PLACEMENT: Departmental
TITLE:
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REQUEST FOR BID AWARD TO BRIGHTLINE TRAINS FLORIDA, LLC, APPROVAL OF FIRST AMENDMENT TO THE NOVEMBER 25, 2018, SETTLEMENT AGREEMENT AND PERMISSION TO APPLY FOR FEDERAL GRANT
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EXECUTIVE SUMMARY:
executive summary
Staff is requesting that the Board of County Commissioners award a Request for Bid to authorize staff to begin negotiations to lease a high-speed passenger rail station in Martin County, approve the First Amendment to the November 25, 2018 Settlement Agreement with Brightline Trains Florida LLC and authorize staff to submit a grant application for a 2024 Federal-State Partnership for Intercity Passenger Rail Program for a train station on land owned by Martin County.
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DEPARTMENT: Administration
PREPARED BY: Name: George M. Stokus
Title: Assistant County Administrator
REQUESTED BY:
PRESET:
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.
City and County staff developed a proposed Amended Interlocal Agreement concerning the Station. County staff negotiated a proposed First Amendment to the November 25, 2018 Settlement Agreement with Brightline. On August 12, 2024, the City approved the Amended Interlocal Agreement as well as a Ground Lease Agreement with Brightline. On August 26, the City Commission directed its staff to prepare an agenda item for its September 9, 2024, meeting to consider rescinding approval of the 2023 Interlocal Agreement, the Amended Interlocal Agreement and the Brightline Lease. County staff recommended withdrawal of an August 27 agenda item requesting Board consideration of the First Amendment to the 2018 Settlement Agreement and Amended Interlocal based upon the City’s action the prior evening. On September 9 the City rescinded its approval of the Amended Interlocal and the Ground Lease and directed the City Manager to meet with the County and Brightline for a better deal. The BOCC directed staff to continue negotiating with the City and Brightline to reach an agreement during its September 10th and 24th meetings. On October 14, the City considered a revised proposal which ultimately reduced the City’s obligation to 5 million dollars (a 25 million dollar reduction) and increased the number of daily Brightline stops from four to eight. The Agreement was contingent upon the County and City being awarded a Federal grant of up to 80% of the project cost. The City did not approve the revised proposal and did not provide direction for further negotiations. At their October 22 meeting, the BOCC requested an update on the Brightline Station. Following the update, the BOCC unanimously directed the County Administrator and County Attorney to issue a Request for Bid (RFB) of a long-term lease for the County’s downtown Stuart property and fairgrounds property for a high-speed rail station and to prepare a Federal grant application for station funding.
On October 24, 2024, in accordance with Section 125.35(1)(a) Fla. Stat., the County issued RFB 2025-3633 for a long-term lease for a Train Station to provide High Speed Rail Service for Martin County, FL. Bids were opened on November 1, 2024. Brightline Trains Florida LLC was the sole bidder.
The Selection Committee reviewed the bid in accordance with the selection criteria set forth in the RFB to determine the most financially advantageous bid on November 4, 2024, and unanimously recommended award to Brightline.
A. Award of RFB 2025-3633 to Brightline Trains Florida LLC
On October 22, 2024, the Board of County Commissioners unanimously directed staff to develop and initiate a solicitation for high-speed rail providers. Two potential locations were identified for the station: one behind the Peter Cheney Courthouse Complex on Flagler Avenue and another at the Martin County Fairgrounds on Dixie Highway.
Staff prepared the solicitation in compliance with Florida State Statutes. The solicitation was posted on the County’s third-party bidding site, DemandStar. Information about the solicitation was also posted on the County’s website as a hot topic, with instructions to access the solicitation documents on DemandStar or by contacting the Martin County Purchasing Division for a copy. Based on DemandStar statistics, 85 vendors were notified according to their registered commodity codes, including major providers like Amtrak, Brightline, Sun Rail, and Tri-Rail.
By the 10:00 AM deadline on November 1, 2024, one bid had been received. The bid was opened during a public meeting in the County Commission Chambers at 10:00 AM. On November 4, 2024, at 11:30 AM, a selection committee convened in a public meeting in the County Commission Chambers to review and score the sole submission from Brightline Trains Florida LLC. The committee selected Brightline Trains Florida LLC. The terms of the solicitation were incorporated into various elements of the First Amendment to the 2018 Settlement Agreement.
B. 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 Martin County for the train station, address station related matters and address modifications requested by Brightline.
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. Elimination of the County’s responsibility for maintenance of such fencing and payment for FEC right of way lease costs.
• Operate a train station on County owned property in the City of Stuart with a minimum of 8 trains per day stopping at the Martin County Station in the first three months of station operation. Thereafter, Brightline will determine stops based on customer demand and ridership, however a minimum of two northbound and two southbound Brightline trains shall stop at the Martin County Station each day.
• Acknowledge that the County’s up to $15 million dollar payment for the train station, parking, and rail improvements as well as lease of County property for the station and parking, satisfies the previous agreement by the County to pay up to 50% of the station cost upon Brightline’s request.
• Modifies the 5-year requirement for station location to begin upon execution of the Frist Amendment or upon execution by the County of a grant for the station costs whichever is later
• Acknowledge the County’s Tourist Development Plan includes an $800,000 allocation to promote the Brightline Station.
7. Cost to Martin County: not to exceed $15,000,000
Detailed Narrative Outlining the First Amendment to the Settlement Agreement
Section I. Restates Paragraph 3. Martin Aerial Pedestrian Bridge of the SA as follows:
Removes $47,600 maximum for an aerial easement fee with FECR as well as the requirement that Brightline equally share the construction cost of the aerial pedestrian bridge with Martin County.
Section II. Restates Paragraph 4. Martin Fencing of the SA as follows:
Does not change subsection (a). Amends subsection (b): The original language allowed for Martin County’s construction of additional fencing within FECR right of way, which required payment of an amount not to exceed 75 cents per square foot under a fencing lease agreement with FECR. Brightline agreed to reimburse the County up to 1 million dollars in the fencing construction costs. Martin County was responsible for any additional costs as well as ongoing maintenance costs and liability for the fencing. The amended subsection (b) requires Brightline to install the additional fencing required in the RAISE Trespassing Prevention Project and sets forth tables identifying such additional fencing. These tables contain the same additional fencing Martin County would construct and be reimbursed for up to 1 million dollars. The County’s payment of right of way lease fees to FECR is deleted and removes the County’s responsibility for maintenance and liability connected with the additional fencing.
The remaining subsections of this paragraph are unchanged.
Section III. Restates Paragraph 6. Brightline Station in the Treasure Coast of the SA as follows:
The new language provides that a train station be located in Martin County (not Martin or St. Lucie County) within 5 years of execution of the First Amendment or execution by the County of a grant for funding of the balance of the Station costs, whichever is later. Upon completion of the Station, at least eight trains will stop at the Station each day in the first three months of operation. Thereafter, Brightline will determine stops based upon customer demand and ridership, however, a minimum of two northbound and two southbound stops are required every day.
Martin County agrees to pay up to $15,000,000.00 for the design and development of a Station, including parking and rail improvements, to be developed by Brightline for the Station and parking. Martin County agrees to enter into a long-term lease for the Station with Brightline in accordance with RFB 2025-3633 and Brightline’s November 1, 2024 bid.
Brightline acknowledges and agrees Martin’s payment of up to $15,000,000.00 and lease of land satisfies the 2018 agreement requiring Martin to pay up to 50% of the Station cost at Brightline’s request.
The County agrees to prepare applications and apply for Federal and State grants for the remaining station project costs.
If Martin does not contribute the funds outlined above, or fails to execute the lease, or if grant funding is not obtained by June 30, 2027, Brightline will be relieved of the obligation to build a train station. Brightline also agrees to identify a potential area within the parking area to allow for the future construction of an aerial pedestrian bridge but has no obligation to construct or pay for such pedestrian bridge.
Section IV. Adds subsections (f) (g) and (h) to Section 9. Commitments of Martin and CARE Regarding the Brightline Project of the SA as follows:
(f) Martin County agrees to cooperate with Brightline’s financing efforts with Florida Development Finance Corporation. Brightline agrees and acknowledges that, under no circumstances, will the County face any financial obligation with regard to such revenue bonds or operating costs with respect to the Station or the Brightline Project.
(g) Acknowledges the November 8, 2023, approval by the County’s Tourist Development Council of an $800,000 allocation in the Martin County Tourist Development Plan for implementation of a marketing plan to promote and establish the Stuart Brightline Station in accordance with the County/City joint proposal to Brightline.
(h) Martin County agrees to cooperate with the SLRB Replacement project and the close out of permits and crossing agreements in connection with the Brightline Project.
C. Permission to Apply for the 2024 Federal-State Partnership for Intercity Passenger Rail Program
• Requestor - Administration
• Granting Agency - Federal Railroad Administration (FRA) and Department of Transportation (USDOT)
• Project Description - Martin County proposed to construct a High-Speed Passenger Rail Station, appropriate parking facilities, associated rail infrastructure improvements, and other necessary elements to operate the facility in accordance with Federal and State regulations. This project will connect Martin County to South and Central Florida with a High-Speed Passenger Rail Service Provider that is legally authorized to utilize adjacent rail infrastructure in one of two potential locations in Martin County.
• Requested Grant Award - 80% of Rail Station Project Cost
• Budgetary Impact - Not to exceed $15,000,000 grant match for design and construction of the High-Speed Passenger Rail Station and associated improvements.
• Annual Operating Costs - Staff time to administer the grant and manage an operating ground lease agreement.
Alternative Action:
• Programmatic Implication if not approved - Lack of grant funding will impact the ability for the county to build a High-Speed Passenger Rail Service Station and meet the County’s obligation to the 1st Amendment to the November 25, 2018 Settlement Agreement with Brightline Trains LLC.
• Financial Fiscal Impact if not approved - County will need to seek alternative funding sources or delay the proposed project.
Documents Requiring Action:
• None
ISSUES:
None
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 award Request for Bid 2025-3633 to Brightline Trains Florida LLC and authorize staff to begin lease negotiations.
Move that the Board approve the First Amendment to the Settlement Agreement.
Move that the Board authorize Administration to apply for the 2024 Federal-State Partnership for Intercity Passenger Rail Program funding for the construction of a High-Speed Passenger Rail Station and associated infrastructure; and
Move that the Board authorize Administration to apply for any additional 2024/2025 Grant Cycle grants that apply to the planning and construction of a High-Speed Passenger Rail Station and associated infrastructure; and
Move that the Board authorize the County Administrator or designee to be the authorized representative to sign the grant application and other non-monetary documents related to this grant.
Move that the Board authorize a budget transfer from Capital Transportation Reserves.
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 |
|
|
FRA USDOT Grant |
|
$30,000,000 |
|
Capital Transportation Reserves |
$50,000 |
|
|
Subtotal |
$15,050,000 |
|
|
Project Total |
$45,050,000 |
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>.