Approval to Execute a Lease Agreement with Food and Drug Administration for Parking at White Flint

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1 Planning, Program Development and Real Estate Committee Item IV A October 9, 2014 Approval to Execute a Lease Agreement with Food and Drug Administration for Parking at White Flint

2 Washington Metropolitan Area Transit Authority Board Action/Information Summary Action Information MEAD Number: Resolution: Yes No TITLE: FDA Parking at White Flint Station Parking Garage PRESENTATION SUMMARY: To request Board approval to lease 150 parking spaces to the U.S. Food and Drug Administration (FDA) at the White Flint Metrorail Parking Garage. PURPOSE: Request Board approval to lease 150 parking spaces to the U.S. Food and Drug Administration (FDA) at the White Flint Metrorail Parking Garage. DESCRIPTION: The FDA opened new offices at Landsdown Street in Rockville, Maryland near the White Flint Metro Station. FDA has proposed to lease 150 non-exclusive parking spaces at the Metro Parking Garage. These spaces will be available on a first-come, first-served basis and there will be no physical delineation of the spaces within the Garage. FDA parking users will be issued an access card to allow in/out access to the Metro Parking Garage. FDA will pay the current non-rider rate of $8.60 per space per weekday or $335,400 annually (260 work days X $8.60 X 150 spaces), with the lease payment due in advance on a monthly basis. The FDA understands parking rates may be increased by the Board from time to time and has agreed to either accept the increase or terminate the parking agreement. The term of the parking agreement will be for one year with four one-year options to renew. FDA has agreed to vacate on 60 days notice prior to the expiration of each one-year term if the parking is required for Metro riders. The White Flint Metrorail Parking Garage has a capacity of 1,270 parking spaces and 350 to 450 of those spaces are vacant daily. Assuming FDA uses its entire 150-space allotment, the garage will have then have 200 to 300 spaces vacant on a daily basis. Metro Key Highlights: The proposed lease directly supports one of the goals of Momentum Strategic Plan of ensuring financial stability by generating additional revenue from Metro s assets FDA will pay non-rider rate of $8.60 per space; $335,400 annually, ($1.7 million for full term of lease) Metro may terminate the lease if the parking spaces are required for Metro riders Background and History: The FDA opened new offices at Landsdown Street in Rockville, Maryland and needs 150 parking spaces for employee parking. FDA issued an RFP for 150 parking spaces within walking distance of its offices and Metro responded, contingent on Board approval. The proposal to lease 150 parking spaces at White Flint to FDA has been screened internally. The White Flint parking garage has a total capacity of 1,270 parking spaces and 350 to 450 of those spaces are vacant daily. Metro does not seek to encourage driving over public transit. The proposed lease will utilize existing empty parking spaces in the Metro garage, no new parking spaces will be created for FDA. Further, Metro will

3 encourage FDA to work closely with Montgomery County toward achieving the County's non-auto drive mode share (NADMS) goals set forth both in the adopted White Flint Sector Plan and applicable Traffic Mitigation Agreements. Discussion: The incidental, non-transit, public use of WMATA-owned parking facilities during peak and/or revenue time periods requires Board approval. FUNDING IMPACT: This is a revenue-generating contract which will provide a $335,400 in FY15 revenue to the Metro operating budget, and ongoing revenue in each subsequent year for which the contract is renewed. Project Manager: Bruce Bourque Project CFO/LAND Department/Office: TIMELINE: Previous Actions Anticipated actions after presentation None Enter into a license agreement with the FDA for 150 parking spaces at the White Flint Metrorail Garage. RECOMMENDATION: Approval to lease 150 parking spaces to the U. S. Food and Drug Administration (FDA) at the White Flint Metrorail Parking Garage.

4 Washington Metropolitan Area Transit Authority FDA Parking at White Flint Station Parking Garage Planning, Program Development and Real Estate Committee October 9, 2014

5 Purpose Request Board approval to lease 150 parking spaces to the U.S. Food and Drug Administration (FDA) at the White Flint Metrorail Parking Garage

6 Background FDA opened new offices in Rockville, Maryland and requires 150 employee parking spaces The White Flint Parking Garage has a capacity of 1,270 parking spaces Between 350 to 450 of those parking spaces are vacant daily Landsdown Street New NRC/FDA building at White Flint Metro

7 Benefits Proposed lease supports one of the goals of Momentum Strategic Plan of ensuring financial stability by generating additional revenue from Metro s assets FDA will pay non-rider rate of $8.60 per space; $335,400 annually ($1.7 million for full term of lease) If the rate increases, FDA may terminate or pay the increased rate Metro may terminate if the parking spaces are required for Metro riders M FDA Building White Flint Parking Garage

8 Recommendation Approve leasing 150 parking spaces to the U.S. Food and Drug Administration at the White Flint Metrorail Parking Garage White Flint Parking Garage

9 SUBJECT: APPROVAL TO LEASE 150 PARKING SPACES TO THE U.S. FOOD AND DRUG ADMINISTRATION AT THE WHITE FLINT METRORAIL PARKING GARAGE RESOLUTION OF THE BOARD OF DIRECTORS OF THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY WHEREAS, The U.S. Food and Drug Administration (FDA) has opened new offices at Landsdown Street, Rockville, Maryland and requires 150 parking spaces for employee parking; and WHEREAS, The FDA has proposed to lease 150 parking spaces at the White Flint Metrorail Parking Garage to satisfy this requirement; and WHEREAS, The White Flint Metrorail Parking Garage has a total capacity of 1,270 parking spaces and 350 to 450 of the parking spaces are vacant daily; and WHEREAS, The FDA will pay the non-rider rate of $8.60 per parking space per day or $335,400 annually and will agree to vacate if and when the parking spaces are required for riders; and WHEREAS, The proposal will generate revenues and provide WMATA with the flexibility to recapture the parking spaces if and when needed for riders; now, therefore be it RESOLVED/ That the Board of Directors approves the lease of 150 parking spaces at the White Flint Metrorail Parking Garage to the FDA; and be it further RESOLVED, That this Resolution shall be effective immediately. ~ to form and legal sufficiency, / ~r- ~ ryn H.S. Pett General Counsel WMATA File Structure No.: Disposal of Less Than Fee Temporary Interest (leases, licenses, most permits)

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