METRO BOARD OF DIRECTORS REAL ESTATE WORKING COMMITTEE MEETING AUGUST 20, :30 PM

Transcription

1 METRO BOARD OF DIRECTORS REAL ESTATE WORKING COMMITTEE MEETING AUGUST 20, :30 PM ACTION ITEMS 1. Request Board declaration of 1116 Naylor Street as surplus to METRO s needs and the authorization to negotiate to sell the property. M. Milovanovic BRIEFING ITEMS 2. Transit Oriented and Joint Development/TOD M. Milovanovic

2

3

4 1116 Naylor St 31,254 sq. ft. of land currently housing three buildings totaling 16,885 sf N

5 Looking southeast across from Naylor Street 2

6 Looking southwest across from Vine Street 3

7 Front of the property 4

8 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Joint Development/Transit Oriented Development AGENDA DATE: 8/20/14 DEPARTMENT: Real Estate and Property Management PRESENTER: Miki Milovanovic SUMMARY: Metro's Real Estate and Property Management Department is responsible for METRO's Joint Development/ Transit Oriented Development. The briefing will review the current policy, goals and objectives as well as the ongoing areas of activities.

9 Transit Oriented and Joint Development Briefing Real Estate Committee August 2014

10 METRO s Board Policy METRO adopted Transit Oriented Development Goals and Strategies September 2012 TOD primarily private sector/market-driven development METRO can act as resource, highlighting benefits of transit, importance of pedestrian/bike access etc. 2

11 General Goals for TOD for Agency & Private Sector Add to ridership Build dense walkable neighborhoods Decrease parking space requirements Build local transit ethic Add to neighborhood cohesiveness Increase property values and/or lease rates

12 McGowen Station ¼ Mile Office Building Renovation Farb Multi-family Retail Multi-family Trammell Crow Multi-family Under Construction Retail Camden Future Mixed Use Development Medical Morgan Group Multi-family 4

13 5 Multi-Family and BBVA Compass Stadium at EaDO/Stadium Station

14 Ensemble/HCC Station -TOD Projects MATCH - Midtown Arts Theater Center Houston $20M project; 60,000 square feet mixed use 6

15 Bell Station Residential SkyHouse 1625 Main St. 336 units 26 floors Broadstone 1515 Main St. 207 units 6 floors June 2013 August

16 Recent and Current METRO JD/TOD Initiatives Updating website to tout good examples of new TOD projects Developed comprehensive tracking of public and private reinvestment near all rail stations, including North, East and Southeast. Gathering and defining information for the Board concerning Addicks Park & Ride and the options for joint development Helping guide the Station Area Market Studies in which select stations are studied to measure the market needs and TOD potential Working with public and private entities toward redevelopment of N. Shepherd Park & Ride, Palm Center, Northline Transit Center (HCC), and Northwest Transit Center to align TOD principles into the respective developments Working with developers and providing information toward other possible TOD/JD opportunities Staff has on-going and regular dialogue with 30+ developers and brokers 8

17 Public & Private Investment Near Rail Stations Initially conducted in 2006, two years after opening of the Red Line Updated in 2010 Earlier this year, Board Member Spieler asked for update for his use at an American Planning Association national conference Includes tracking of all of Red line, East and Southeast lines Crtieria: Public & private investment in projects, where development use supports transit One-quarter mile radius of rail stations; Slightly larger radius if area contains density, large destination venues, or highly-walkable environments Over $9 Billion currently invested near rail stations 9

18 10 Public & Private Investment

19 New Residential in a Booming Houston Current development boom cycle Housing has taken dramatic shift toward vertical development Analysis identifies new high rise and multi-family developments This density points to opportunities for growth in transit ridership 11

20 12 Mapping New Multi-Family and High Rise Residential

21 Cypress Park & Ride Joint Development Private developer solicitation through RFP process Instead of 21 ac. concrete surface P&R, asked for JD TOD proposals NewQuest Properties selected to enter into exclusive negotiations period Negotiation toward development agreement and ground lease Development Agreement: NQ to build for METRO a 1500-space, 4-level garage, bus platform and canopy Ground Lease: METRO entered into a 99-year ground lease for 12.5 acres for retail & residential development for remainder of site FTA approved this project, the first JD in FTA region VI METRO Cypress P&R garage opens, 2006 Multi-family residential (280 units) open; commercial retail opens,

22 METRO s Cost of Cypress Garage & Facilities Parking Garage (including platform & canopy) $ 14,700,000 Shared Driveways (crossing property) $ 681,741 Detention Pond $ 1,042,784 Payment and Performance Bond $ 122,676 Developer Fee $ 900,000 Total $ 17,447,201 14

23 Revenue to METRO and other aspects of Cypress Ground Lease The greater of 25% of retail development net profit or $50,000 annual base rent METRO receives 25% of sale or refinance of project Shared expenses for landscaping Multi-family development has rights to 300 parking spaces on non-exclusive basis 15

24 Houston s TOD History and Trend Houston METRO had first Joint Development in FTA Region VI Dense areas become more densely developed inside the loop Current robust multi-family development creates opportunities for density for bus ridership gains (W. Dallas; W. Gray, Washington, Richmond, Uptown) Suburban areas developing density where our transit centers or park & rides could serve more meaningful transit roles, such at Addicks and Energy Corridor 16

25 Possible Initiatives Transit fare incentives for multi-family developers or tenants; could decrease need for parking Work with HAR/LoopNet to create a TOD category for real estate properties for sale Encourage multi-family developers to list and promote their projects with rail/transit nearby 17