PLACEMENT: Departmental
TITLE:
title
BRIGHTLINE TRAIN STATION - FIRST AMENDMENT TO NOVEMBER 25, 2018 SETTLEMENT AGREEMENT AND AMENDED INTERLOCAL AGREEMENT
end
EXECUTIVE SUMMARY:
executive summary
Staff is requesting the Board of County Commissioners consider approving the First Amendment to the Settlement Agreement with Brightline and an Amended Interlocal Agreement with the City of Stuart. These documents will finalize the County’s obligations related to the development of the train station and related parking for establishment of Brightline rail service in Martin County.
body
DEPARTMENT: County Attorney
PREPARED BY: Name: Sarah W. Woods
Title: County Attorney
REQUESTED BY: Martin County Board of County Commissioners
PRESET: 10:00 AM
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
On October 23, 2023, Brightline Trains Florida LLC (Brightline) issued a Treasure Coast Request for Proposals (RFP) for the location of a train station in either Martin or St. Lucie Counties. Martin County and the City of Stuart approved an Interlocal Agreement dated December 12, 2023 regarding a joint proposal to Brightline’s RFP for a train station and parking garage on three County owned parcels. In December of 2023, Martin County and the City of Stuart jointly submitted a proposal to Brightline pursuant to such Interlocal. On March 4, 2024, Brightline formally announced that it had selected Stuart as the site for its next intercity passenger rail station. Brightline included in its notice of selection an extensive list of terms including amendment of the County and Brightline’s November 25, 2018 Settlement Agreement. During negotiations, Brightline revised some of its requests, including requesting the option of having the required 200 parking spaces for the station as either surface parking or a parking garage.
A. First Amendment to the November 25, 2018 Settlement Agreement
1. Agreement/Contract drafted by: Martin County Attorney and Brightline General Counsel
2. Parties to the Agreement/Contract: Martin County and Brightline Trains of Florida LLC
3. Purpose of the Agreement/Contract: To amend the November 25, 2018 Settlement Agreement to include the selection of Stuart for the train station including the City/County joint proposal and address some requested modifications outlined in Brightline’s notice of selection.
4. New/Renewal/Modification: Modification
5. Duration: Perpetual
6. Benefits to Martin County: Brightline agrees to:
• Allow the County’s potential construction of an aerial pedestrian bridge over FEC ROW at a location in Stuart.
• Install fencing per the RAISE Trespassing Prevention Project and additional 4,390.49 feet of fencing requested by Martin County Public Works Department.
• Operate a train station in the City of Stuart with 2 northbound and 2 southbound trains stopping daily.
• Acknowledge that the County’s up to $15 million dollar payment to the City and transfer of 3 County parcels to the City for the train station and parking satisfies the previous agreement by the County to pay up to 50% of the station cost upon Brightline’s request.
• Acknowledge the County’s Tourist Development Plan includes an $800,000 allocation to promote the Brightline Station.
7. Cost to Martin County: up to $15,000,000
B. Amended Interlocal Agreement between Martin County and the City of Stuart
1. Agreement/Contract drafted by: County Attorney and City Attorney
2. Parties to the Agreement/Contract: Martin County and City of Stuart
3. Purpose of the Agreement/Contract: To set forth the parties’ responsibilities for the land and funding of a train station for Brightline passenger rail service.
4. New/Renewal/Modification: Amendment
5. Duration: until construction is completed.
6. Benefits to Martin County: Allows for the construction of a Brightline Train Station and Parking in the City of Stuart providing passenger rail service to our residents.
7. Cost to Martin County: It is estimated that the 3 parcels to be conveyed to the City may be valued at $2,750,000. There is currently no ad valorem tax on the parcels since they are immune from taxation. If conveyed to the City and leased to Brightline, the property may generate ad valorem tax based on the land value and proposed improvements of approximately $45,000,000. Payment to the City of up to $15,000,000 for construction of the Train Station and related infrastructure.
The City of Stuart approved the Amended Interlocal Agreement at its meeting on August 12, 2024 as well as authorizing a long term lease and development agreement with Brightline.
ISSUES:
Martin County must pay for up to $15,000,000 towards the construction of the Brightline Station. Staff has met with the City and Brightline and determined that approximately $2,200,000 will need to be paid to the City for permitting and design which will occur over the next 13 months. Staff has set aside this funding and will return to the Board of County Commissioners in a separate agenda item for the remaining $12,800,000. Staff is working with our financial advisor and bond counsel to determine the best funding instrument (Private Commercial Lending or Municipal Bond) to be used for the $12,800,000. A funding agreement with the City of Stuart based on the selected funding instrument will also be developed for Board consideration.
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine whether it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board approve the First Amendment to the Settlement Agreement and the Amended Interlocal Agreement.
ALTERNATIVE RECOMMENDATIONS
Provide staff with alternative direction.
FISCAL IMPACT:
RECOMMENDATION
None
|
Funding Source |
County Funds |
Non-County Funds |
|
Capital Reserves and loan proceeds to be acquired via RFP (to be determined) |
$15,000,000 |
|
|
|
|
|
|
|
|
|
|
Subtotal |
$15,000,000 |
|
|
Project Total |
$15,000,000 |
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☒Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☐Other:
This document may be reproduced upon request in an alternative format by contacting the County ADA Coordinator (772) 320-3131, the County Administration Office (772) 288-5400, Florida Relay 711, or by completing our accessibility feedback form at www.martin.fl.us/accessibility-feedback <http://www.martin.fl.us/accessibility-feedback>.