-class city where everyone matters. Additional details regarding the planned Peña Station TOD are included in Section IV: Selection Criteria of this application.

II. PROJECT PARTIES Peña Station was included in plans for the Eagle P3 Project, but its cost was not included in the final construction budget. As such, neither the RTD, the public agency sponsoring the Eagle P3 Project, nor DTP, the winning bidder on the Eagle P3 concession, is obliged to contribute toward its cost. However, the City of Denver feels strongly that the station will spur additional transit-oriented development and is therefore committing funds toward its construction through the city's Department of Aviation which operates Denver International Airport (DIA). The City of Denver has also invested $50 million toward the development of the East Rail Line to include double tracking and grade separation of the rail line from major arterials keeping open the option to add stations when alternative funding or market demand warranted it. The TIGER Discretionary Grant requested in this application would supplement these funds, allow for construction of the station, and enable privately funded-transit-oriented development planned around the station that will result in nearly $600 million in economic benefit. The Peña Station Project has the support of a large and diverse group of stakeholders, all of whom have committed to the planning, engineering, or capital cost portions of the project. The Department of Aviation for the City and County of Denver, Colorado will serve as the lead




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agency in charge of this project and will be responsible for administering TIGER VI Grant Funds. The Aviation Department is headed by the Manager of Aviation who reports directly to the Mayor. The Department of Aviation is committed to the implementation of the Peña Station project and will provide the necessary funding that is not provided from other sources to ensure the project is implemented. In August 2012, L.C. Fulenwider Company (Fulenwider) was selected to be the developer for the Peña Station. Since that time Fulenwider has worked closely with DIA management to plan the rail station and the Peña Station TOD. Fulenwider has committed funds in the form of the necessary planning and preliminary design required for enhancing the area surrounding Peña Station. In addition to the Department of Aviation and Fulenwider, there are numerous other parties involved with the Peña Station project. The East Rail Line is part of the FasTracks and Eagle P3 Project, which includes a partnership between the Denver RTD and the concessionaire, Denver Transit Partners (DTP), who was selected to design, finance, build, operate and maintain the East Rail Line. Ten separate special districts have been created by neighboring landowners and the Denver City Council in order to create a source of funding for future TOD supporting infrastructure and ongoing maintenance of public spaces, streets, and water and sewer systems surrounding Peña Station. The special districts include Smith Metropolitan Districts # 1-4, and the Aviation North Metropolitan Districts # 1-6 (collectively, Special Districts). Resolutions related to the Special Districts can be found at the Peña Station Project Phase II TIGER Discretionary Grant website.

III. GRANT FUNDS AND SOURCES/USES OF PROJECT FUNDS As the project sponsor, DIA has developed both a preferred and alternative funding plan for the Peña Station Project Phase II. DIA has already contributed over 80% of the funding for Peña Station Phase I, which is approximately $17.8 million. The preferred and alternative plans were developed to show that while all elements of the Peña Station Project Phase II are eligible for TIGER Discretionary Grant funding, certain elements have a lower priority for TIGER Discretionary Grant funding than others and are not included in the alternative funding plan. The project elements remaining in the alternative funding plan still result in a viable project with independent utility that will still catalyze the Peña Station TOD, but may result in a slower development rate. The amount of TIGER Discretionary Grant funding requested under the preferred funding plan is $14 million or 50% of the Peña Station Phase II project cost of $27.8 million. The alternative funding plan contains $9.5 million of TIGER Discretionary Grant funding or 49% of the total project costs in the alternative funding plan of $19.6 million. TIGER Grant funds will be used to fund only a portion of the Pena Station Project Phase II, since the majority of the elements of Phase I of the project are already underway. The details of the preferred and alternative funding plans are provided in Table 1.

http://business.flydenver.com/bizops/southTerminal/tigerGrant.asp


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Table 1: Sources & Uses of Funds

Source: Fulenwider, Compiled by Parsons Brinckerhoff

PREFERRED FUNDING PLAN ALTERNATIVE FUNDING PLANPhase I Phase II TOTAL Phase I Phase II TOTAL

Funding Plan/Costs % Share






SOURCES OF FUNDSLC Fulenwider $3,738,468 21.1% $13,803,234 49.6% $17,541,703 38.5% $3,738,468 21.1% $10,053,516 51.4% $13,791,984 37.0%Denver International Airport 14,000,000 78.9% 0 0.0% 14,000,000 30.7% 14,000,000 78.9% 0 0.0% 14,000,000 37.5%TIGER Grant Funding 0 0.0% $14,000,000 50.4% 14,000,000 30.7% 0 0.0% $9,500,000 48.6% 9,500,000 25.5%

TOTAL SOURCES OF FUNDING $17,738,468 100.0% $27,803,234 100.0% $45,541,703 100.0% $17,738,468 100% $19,553,516 100.0% $37,291,984 100.0%

USES OF FUNDSStation Platform Design and Construction $14,685,736 82.8% $0 0.0% $14,685,736 32.2% $14,685,736 82.8% $0 0.0% $14,685,736 39.4%Permitting Fees 18,215 0.1% 43,353 0.2% 61,567 0.1% 18,215 0.1% 43,353 0.2% 61,567 0.2%ConocoPhill ips Pipeline Relocation 2,440,000 13.8% 0 0.0% 2,440,000 5.4% 2,440,000 13.8% 0 0.0% 2,440,000 6.5%Primary Gas & Electric 0 0.0% 405,351 1.5% 405,351 0.9% 0 0.0% 405,351 2.1% 405,351 1.1%Cable/Internet 0 0.0% 61,417 0.2% 61,417 0.1% 0 0.0% 61,417 0.3% 61,417 0.2%Plaza & Park Design and Construction 0 0.0% 1,732,449 6.2% 1,732,449 3.8% 0 0.0% 0 0.0% 0 0.0%Overlot Grading - Roads & Blue Grama 0 0.0% 3,537,618 12.7% 3,537,618 7.8% 0 0.0% 3,537,618 18.1% 3,537,618 9.5%Phase 1A: Roads, traffic signals, ROW 0 0.0% 3,859,137 13.9% 3,859,137 8.5% 0 0.0% 3,859,137 19.7% 3,859,137 10.3%Phase 1A: Storm water 0 0.0% 2,142,023 7.7% 2,142,023 4.7% 0 0.0% 2,142,023 11.0% 2,142,023 5.7%Phase 1A: Lift Station & Sanitary Sewer 0 0.0% 3,350,298 12.1% 3,350,298 7.4% 0 0.0% 3,350,298 17.1% 3,350,298 9.0%Phase 1A: Potable and Re-Use Water Lines 0 0.0% 1,919,809 6.9% 1,919,809 4.2% 0 0.0% 1,919,809 9.8% 1,919,809 5.1%Aviation Park - North Half 0 0.0% 642,075 2.3% 642,075 1.4% 0 0.0% 0 0.0% 0 0.0%Complete Richfield and Telluride North of 61.5st Stormwater 0 0.0% 1,876,105 6.7% 1,876,105 4.1% 0 0.0% 1,876,105 9.6% 1,876,105 5.0%60th Ave. Road - Park to Tower Road 0 0.0% 1,721,957 6.2% 1,721,957 3.8% 0 0.0% 0 0.0% 0 0.0%60th Ave. and Telluride Stormwater - Park to Tower Road 0 0.0% 1,175,301 4.2% 1,175,301 2.6% 0 0.0% 0 0.0% 0 0.0%60th Ave. and Telluride Sanitary Sewer - Park to Tower Road 0 0.0% 262,363 0.9% 262,363 0.6% 0 0.0% 0 0.0% 0 0.0%60th Ave. Water Lines - Park to Tower Road 0 0.0% 168,560 0.6% 168,560 0.4% 0 0.0% 0 0.0% 0 0.0%Phase A Road and Util ity Extensions 0 0.0% 1,109,801 4.0% 1,109,801 2.4% 0 0.0% 0 0.0% 0 0.0%Phase B Road and Util ity Extensions 0 0.0% 1,437,213 5.2% 1,437,213 3.2% 0 0.0% 0 0.0% 0 0.0%Station Parking 594,518 3.4% 2,358,404 8.5% 2,952,922 6.5% 594,518 3.4% 2,358,404 12.1% 2,952,922 7.9%

TOTAL USES OF FUNDS $17,738,468 100.0% $27,803,234 100.0% $45,541,703 100.0% $17,738,468 100.0% $19,553,516 100.0% $37,291,984 100.0%


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IV. SELECTION CRITERIA This section presents the details regarding the TIGER Discretionary Grant selection criteria as outlined by the Notice of Funding Availability for the TIGER VI program. The selection criteria focus on the outcomes of the Peña Station Project Phase II. Figure 5 presents a view of the Peña Station TOD showing both the rail platform, as well as renderings of the public spaces and types of structures that will be included. Figure 5: Peña Station TOD Rendering


A. PRIMARY SELECTION CRITERIA

1. State of Good Repair

Peña Station will provide a central point of access for resident commuters, local employees and travelers who value lodging options proximate to DIA. The East Rail Line will provide clean electrically-generated transportation by means of commuter rail, replacing many of the diesel buses and reducing life-cycle costs attributed to burning carbon-based fuels. The transit line accessing DIA supplements or replaces current modes of transportation and enhances the capacity of current modalities both for the East Rail Line and system wide. In its totality, the East Rail Line served by the Peña Station will improve the condition of existing transportation facilities and systems by providing a newly built and state of the art transit line which is both reliable and safe. Access to DIA and downtown from surrounding areas will be


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greatly enhanced by the East Rail Line and further enhanced by the construction of Peña Station. The East Rail Line will employ durable commuter rail powered by a 25 kV alternating current overhead electrical system, as opposed to the existing light rail, which serves the current totality of the RTD rail system. The commuter rail line and Peña Station provide centrality to a currently disbursed system of bus transportation subject to increased vulnerabilities such as roadway breakdowns and accidents with other vehicles in varying weather conditions. Specific to maintenance and good repair of its transit stations and equipment, RTD requires all transit stops to adhere to maintenance and cleanliness standards as required in its Facility Maintenance / Equipment Manual. The Manual allows no facility to go unimproved or fall into poor working condition. In addition, the Peña Station will not only be held to the standards of RTD, but also DIA for its maintenance and upkeep. DIA has a robust preventative maintenance program that is based on manufacturer’s standards with all of the information being held in its asset management system. To date Fulenwider and other landowners in the area have formed and funded two special districts to make improvements to the surrounding road and utility infrastructure to support development in the area, which will ultimately be served by the Peña Station and the East Rail Line. These investments have been primarily to improvements to Tower Road, the main north/south arterial which will serve as the vehicular entrance to the Peña Station area; and to sewer and water infrastructure in the area. The total invested to date is $12.6 million through the DIBC District and $14.4 million through the Gateway District.

2. Economic Competitiveness

DIA is the largest economic driver in the state of Colorado, responsible for $26.3 billion in annual economic activity, and is the premier transportation hub in the mountain west. DIA is credited with attracting a quarter of the business activity in the Denver metropolitan area and, by 2025, DIA and its surrounding communities have the potential to contribute $85 billion annually to the economy of the Denver metropolitan area. But DIA’s importance goes far beyond Colorado’s borders and beyond the Rocky Mountain Region. DIA has extraordinary assets for airport-centered development, including the scale of its land area; direct highway and passenger rail access; and passenger traffic that make DIA the 5th busiest airport9 in the United States and the 15th busiest airport in the world10, with traffic at 52.5 million passengers for

9 According to Airports Council International – North America’s 2013 Traffic Report: http://www.aci-na.org/content/airport-traffic-reports. 10 According to the Airports Council International December 2013 Monthly World Traffic Report: http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date.

http://www3.rtd-denver.com/content/Eagle/VOLUME_3_-_REFERENCE_DATA/Facility%20Maintenance%20Criteria%20and%20Equipment%20Manual.pdf

http://www3.rtd-denver.com/content/Eagle/VOLUME_3_-_REFERENCE_DATA/Facility%20Maintenance%20Criteria%20and%20Equipment%20Manual.pdf

http://www.aci-na.org/content/airport-traffic-reports

http://www.aci-na.org/content/airport-traffic-reports

http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date

http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date


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DIA is the 5th busiest airport in the U.S. and is the largest economic driver in the State

of Colorado. Activities at DIA contribute over $26.3 billion annually to the economy of

the Denver metro area.

2013. Passenger traffic at DIA has increased approximately 5.4% since 200711, compared to a decrease of approximately 3.4%12 for the United States during the same time period. In this unique setting, DIA is logically situated to develop a model Airport City or Aerotropolis. As businesses around the world want to locate near airports for ready access to the global economy, this “Airport City” or “Aerotropolis” plan represents a critical economic development strategy for Denver to generate long-term economic growth through the efficient and strategic use of Denver’s transportation assets; and be more competitive in the national and international aviation markets. The Peña Station is on DIA land and, as such, it is part of the Airport City. The development on the land surrounding the station contributes greatly to the Aerotropolis concept, evidenced by the amount of commercial development contemplated in the plan. Investment in the Peña Station TOD would leverage the existing federal investment in aeronautical infrastructure at DIA, our nation’s largest (in land area) and newest airport, as well as the investment in rail transit as part of FasTracks. DIA’s Airport City and Aerotropolis development is part of a locally, regionally and nationally important economic development strategy – specifically providing a domestic location for national and multi-national companies who would benefit from proximity to the Airport. The economic clusters already targeted for expansion on DIA’s grounds and the associated transportation corridors providing ready access to the Airport – renewable energy, aviation and aerospace, bioscience; agriculture and perishable foods, and logistics – are all clusters that would also contribute regionally and nationally to the United States’ global competitiveness in these industries. In addition, by encouraging development that supports DIA’s core aeronautical mission, the Airport City and Aerotropolis initiatives will generate revenues for the Airport that will allow it to be more competitive in the national and international aviation markets. The Peña Station Project Phase II contributes to the economic competitiveness of the United States by creating 169 construction job-years throughout the course of the construction. At full build-out, the businesses will employ approximately 5,500 workers in and around the Peña Station TOD. Additional information regarding the projected jobs associated with the Peña

11 Denver International Airport traffic statistics: http://business.flydenver.com/stats/traffic/index.asp?y=2013. 12 FAA Aerospace Forecasts FY 2014 – FY 2034: http://www.faa.gov/about/office_org/headquarters_offices/apl/aviation_forecasts/.

http://business.flydenver.com/stats/traffic/index.asp?y=2013

http://www.faa.gov/about/office_org/headquarters_offices/apl/aviation_forecasts/


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Station TOD can be found at the Peña Station Project Phase II TIGER Discretionary Grant website. The Peña Station TOD increases the economic productivity of the land in the project area. Currently all of the land in the area is vacant and is being dry land farmed in wheat (Fulenwider); being used as a horse pasture (Smith Trust); or is vacant with no use (DIA). The investment in Peña Station will leverage the federal, state and local investment in the overall FasTracks system, the double tracking along Peña and will guide development on a greenfield in a more sustainable, dense land use pattern. The Peña Station TOD is an opportunity for employees, contractors, and frequent users of DIA to be able to live in a location where they can walk to the train station and get to work via the train and not have to drive or necessarily own a second car. Peña Station will also be used by commuters who live in Commerce City, Aurora, or near DIA that work downtown or in another location served by the light rail. RTD intends to incorporate the fare for this commuter line into its regional pricing schedule so anyone can get on the train at this stop and go anywhere the RTD light rail or buses go. If commuters have an RTD pass, primarily used to commute to work (such as DIA employees, RTD employees, and numerous of downtown employees), they can ride at no additional cost, have minimal or no parking cost at the stop, or leave their car at home. The vast majority of people who work at DIA are service industry employees who work in the food and beverage service establishments at DIA. These workers will be attracted to the transit-accessible, affordably priced rental and for-sale housing options. Since the second largest household expense behind housing is transportation, affordable housing next to transit is doubly effective at serving lower income household needs. Other constituents who will be attracted to the convenience of the Peña Station TOD include those in the adjacent neighborhood of Green Valley Ranch. This neighborhood contains a rich in ethnic mixture composed of over 60% of residents are Latino, African-American, and/or Asian. The population of Green Valley Ranch more than tripled between 2000 and 2010, from approximately 8,000 to approximately 29,000, with income levels of approximately 3% currently living at or below the poverty level. Since the station and infrastructure will be built through a metro district(s) approved by the City of Denver, the metro district(s) will be required to provide a percentage of the work done on the project through qualified M/W/DBE businesses. The likely target for M/WDBE businesses will likely be approximately 10% to 20%, although the exact percentage has not yet been determined in cooperation between Fulenwider and the City of Denver. If awarded a TIGER VI Grant, the Peña Station Project partners will ensure any Federal M/W/DBE requirements are met.

3. Quality of Life

Taking great care with the various place-making elements of the Peña Station area is critical to the success of the development. The Peña Station Area Plan includes a strong mix of uses, a blend of building types, and a respect of the natural environment and Front Range views within




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the Peña Station area. Achieving these elements is the foundation for a unique community that will have superior connectivity, easily reaching both the heart of Downtown Denver with transit connections throughout the metro area, and DIA’s South Terminal, ready to depart to any one of hundreds of domestic or international destinations. This exciting level of multi-modal connectivity presents great potential to attract international and local business users, hotels, retail, and new residents to locate within walking distance of the rail station. Figure 6 presents an overview of the existing bus routes near Peña Station. It is anticipated that additional bus routes will be implemented when the station opens and the Peña Station TOD is constructed. Figure 6: Existing Bus Routes Nearby Peña Station

Source: RTD Blueprint Denver, Denver’s integrated land use and transportation plan adopted in 2002, identifies Areas of Change and Areas of Stability throughout the city with the goal of directing new development and infill projects toward Areas of Change. The Peña Station area TOD will maintain the station areas existing status as an Area of Change. Blueprint Denver established land use types based on a framework of “building blocks” – Districts, Residential Areas, Centers, and Corridors. Each category has individual land use types and describes a particular character and scale that is desired in the future but does not necessarily reflect existing conditions. The plan for the Peña Station TOD uses this framework as the basis of its recommended conceptual land use map. Additional variations of the mixed-use land use type, Mixed Use – TOD Core,

http://www.denvergov.org/Portals/646/documents/planning/blueprintdenver/BlueprintDenver.pdf


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Mixed Use – Commercial, Mixed Use – Residential, Mixed Use – Employment / Multifamily, have been added to the station area plan to reflect areas with a different emphasis of mixed-use development. Denver’s recently published draft TOD Strategic Plan Update recognizes the tremendous potential for Peña Station in that document, but identifies the significant infrastructure investment necessary to catalyze development. This factor impacts the station’s market readiness. The TIGER Discretionary Grant will overcome this hurdle and unlock the Peña Station area’s potential for providing a new, affordable mixed use TOD community. The land use map in Figure 7 presents the conceptual layout and mix of uses for the station area at build-out. As development begins to occur in the station area, some variation in the ultimate land use mix is expected as unforeseen opportunities arise. Figure 7: Peña Station TOD Land Use Map

Source: Station Area Plan The Peña Station TOD is envisioned as a dense, mixed-use urban community, in the medium to long term, with the highest densities and commercial uses clustered near the commuter station. The proposed mix of land uses is intended to create a vibrant urban center that will support transit use, both as an origin and destination. These mixed-use areas will have a sizable employment base as well as higher density housing. Residential and non-residential uses are within walking distance of one another within the neighborhood and planned to be included

http://www.denvergov.org/Portals/193/documents/DLP/TOD_Plan/TOD_Strategic_Plan_PB_Draft022814_1.pdf


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within the same buildings of the development. The proportion of residential to commercial uses varies considerably from one mixed-use district to another. In the Peña Station TOD, mixed-use is broken out into three sub-categories, each with an emphasis on a different predominant use. A full range of uses is encouraged in each sub-category. In addition, the Peña Station TOD will employ various scales of development to capitalize on the expansive views of the Rocky Mountains. Taller buildings, especially nearest the station and along Richfield Street, are planned to have design elements that promote greater opportunities for viewing Front Range vistas, increase solar access to the pedestrian level, and generally improve the walking experience in the station area. Building design tools that may be utilized include but are not limited to: upper story step-backs, varying street frontage heights, and adjusting the building orientations. The development will promote Front Range views from Peña Station and key locations along natural open space corridors such as First Creek and Blue Gramma Draw. In addition, promotion of taller, prominent, and iconic building forms at key locations adjacent to First Creek and Blue Gramma Draw and utilization of public right-of-way as de facto view corridors will increase viewing opportunities to the Front Range. Figure 8 below provides a rendering of the potential views from the Peña Station TOD. Figure 8: Peña Station TOD Street View Rendering

Source: Station Area Plan The livability aspects of the Peña Station TOD will be further enhanced by the incorporation of green spaces, bike paths, and the transit plaza planned for the station. The development includes the two main open space/recreation areas, numerous bike paths and regional trails, and the incorporation of living street concepts. Living Streets are vibrant places where people of all ages and physical abilities feel safe and comfortable using any mode of travel (walking,


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biking, transit, or private auto). Living Streets combine context sensitive development with complete streets to offer solutions that promote active living, increase mobility, capitalize on infrastructure investments and stimulate economic development. The Peña Station TOD will provide connections along First Creek to the Rocky Mountain Arsenal National Wildlife Refuge. Located just northeast of Denver, the Rocky Mountain Arsenal National Wildlife Refuge is a 15,000-acre expanse of prairie, wetland and woodland habitat. The land has a unique story - it has survived the test of time and transitioned from farmland, to war-time manufacturing site, to wildlife sanctuary. It may be one of the finest conservation success stories in history and a place where wildlife thrives. These connections will provide a tremendous amenity to residents and workers around Peña Station that will undoubtedly enhance quality of life. To enhance the living street concepts further, the transit plaza is planned to be the gateway to Peña Station TOD and will be designed to meet the needs of residents and visitors alike. Integrating the transit plaza into the overall open space system will give it a place and function within the community by ensuring connectivity to future land uses not immediately adjacent to the commuter rail platform. In addition, bicycle storage will be provided at various locations throughout the transit plaza and not all in one location to encourage bicycle usage from residential areas to the rail station. Figure 9 provides a depiction the planned bicycle path, trails and recreation areas planned for the Peña Station TOD. Figure 9: Peña Station TOD Bike Paths & Recreation Space



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4. Environmental Sustainability

There are numerous ways the implementation of the Peña Station TOD will impact long-term environmental sustainability. Primarily, the incremental ridership on the East Rail Line supported by those who will live and work in the Peña Station TOD, as well as work at DIA has the potential to reduce vehicle miles traveled (VMT) leading to reductions in mobile-source emissions, including greenhouse gases which increase global climate change. As the developer of the TOD, Fulenwider has also incorporated environmental sustainability goals into its plans for the Peña Station TOD. These include encouraging development projects to seek LEED certification or similar green building standards and using sustainable design best practices when designing public urban open spaces. In addition, the TOD will incorporate living streets and bike path concepts that will decrease the overall carbon footprint compared to an auto-dependent community. In addition, the RTD and DTP are committed to leveraging sustainable practices in the design, construction and operation of the Eagle P3 Project, which includes the East Rail Line. This means conducting business in an environmentally responsible manner to the benefit of current and future generations. To complete the project in a sustainable manner, DTP has a goal of safeguarding environmental resources by keeping the amount of material, energy, water used, waste and emissions within sustainable limits. These efforts include minimizing the impact on land, air, water and the generation of noise and light pollution. Steps taken to achieve this include:

• Recycled content in materials used for the project • Minimal material use through design standardization • Efficient design for the commuter rail maintenance facility and commuter rail cars

5. Safety

The uniqueness of the Peña Station and the surrounding transit-oriented development is the emphasis on pedestrian use not only of the platform, but of the surrounding cityscape. Pedestrian-level access and a reduction of automobile usage in and around the project spare commuters, residents, and, especially, children, from the dangers of constant automobile presence and traffic. The plaza area around the station will be connected to the existing network of bike trails and will be supplemented by designated bike paths to allow transit riders easy, safe, non-vehicular access to the commuter rail station. There will be an off-street bus lane immediately in front of the station plaza to allow for transit riders to easily and safely move between the commuter rail station and the buses without crossing any streets or right of ways. The utilization of commuter rail, as opposed to light rail, allows for greater accessibility to trains -- all on a single level -- for all users of all abilities.


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The pre-existing ConocoPhillips pipeline will be re-routed away from the Peña Station and the Peña Station TOD. This petroleum liquids pipeline will be moved into the landscaped median area of Telluride Street and will be given a 50’ wide easement that will isolate the line from the public, streets, and the surrounding utility grid. On the DIA property, the commuter rail is deliberately set apart from automobile traffic by means of grade separation, thus eliminating any highway/rail grade crossings to guarantee the safety of users of all modes of transportation.

B. SECONDARY SELECTION CRITERIA

1. Innovation

The primary way the Peña Station Project Phase II demonstrates innovation is through the funding and financing of the project. The project itself reflects a partnership between numerous parties including: DIA, Fulenwider, the Metropolitan Districts and RTD as the main participants. Both DIA and Fulenwider have committed funds to the Peña Station Project, which will provide the much needed infrastructure improvements to catalyze transit-oriented development. In fact, DIA is committed to providing any funding for the project after receipts of funds from other sources, even in excess of a grant match of 40% as shown in the alternative funding plan presented in Table 1. The project is also unique in that the funding and financing of the project will include sources from both public and private entities. DIA will likely use its unrestricted cash reserves to its portion of the Peña Station Project costs. Funding during construction for the Peña Station project will be provided through the public-private partnerships established in the formation of special districts by the adjacent property owners in conjunction with the City and County of Denver. The special districts were formed at the request of the landowners to facilitate partnerships among them for funding and maintaining infrastructure that will provide safe public access to Peña Station where currently none exists. Infrastructure currently authorized in the district’s service plans includes roads, drainage, parks, plazas, station improvements, and other public domain enhancements, all of which are approximately 60% of the costs of the Peña Station Project. It is also of note that the project is part of the FasTracks program of RTD, with the East Rail Line being part of the Eagle P3 Project. The Eagle P3 Project is being delivered and operated under a concession agreement that RTD has entered into with a concessionaire selected through a competitive proposal process. DTP, the selected concessionaire, is required to design-build-finance-operate-maintain (DBFOM) the East Rail Line, as well as other FasTracks projects under a single contract. RTD will retain all assets while shifting much of the risk of designing and building the project to DTP. The concessionaire arranged a portion of the funding needed to begin construction on the project, allowing RTD to spread out the upfront costs on the project and secure permanent financing.


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2. Partnership

There are numerous entities that have been involved in the development of the Peña Station Project. DIA, Fulenwider, and the Special Districts are all committed to contributing funding and financing for the project. DIA and Fulenwider have engaged with RTD to complete the design for the project to ensure it is shovel ready by the June 2016 requirement for the use of TIGER Discretionary Grant funds. Other entities have also been instrumental in making the project possible. RTD has entered in to a partnership with DTP to ensure the delivery and operation of the project. The City of Denver has contributed $50 million in funding the East Rail Line to extend the dual tracking of the line from the 40th and Airport Boulevard Station to north of the proposed Peña Station and to provide grade separations at intersections with arterials. In addition DIA has garnered numerous letters of support, which include: • Denver Regional Council of Governments • Regional Transportation District • Greater Denver Chamber of Commerce • Colorado Department of Transportation • Various members of U.S. Congress representing Colorado, including Senators Bennet and

Udall, as well as Representatives DeGette, Perlmutter, and Coffman In addition, there is an extensive list of stakeholders, which have been included in the public involvement process that is described in Section V: Project Readiness. This project is very well received by the community and the local, state and regional agencies. This project has been a collaboration of public and municipal needs for at least 10 years.

C. RESULTS OF BENEFIT-COST ANALYSIS

The full benefit-cost analysis for the Peña Station Project can be found at the Peña Station Project Phase II TIGER Discretionary Grant website. A summary of this analysis is provided below. A benefit-cost analysis (BCA) was conducted in accordance with the benefit-cost methodology as recommended by the US DOT BCA Guidance and included the full cost of the Peña Station Project, rather than only the Peña Station Project Phase II, for which the TIGER Discretionary Grant is being sought. The BCA includes monetized cost and benefit estimates whenever possible. In those cases where monetization has not been included, relevant and available information has been presented. The computed benefit-cost ratio for the Peña Station Project is 7.23 based on a discount rate of 7%. An alternative computation was performed using a discount rate of 3% and its corresponding benefit-cost ratio is 10.11. The table below summarizes the BCA with this project using the standard discount rate of 7% and an alternative discount rate of 3%.




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Table 2: BCA Summary Results

Source: Parsons Brinckerhoff

The benefit-cost ratio of 7.23 is based upon the following major assumptions: • The benefits and costs are measured against a baseline, or no-build scenario, which in this

case, is undeveloped land currently used for agricultural uses. Without the Peña Station Project, it is reasonable to assume that Peña Station TOD will not occur. There is a large amount of undeveloped land that currently surrounds the station and without the connection to the East Rail Line, there will be little impetus for development in this specific area over the next several decades.

• Primary construction of the initial phases of the project infrastructure will occur from 2013 to 2015, with continuing infrastructure improvements occurring to 2017.

• Benefits from property value increases are calculated assuming a project that contains nearly 1.7 million square feet of commercial retail and office space development, just over 2,000 residential units and 910 hotel rooms at full build out. Build out for the vertical improvements are assumed to occur over a 20 year period from 2014 to 2034. Benefits begin to accrue upon project delivery in 2016.

• Benefits and costs are quantified through 2043, allowing for a total forecasting horizon of 30 years.

• The discount factors used for the Net Present Value (NPV) calculations are calculated on the assumption that costs and benefits occur as lump sums at year-ends.

1. Project Benefits

The primary project benefit will result from the increased property value of the land surrounding the Peña Station. As outlined elsewhere in this application, the Peña Station TOD will catalyze development of a dense mixed-use, transit-oriented community. Using current market values without any escalation for the anticipated development program resulted in just over $590 million in property value, which translates to $285 million in discounted 2013 dollars at the 7% discount rate.

2. Project Costs

Project costs are primarily the capital costs to design and construct the Peña Station Project. The capital costs include the initial phase construction costs of $43.7 million expended between

Benefit Cost NPV BCA Ratio

Low Case (Undiscounted) $590,860,000 $43,737,318 13.51Low Case A (7% Discount Rate) $284,621,376 $39,386,994 $245,234,382 7.23Low Case B (3% Discount Rate) $422,378,785 $41,767,191 $380,611,594 10.11


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2013 and 2017 and continuing infrastructure improvements through 2017. Discounted to 2013 dollars, the capital costs amounted to just over $39 million. Table 3: Project Capital Cost Summary

Source: Fulenwider

3. Scenario Analysis

Because both the benefits and costs of the Peña Station project are so dependent upon the timing and magnitude of the Peña Station TOD, a sensitivity analysis was performed, assuming delays in vertical development and decreases in property values. The anticipated 1.7 million square feet of commercial retail and office space development, just over 2,000 residential units and 910 hotel rooms are developed in seven phases through 2034of varying size. The “low case” evaluated in the BCA delayed each phase by an increasing amount (i.e., one year for the first phase; two years for second phase; three years for the third phase; etc.). In addition to development delays, property value assumptions were decreased by 15%. Results for the Low Case are summarized in the table below. Table 4: Sensitivity Analysis Summary

Source: Parsons Brinckerhoff

V. PROJECT READINESS THE DESIGN AND PREPARATION OF THE PEÑA STATION PROJECT IS WELL UNDERWAY WND WILL BE ABLE TO MEET ALL TIGER VI DISCRETIONARY GRANT PROGRAM DEADLINES, most notably the deadline to have all grant proceeds under contract by June 30, 2016.

A. PLANNING & ENVIRONMENTAL APPROVALS

1. NEPA Process

The East Rail Line project released a Final Environmental Impact Statement (EIS) in September 2009 and received a Record of Decision (ROD) from the Federal Transit Administration (FTA) in

2013 2014 2015 2016 2017

Station Platform and Plaza $3,223,674 $8,714,943 $0 $0 $0Parks and Plazas 0 0 1,933,124 0 0ConocoPhill ips Pipeline Relocation 0 1,970,000 0 0 0Wet & Dry Util ities 523,333 2,471,959 21,388,785 0 1,111,500Parking 0 480,000 1,920,000 0 0

TOTAL COSTS (2013$) $3,747,007 $13,636,902 $25,241,909 $0 $1,111,500

Benefit Cost NPV BCA Ratio

Low Case (Undiscounted) $366,477,500 $43,737,318 8.38Low Case A1 (7% Discount Rate) $147,554,516 $39,386,994 $108,167,522 3.75Low Case B1 (3% Discount Rate) $240,485,811 $41,767,191 $198,718,620 5.76


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The Peña Station Project is contained in all relevant

state and local plans and will receive all necessary

environmental approvals required to enable all TIGER

VI Discretionary Grant proceeds to be under

contract by June 30, 2016.

November 2009, signaling the completion of the environmental process. This document contemplated the inclusion of five stations on the East Rail Line, and did not include the Peña Station. In September 2013, RTD submitted the East Corridor Final Environmental Impact Statement Reevaluation Proposed Addition of Peña Station (Peña Station Final EIS) to FTA for approval to include the Peña Station to amend the East Rail Line’s Final EIS’s ROD. Comments were submitted by the public and responded to during the summer of 2013 by RTD. In addition, the Peña Station Final EIS has been reviewed by the Federal Aviation Administration (FAA) with no comments received. At this time, no issues with the Peña Station Final EIS are anticipated, and a ROD from FTA is expected in the summer of 2014.

2. Legislative Approvals

There are several legislative and local approvals that must occur for the project to move forward. These are described in detail below. Peña Station and Smith Metropolitan Districts – The suite of master and sub-districts that will be the primary financing entity and the constructor of much of the infrastructure has been created, approved, and is fully functional. The service plans for the metro districts were approved by the City Council of Denver; the electors for the districts (landowners) had elections approving the districts and electing a Board of Directors; the courts have certified the elections; and the Metro Districts have conducted their first Board meetings accepting the election results and initiating the business of the Metro Districts. The Districts are fully authorized to issue debt and begin construction both of which are expected to occur in the summer of 2014. Zoning – The current zoning is adequate to begin construction and development of the station area without the requirement to rezone the property. The landowners may choose to address changes to zoning at a later date, but it is not a requirement to initiate development of the project as a transit-oriented development community.

3. State and Local Planning

The planning efforts for the Peña Station project have been coordinated with numerous state and local planning agencies. The current draft plan was developed in the context of several existing local planning documents, as well as included a public involvement process. The plan was developed in accordance with the Denver Comprehensive Plan 2000, is a citywide plan establishing long-term strategies to ensure that Denver is livable for its people, now and in the future. Blueprint Denver: An Integrated Land Use and Transportation Plan (2002) is a

http://www.rtd-fastracks.com/media/uploads/ec/Aviation_Station_Reevaluation_Report_final.pdf

http://www.rtd-fastracks.com/media/uploads/ec/Aviation_Station_Reevaluation_Report_final.pdf

http://www.denvergov.org/Portals/646/documents/planning/comprehensiveplan2000/CompPlan2000.pdf

http://www.denvergov.org/Portals/646/documents/planning/blueprintdenver/BlueprintDenver.pdf


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supplement to the Denver Comprehensive Plan 2000, focused on land use and transportation. The East Rail Line and Eagle P3 Project are also included in the Colorado Department of Transportation’s Statewide Transportation Improvement Program. Other local plans that also have provided guidance for the 61st & Peña Station Area Plan include: • Greenprint Denver (2006) • Strategic Transportation Plan (2008) • Gateway Travelshed Transportation

Study (2008) • Storm Drainage Master Plan (2009)

• Sanitary Sewer Master Plan (2009) • Strategic Parking Plan (2010) • Denver Moves (2011) • DIA Aviation Plan (2011) • DIA Airport City Plan (2012)

The Peña Station plan also coordinated with local planning efforts that are currently underway, but not yet completed such as the Eagle P3 Corridor Plan, TOD Strategic Plan Update, DRCOG Sustainable Communities Initiative, and the DIA Aerotropolis Comprehensive Transportation Plan. Specifics regarding local planning efforts with regard to the Peña Station project are provided below. General Development Plan – The GDP covers the area around the station from 56th to 64th Avenue and from Peña Boulevard to Tower Road. The plan reviews existing conditions; current land ownership; and current zoning. It then goes on to describe the development concepts; site framework; land use; open space and connectivity; parking strategy; phasing strategy; vehicle circulation; roadway design criteria; storm water facilities; sanitary sewer service; and water service. The plan has been submitted to the City after four rounds of review with the expectation that it will be presented to the Denver Planning Board for approval in May 2014. Approval is expected without opposition and the Denver Planning Board has already seen and reviewed previous draft versions of the GDP. Station Area Plan – The City requires that for each rail station located in the City, that a land use plan be created to guide the development of the area surrounding the station. The City is completed the plan with input from the surrounding landowners. The final 61st & Peña Station Area Plan was adopted by City Council in January 2014. As part of the development of this plan, a multi-tiered strategy for involving stakeholders has been employed so that all perspectives receive consideration. Public input informed the identification of key issues as well as concepts and plan recommendations for addressing the key issues. • Denver City Council - City staff gave a presentation to the Land Use, Transportation and

Infrastructure (LUTI) Committee of City Council. A City Council public hearing and vote culminated the planning process.

http://www.coloradodot.info/business/budget/statewide-transportation-improvement-program-stip-reports-information

http://www.denvergov.org/Portals/193/documents/DLP/TOD_Plan/TOD_Strategic_Plan_PB_Draft022814_1.pdf

http://www.denvergov.org/Portals/646/documents/planning/Plans/61st_and_Pena/61-Pena-station-area-plan-web.pdf

http://www.denvergov.org/Portals/646/documents/planning/Plans/61st_and_Pena/61-Pena-station-area-plan-web.pdf


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Peña Station has been identified as a potential

Urban Center in the City’s TOD Strategic Plan Update.

Urban Centers are mixed use developments that have both residential and commercial

development, high pedestrian activity and access to multi-modal

transportation.

• Denver Planning Board - The City staff briefed Planning Board on three separate occasions regarding the Peña Station Area Plan. After a public hearing, Planning Board will be responsible for approving the Station Area Plan and recommending it to City Council.

• 61st & Peña Station Area Stakeholder Committee - Within the plan boundaries, four landowners control all of the property. These property owners, Denver International Airport, L.C. Fulenwider, the Karl D. Smith Estate, the SMT investors, as well as various City and County staff, made up the Stakeholder Committee.

• Neighborhood Organizations – Inter Neighborhood Cooperation, Denver Neighborhood Association, Inc., Green Valley Ranch Citizens Advisory Board, and the Wild Horse Ridge Homeowner’s Association.

• General Public – Public meetings were held in July 2013 and November 2013. • Plan Website – A plan website was established at the beginning of the planning process and

utilized to provide updates and important plan resources as information to the general public.

Denver Regional Council of Governments (DRCOG) – Approved adding the Peña Station to its comprehensive plan in 2013.

4. Other Environmental Approvals

Other approvals required for the implementation of the Peña Station project include City of Denver Land Use and Zoning Approvals. Since the station platform is on DIA property and in a location that has already been cleared by an EIS, construction on the station platform can and already has begun. As to the remainder of the project including parking, plazas and open space, roads, water, sewer, storm water management, pedestrian and bike connections, land use, and rezoning, the City of Denver has several plans (described in the local planning section above) which must be approved prior to construction and rezoning. The sponsors for the project including DIA, Fulenwider, Smith Trust, SMT Investors, LLP (all of the impacted land owners) have been working with the City staff since fall of 2012 to create and approve the various plans.

http://www.denvergov.org/cpd/CommunityPlanningandDevelopment/PlanningandDesign/PlansinProgress/61standPenaStation/tabid/444520/Default.aspx


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B. PROJECT FEASIBILITY

This section presents the technical and financial feasibility related to the Peña Station.

1. Technical Feasibility

DIA and Fulenwider have contracted with RTD/DTP to perform engineering design for the Peña Station with the design, which has been completed. Construction of the station itself is underway with completion of the major elements expected by the end of 2014. As to the infrastructure elements required for the Peña Station development, the Fulenwider team has completed engineering and design to a 30% level and is in the process of completing those designs, subject to approval of the GDP in May 2014. Phase 1 infrastructure construction will begin in 2014 and continue through 2015, with all infrastructure projects to be completed and in service by the anticipated station opening date of April 2016. The station design will be based off of similar stations on the East Rail Line and presents no particular site related challenges. The site is flat with no issues relating to grade, subsurface water, or surface wetlands or water. As to the other infrastructure, it is the same circumstance, with no significant grade issues, no environmental or wetlands issues, and no unique design issues. This project involves the construction of roads, water lines, sewer lines, and storm water management facilities all being built in a Greenfield environment.

2. Financial Feasibility

Funds for the Peña Station Project (Phase I and Phase II) will come from two primary sources. 70% of the project costs are expected to be provided by a partnership between DIA and Fulenwider. Those funds (approximately $32 million) will be expended first, as required by other funding source. Financing of a portion of the costs will come from a bond issuance of the metro district in 2014. Fulenwider is near completion with negotiations from a private bond buyer to purchase that bond upon issuance. The bond will be serviced over time with the proceeds of Special District which are based on the application of a 30 mill metro district property tax assessment on new construction which will occur at the site, (i.e., multi-family housing; hotels; offices; parking facilities; and a 1% sales fee (PIF) applied to the same categories of retail sales to which the City of Denver applies sales taxes (food is the primary exclusion from sales taxes in Denver). The Special Districts and PIF have already been approved by the City of Denver and certified through an appropriate election process. The bond will be further collateralized by Fulenwider pledging privately owned land in the station area as collateral. The project budget is currently carrying approximately 10% of the total project budget as unallocated contingency funds.


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It is the intention of DIA to administer the grant much as DIA has administered numerous grants from the FAA, TSA, FHWA and from Colorado State granting agencies. DIA's Financial Planning and Analysis Section and Accounting Section have established procedures for administering all grant proceeds paid by individual draws against grant proceeds and proportional match amounts.

C. PROJECT SCHEDULE

The RTD East Rail Line is currently under construction and is scheduled to begin service in the spring of 2016. The Peña Station Project team chose to contract with the private design team which is designing all of the stations on this line for the design and construction of the Peña Station. As such, the primary schedule risk of Peña Station opening has been eliminated as the contractor (DTP) is constructing the Peña Station to be completed in time to allow full service at the station at the opening of the rail line in 2016. The other critical enabling project is the relocation of the ConocoPhillips petroleum liquids pipeline in the Peña Station Project area. Fulenwider has contracted with Phillips to have this work completed in the fall of 2014 to allow timely construction of the remaining road and utility infrastructure. The remainder of the utility and road infrastructure required to access the station from Tower Road, while large in scope, is relatively simple in design and construction. The engineering for this work is over 30% complete and with the approval of the GDP in May 2014, engineering will be completed within 60 days. The project schedule calls for dirt work and utility construction to be completed by the end of 2015. Construction of this road and utility infrastructure will be contracted through a large regional or national company with local offices to ensure timely and on budget delivery. These contractors will use agreed to programs and targeted usage of local disadvantaged businesses to participate in the construction of these facilities. Additional information regarding the schedule can be found at the Peña Station Project Phase II TIGER Discretionary Grant website. Environmental Approvals – All environmental approvals have been received for the work. The area has been previously disturbed by farming operations; the work area has only been used for farming and grazing in the past; there are no known issues; and as such, there is no reason to be believe unknown environmental issues will impact the scheduled start or completion of construction. Design –The road and utility (the majority of the Peña Station Project Phase II) design is at 30% completion awaiting final approval of the GDP. Right of Way Acquisition – All ROW required for the project has already been acquired; is already owned by one of the project sponsors; or is owned by a participant in the metro district who has pledged cooperation in granting ROW for roads, water, etc. to the benefit of the project and their land. Approval of P, S, & E – All currently underway with most approvals scheduled for fall of 2014.




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Procurement – The majority of the risk associated with procurement is associated with the long lead time required for part of the rail power system. These systems have already been ordered by DTP. There are no other long lead time or project specific issues expected to occur for the project. Construction – Construction will begin as soon as a significant portion of the design is complete, construction will begin prior to the TIGER Discretionary Grant deadline of June 30, 2016. The Peña Station Project team has already begun construction of the station and will have completed all of the station and infrastructure construction by June 30, 2016. DIA and its partners are scrupulously tracking pre-grant tasks and work to assure that all such processes are segmented and not assigned as grant expenditures to be paid by grant proceeds.

VI. FEDERAL WAGE RATE CERTIFICATION DIA will comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code. Please find the RTA’s federal wage rate certification can be found at the Peña Station Project Phase II TIGER Discretionary Grant website.



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