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HomeMy WebLinkAboutItem 3.02 MOU BART WDub StationCITY CLERK #1060-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 15, 2000 SUBJECT: ATTACHMENTS: Authorization to Negotiate a Financial Participation Memorandum of Understanding (M.O.U.) with the San Francisco Bay Area Rapid Transit District (BART) and the City of Pleasanton for proposed West Dublin/Pleasanton BART Station Report Prepared by: Christopher L. Foss, Economic Development Director Draft Concept Plan RECOMMENDATION: Authorize the City Manager to negotiate a Financial Participation Memorandum of Understanding (M.O.U.) with BART and the City of Pleasanton for the West Dublin / Pleasanton BART station FINANCIAL STATEMENT: There is no financial impact at this time. DESCRIPTION: This item will allow for negotiations to proceed between the City of Dublin, City of Pleasanton, and BART with regards to the City's financial participation in the proposed mixed-use development project, including a BART station and associated transportation facilities. BACKGROUND: The City of Dublin, along with the City of Pleasanton, has been interested, for many years, in the development of a West Dublin/Pleasanton BART Station. To that end, the San Francisco Bay Area Rapid Transit District (BART), in February 1999, entered into negotiatiOns under the Infrastructure Financing Act with Jones Lang LaSalle (LaSalle) for the development of a mixed- use project and a proposed West Dublin/Pleasanton BART station at Golden Gate Avenue and 1-580. At its meeting of November 4, 1999, the BART Board, by a unanimous vote of 8-0, authorized the General Manager to complete negotiations and execute a development agreement and long-term ground lease with Jones Lang LaSalle as well as negotiate financial participation agreements with the cities of Dublin and Pleasanton, and enter into a Joint Powers Agreement (JPA) with the Association of Bay Area Governments (ABAG) to issue bonds to finance the construction of the BART station and related transportation improvements. H/cc-forms/agdastmt.doc COPIES TO: ITEM NO. The $100 million project, as currently proposed (see Attachment A), includes: Public: BART is proposing to construct a BART Station in the 1-580 median two (2) parking garages (600 spaces in Dublin and 400 spaces in Pleasanton), bus intermodal facility and pedestrian walkways from the station to either side of 1-580. It is estimated that this portion of the project will cost $40 million. Private: LaSalle is proposing a private development consisting of approximately 160 market-rate residential units and a 240-room hotel in Dublin, and an approximately 175,000 square foot office building in Pleasanton. It is estimated that this portion of the project will cost $60 million. ISSUE: BART currently owns the property in both Dublin and Pleasanton on which LaSalle proposes to construct the mixed-use development, parking garages, and associated station improvements. In order to make the public portion of the project economically feasible, BART is proposing to enter into a JPA with the Association of Bay Area Governments (ABAG) in which the JPA would issue bonds to raise the necessary $40 million in funds to construct the public improvements. The proposed bond issue would be repaid from the following sources: BART: BART is proposing to pledge fare box revenues from the ridership attributable to the new station and any other related BART revenues. The BART contribution will also include the pre-paid ground rent from the private development. CITIES: It is proposed that the cities of Dublin and Pleasanton pledge the sales taxes, property taxes, and transient occupancy taxes attributable to the new private development on the BART property only for a fixed period of time. LaSalle would then construct the parking garages on behalf of the JPA. The JPA will, in turn, lease one parking garage to Dublin and one parking garage to Pleasanton, in exchange for rent equivalent to the tax receipts generated by the private development. BART would be responsible for the operation and maintenance of the garages. It is further proposed that as soon as BART can finance the bond's debt service from its own revenues for two (2) consecutive years, the obligations of the cities will terminate and any accumulated surplus will be distributed to the contributing agencies based upon their proportionate contributions. The proposed project is currently undergoing the preparation of a subsequent Environmental Impact Report (EIR) and both cities will individually process, on parallel path, the planning/development applications. It is the expectation of both BART and LaSalle that the land use approvals will be considered by both cities by late 2000, and the project will be completed in 2003. ANALYSIS: The proposed West Dublin / Pleasanton BART Station is viewed as a cornerstone for the future development of the City's central business district. The proposed project will bring additional commercial and residential activity downtown, and will figure prominently in the City's West Dublin BART Station specific plan currently underway. It is expected that the new station will also relieve congestion at the existing East Dublin / Pleasanton BART station and create new ridership for the BART system. Xt the present time, the City of Dublin receives no tax revenues from the BART property. While the proposed financial arrangement calls for the City of Dublin to commit sales, property, and TOT taxes to help fund the public improvements associated with the project, it should be noted that the lack of private development on the BART site currently precludes the City from receiving any taxes. Under this arrangement, the City will receive new taxes from the new development after the tax commitment arrangement expires. Staff believes that the new BART station and related imProvements will serve the BART ridership as well as future development in the area. As all of the details of the arrangement have not been finalized between all parties, staff would request that the City Council authorize the City Manager to proceed with finalizing the level of City participation in the proposed project and return, in the near future, with an agreement for City Council consideration. The Pleasanton City Council will consider this issue at their March 7, 2000 meeting. RECOMMENDATION: It is staff's recommendation that the City Council authorize the City Manager to negotiate a Financial Participation Memorandum of Understanding (M.O.U.) with BART and the City of Pleasanton for the proposed West Dublin / Pleasanton BART Station. > z W -- o ~} o ~1 !