Real Property Policy Update Planning and Development Committee August 4, 2015

Presentation Overview: Existing RTD Policies: Resolution 10 (1984) + Resolution 35 (2002) Resolution 17 (2010): Strategic Plan for Transit Oriented Development Recommended Resolution and Approach Policy for Joint Development and Disposition of Excess Property (replaces Resolution 10 (1984) and Resolution 35 (2002)). Unsolicited Proposal Policy for Joint Development and Acquisition of Excess Property (replaces Section of Resolution 17 (2010).

Current RTD Policies Governing Real Property Resolution 10 (1984) GM presents a disposition plan or joint development plan for any property right to the Board for approval– includes all leases, sale, and easements Includes specific requirements that conflict with current FTA regulations Resolution 35 (2002) Delegated authority to the GM for: Negotiating leases less than 5 years; Net lease value within GM’s delegated contracting authority ($250,000 in 2002); Execute utility and access easements across RTD property and utility and access easements benefiting RTD property. Resolution 17 (2010), Revised Strategic Plan for Transit Oriented Development Section Identifies a process for unsolicited proposals for joint development

Proposed Resolution - Overview Repeal and replace Resolution 10 (1984) and Resolution 35 (2002) in their entirety; Replace Section 3.4.2, Joint Development Proposal Process of Resolution 17 (2010), Strategic Plan for TOD Pass a new resolution that adopts individual policies and allows those to be updated separately: The District’s property interests have expanded and become more integral to its services and mission; Much of the District’s real property has a “federal interest” in it; Need updated policies to provide additional capability to manage a variety of uses and dispositions efficiently and effectively; Need flexibility to follow the federal requirements for managing those properties as those federal requirements are updated over time. Two new policies: Policy for Joint Development and Disposition of Excess Property Unsolicited Proposal Policy for Joint Development or Acquisition of Excess Property

Proposed Policy for Joint Development and Disposition of Excess Property Require Board approval of any permanent grant of real property interests with the following exceptions, approval of which will be delegated to the GM: Access and utility easements across and benefitting RTD property; Dedications of Right of Way to local jurisdictions; Grants of property interests with a fair market value under the GM’s delegated contracting authority (currently $1,000,000 per Resolution 19, Series of 2007) Non-permanent grants of property interests (eg: licenses, temporary construction easements, short - term leases) All grants of property interests (whether delegated or not) will follow the applicable Federal Transit Administration requirements (currently FTA C and FTA C 5010.D1). GM will establish administrative procedures for both staff review and for securing Federal Transit Administration concurrence.

Proposed Unsolicited Proposal Policy for Joint Development or Acquisition of Excess Property Replace Section 3.4.2, Joint Development Proposal Process of Resolution 17 (2010), Strategic Plan for TOD Goal: Encourage innovation in leveraging real property assets consistent with RTD’s adopted policies Establish a process for reviewing unsolicited proposals for joint development or acquisition of excess property; Establish criteria for accepting sole source (non-competitive) joint development proposals; Establish criteria for submission and review of joint development proposals.

Proposed Unsolicited Proposal Review Process Proposal for Purchase Offer or Joint Development RTD staff evaluates Is there a current or future transit interest in the property? NO Excess Property Disposition Process YES Can transit operations be modified or reconfigured? YES Joint Development Proposal Process

Proposed Excess Property Review Process Purchase Offer Received Post Notice requesting Additional Offers Establish Value (internal) Evaluate Offers FTA Concurrence (if required) Board Action

Proposed Joint Development Proposal Review process Joint Development Proposal Received Evaluate Technical and Financial Merit Evaluate Sole Source Criteria Sole Source Board Action: Exclusive Negotiation Period * Finalize Terms Establish Value FTA Concurrence (if required) Board Action: Development Transaction Competitive Process Post Notice For Additional Proposals Evaluate Technical and Financial Merit of any Additional Proposals Determine if additional information and/or RFP is required (for those proposals with merit) Board Action: Exclusive Negotiation Period * Finalize Terms Establish Value FTA Concurrence (if required) Board Action: Development Transaction *Depending on the complexity of proposal, staff may recommend moving directly to a development transaction without an exclusive negotiation period

Proposed sole source criteria justification for Joint Development Proposals: Sole Source Criteria for Joint Development Proposals 1) The proposer owns or can demonstrate legal control (such as a purchase option or long term lease) of property contiguous to RTD property; AND 2) The proposed development concept leverages that contiguous ownership to provide benefits to RTD that could not be achieved by EITHER i) a standalone development of the RTD property, OR ii) by a development proposed by another contiguous property owner.

Proposed Submission and Evaluation Criteria, for Joint Development Proposals: Technical Merit : Concept plans showing: Proposed use of the property and adherence to the local jurisdiction’s master planning and zoning for the area; Transit operations to be impacted (includes, bus facilities, rail, parking, and patron access between those facilities) and demonstration that transit operations will remains whole; Proposed ownership structure, including phasing, for all components of the proposed joint development; Proposed value to the District; Assumptions regarding maintenance responsibilities for all publicly accessible spaces within the proposed joint development. Reasonable Financial Capacity : Demonstrate that proposer has the necessary financial standing, capacity, experience and resources to undertake, finance and deliver the proposal; If the proposal assumes accessing public financing to deliver the proposal, the District may elect to review the proposal with the relevant public entity before making a determination.

Proposed Next Steps 1.Provide draft resolution and policies to the Board for review and discussion – September 2.Adoption of new resolution and policies– September or October

Questions?