Resolution R99-35

SOUND TRANSIT

RESOLUTION NO. R99-35

A RESOLUTION of the Board of the Central Puget Sound Regional Transit Authority adopting the Real Property Disposition Policy, Procedures and Guidelines for the disposition of surplus real property.

WHEREAS, the Central Puget Sound Regional Transit Authority ("Sound Transit") is a duly organized regional transit authority existing under RCW Chapters 81.104 and 81.112 and has powers necessary to implement a high capacity transportation system; and

WHEREAS, on November 5, 1996, central Puget Sound area voters approved local funding for Sound Move, Sound Transit’s ten-year plan for regional high-capacity transit including light rail, commuter rail and ST Express Bus services; and

WHEREAS, it is necessary for Sound Transit to acquire real property for these systems and upon completion of these projects may in some cases result in surplus real property being realized; and

WHEREAS, by Motion No. No. M99-60, the Sound Transit Board adopted Transit Oriented Development evaluation criteria to be used in the process of identifying and/or evaluating proposed development opportunities around Sound Transit facilities; and

WHEREAS, the proposed Real Property Disposition Policy, Procedures and Guidelines would allow Sound Transit to implement uniform and fair disposition of surplus real property and achieve related goals and objectives that include flexibility to realize the greatest possible return on the public investment, utilization of the disposition of Sound Transit Real Property to mitigate impacts from implementation of Sound Move, utilization of the disposition of Sound Transit real property to encourage Transit Oriented Development, economic development, affordable housing, parks, trails and open space preservation, and environmental protection, enhancement and preservation; and

WHEREAS, the proposed Real Property Disposition Policy, Procedures and Guidelines comply with applicable state and federal laws and requirements;

NOW, THEREFORE, BE IT RESOLVED by the Board of the Central Puget Sound Regional Transit Authority that the Board does hereby adopt the attached Real Property Disposition Policy, Procedures and Guidelines.

ADOPTED by the Board of the Central Puget Sound Regional Transit Authority at a regular meeting thereof held on the day of January, 2000.

____________________
David Earling
Board Chair

ATTEST:

_____________________
Marcia Walker
Board Administrator

SOUND TRANSIT

RESOLUTION NO. R99-35

Surplus Real Property Disposition Policy, Procedures and Guidelines

BACKGROUND AND COMMENTS

Meeting:
Date:
Type of Action:
Staff Contact:
Phone:

Real Estate/Transit Oriented Development Subcommittee
Executive Committee

Board
12/02/99

01/06/00

01/07/00

01/13/00
Discussion/Possible Action to Recommend Board Approval
Discussion/Possible Action to Recommend Board Approval

Discussion/Possible Action
Jeri Cranney
689-4934

ACTION:

Approval of Resolution No. R99-35 would establish policies, procedures and guidelines ("Policies") for the disposition of surplus real property. These Policies would allow Sound Transit to implement uniform and fair disposition of real property and allow the achievement of the following goals:

Allow flexibility to realize the greatest possible return on the public investment

Utilize the disposition of Sound Transit Real Property to mitigate impacts from implementation of the Sound Move Plan

Utilize the disposition of Sound Transit Real Property to encourage Transit-Oriented Development

Utilize the disposition of Sound Transit Real Property to encourage, as appropriate:
Economic Development

Housing, commercial, mixed-use, industrial, and other appropriate uses

Parks, trails, and open space preservation

Environmental protection, enhancement, and preservation

BACKGROUND:

In May 1999, the Real Estate and Transit Oriented Development subcommittee was established to provide Sound Transit with clear direction on how to approach, create and implement Transit Oriented Development policies and procedures. Its first business was to develop a method for evaluating potential development projects that could either be solicited or proposed. On September 23, 1999, the Sound Transit Board approved Motion No. M99-60, which provided criteria to evaluate such development projects. The proposed Real Property Policy, Procedures and Guidelines will establish procedures for the disposition of surplus property consistent with adopted Transit Oriented Development Criteria as well as assist Sound Transit staff in evaluating all Real Property Acquisitions needed for any Sound Move projects.

RELEVANT BOARD POLICIES AND PREVIOUS ACTIONS TAKEN:

Adoption of Sound Move, The Ten-Year Regional Transit System Plan (May 31, 1996). Sound Move calls for making policy commitments to link land use and transit planning to enhance communities and to increase transit ridership.

Motion No. M98-25, adopted April 4, 1998, adopted Transit Oriented Development policies.

Motion No. M98-55, created the Real Estate and Transit Oriented Development subcommittee of the Executive Committee.

Approval of Real Estate Property Acquisition and Relocation Policies, Procedures and Guidelines (April 23, 1998)

Motion No. M99-60, adopted September 23, 1999, approved Transit Oriented Development Criteria that will be used to evaluate all potential development opportunities.

KEY FEATURES:

There are six main components to the Real Property Disposition Policy, Procedures and Guidelines. These six components are summarized below and described in detail in the proposed Policies (Attachment A).

A. Real Property Inventory and Surplus Real Property Inventory and Utilization Plan

Biennial Real Property Inventory – Consistent with requirements for federally assisted property such inventory will occur every two years, or more often as deemed necessary. Sound Transit’s Real Estate Division shall prepare a current inventory of all Sound Transit owned Real Property with detailed information

Biennial Surplus Real Property Inventory and Utilization Plan – Every two years, Sound Transit’s Real Estate Division shall prepare a Surplus Property Inventory and Utilization Plan. This plan shall identify assets of the agency, identify opportunities for surplus properties and provide planning for considering Real Property to be Surplus Property.

Notice to FTA - Surplus Real Property Inventory and Utilization Plan – Sound Transit shall notify FTA as required

B. Methods of Disposition

Federally Assisted Property – when this type of property is no longer needed for the originally authorized purpose, Sound Transit will request disposition instructions from FTA.

Non-Federally Assisted Property – all sales and transfers of non-Federally Assisted Property shall be made to the highest responsible bidder at public auction or by sealed bid, with recognition given to impacted property owners, tenants and other government agencies.

All Property dispositions will adhere to existing Sound Transit policies for establishing the Fair Market Value and Appraisal/Market Analysis as well as the Accountancy Act (RCW 43.09.210), Intergovernmental Transfers (RCW 39.33 and 43.09.210), other applicable state and federal requirements as identified in the Policies.

C. Surplus Property and Disposition Method Approval Process

Establishes clear procedures for the approval of all declaration of property to be Surplus Property and the Disposition of said property. No disposition of land will be made to Sound Transit officers, employees, or contractors.

D. Incidental Uses, Leases and Easements

Sound Transit shall employ maximum flexibility in determining the best use of its Real Property. To this end, Sound Transit shall seek use of its Real Property for raising additional revenues for the transit system or, enhance system ridership or provide other transit benefits.

Licenses and Lease of Sound Transit Real Property – Sound Transit may license or lease any of its Real Property and its appurtenances under the limitations and restrictions established in the policies.

Establishes policies and procedures to allow Sound Transit to have a building or other improvement for its use erected on Real Property owned or to be acquired by Sound Transit for a reasonable rental amount.

E. Transit-Oriented Development; Joint Development and Public/Private development projects on or with Sound Transit Real Property

When acquiring Real Properties, the Real Estate Division shall consider the opportunities for future use of the land and its development potential. This would include consideration of the Transit Oriented and Joint Development possibilities.

The Real Estate Division shall work with the Directors of the Sound Transit Departments to determine potential development opportunities on Sound Transit Real Property. These opportunities would be based on locally adopted station area plans and include such actions as:

Preparing an inventory of publicly owned Real Property

Evaluation of the potential real estate opportunities of these sites

Prepare market and financial feasibility studies

Foster Partnerships with local governments and community development groups

Solicit developer proposals when appropriate and with Board approval

Negotiate agreements associated with development, sale, lease

Monitor the development and use of assets

FUNDING:

There is no funding associated with the development of this policy. Implementation of this policy as designed may require additional resources for staffing, professional services, or consultant expertise. Such funding will need to come from approved project budgets. The sale of surplus property may offset some of these costs.

ALTERNATIVES:

Non-approval of a Surplus Real Property Policies, Procedures and Guidelines could jeopardize funding from federal sources for some or all portions of Sound Move.

CONSEQUENCES OF DELAY:

As Sound Transit begins to acquire Real Property for Sound Move projects, it is important to provide clear, fair and equitable direction to staff in evaluating Real Property needs for these projects. There are currently several property scenarios that require immediate attention by Sound Transit staff. Delaying these policies and procedures may result in missed opportunities for Transit Oriented and Joint Development projects.

The FTA also requires Sound Transit to have Disposition Policies and Procedures.

LEGAL REVIEW:

The Background and Comments and the Resolution have been reviewed and accepted by the Legal Department.