this resource - Northeast Corridor

August 10, 2016
ABOUT AMTRAK
NATIONAL RAILROAD PASSENGER CORPORATION
Amtrak’s mission is to deliver intercity transportation with superior
safety, customer service and financial excellence.
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•
Amtrak operates a nationwide rail network, serving more than 500
destinations in 46 states, the District of Columbia and three
Canadian provinces on more than 21,300 miles of routes.
•
For the 5th straight year ridership exceeded 30 million and has
grown by almost 50% since 1998.
•
An average 600 daily thruway schedules with guaranteed
connections via buses, vans, ferries and other modes extend
Amtrak service to more than 400 communities not served directly
by Amtrak trains in 38 states and three Canadian provinces.
•
In FY15, Amtrak earned approximately $3.2 billion in revenue and
covered 91 percent of operating costs with ticket sales and other
revenue.
AMTRAK NATIONAL SYSTEM
CONNECTING COMMUNITIES AND ECONOMIES
Chicago
Hub
Cascades
California
Corridor
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Long distance routes
connecting major
economic hubs and
corridor services
Northeast
Corridor
AMTRAK: STEWARDS OF A
NATIONAL PORTFOLIO OF ASSETS
Amtrak is a steward of a
nationwide portfolio of assets
which generate recurring revenue
or have the potential to do so:
•
•
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Stations
Facilities
Rail infrastructure
Air rights
Right-of-way
• Amtrak owns and operates over
2 million square feet of mixed-use
station properties and uses over 6
million square feet of maintenance
facilities.
• Amtrak also occupies approximately
1 million square feet of office space,
both owned and leased.
• 134 active station construction
projects totaling $100 million and $5
billion under design.
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ASSET MONETIZATION
A New Programmatic Value Initiative
Confidential/Proprietary/Deliberative Process Materials. For internal use only.
AN ASSET MONETIZATION INITIATIVE
SUSTAINABLE FINANCIAL PERFORMANCE
Amtrak is executing a programmatic
approach across its national portfolio
focused on sustainable financial
performance and a renewed effort to
identify revenue for investment into the
system. Goals are to:
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
Realize significant latent value from
assets Amtrak controls

Create opportunities to attract private
capital to fund an important piece of
our long-term plan for the assets

Generate new and potentially
substantial sources of revenues

Increase private sector interest in and
support for Amtrak, its projects and its
goals
Changing
demographic
patterns
Timing is
opportune
Demand for
TransitOriented
Development
Available
capital at low
cap rates for
strong cash
flows
EXECUTING A COORDINATED APPROACH
TO VALUE ENHANCEMENT
Provide a framework for
a more holistic approach
to realizing value.
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•
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Amtrak’s prior focus on
railroad infrastructure
and operations has had
the unintended
consequence of the
underutilization of
certain assets and a
sub-optimal approach
to value realization
(whether direct or
indirect).
Through this new
approach, Amtrak will
execute a more
coordinated approach
to realizing value and
leveraging it to enhance
the overall portfolio.
PRIOR APPROACH
CURRENT APPROACH
Railroad
Infrastructure
and
Operations
Railroad
Infrastructure
and
Operations
Direct
Direct
Direct Value
Realization
Indirect
Indirect
Indirect Value
Realization
ASSET MONETIZATION INITIATIVE
VALUE OPPORTUNITIES FOR MAJOR STATIONS
As part of AMI, Amtrak reviewed opportunities in and around five stations.
Since 2015, Amtrak has advanced a Master Development Program at three of its major
stations – Chicago Union Station, Baltimore Penn Station and New York Penn Station.
NEW YORK PENN STATION
10M passengers | $1B revenue
CHICAGO UNION STATION
• 1M+
SF ofrevenue
building area
3.4M passengers
| $206M
PHILADELPHIA 30TH ST. STATION
• Joint solicitation with Empire
4M passengers | $293M revenue
• 1.3M SF of building
area
State Development
Corporation
•developer
1.1Mconcepts
SF of building
area
for developer
and bids
• Procuring a master
on NY• Penn
Station
Master
plan for the station
for station redevelopment
WASHINGTON
UNIONand
STATION
(RFEI/RFQ)
and
the
Farley
Post
its surrounding
properties
was
5M passengers
| $552M
revenue
• To date Amtrak has received
Office (RFP
recently
developed
qualification statements from
• 1.3M
SF of building area;
• A master
developer
bid teams
BALTIMORE
PENN
31 Acres
of
land STATION
procurement
is expected
in
1M
passengers
|
$91M
revenue
2017
• EIS process is ongoing for
station redevelopment,
91,000 SF of building area;
including new platforms,
15 acres of land
tracks, bus facility, and
• Procuring
parking a master developer
station
redevelopment
• forROD
expected
in 2018
• Amtrak has received RFI
responses from potential
bidders and an RFQ is under
development
•
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OTHER ASSET MONETIZATION
PORTFOLIO OPPORTUNITIES
Amtrak is also comprehensively reviewing opportunities for other non-station assets.
RIGHT
OF WAY
• Utilities
(pipe and wire)
• Other Assets
(electric traction,
communications,
signals, related
facilities)
OPERATING
FACILITIES
• Stations
(Amtrak-owned,
Amtrak-used)
• Corporate Office
Facilities
(Reservation centers,
control centers, IT
centers, office space)
• Maintenance
Facilities
(Equipment and
ROW facilities, yards
and crew bases,
commissaries)
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NON-OPERATING
REAL PROPERTY
• Commercial Real
Property
(Real properties
leased or used for
revenue generating,
commercial purposes
{e.g. parking})
• Vacant Real
Property
(Real properties
currently vacant,
unused, or
considered excess
property)
FIXING AMERICA'S SURFACE TRANSPORTATION ACT
(FAST ACT) RELEVANT REQUIREMENTS
FAST Act requires Amtrak to report on options to enhance
assets for the purposes of improving condition,
functionality capacity, and customer amenities; generating
additional investment and revenue streams; increase
ridership and revenue; and strengthen multimodal
connections.
Requirements Under Implementation:
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Right-of-Way Leveraging Phase 1 RFP (Dec. 2016)
 Trackside Network RFP
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FAST Act authorizes $305
billion over fiscal years 2016
through 2020 for transportation
programs.
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Station Development Report Phase 1 (Dec 2016)
 Underway
•
Station Development Phase 2 RFIs (March 2017)
 Completed: Baltimore Penn and Chicago Union
Stations RFIs released to market
Confidential/Proprietary/Deliberative Process Materials. For internal use only.
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BALTIMORE PENN STATION
Investment and Development Program
Confidential/Proprietary/Deliberative Process Materials. For internal use only.
BALTIMORE PENN STATION
A VITAL MULTIMODAL HUB
Originally opened in 1911, today it is
the 8th busiest station in the Amtrak
national network.
Nearly 1 million Amtrak passengers
passing through Baltimore Penn.
Approximately 1.9 million MARC
Passengers passing through annually
and rising with the success of MARC
Weekend Service.
Serves Amtrak’s high-speed Acela,
Northeast Regional and long-distance
trains, MARC Penn Line, City’s Light
Rail, Buses and University shuttles.
Identified as hub for expanded
BaltimoreLink bus service and future
Bikeshare program.
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BALTIMORE PENN STATION
SITE AERIAL
Station North Arts &
Entertainment District, MICA
Johns Hopkins University
West
Lot
1 acre
Bus, Shuttle, Taxi
Service, Future
Bikeshare
University of Baltimore, Inner
Harbor
Lanvale Lot
2.4 acres
Amtrak, MARC,
Light Rail Service
Station Upper
Floors
40,000 SF
Parking Garage and
Station Plaza
525 spaces | 17 acres
BALTIMORE PENN STATION
AN INVESTMENT IMPERATIVE
INCREASED DEMAND
AND LIMITED NEW CAPACITY
Station serves 3 million intercity and commuter riders
annually. At peak travel periods, the station is crowded
and results in confusing connectivity to other modes.
AGING INFRASTRUCTURE
ANDUNDERUTILIZED ASSETS
Built in 1911, the station needs significant
rehabilitation to bring to a state of good repair and to
set the stage for a future expansion.
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WHAT IS THE SOLUTION?
A SYNERGISTIC PROGRAM
Amtrak is executing a synergistic investment and development program to smartly
achieve near-term improvements to the station, while pursuing a comprehensive
solution for the station’s long-term redevelopment.
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RAIL INFRASTRUCTURE IMPROVEMENTS
PREPARING FOR CAPACITY GAINS
NORTHEAST CORRIDOR RIDERSHIP WILL DOUBLE BY 2040, REQUIRING RAIL AND
INFRASTRUCTURE IMPROVEMENTS AT BALTIMORE AND OTHER STATIONS.
SOLUTION
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New fleet of Acela Express trains will add a second hourly frequency of Acela served
stations including Baltimore in 2020.
•
This additional service requires special bypass infrastructure at Penn Station including
new track/platform configurations, vertical circulation, and canopies.
•
Baltimore & Potomac (B&P) Tunnel adjacent to the station will be reconstructed with four
tracks as compared to the current two tracks.
STATUS
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Phase I upgrades are underway to Charles Interlocking – the total $8M program is expected
to be completed in fall 2017.
•
Phase II Concept design completed 2014; interlocking design currently under FRA review.
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RFP anticipated in fall 2016 for additional design necessary to prepare for future RRIF loan
design and construction work.
Additional Penn Station infrastructure improvements are anticipated
as part of the Master Developer approach.
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STATE OF GOOD REPAIR
ADDRESSING A BACKLOG OF INVESTMENTS
AT MORE THAN 100 YEARS OLD, BALTIMORE PENN STATION
IS IN NEED OF SIGNIFICANT REHABILITATION
SOLUTION
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Maryland DOT and Baltimore funded a “State of Good Repair” study in 2014
Over 100 projects valued at $67 million categorized into three groups of urgency and
strategic phasing
Group 1 - $20M of Priority 1 tasks identified as important fire/life/safety elements.
STATUS
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Quinn Evans Architects procured Jan. 2016 to achieve 100% design of the first package of
tasks including the replacement of station roofs and drainage systems, cellar renovations,
and targeted structural shoring.
This work package is on schedule at approximately 30% design and is expected to be
completed summer 2016.
Amtrak has submitted a capital request for funding for select construction elements in FY16
and is currently reviewing the next package of high-priority SOGR projects to advance into
design.
Execution is dependent on available funding, ideally shortened by the
Master Development which may identify sources for SOGR.
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STATION AND VICINITY PARTNER PROJECTS
$20 MILLION IN INVESTMENTS
AMTRAK, MARYLAND AND CITY PARTNERS HAVE INVESTED OVER
$20 MILLION IN STATION IMPROVEMENTS OVER THE LAST SIX YEARS.
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Station Generator
New Static Signage*
Restroom renovations*
HVAC upgrades*
Passenger Information Displays*
New fire alarm system
Historic window restoration*
New train information board
Eco-friendly Lighting
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Main hall maintenance & painting
Amtrak platform lighting
Passenger Information Displays*
New water hydrants for train service*
MARC crew base renovations*
CCTV security system
Welcome sign & hillside landscaping
Exterior landscaping & planters
New bike racks, plaza furniture and
event programming
At Left: The station’s new $1.3M generator will
provide critical resiliency for passenger
operations.
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* Funded through the
MTA/Amtrak
Joint Benefits Program
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MASTER DEVELOPMENT
Partnering for Penn Station’s Future
Confidential/Proprietary/Deliberative Process Materials. For internal use only.
BALTIMORE PENN STATION MASTER DEVELOPMENT
REALIZING A VIBRANT URBAN DISTRICT
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Potential Elements included
in the Master Development:
Goals of the Master Development Program:
•
Master Plan development
and implementation
•
Station operations and
maintenance
Attract a master developer team made up of worldclass architects, engineers and developers to
maximize the value of Amtrak’s portfolio.
•
Expansion of existing
station retail
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Phased mixed-use
development of the
station’s upper floors,
Lanvale Lot, and West Lot.
In order to realize the vision of a bold, fully
integrated mixed-use urban district, with a vibrant
transportation hub situated at its core, it must create
the ability to:

Self-fund improvements and drive value for Amtrak

Design a great project that will stimulate the City’s
economy

Provide significant customer amenities to grow
ridership

Create strong private and public partners
BALTIMORE PENN STATION
CONTROLLING INTERESTS
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SOLICITATION STRATEGY
A THREE-STEP APPROACH
1. Request for
Information
(RFI)
COMPLETE
Validate market interest in the Baltimore market and identify the potential range
PROCUREMENT
STRATEGY: THREE
of interested private sector partners. Areas of focus included: Risk allocation,
STAGES
Schedule, Prequalification, Project scope, Concerns, Technical/financial
considerations.
2. Request for
Qualifications
(RFQ)
Pre-qualification stage for eligibility and project requirements
stipulated by Amtrak; RFQ process will determine the most
highly qualified proposers.
3. Request for
Proposals
(RFP)
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Instructions for developing detailed
proposals, draft agreements , and draft
technical requirements. RFP is followed by
contract negotiations and financial close.
REQUEST FOR INFORMATION
QUESTION SUMMARY
Amtrak released the RFI in January 2016.
Respondents were asked to answer questions
detailed in the RFI on the following topics:
 General Respondent Qualifications
 Procurement Process
 Technical Challenges and Alternative
Solutions
 Innovation and Efficiencies
 Commercial and Financial Structure
 Additional Considerations
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REQUEST FOR INFORMATION COMPLETED
RESPONDENT SUMMARY
•
Amtrak released the RFI in
Jan. 2016 and received nine
individual responses.
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Respondents had significant
experience with dynamics of
public/private partnerships
and rail projects in North
America.
•
Industry representation:
RFI RESPONDENTS BY THESeveral
NUMBERS
Responsible for
developing over
$40 billion in terminals
& high-speed rail
systems.
respondent leads
have direct
experience
working with
Amtrak.
Several
respondents have
local Maryland
presence.
Over 50% of
respondents have
international
experience
across
125 countries
 Traditional real estate
developers
 Engineering consultants
 Operations and
maintenance service
providers
 Retail and commercial
developers
 Infrastructure developers
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RFI SUMMARY FINDINGS
STRENGTHS AND OPPORTUNITIES
RFI Summary Findings
DEVELOPMENT STRENGTHS
PROJECT OPPORTUNITIES
• Robust interest in Master Development
and equity investment
•
The project size was appealing to
respondents
• Respondents demonstrated a successful
track record of P3, rail renovation, and
mixed-used development projects
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Support for innovative designs that
benefit multiple stakeholders and
embrace the opportunity to connect the
city
•
Phasing projects to accommodate what
the market can support as it grows
•
Alternative financing and delivery
methods could be used for specific
sections of the Program
•
Opportunity to enhance financing
efficiencies among multiple
development interests
• Positive perception of local political
support and momentum to redevelop the
station
• Interest in a broad range of funding and
financing sources
• Teams forming with specialized expertise
• Understanding that the Baltimore market
is well-positioned for growth
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RFI SUMMARY FINDINGS
CHALLENGES AND CONCERNS
RFI Summary Findings
ENVISIONED CHALLENGES
PROJECT CONCERNS
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Innovative solutions will be
required smartly design within
the physical site constraints
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Project revenue will need to be
substantial enough to offset the cost
of the station redevelopment
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Market risk transfer to the private
sector may increase private
financing costs
•
More equity may be needed to
bridge a potential financing gap
•
Respondents want a clear
indication that Amtrak is willing to
assist in securing federal and
other governmental funding
Concern for the revenue risk of the
main station
•
Dedicated resources are needed
to pursue a timely Master
Development agreement
Additional risks associated with right
of way acquisition, governmental
authorities, and interaction with
other agencies
•
Need for phasing so that
incremental successes can stand
alone
•
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•
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Need for coordination between
the stakeholders
RFI SUMMARY FINDINGS
POSITIVE INDICATORS TO ADVANCE
THE RFI DEMONSTRATED INTEREST FROM THE MARKET
 Varied development industries represented
 Positive local, national, international responses
CONFIRMATION OF MASTER DEVELOPER POTENTIAL IN
BALTIMORE
 Relevant experience
 Access to equity to bring to the project
RESPONSES ALIGN WITH AMTRAK’S GOALS
 Leveraging value
 Bringing private sector innovation
 Importance of the station as an institutional asset to the community
AGREEMENT WITH APPROACH
 Responses support Master Developer solution
 RFQ -> RFP as an industry standard
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ADVANCING PROGRAM DEVELOPMENT
KEY INPUTS TO THE RFP
•
To expedite master planning and redevelopment
activities, Amtrak is completing programming
studies:
 Historic Preservation Guidelines
 Multimodal Transportation service assumptions
 Station-focused program analysis and statement of
needs for future facilities requirements
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•
Deliverables will be completed Summer 2016 and
provided to short-listed bidders as key planning
inputs.
•
These inputs are in addition to other key program
development studies completed in 2014 including
the State of Good Repair study.
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NEXT STEPS
Advancing the Solicitation
Confidential/Proprietary/Deliberative Process Materials. For internal use only.
MASTER DEVELOPER PARTNERSHIP
SOLICIATION SCHEDULE
WINTER
2015
SUMMER
2015
WINTER
2016/2017
SPRING
2016
SUMMER
2016
Amtrak identifies
development
initiatives for its
five major
stations
RFI
Drafting &
Stakehold
er Scoping
RFI
Released
to Market
RFI
Results
Review &
Stakeholder
Briefings
RFQ
Drafting
and
Stakeholder
Scoping
FALL
2016
WINTER
2016/2017
SUMMER
2017
WINTER
2017/2018
RFQ
Released to
Market
RFP
Released
to Market
Master
Developer
Selection
Master
Developer
\Contractual
Close
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Shovel Ready Project
for Phased
Implementation
MASTER DEVELOPER PARTNERSHIP
RFQ OVERVIEW
•
Amtrak will review Statements of Qualifications from potential developer teams to
determine capacity and experience in:
 Developing and implementing projects of similar size, scope, complexity
 Securing funding and financing required for a successful development
 Designing, building, operating, and maintaining mixed-use and transit-oriented
developments
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•
Get an understanding of each team’s proposed approach to station redevelopment,
potential commercial structures and methods of driving value to Amtrak.
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Identify the financial capacity of potential bidders
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Ultimately short list a set of highly qualified teams capable of responding to a
detailed Request for Proposals.
MASTER DEVELOPER PARTNERSHIP
RFQ NEXT STEPS
1
Issue RFQ
August 2016
2
Pre-Proposal WebEx*
and Site Tours
+/- 2 weeks from RFQ Issuance
3
Deadline for questions
regarding the RFQ and any
addenda
+/- 1 week following Pre-Proposal Meeting
4
Amtrak response to
questions
+/- 1 week following question deadline
5
SOQ Due Date
+/- 6 weeks following RFQ Issuance
6
Anticipated Announcement
to Shortlisted Proposers
Late fall 2016
* Pre-Proposal WebEx is not required
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HOW TO STAY INFORMED
YOUR BUSINESS IS IMPORTANT TO US
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Visit the Improvement tab in the navigation panel
then proceed to the Baltimore Penn Station
Investment and Development Program profile for
updates on the Master Developer Partnership
updates.
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QUESTIONS?
Thank you for your interest in working with Amtrak
Pre-Proposal WebEx | August 5, 2016
Confidential/Proprietary/Deliberative Process Materials. For internal use only.