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HomeMy WebLinkAbout25 COMMUTER RAIL 08-01-94AGENDA NO. 25 8-1-94 Int e r- C o m DATE: AUGUST 1, 1994 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT AUTHORIZATION TO INITIATE NEGOTIATIONS STATION FOR A COMMUTER RAIL RECOMMENDATION Authorize the Assistant City Manager to initiate negotiations for purchase acquisition or long term lease for a commuter rail station site with Kemper Real Estate, the property owners of Jamboree Plaza. FISCAL IMPACT. The estimated cost of station construction and land acquisition is $5.6 million. Committed funding through Proposition 116 monies, Transportation Systems Management/Transportation Demand Management (TSM/TDM) Program, Growth Management Area (GMA), AB 2766 (Vehicle Registration), Transit Capital Improvement (TCI) Grant and City's Capital Improvement Program total $2.985 million. There are, therefore, adequate funds at this time for right-of-way acquisition. BACKGROUND In 1988 the Orange County Transportation Commission (OCTC later renamed Orange County Transportation Authority - OCTA) completed a 20-Year Master Plan of Transportation Improvements for Orange County. The report identified a growing traffic problem in Orange County and the need to improve our transportation infrastructure. One of the solutions to this problem included expanding commuter rail service to San Diego and Riverside Counties. Implementation of these projects was dependent upon voter approval of a half-cent sales tax which was approved November 1990 with passage of Measure M. In order to implement a commuter rail program, the OCTA approved a Commuter Rail Study and Action Plan in December 1990. The plan included ridership assumptions, an operating plan, a capital improvement program and proposed station locations. Four new station sites were identified within Orange County to accommodate City Council Report Authorization to Initiate Negotiations for a Commuter Rail Station August 1, 1994 Page 2 additional train service (In 1993-94 two additional station sites were added, for a total of six sites). A number of potential station sites were identified for the Tustin/North Irvine station in the vicinity of Jamboree Road/Edinger Avenue. Site A, the highest priority site, is located in the City of Tustin on privately held property known as Jamboree Plaza. The site would be at the rear of a triangular shaped parcel bounded by the railroad right-of-way to the north, Jamboree Road on the east and Edinger Avenue on the south (Exhibit A attached). OCTA has allocated $1.9 million of Proposition 116 funds toward the cost of design and construction for each of the new commuter rail stations proposed in Orange County. OCTA will also allow the $1.9 million to be used solely for site acquisition if there is a funding plan for construction costs. If acquisition exceeds the $1.9 million allocation the local agency through a variety of potential funding resources must absorb the additional costs. This can include costs associated with acquisition, construction, required studies, environmental certification, as well as site liability, and the continued operation and maintenance costs of the station. In addition to Prop. 116 funds, there are other transportation transit program grants, interjurisdiction improvement monies, vehicle registration and local funds that have been identified and pursued by the City in an effort to fund station acquisition and construction. Staff's efforts to secure funding to date are identified on Exhibit C. DISCUSSION The basic minimum site development criteria established by OCTA for a commuter rail station is a 3+ acre site, paved parking lot area for 300+ vehicles, a loading platform on each side of the double track, ticket vending machines, benches and a covered canopy. In addition, Site A, Jamboree Plaza would require the construction of an ADA approved overpass to cross the double tracks to access the platform opposite the station. The overpass will significantly add to the cost of station construction. Staff have currently estimated acquisition and construction costs for the proposed station at $5,600,000. Exhibit B provides a breakdown of acquisition and construction costs. City Council Report Authorization to Initiate Negotiations for a Commuter Rail Station August 1, 1994 Page 3 During the past 18 months the City staff has been meeting regularly with OCTA staff in an attempt to identify; additional funding resources, station criteria and design, conceptual site plan development, and mechanisms by which a site might be acquired or developed for a future commuter rail station. Meanwhile, City staff had been in communication with Kemper Real Estate the owner of Jamboree Plaza to discuss their interest in a rail station on their site. After an initial failure last year to reach a financing agreement, Kemper subsequently contacted the City, expressing an interest in reopening discussions for a commuter rail station at the Jamboree Plaza site. Based on funds committed to date on the project there is presently a funding gap of approximately $2,615,000 between funds which are committed to station development and the total project cost for the commuter rail station as shown on Exhibit B. A significant portion (approximately 45%) of the station costs involve the purchase of a 3+ acre site for the parking lot and passenger/transit loading and unloading area for the commuter rail station. OCTA has agreed to allow the City to use the $1.9 for site acquisition. One alternative to an outright purchase of the site would be a long term lease or long term lease with option to purchase. A lease would delay the large up front costs required for a full purchase. These various options were discussed informally with Kemper this past year. The City staff would like to formally pursue the feasibility and interest by Kemper to consider either purchase or lease of a 3+ acre portion of the Jamboree Plaza site for the construction of a commuter rail site. Prior to entering into an actual purchase agreement, the City would need to have an appraisal prepared to determine the market rate value of the site. The appraisal costs would be funded using Transit Capital Improvement (TC!) Grant monies and adequate funding is currently available for this portion of this project. In order to prepare the appraisal a conceptual site plan showing the maximum extent of the site area involved must be completed. Fluor-Daniel under contract to OCTA has just completed the preparation of this conceptual plan. It is imperative that the City proceed with negotiations. Failure to do so jeopardizes the availability of the site, in that Kemper may sell or develop the site and the City would lose the opportunity for a commuter rail station at this location. Action on the part of the city is also necessary to encumber TCI.Program City Council Report Authorization to Initiate Negotiations for a Commuter Rail Station August 1, 1994 Page 4 funds in line with the California Transportation Commission expenditure and timing. The $1.9 million dollars Prop 116 funds continue to be in danger of reallocated to other station locations if an acceptable Tustin station location is not identified soon. Staff is requesting that the City Council authorize the Assistant City Manager to initiate negotiations with Kemper Real Estate. City staff will continue to report back to the City Council on the status of additional funding sources and negotiations with Kemper. CONCLUSION A commuter rail station will provide multi-jurisdictional as well as regional benefits to the area-wide transportation system. In addition, the development of a station at this site may serve as a traffic mitigation opportunity for the MCAS Reuse Plan. Engineering Services Manager RTW: CAS: kbc \cmrlneg. rw EXHIBIT A JAMBOREE PLAZA- SITE A~ EXHIBIT B PRELIMINARY ACQUISITION AND CONSTRUCTION COSTS TUSTIN COMMUTER RAIL COST ITEM Acquisition (1) Engineering Environmental Construction COST $1,900,000 350,000 50,000 3,300,000 $5,600,000* Based on estimated land costs of approximately $15 per acre Does not include annual maintenance costs. Projected maintenance costs would be approximately $25,000 per year for the parking lot. EXHIBIT C TUSTIN COMMUTER RAIL FUNDING SOURCES FLrNDING SOURCE (1) Proposition 116 funds TSM/TDM Program funds GMA ~7 funds (2) GMA #8 funds (2) TCI Grant funds (3) AB 2766 (FY 93-94, FY City CIP (FY 94-95) 94-95) Total FUNDING AMOUNT (3) $1,900,000 $100,000 $375,000 $250,000 $230,000 $80,000 $50,000 $2,985,000 (1) Funding acronyms source is as follows: (2) (3) TSM = Transportation Systems Management TDM = Transportation Demand Management GMA = Growth Management Area TCI = Transit Capital Improvement CIP = Capital Improvement Program OCTA = Orange County Transportation Authority GMA ~7 and #8 allocations have been programmed in years 1998- 2000. According to OCTA, the City could request the allocation be advanced in an earlier years, if funds are available. TCI allocations are temporarily on hold due to State budget actions. OCTA has requested that the California Transportation Commission release Tustin TCI allocation.