84 FR 16339 - Joint Development: Proposed Updated Circular

The Federal Transit Administration (FTA) has placed in the docket and on its website proposed changes to an existing Circular (7050.1A) on joint development projects using FTA funds or FTA-funded property. The purpose of these proposed changes is to increase flexibility for project sponsors to pursue joint development projects, reduce FTA oversight of joint development agreements negotiated between project sponsors and their partners, streamline FTA's project eligibility review process, and clarify prior guidance in FTA Circular 7050.1A: FTA Guidance on Joint Development. If proposed changes are approved, the revised document will be renumbered as Circular 7050.1B: FTA Guidance on Joint Development. By this notice, FTA seeks public comment on proposed changes, which are at pages III-6, VI-1, VI-2, VI- 4, VI-5, and VI-6 of the Circular.

[Federal Register Volume 84, Number 75 (Thursday, April 18, 2019)]
[Notices]
[Pages 16339-16340]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-07812]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2019-0002]


Joint Development: Proposed Updated Circular

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice of availability of update to joint development circular 
and request for comments.

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SUMMARY: The Federal Transit Administration (FTA) has placed in the 
docket and on its website proposed changes to an existing Circular 
(7050.1A) on joint development projects using FTA funds or FTA-funded 
property. The purpose of these proposed changes is to increase 
flexibility for project sponsors to pursue joint development projects, 
reduce FTA oversight of joint development agreements negotiated between 
project sponsors and their partners, streamline FTA's project 
eligibility review process, and clarify prior guidance in FTA Circular 
7050.1A: FTA Guidance on Joint Development. If proposed changes are 
approved, the revised document will be renumbered as Circular 7050.1B: 
FTA Guidance on Joint Development. By this notice, FTA seeks public 
comment on proposed changes, which are at pages III-6, VI-1, VI-2, VI-
4, VI-5, and VI-6 of the Circular.

DATES: Comments must be submitted by June 3, 2019. Late filed comments 
will be considered to the extent practicable.

ADDRESSES: Please submit your comments by only one of the following 
methods, identifying your submission by DOT Docket Number FTA-2019-
0002. All electronic submissions must be made to the U.S. Government 
electronic site at http://www.regulations.gov.
    Federal e-Rulemaking Portal: Go to http://www.regulations.gov and 
follow the online instructions for submitting comments.

[[Page 16340]]

    Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
    Hand Delivery or Courier: West Building Ground Floor, Room W12-140, 
1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern time, 
Monday through Friday, except Federal holidays.
    Fax: 202-493-2251.
    Instructions: You must include the agency name (Federal Transit 
Administration) and Docket number (FTA-2019-0002) for this notice at 
the beginning of each submission of your comments. Submit two copies of 
your comments if you submit them by mail. For confirmation that FTA 
received your comments, include a self-addressed stamped postcard. All 
comments received will be posted without change to www.regulations.gov 
including any personal information provided and will be available to 
internet users. You may review DOT's complete Privacy Act Statement 
published in the Federal Register on April 11, 2000 (65 FR 19477) or 
http://DocketsInfo.dot.gov.
    Docket: For access to the docket to read background documents and 
comments received, go to www.regulations.gov at any time or to the U.S. 
Department of Transportation, 1200 New Jersey Avenue SE, Docket 
Operations, M-30, West Building Ground Floor, Room W12-140, Washington, 
DC 20590 between 9:00 a.m. and 5:00 p.m. Eastern Standard Time, Monday 
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For policy guidance questions, Daniel 
Schned, Office of Budget and Policy, Federal Transit Administration, 
1200 New Jersey Ave. SE, Room E52-314, Washington, DC 20590, phone: 
(202) 366-1652, or email, [email protected]. For legal questions, 
Kathryn Loster, Office of Chief Counsel, 200 West Adams Street, Suite 
320, Chicago, IL 60606, phone: (312) 353-3869; or email: 
[email protected].

SUPPLEMENTARY INFORMATION: This notice provides a summary of the 
proposed changes to Circular 7050.1A. The Circular itself is not 
included in this notice; instead, an electronic version may be found on 
FTA's website at www.transit.dot.gov, and in the docket at 
www.regulations.gov. Paper copies of the Circular may be obtained by 
contacting FTA's Administrative Services Help Desk at (202) 366-4865.

Table of Contents

I. Overview
II. Proposed changes to Circular 7050.1A
    A. Fair Share of Revenue
    B. Submission and Review Process

I. Overview

    The proposed changes to Circular 7050.1A regarding joint 
development affect: (1) The minimum threshold for the statutory ``fair 
share of revenue'' requirement; and (2) the submission and review 
process for FTA-assisted joint development projects.

II. Proposed Changes to Circular 7050.1A

A. Fair Share of Revenue

    Section 5302(3)(G)(iii) of title 49, United States Code, requires 
FTA-assisted joint development projects to provide a ``fair share of 
revenue that will be used for public transportation.'' Prior to the 
October 1, 2014 effective date of Circular 7050.1A, FTA generally 
deferred to a project sponsor's assessment of a ``fair share'' of 
revenue, and did not require any specific amount of revenue for transit 
from a joint development project. FTA defined ``fair share of revenue'' 
in Circular 7050.1A to incorporate a minimum threshold that a joint 
development project must produce revenue for transit purposes that at 
least equals the federal government's initial investment in the joint 
development project. (79 FR 50,728; 50,731-32).
    Over time, FTA has found that defining a fair share of revenue 
minimum threshold unnecessarily limits the pool of potential projects 
by reducing flexibility for project sponsors and their partners to 
determine what amounts to a fair share of revenue. Accordingly, FTA 
proposes to no longer define a minimum revenue threshold, or set a 
monetary requirement from a joint development project for transit 
purposes.
    Although FTA proposes to allow the amount and form of revenue 
received by the project sponsor to be negotiated between the joint 
development parties, consistent with Circular 7050.1A, the project 
sponsor must continue to report to FTA the amount and source of the 
revenue it will receive, and the revenue must be used for transit 
purposes.

B. Submission and Review Process

    Circular 7050.1A prescribes a process by which project proposals 
are submitted to FTA for review. Currently, formal project proposals 
must include: (1) A completed project request form that contains 
pertinent information about the joint development project, including 
how the eligibility criteria are to be satisfied, (2) all proposed 
agreements between the project sponsor and project partners, (3) an 
executed certificate of compliance, and (4) two forms identifying other 
required and supplemental documentation, including a baseline market 
analysis to demonstrate a good faith effort to provide a fair share of 
revenue to the project sponsor.
    FTA proposes to update the project request form to reflect the 
changes described in Section (A) above. The revised project request 
form will be published on FTA's website at www.transit.dot.gov/jointdevelopment.
    FTA has also determined that elimination of the fair share of 
revenue minimum threshold makes the submission of a baseline market 
analysis and certificate of compliance unnecessary. Accordingly, FTA 
proposes to no longer require project sponsors to submit either 
document. FTA encourages project sponsors to conduct baseline market 
analyses to better understand current market conditions and evaluate 
the viability of joint development projects.
    The proposed changes will streamline the review of FTA-assisted 
joint development projects by reducing the amount of paperwork that 
project sponsors must prepare and FTA must review.
    FTA recommends that interested stakeholders review the proposed 
changes to the Circular carefully and provide comment on any impacts 
these proposed changes may have on future joint development projects.

K. Jane Williams,
Acting Administrator.
[FR Doc. 2019-07812 Filed 4-17-19; 8:45 am]
 BILLING CODE 4910-57-P