[Federal Register Volume 71, Number 20 (Tuesday, January 31, 2006)]
[Notices]
[Pages 5107-5109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-871]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2006-23511]


Joint Development Guidance

AGENCY: Federal Transit Administration, Department of Transportation.

ACTION: Notice of Guidance; request for comments.

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SUMMARY: This guidance would implement additional authority provided in 
the Safe, Accountable, Flexible and Efficient Transportation Equity 
Act, a Legacy for Users (SAFETEA-LU) for public transportation agencies 
undertaking joint development projects. In addition, this notice seeks 
comment on two issues: a clarification of what is ``physically or 
functionally related'' to a transit project; and a proposed limitation 
on the amount of space that might be leased under ``incidental use.'' 
Finally, this guidance would provide additional information in a 
question-and-answer format to assist grantees in developing and 
submitting project proposals for FTA review.

DATES: Comments should be received on or before March 2, 2006.

ADDRESSES: Mail or hand deliver comments to the U.S. Department of 
Transportation, Dockets Management Facility, Room PL-401, 400 Seventh 
Street, SW., Washington, DC 20590, or submit electronically at http://dmses.dot.gov/submit. All comments should include the docket number 
that appears in the heading of this document. All comments received 
will be available for examination and copying at the above address from 
9 a.m. to 5 p.m., e.s.t., Monday through Friday, except Federal 
holidays. Those desiring notification of receipt of comments must 
include a self-addressed, stamped postcard or you may print the 
acknowledgment page that appears after submitting comments 
electronically.

FOR FURTHER INFORMATION CONTACT: Paul Marx, 202-366-1675, or Paula 
Schwach, 816-329-3935. FTA is located at 400 Seventh Street, SW., 
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m., 
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access and Filing

    You may submit or retrieve comments online through the Document 
Management System (DMS) at: http://dmses.dot.gov/submit. Acceptable 
formats include: MS Word (versions 95

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or later), MS Word for Mac (versions 6 to 8), Rich Text File (RTF), 
American Standard Code Information Interchange (ASCII) (TXT), Portable 
Document Format (PDF), and WordPerfect (versions 7 to 9). The DMS is 
available 24 hours each day, 365 days each year. Electronic submission 
and retrieval help and guidelines are available under the help section 
of the Web site.
    An electronic copy of this document may also be downloaded by using 
a computer, modem and suitable communications software from the FTA Web 
site: http://www.fta.dot.gov. Internet users may also reach the Office 
of the Federal Register's home page at: http://www.nara.gov/fedreg and 
the Government Printing Office's Web page at: http://www.access.gpo.gov/nara.

Background

    The Federal Transit laws have included joint development authority 
since the Urban Mass Transit Act of 1974. In the Transportation Equity 
Act for the 21st Century (TEA-21), the joint development authority was 
incorporated into the definition of a transit capital project, at 49 
U.S.C. 5302(a)(1)(G). This made joint development activities eligible 
for reimbursement under formula and discretionary transit grant 
programs. SAFETEA-LU added intercity bus and rail terminals to the 
joint development authority, and excepted them from the prohibition on 
supporting the construction of space for commercial, revenue-producing 
activities.
     The definition of ``capital project'' reads, in pertinent part, as 
follows:

    (1) Capital project.--The term ``capital project'' means a 
project for * * *
    (G) a mass transportation improvement that enhances economic 
development or incorporates private investment, including commercial 
and residential development, pedestrian and bicycle access to a mass 
transportation facility, and the renovation and improvement of 
historic transportation facilities, construction, renovation, and 
improvement of intercity bus and intercity rail stations and 
terminals, because the improvement enhances the effectiveness of a 
mass transportation project and is related physically or 
functionally to that mass transportation project, or establishes new 
or enhanced coordination between mass transportation and other 
transportation, and provides a fair share of revenue for mass 
transportation that will be used for mass transportation--
    (i) Including, property acquisition, demolition of existing 
structures, site preparation, utilities, building foundations, 
walkways, open space, safety and security equipment and facilities 
(including lighting, surveillance and related intelligent 
transportation system applications), facilities that incorporate 
community services such as daycare or health care, and a capital 
project for, and improving, equipment or a facility for an 
intermodal transfer facility or transportation mall, except that a 
person making an agreement to occupy space in a facility under this 
subparagraph shall pay a reasonable share of the costs of the 
facility through rental payments and other means; and
    (ii) Excluding construction of a commercial revenue-producing 
facility (other than an intercity bus station or terminal) or a part 
of a public facility not related to mass transportation;'' [Emphasis 
on additions added.]

    FTA has implemented the joint development authority as part of its 
grant program circulars, inserting guidance as Appendix A to Circular 
5010.1, guidance for new Major Capital Investments, and as Appendix B 
to the Grants Management and Formula Capital Grants circulars, 9300.1 
and 9030.1. The proposed revision incorporates the new authority 
provided in SAFETEA-LU, and it seeks to clarify how FTA will review and 
approve specific activities involving the use of federally-assisted 
real property. These include transfer of real property for joint 
development, incidental use and shared use of transit property, as well 
as property disposition. The following are changes made to the original 
Appendix, for each of Circulars 5010.1, 9030.1 and 9300.1. The revised 
Appendix, as a substitute for the existing Appendices, is accessible on 
the FTA Web site, at http://www.fta.dot.gov/; as well as in the DOT 
Docket, at FTA-2006-23511.
     Page 1--Reorganized the beginning of the Appendix to focus 
on the three tests defining a joint development: Statutory Definition; 
Financial Return; and Highest and Best Transit Use.
     Page 5--Eligible Costs--Added element f., ``including 
integrity bus and rail facilities.'' This item reflects the new 
authority in SAFETEA-LU.
     Page 10--Added a new Section 9: Process for Submitting a 
New Joint Development Proposal.
     Page 12--Revised Frequently Asked Questions, to include 
new examples on low and moderate-income housing (Question 11), Parking 
for Community Service Activities (Question 13), the difference between 
Joint Development Transfer and Disposition (Question 14), and the 
difference between Joint Development and Shared Use (Question 15).
     Page 25--Added Questions 18, 19, and 20 to clarify the 
treatment of property disposition, sharing common walls, and intercity 
bus and rail stations.
     Attachment 1--FTA has developed a Joint Development 
checklist defining what is to be included in a project proposal 
submitted for FTA review.
    FTA seeks comment on these revisions to the joint development 
appendices to the respective FTA Circulars.
    In addition, FTA seeks comment on two basic issues that arose 
during the development of this Appendix.
    Physically or Functionally Related--A joint development project 
must be a mass transportation improvement that is physically or 
functionally related to the transit project. Based on the 
implementation of this authority over the last twenty years, FTA has 
taken this to mean that: either the joint development must be 
integrated into the transit project--i.e., share its common walls, 
floor, and/or roof--or that the joint development must be related to 
the transit project by function, as evidenced by connecting pathways, 
joint use of parking, bicycle and related amenities, and enhancement of 
the transit system by the joint development. FTA has tended to prefer 
projects where the joint development was fully integrated into the 
overall transit project, thus ensuring physical relationship.
    However, the addition of intercity bus and train stations to the 
definition of a joint development project raises some questions 
regarding functional relationship. The joint development is intended to 
enhance the effectiveness of public transit, and this may occur 
optimally if the intercity bus or rail station is in a nearby but 
separate facility from the transit station. FTA seeks comment on 
whether a direct (short distance) pedestrian or bicycle pathway is 
sufficient to establish a functional relationship between two stand-
alone structures that are defined as a transit capital project, or 
whether FTA should require that a joint transit/intercity terminal 
project share a common wall and roof in order to conform to the 
requirements of SAFETEA-LU.
    Parking is a related issue in this regard. FTA generally will not 
support parking in excess of transit need. However, both intercity bus 
and rail terminals will have a need for parking (and taxi access) even 
if most of their customers come to the terminal on public 
transportation. FTA seeks comment on how to incorporate intercity bus 
and rail terminal parking requirements into the overall transit 
project.
    Maintenance cost is also a related issue in this regard. Unlike 
other joint development projects, intercity bus and rail stations are 
not required to pay ``a reasonable share of the costs of the facility 
through rental payments and

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other means; * * *'' FTA has interpreted this exception as applying to 
the construction cost of these facilities, not their ongoing reasonable 
costs of maintenance. FTA will encourage public transportation agencies 
to negotiate shared maintenance agreements to ensure satisfactory 
condition and usefulness of the joint development project over its full 
term.
    Proportion of Incidental Use--FTA is considering establishing a 
percentage of additional space that may be supported with transit grant 
funds for joint development and/or incidental use purposes. Taking as 
given that the primary purpose of the expenditure is a transit 
project--say, a bus transfer facility--how much more space would be 
reasonable to include for a join development activity such as a day 
care center, congregate meal facility, or health care facility? Is it 
reasonable for the physical capacity of the jointly developed 
improvement to exceed the transit facility in size and/or cost? This 
question arises particularly in the context of an intercity bus or rail 
station which, since its service area is likely to be considerably 
larger than the transit agency's, may require even more ``peak'' than 
the transit agency does.
    Related to this issue is the question of how to treat changes in 
the use of joint development space after the project is complete. For 
example, if space was made available for a day care center but three 
years after the project is complete, the day care center manager moves 
the operation to another location. FTA seeks comment on whether the 
transit agency should be required to replace the day care center only 
with another eligible transit activity (such as a senior care or public 
health activity), or whether the space might be made available for 
lease by a public or private sector activity. FTA is considering 
requiring the transit agency to perform a new market analysis on the 
basis of replacing the initial joint development activity with a 
market-based joint development activity.
    Finally, the public transit agency may reasonably seek to build a 
large enough facility to allow for future expansion. Given that such 
facilities may have a useful life of 40 years or more, it is reasonable 
to anticipate some growth in the transit agency and its service over 
that term. The transit agency may then wish to offer this additional 
space for rent on a non-interfering basis until it is needed for 
transit operations. FTA seeks comment on a method for determining what 
growth is ``reasonable'' to project in this instance. FTA is 
considering linking this projected growth to population forecasts for 
the region, as used by the Metropolitan Planning Organization for its 
long range plans.

    Issued on: January 24, 2006.
Sandra K. Bushue,
Deputy Administrator.
[FR Doc. 06-871 Filed 1-30-06; 8:45 am]
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