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Home My WebLink AboutMINUTES - 09092003 - SD.6 TO: REDEVELOPMENT AGENCYIBOARD OF SUPERVISORS FROM: John Sweeten, Executive Director N Dennis M. Barry, AICP, Director of Community Development DATE: August 5, 2003 SUBJECT: Joint Exercise of Powers Agreement for Pleasant Hill BART Station Leasing Authority SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS As the Board of Supervisors and as the Governing Board of the Redevelopment Agency APPROVE and AUTHORIZE the Chair to execute a Joint Exercise of Powers Agreement for the Pleasant Hill BART Station 'Leasing Authority by and among the County of Contra Costa, the Contra Costa County Redevelopment Agency, and the San Francisco Bay Area Rapid Transit District, FISCAL IMPACT The business plan underlying the Joint Exercise of Powers Agreement for the Pleasant Hill BART Leasing Authority results in the County General Fund receiving an annual revenue stream of ground lease estimated at $300 million over 99 years. This revenue stream results from the investment of Pleasant Hill BART redevelopment revenues (estimated at $35 million in today's dollars) to pay for BART patron replacement parking,and other public improvements related to approved development on the joint development property at Pleasant Hill BART. Funds would be contributed by the Agency primarily from bond proceeds. BACKGROUND/REASONS FOR RECOMMENDATIONS r CONTINUED ON ATTACHMENT: X YES SIGNATURE: lia, ./ ' .:..-RECOMMENDATION OF EXECUTIVE DIRECTOR ECOMM DATION OF GENCY COMMITTEE ,--APPROVE OTHER ,j SIGNATURE(S): € ACTION OF AGE ' 1 O1%WVM1ff R 19. 2M,3 APPROVED AS RECOMMENDED OTHER S ; RVISORS S€EAKW: 1-JEW ORM", RW 2.MAM F`M AR,735 MAR= STFtffi2,sa FRWISCO VOTE OF COMMIS►SION'ERSISUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: y ABSTAIN. MINUTES OF THE BOARD OF SUPERVISORWAGENCY ON THE Contact: Jim Kennedy DATE SHOWN. 5-1255 prig: Redevelopment Agency cc: County Administrator ATTESTEDSM'Dm 9,2003 County Counsel Community Development JOHN SWEETEN, CLERK OF via: Redevelopment THE BOARD OF SUPERVISORS/ • BART AGENCY SECRETARY • Goldfarb & Lipman • Allan Kotin BY .: f ` " _W - , DEPUTY personal\Boardorders\BOARD.RDA.6.03.joint.exercise r BACKGROUND/REASONS FOR RECOMMENDATIONS The BART property at the Pleasant Hill Station(Area 11/12)is one of the development sites in the County adapted Pleasant Hill BART Station Area Specific Plan (the"Specific Plan"). The property is a key property in the Pleasant Hill BART Redevelopment Project. The property is owned by the San Francisco Bay Area Rapid Transit District(BART). in 2001 the County,the Redevelopment Agency, and BART completed a land use and design concept for the BART property in a major design Charrette. The results of the Charrette have been incorporated into a November, 2002 County approval of a Rezoning and Preliminary Development Plan(County Files R2 023116&SP 2002-02). This"Charrette Plan"provides for a mixed-use transit village development with the following general characteristics (estimates based on RZ 023116); Residential Units 274-446 units Office 200,000--456,000 sq. ft. Retail/Storefront 42,000 sq. ft. Civic 7,000 sq.ft. One of the development blocks may flex in use with either office or residential use. # Up to 50 units will be for-sale housing. The development is expected to occur largely under a ground lease format. In order for the Charrette Pian to be undertaken the 1,467 surface parking spaces utilized by BART patrons must be replaced in a structure. BART does not have revenue to construct such a facility,nor is the private development contemplated financially feasible if required to construct the replacement parking. The JPA Agreement provides for the County Redevelopment Agency to finance the construction of the replacement parking facility and other public improvements. The JPA Agreement contemplates that the private development will occur largely under terms of ground lease (all development except the for-sale housing component). In order to induce the Redevelopment Agency to finance the BART replacement parking and other public improvements the JPA Agreement provides for BART and the County to share ground lease revenues. The business structure provides that BART, the owner of the property, lease the property to the Pleasant Hill BART Station Leasing Authority. The Leasing Authority,which is comprised of BART,the County,and the Redevelopment Agency, will enter into ground lease with a private developer, currently Millennium Partners. The ground lease revenues will be shared between the County and BART on a 75-25% basis. The general parameters of the business structure is set forth in Exhibit A. The financial parameters are set forth in Exhibit B. The recommended action represents a major step in accomplishing the long desired transit village at Pleasant Hill BART,and do so in the context of a public-private partnership that will endow the County with a long-term general fund earning asset. Personal\Hoardorders\BOARD.RDA..5.03.joint.exercise EXHIBIT A JPA BUSINESS STRUCTURE a) Parties 1) BART 2) County of Contra Costa 3) Contra Costa County Redevelopment Agency b) Boundaries =Specific Plan Area c) Powers 1) Facilitate (study, plan,finance) private and public development of BART property, 2) Contract for services; 3) Incur debt(non recourse to public agency members); and 4) Apply for and receive grants/loans from federal/state government d) Governance 1) 4 member Authority Board-two per public agency • BART Board Member(2) • Board of Supervisors Members (2) 2) Unanimous consent to all actions 3) Treasurer/Auditor=County Auditor Controller 4) Authority Staff—Co-Executive Directors • County Redevelopment Director • BART Manager of Property Development 5) Mediation to resolve disputes 5) RDA terminates as party when annexation of BART property occurs e) Financing 1) Contributionsladvances allowed by members (nominal); 2) Hold title to funds, property,facilities acquired, 3) Receive/repay loans; 4) Issue bonds, and 5) Receive and distribute revenues, primarily ground lease • Stipulates percentage distribution between County/Agency and BART—75%to County, 251%to BART • Pay lease administration expenses (contracted) f) Property Disposition by Lease and Sale 1) Three year option to lease, extendable by mutual consent; 2) Sale by BART to Authority of property to be developed as for-sale housing (not to exceed 54 units); 3) Land Swap may be consideration for sale of property, i.e., BART receives fair market value, County& BART share equally above fair market value; BART could purchase property of equal value; 4) Acknowledge Millennium Partners as Developer(provides for replacement of Millennium, if necessary); 5) Unsubordinated Ground tease, 5) Developer secures entitlements from County in conformance with charrette plan(now RZ€323115); 7) BART provided oversight authority of activities affecting transit facilities; and 5) Agency funds parking structure and public improvements (type and amount to be determined) g) Administration 1) Financial records and audits to be kept by Treasurer; and 2) Lease administration contracted to private party with full access to developer/owner's books Personal\Boardorders\BOARD.RDA.5.03.joint.exercise �'�'h, $ )IIC'Itti `l f f f5f j, y u .z F i fkR- �. 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I_.,.ti t ctaEs, ,. r(t�fctft ld mx 4? t tti'ts 351E( g f � , - r"i[LtttifraiiiFlrEinlili �� )�4°t°�is�?(°slS�`f1� {��t)ti1�Ek.`I14;.°E."4 ,tl.rfkff ,ah,1t.��f_ of➢4 � 1i i '�«_tt .. i .fr(Ilifil"?i;t NMIwd (is.t,' J'E .'.f;iiJ: Ot hf'i1f6 tIf Slit'41) f4cr4u I?1 fv F,.1 �f•. _,:1 F?!U'.� 14LOk ii2a :jod fztEjw ittr' ,.�{{))j��4�I'�LIi1l1Ez�.`� i3-�'t,' E�'�El4L�i�, pryptl**{{ )tip }e// i))II t99 iitt{{ fay 2{{ f ♦)) �M1 I fill BARI' Lc tqM1 Blis, No NAN JPA jj. E. c..iP;13,10 i;c Ilk A:Lm K.'IM, vj4 t: :H'w j:;W A fw'If k It Bar Chart F40.0, ,a 350 300 ®lnveatnxm 200 j J i Return Is011 I 'W NPV taa se $2S e RDA lumtment 0.0my Germra£Fund Split ofLtAw Re"HMS Ar��afMa w�bNALy Mrp. SWI b.2Sa Pleasant N£££BART Joint Dava£opnwnt Protect Cumulative MYaar Net Cash Flow: with RDA Investment County Caenarei Fond and BART, $00 stao seas i saga � 080 so 4r0 Yl YC tiN ri.9p Yr4tl YtY 4rp YYry hq Yr9d --..CoumY Genesi Fwid BARTTatsi ^^RDA lnveom.nt Ben 0 1 6YAL+XBAb 8AFre-,.uwmnt ere.wMn+.yryr p�r+amvuyon cimnme.pxbp,dmmq,,mendrQaveaaan rwas.