[Federal Register: January 31, 2006 (Volume 71, Number 20)]
[Notices]
[Page 5107-5109]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31ja06-93]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2006-23511]
Joint Development Guidance
AGENCY: Federal Transit Administration, Department of Transportation.
ACTION: Notice of Guidance; request for comments.
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SUMMARY: This guidance would implement additional authority provided in
the Safe, Accountable, Flexible and Efficient Transportation Equity
Act, a Legacy for Users (SAFETEA-LU) for public transportation agencies
undertaking joint development projects. In addition, this notice seeks
comment on two issues: a clarification of what is ``physically or
functionally related'' to a transit project; and a proposed limitation
on the amount of space that might be leased under ``incidental use.''
Finally, this guidance would provide additional information in a
question-and-answer format to assist grantees in developing and
submitting project proposals for FTA review.
DATES: Comments should be received on or before March 2, 2006.
ADDRESSES: Mail or hand deliver comments to the U.S. Department of
Transportation, Dockets Management Facility, Room PL-401, 400 Seventh
Street, SW., Washington, DC 20590, or submit electronically at http://dmses.dot.gov/submit.
All comments should include the docket number
that appears in the heading of this document. All comments received
will be available for examination and copying at the above address from
9 a.m. to 5 p.m., e.s.t., Monday through Friday, except Federal
holidays. Those desiring notification of receipt of comments must
include a self-addressed, stamped postcard or you may print the
acknowledgment page that appears after submitting comments
electronically.
FOR FURTHER INFORMATION CONTACT: Paul Marx, 202-366-1675, or Paula
Schwach, 816-329-3935. FTA is located at 400 Seventh Street, SW.,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
You may submit or retrieve comments online through the Document
Management System (DMS) at: http://dmses.dot.gov/submit. Acceptable
formats include: MS Word (versions 95
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or later), MS Word for Mac (versions 6 to 8), Rich Text File (RTF),
American Standard Code Information Interchange (ASCII) (TXT), Portable
Document Format (PDF), and WordPerfect (versions 7 to 9). The DMS is
available 24 hours each day, 365 days each year. Electronic submission
and retrieval help and guidelines are available under the help section
of the Web site.
An electronic copy of this document may also be downloaded by using
a computer, modem and suitable communications software from the FTA Web
site: http://www.fta.dot.gov Internet users may also reach the Office of the Federal Register's home page at: http://www.nara.gov/fedreg. and
the Government Printing Office's Web page at: http://www.access.gpo.gov/nara
.
Background
The Federal Transit laws have included joint development authority
since the Urban Mass Transit Act of 1974. In the Transportation Equity
Act for the 21st Century (TEA-21), the joint development authority was
incorporated into the definition of a transit capital project, at 49
U.S.C. 5302(a)(1)(G). This made joint development activities eligible
for reimbursement under formula and discretionary transit grant
programs. SAFETEA-LU added intercity bus and rail terminals to the
joint development authority, and excepted them from the prohibition on
supporting the construction of space for commercial, revenue-producing
activities.
The definition of ``capital project'' reads, in pertinent part, as
follows:
(1) Capital project.--The term ``capital project'' means a
project for * * *
(G) a mass transportation improvement that enhances economic
development or incorporates private investment, including commercial
and residential development, pedestrian and bicycle access to a mass
transportation facility, and the renovation and improvement of
historic transportation facilities, construction, renovation, and
improvement of intercity bus and intercity rail stations and
terminals, because the improvement enhances the effectiveness of a
mass transportation project and is related physically or
functionally to that mass transportation project, or establishes new
or enhanced coordination between mass transportation and other
transportation, and provides a fair share of revenue for mass
transportation that will be used for mass transportation--
(i) Including, property acquisition, demolition of existing
structures, site preparation, utilities, building foundations,
walkways, open space, safety and security equipment and facilities
(including lighting, surveillance and related intelligent
transportation system applications), facilities that incorporate
community services such as daycare or health care, and a capital
project for, and improving, equipment or a facility for an
intermodal transfer facility or transportation mall, except that a
person making an agreement to occupy space in a facility under this
subparagraph shall pay a reasonable share of the costs of the
facility through rental payments and other means; and
(ii) Excluding construction of a commercial revenue-producing
facility (other than an intercity bus station or terminal) or a part
of a public facility not related to mass transportation;'' [Emphasis
on additions added.]
FTA has implemented the joint development authority as part of its
grant program circulars, inserting guidance as Appendix A to Circular
5010.1, guidance for new Major Capital Investments, and as Appendix B
to the Grants Management and Formula Capital Grants circulars, 9300.1
and 9030.1. The proposed revision incorporates the new authority
provided in SAFETEA-LU, and it seeks to clarify how FTA will review and
approve specific activities involving the use of federally-assisted
real property. These include transfer of real property for joint
development, incidental use and shared use of transit property, as well
as property disposition. The following are changes made to the original
Appendix, for each of Circulars 5010.1, 9030.1 and 9300.1. The revised
Appendix, as a substitute for the existing Appendices, is accessible on
the FTA Web site, at http://www.fta.dot.gov/; as well as in the DOT
Docket, at FTA-2006-23511.
Page 1--Reorganized the beginning of the Appendix to focus
on the three tests defining a joint development: Statutory Definition;
Financial Return; and Highest and Best Transit Use.
Page 5--Eligible Costs--Added element f., ``including
integrity bus and rail facilities.'' This item reflects the new
authority in SAFETEA-LU.
Page 10--Added a new Section 9: Process for Submitting a
New Joint Development Proposal.
Page 12--Revised Frequently Asked Questions, to include
new examples on low and moderate-income housing (Question 11), Parking
for Community Service Activities (Question 13), the difference between
Joint Development Transfer and Disposition (Question 14), and the
difference between Joint Development and Shared Use (Question 15).
Page 25--Added Questions 18, 19, and 20 to clarify the
treatment of property disposition, sharing common walls, and intercity
bus and rail stations.
Attachment 1--FTA has developed a Joint Development
checklist defining what is to be included in a project proposal
submitted for FTA review.
FTA seeks comment on these revisions to the joint development
appendices to the respective FTA Circulars.
In addition, FTA seeks comment on two basic issues that arose
during the development of this Appendix.
Physically or Functionally Related--A joint development project
must be a mass transportation improvement that is physically or
functionally related to the transit project. Based on the
implementation of this authority over the last twenty years, FTA has
taken this to mean that: either the joint development must be
integrated into the transit project--i.e., share its common walls,
floor, and/or roof--or that the joint development must be related to
the transit project by function, as evidenced by connecting pathways,
joint use of parking, bicycle and related amenities, and enhancement of
the transit system by the joint development. FTA has tended to prefer
projects where the joint development was fully integrated into the
overall transit project, thus ensuring physical relationship.
However, the addition of intercity bus and train stations to the
definition of a joint development project raises some questions
regarding functional relationship. The joint development is intended to
enhance the effectiveness of public transit, and this may occur
optimally if the intercity bus or rail station is in a nearby but
separate facility from the transit station. FTA seeks comment on
whether a direct (short distance) pedestrian or bicycle pathway is
sufficient to establish a functional relationship between two stand-
alone structures that are defined as a transit capital project, or
whether FTA should require that a joint transit/intercity terminal
project share a common wall and roof in order to conform to the
requirements of SAFETEA-LU.
Parking is a related issue in this regard. FTA generally will not
support parking in excess of transit need. However, both intercity bus
and rail terminals will have a need for parking (and taxi access) even
if most of their customers come to the terminal on public
transportation. FTA seeks comment on how to incorporate intercity bus
and rail terminal parking requirements into the overall transit
project.
Maintenance cost is also a related issue in this regard. Unlike
other joint development projects, intercity bus and rail stations are
not required to pay ``a reasonable share of the costs of the facility
through rental payments and
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other means; * * *'' FTA has interpreted this exception as applying to
the construction cost of these facilities, not their ongoing reasonable
costs of maintenance. FTA will encourage public transportation agencies
to negotiate shared maintenance agreements to ensure satisfactory
condition and usefulness of the joint development project over its full
term.
Proportion of Incidental Use--FTA is considering establishing a
percentage of additional space that may be supported with transit grant
funds for joint development and/or incidental use purposes. Taking as
given that the primary purpose of the expenditure is a transit
project--say, a bus transfer facility--how much more space would be
reasonable to include for a join development activity such as a day
care center, congregate meal facility, or health care facility? Is it
reasonable for the physical capacity of the jointly developed
improvement to exceed the transit facility in size and/or cost? This
question arises particularly in the context of an intercity bus or rail
station which, since its service area is likely to be considerably
larger than the transit agency's, may require even more ``peak'' than
the transit agency does.
Related to this issue is the question of how to treat changes in
the use of joint development space after the project is complete. For
example, if space was made available for a day care center but three
years after the project is complete, the day care center manager moves
the operation to another location. FTA seeks comment on whether the
transit agency should be required to replace the day care center only
with another eligible transit activity (such as a senior care or public
health activity), or whether the space might be made available for
lease by a public or private sector activity. FTA is considering
requiring the transit agency to perform a new market analysis on the
basis of replacing the initial joint development activity with a
market-based joint development activity.
Finally, the public transit agency may reasonably seek to build a
large enough facility to allow for future expansion. Given that such
facilities may have a useful life of 40 years or more, it is reasonable
to anticipate some growth in the transit agency and its service over
that term. The transit agency may then wish to offer this additional
space for rent on a non-interfering basis until it is needed for
transit operations. FTA seeks comment on a method for determining what
growth is ``reasonable'' to project in this instance. FTA is
considering linking this projected growth to population forecasts for
the region, as used by the Metropolitan Planning Organization for its
long range plans.
Issued on: January 24, 2006.
Sandra K. Bushue,
Deputy Administrator.
[FR Doc. 06-871 Filed 1-30-06; 8:45 am]
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