NEW JERSEY TRANSIT REQUEST FOR QUALIFICATIONS FOR PARKING CONCESSION OCTOBER 14, RFQ No

Transcription

1 NEW JERSEY TRANSIT REQUEST FOR QUALIFICATIONS FOR PARKING CONCESSION OCTOBER 14, 2010 RFQ No

2 Table of Contents Page 1. Overview of RFQ and Concession Process 1 2. Description of Parking Assets 4 3. Investment Highlights RFQ Submission Requirements Form of Confidentiality Agreement Disclaimer 34 G G 1

3 Section 1 Overview of RFQ and Concession Process 1.1 New Jersey Transit Corporation New Jersey Transit Corporation ( NJ TRANSIT ) is New Jersey s public transportation agency. Its mission is to provide safe, reliable, convenient and cost-effective transit service. Covering a service area of 5,325 square miles, NJ TRANSIT is the nation s third largest provider of bus, rail and light transit, linking major points in New Jersey, New York and Pennsylvania. It is one of the only public transit operators with statewide responsibilities in the United States. NJ TRANSIT operates, either directly or by private contract, a fleet of 2,200 buses, 1,076 train cars and 93 light rail vehicles. On 256 bus routes, 12 rail lines and 3 light rail lines statewide, NJ TRANSIT provides over 270 million passenger trips each year. In addition to NJ TRANSIT operations, private bus carriers provide services to NJ TRANSIT facilities and customers. NJ TRANSIT is an instrumentality of the State of New Jersey created by the New Jersey Public Transportation Act of NJ TRANSIT is empowered with the authority to acquire, own, operate and contract for the operation of public passenger transportation services. In addition to farebox revenues, NJ TRANSIT receives operating and capital funds from several sources including the State of New Jersey via legislative appropriation and the federal government by defined formula and by discretionary grants. NJ TRANSIT has a seven-member Board of Directors appointed by the Governor with the consent of the New Jersey Senate. NJ TRANSIT employs an Executive Director who manages day-to-day operations. 1

4 Additional information about NJ TRANSIT and its operations, including current information on fares and parking rates, can be found at NJ TRANSIT has a multimodal approach to addressing how customers access NJ TRANSIT s public transit services. This approach includes walking, bicycling, shuttle buses and parking. NJ TRANSIT owns parking facilities at most of its rail, light rail, and bus stations. The current parking inventory that is owned or controlled by NJ TRANSIT exceeds 48,000 spaces spread throughout New Jersey. Management at approximately three quarters of NJ TRANSIT parking facilities is outsourced to private parking management companies and local government entities. With future increases in NJ TRANSIT service demand, the need for parking at certain stations will outstrip supply. Already, waitlists for parking at certain stations have been growing. Along with capacity enhancement, additional benefits from this procurement, including system enhancements, technological improvements and further price rationalization, are expected. Table 1.1 Ridership (in Millions) %Increase (Dec) FY10 FY09 FY08 FY / / /2007 Rail Lines Newark Division (1.7) (1.9) 5.2 Hoboken Division (0.4) Atlantic City (15.4) Total (1.5) (1.1) 5.1 Bus Lines Northern Division (2.4) Central Division (3.1) (0.1) 0.4 Southern Division (3.6) (0.8) (0.8) Total (3.0) Light Rail Lines Newark Light Rail (3.3) (1.6) 3.3 Hudson-Bergen Light Rail (3.0) River LINE Total (2.7) Source: NJ TRANSIT Total Ridership (2.4) NJ TRANSIT had a modest decline in fiscal year 2010 ridership caused by the economic recession, from which it is now emerging. This degree of decline has brought NJ TRANSIT back to fiscal year 2007 ridership levels; however, ridership is still significantly greater than levels seen in There are a number of factors that drive demand for NJ TRANSIT services and parking including economic strength, growth in jobs and the price of gasoline. 2

5 1.2 Overview of RFQ Process This Request for Qualifications ( RFQ ) is the first step in a two-stage procurement process, consisting of the RFQ process followed by a Request for Proposals ( RFP ) process. Firms receiving this RFQ shall be referred to herein as Prospective Proposers. The purpose of this RFQ is to provide Prospective Proposers an opportunity to formally express their interest in bidding on a concession (the Concession ) of certain NJ TRANSIT parking assets (the Concession Assets ). Prospective Proposers who fail to respond to this RFQ or whose submissions in response to this RFQ are deemed unqualified cannot participate in the RFP process and are not eligible for award of a Concession. After a review of RFQ responses by NJ TRANSIT, Prospective Proposers that are deemed qualified will sign a Confidentiality and Data Room Usage Agreement ( Confidentiality Agreement ) and will receive access to an on-line data room which will provide additional information concerning the Concession Assets. Qualified Prospective Proposers will also have the opportunity to conduct due diligence of the Concession Assets through (i) Concession Asset tours and additional inspections by qualified Prospective Proposer representatives; (ii) management presentations; and (iii) review and discussion of a proposed concession agreement (the Concession Agreement ) for the Concession Assets. Following this due diligence process, final and binding proposals will be submitted in accordance with a RFP to be issued to the qualified Prospective Proposers. NJ TRANSIT reserves the right to determine in its sole discretion whether any Prospective Proposer is qualified to participate in the RFP process. NJ TRANSIT reserves the right to modify or terminate this RFQ process and or the RFP process at any stage if NJ TRANSIT determines such action to be in its best interests. The receipt of proposals or other documents at any stage of either the RFQ or the RFP process will in no way obligate NJ TRANSIT to enter into any contract at any time with any party. NJ TRANSIT will not be responsible in any manner for the costs associated with the submission of any proposals in response to this RFQ or any subsequent procurement. NJ TRANSIT reserves the right to reject any and all proposals, irrespective of whether any such proposal is the only proposal received or one of a number of proposals representing the most favorable transaction terms. Approval by the NJ TRANSIT Board will be required before the Concession is awarded. The Concession Agreement is expected to be a long-term agreement granting the successful proposer (the Concessionaire ) the exclusive right to operate the Concession Assets and to collect parking and certain other revenues from the Concession Assets through the term of the Concession Agreement, currently anticipated to be in the range of years. The primary objective of NJ TRANSIT is to improve customer service and capacity by entering into a long-term partnership to provide improved parking inventory to NJ TRANSIT customers, many of whom are on waitlists. NJ TRANSIT expects to extract value from this transaction and use that value to help fund the delivery of public transit service in New Jersey. It is expected that this opportunity will enhance NJ TRANSIT s ability to fulfill its mission to provide safe, reliable, convenient and cost-effective transit service with a skilled team of employees, dedicated to our customers' needs and committed to excellence. 3

6 Section 2 Description of Parking Assets 2.1 Description of Parking Assets The Concession Assets include assets owned or controlled by NJ TRANSIT that are located in various municipalities. The Concession Assets are used by commuters who access the rail, light rail and bus services provided by NJ TRANSIT and other private transportation companies. At this time, only a portion of NJ TRANSIT s parking assets are being considered for this Concession. Inclusion is dependent on certain factors including revenue potential, market share and expansion needs. Parking lots that are currently free are expected to be subject to the imposition of parking fees on a schedule to be determined by NJ TRANSIT with input from the Concessionaire. Certain assets may be added or removed during the RFQ and due diligence process. Consequently, the following Table 2.1 should be viewed only as illustrative. The final list of Concession Assets will be determined prior to the receipt of proposals pursuant to the RFP process. An explanation of certain table columns is as follows: The number of spaces in the NJ TRANSIT Controlled/ Station Total Spaces column is not inclusive of spaces that accommodate those with disabilities pursuant to the Americans with Disabilities Act of 1990 ( ADA ). There are a small number of ADA spaces located throughout the Concession Assets. More information about the location and number of ADA spaces in the Concession Assets can be found on the NJ TRANSIT website. Unless noted otherwise, the source for the column 2008 Weekday Occupancy is the Parking Guide produced by NJ TRANSIT. The Parking Guide represents a snapshot of conditions at commuter parking facilities at or near NJ TRANSIT stations and Park & Rides. This includes sites owned by NJ TRANSIT, municipal, state, and county sites and some private locations. Utilization numbers are derived largely through aerial surveys. These surveys are typically conducted in the spring, during peak demand (weekdays, non-holidays, between the hours of 10:00 AM 2:00 PM). Parking utilization numbers represent a single-day sample, and should not be interpreted as an average. Parking data is then supplemented by information provided by lot operators, site visits, and other sources. The parking utilization numbers do not include ADA spaces. The Annual Gross Revenue column is derived from several sources, including operators financial statements, responses to a revenue survey, and estimates by NJ TRANSIT. Due to the use of various operators for these facilities, the time period reflected in annual revenue figures varies among the listed facilities. All annual revenue numbers represent actual or estimated gross revenues accumulated through a consecutive 12-month period within calendar years 2008, 2009, and

7 Table 2.1 Indicative List of Concession Assets Station Mode Line Municipality County FY10 Avg. Weekday Boardings NJ TRANSIT Controlled/ Station Total Spaces % 2008 Weekday Occupancy Annual Gross Revenue Broadway- Fair Lawn Radburn- Fair Lawn Rail Bergen Elmwood Park Bergen /80 Rail Bergen Fair Lawn Bergen 1,372 65/325 20% 66% Not Available 99% Not Available Berkeley Heights Rail Gladstone Branch Berkeley Heights Union /219 75% 91% Not Available Gillette Rail Gladstone Branch Long Hill Morris /82 Stirling Rail Gladstone Branch Long Hill Morris 88 38/38 104% $30, % $11,700 2 Lyons Rail Gladstone Branch Bernards Township Somerset /331 71% 90% $65,918 1 Gladstone Rail Gladstone Branch Gladstone Somerset /186 Lyndhurst Rail Main Lyndhurst Bergen /562 84% 91% Currently Free 50% Currently Free 5

8 Clifton Rail Main Clifton Bergen /431 Ramsey Route 17 Rail Main Ramsey Bergen 760 1,251/1,251 Mountain Avenue Rail Montclair- Boonton Montclair Essex /23 Montclair Heights Rail Montclair-Boonton Montclair Essex /63 88% Currently Free 45% $475, % Not Available 57% Not Available Montclair State University Rail Montclair-Boonton Little Falls Passaic 525 1,530/1,530 33% $783,723 1 Little Falls Rail Montclair-Boonton Little Falls Passaic /194 Mountain View Rail Montclair-Boonton Wayne Passaic /389 52% Currently Free 48% Currently Free Towaco Rail Montclair-Boonton Montville Township Morris /222 42% Currently Free Netcong Rail Montclair-Boonton Netcong Morris /247 East Orange Rail Morristown East Orange Essex /52 Brick Church Rail Morristown East Orange Essex 1, /115 65% Currently Free $5, % $89,

9 Orange Rail Morristown Orange Essex 1,143 80/175 46% Highland Avenue Rail Morristown Orange Essex /31 Mountain Station Rail Morristown South Orange Essex /90 South Orange Rail Morristown South Orange Essex 3, /513 51% Morristown Rail Morristown Morristown Morris 2, /574 83% Morris Plains Rail Morristown Morris Plains Morris /238 80% Mount Tabor Rail Morristown Denville Morris 42 48/48 Denville Rail Morristown Denville Morris /237 Woodbridge Rail North Jersey Coast Woodbridge Middlesex 1, /500 85% South Amboy Rail North Jersey Coast South Amboy Middlesex 1, /657 95% 95% $45, % $5, % $43, % $266, % $278, % $129, % $5, % $127, % $235, % $300,

10 Aberdeen Rail North Jersey Coast Matawan Monmouth 2,790 (Aberdeen- Matawan) 702/740 95% 81% (Aberdeen- Matawan $448,404 2 Matawan Rail North Jersey Coast Matawan Monmouth 2,790 (Aberdeen- Matawan) 597/1,410 42% 81% (Aberdeen- Matawan) $399,993 2 Hazlet Rail North Jersey Coast Hazlet Monmouth /553 45% Red Bank Rail North Jersey Coast Red Bank Monmouth 1, /794 57% Little Silver Rail North Jersey Coast Little Silver Monmouth /517 94% Long Branch Rail North Jersey Coast Long Branch Monmouth 1, /331 Elberon Rail North Jersey Coast Long Branch Monmouth /222 Manasquan Rail North Jersey Coast Manasquan Monmouth /141 90% $125, % $199, % $186, % $170, % Currently Free 74% Currently Free Alling Street (Newark Penn) Rail Northeast Corridor Newark Essex 26, /136 $357,301 1 North Elizabeth Rail Northeast Corridor Elizabeth Union /123 65% $27,

11 Linden Rail Northeast Corridor Linden Union 2, /679 75% Metropark Rail Northeast Corridor Woodbridge Middlesex 7,145 3,718/3,718 Edison Rail Northeast Corridor Edison Middlesex 3, /834 75% 58% $392, % $5,029, % $264,504 1 Jersey Avenue Rail Northeast Corridor New Brunswick Middlesex 1, /1,471 56% 93% $630,000 3 Princeton Junction Rail Northeast Corridor Princeton Junction Mercer 7,030 2,625/3,635 72% 94% $3,130,122 1 Hamilton 4 Rail Northeast Corridor Hamilton Mercer 4,986 1,479/3,512 42% Trenton Deck 4 Rail Northeast Corridor Trenton Mercer 5,215 1,781/3,442 52% Wood-Ridge Rail Pascack Valley Wood Ridge Bergen /118 Teterboro Rail Pascack Valley Wood Ridge Bergen 88 27/27 Essex Street Rail Pascack Valley Hackensack Bergen /236 Anderson Street Rail Pascack Valley Hackensack Bergen /50 98% $4,762, % $2,806, % $56, % $11, % $101, % $16,

12 New Bridge Landing Rail Pascack Valley River Edge Bergen /291 82% $125,050 1 Montvale Rail Pascack Valley Montvale Bergen /203 68% Roselle Park Rail Raritan Valley Roselle Park Union /250 76% Cranford Rail Raritan Valley Cranford Union 1, /460 36% Netherwood Rail Raritan Valley Plainfield Union /153 Plainfield Rail Raritan Valley Plainfield Union 1,038 50/196 26% Bound Brook Rail Raritan Valley Bound Brook Somerset /275 Somerville Rail Raritan Valley Somerville Somerset /466 89% Raritan Rail Raritan Valley Raritan Somerset /284 96% 57% Currently Free 78% $124, % $97, % $64, % $33, % $132, % $155, % $164,561 1 Annandale Rail Raritan Valley Clinton Township Hunterdon /77 97% Currently Free 22 nd Street Light Rail Hudson- Bergen Bayonne Hudson 1,995 (FY09) 159/159 91% $92,

13 34 th Street Light Rail Hudson- Bergen Bayonne Hudson 1,720 (FY09) 397/397 88% $220,277 2 West Side Avenue Light Rail Hudson- Bergen Jersey City Hudson 1,693 (FY09) 804/804 28% $63,656 2 Liberty State Park Light Rail Hudson- Bergen Jersey City Hudson 2,771 (FY09) 1,248/1,248 75% $685,794 2 Tonnelle Avenue Light Rail Hudson- Bergen North Bergen Hudson 1,071 (FY09) 681/681 61% $291,561 2 Grove Street Light Rail Newark Bloomfield Essex 750 (FY09) 160/160 83% $56,788 2 Trenton Light Rail River Trenton Mercer 1,600 (FY09) 105/105 83% $360,788 2 Garden State Pkwy Ext 165 Bus N/A Paramus Bergen Not Available 323/323 Currently Free Vince Lombardi Bus N/A Ridgefield Bergen Not Available Avandale Bus N/A Sicklerville Camden Not Available 1,002/1, /322 50% $208, % Currently Free Walter Rand Trans. Center Bus N/A Camden Camden Not Available 451/451 85% $577,156 1 North Bergen Bus N/A North Bergen Hudson Not Available 1,498/1,498 96% $1,372,

14 Garden State Pkwy Ext 120 Bus N/A Woodbridge Middlesex Not Available 104/104 Currently Free Old Bridge Bus N/A Old Bridge Middlesex Not Available Howell Bus N/A Howell Monmouth Not Available Brick Bus N/A Brick Ocean Not Available Toms River Bus N/A Toms River Ocean Not Available Allwood Road Bus N/A Clifton Passaic Not Available Mothers Bus N/A Wayne Passaic Not Available Wayne Rt 23 Bus N/A Wayne Passaic Not Available 528/895 59% 441/ / / / / /996 97% $203, % $105, % Currently Free 85% $258, % $207, % $66,200 3 $384,900 3 West Milford Bus N/A Greenwood Lake Passaic Not Available 250/250 52% Currently Free Source: NJ TRANSIT 1 Financial reports submitted to NJ TRANSIT 2 Response to survey conducted by NJ TRANSIT 3 Estimate by NJ TRANSIT 4 NJ TRANSIT parking decks at both Hamilton and Trenton train stations are encumbered by long-term ground leases with Nexus Parking. The Trenton deck, constructed by Nexus in 1994, is leased to Nexus for 60 years; the Hamilton deck, constructed by Nexus in 2005, is leased to Nexus for 37.5 years. At Trenton, NJ TRANSIT proposes to enter into a new lease with the Concessionaire pursuant to which the Concessionaire will be NJ TRANSIT s tenant (and a sublessor to Nexus) receiving a share of net revenues in accordance with the terms of the existing 12

15 lease with Nexus. At Hamilton, there are 1,479 surface lot spaces adjacent to the parking deck that are proposed to be included in the Concession. These spaces are managed under contract by Nexus but are not part of the long-term ground lease that encumbers the deck. The deck lease contains certain requirements related to the manner in which rent is determined which involve revenue adjustments which take into account both surface and deck parking. The revenues for Hamilton displayed above reflect the operation of the deck and surface parking. 13

16 2.2 Parking Expansion Needs During the term of the anticipated Concession Agreement, some facilities included in the Concession Assets will require expansion to accommodate NJ TRANSIT rider demand. For example, the Princeton Junction station, serviced mainly by the Northeast Corridor Line, has parking capacity constraints and is in need of an expansion of parking services. Current parking demand exceeds the 3,635 spaces that are available, leading to a substantial waitlist. Proposals currently being discussed call for the construction of a parking deck, containing at least 2,000 spaces, on NJ TRANSIT owned property to accommodate current and anticipated demand at the station. The successful Proposer will be required to design, build, finance, operate, maintain and repair the parking deck with NJ TRANSIT oversight. This expansion of Princeton Junction parking supply is expected to be included in this Concession as an obligation of the Concessionaire. 2.3 Transit Oriented Development NJ TRANSIT recognizes that public transit plays a key role in the creation and maintenance of livable and sustainable communities. NJ TRANSIT has a strong commitment to working with New Jersey communities to implement Transit Oriented Development ( TOD ). TOD refers to various types of development which, when located in proximity to a transit facility, are expected to add to the quality of life and economy of neighboring communities while generating new public transit riders due to the availability of transit services. Historically NJ TRANSIT has assisted municipalities creating and implementing sensitive, community-based plans to guide growth and land-use in a comprehensive manner, especially in areas where transit can stimulate new development opportunities. Many of NJ TRANSIT s parking facilities are key properties that have the potential for TOD and certain Concession Assets are currently under active consideration for TOD 1. Consequently, Prospective Proposers are advised that NJ TRANSIT is strongly interested in ensuring that TOD opportunities are not negatively impacted by the award of this Concession. To that end, Prospective Proposers will be encouraged in the RFP stage to submit TOD proposals as an option in their responses. Prospective Proposers can consider offering strategies for addressing current and projected parking needs while preserving, where appropriate, the opportunity to implement TOD at a later time. The selection of a Concessionaire will be based entirely on the proposals for the Concession Assets submitted pursuant to the RFP; however if the selected Concessionaire has submitted a TOD proposal that is deemed 1 TOD Expressions of Interest have been issued for parking facilities in the Boroughs of Somerville and River Edge and those municipalities are currently engaged with NJ TRANSIT in the selection process. NJ TRANSIT plans to release a TOD Expression of Interest for the Wayne Rt. 23 parking facility. 14

17 advantageous to NJ TRANSIT, NJ TRANSIT may, but shall not be obligated to, negotiate an independent and exclusive development agreement with the Concessionaire. Regardless of whether the Concessionaire submits a TOD proposal for consideration, the Concessionaire should be aware that over the course of the Concession Agreement, NJ TRANSIT expects that some Concession Assets will be impacted by TOD. In such cases, NJ TRANSIT intends to work in partnership with the Concessionaire on advancing TOD while at the same time addressing current and future parking needs. 15

18 Section 3 Investment Highlights 3.1 Strong Economic Characteristics of Surrounding Region The State of New Jersey is the 11 th largest state in population and the 5 th smallest in land area. With an average of 1,171 people per square mile, it is the most densely populated of all the states. New Jersey is the center of the megalopolis which extends from Boston to Washington and which includes over onefifth of the country s population. New Jersey s central location in the northeastern corridor, with strong transportation infrastructure including port and airport facilities, makes New Jersey an attractive location for corporate headquarters and international business offices. The State s economic base is diversified, consisting of a variety of manufacturing, construction and service industries. According to the 2000 Census, about 10 percent of New Jersey s resident workforce travels to work by public transit, the highest statewide rate found in the United States. New Jersey s economic characteristics, including per capita personal income, are stronger than comparable national levels and those of neighboring states including Pennsylvania and New York. Table 3.1 Per Capita Personal Income New Jersey New York Pennsylvania United States 1999 $35,215 $32,816 $27,937 $27, ,377 34,898 29,698 29, ,213 35,618 30,310 30, ,428 35,363 31,080 30, ,916 36,064 31,979 31, ,971 38,338 33,550 33, ,651 40,781 34,774 34, ,813 43,724 36,800 36, ,511 46,364 38,793 38, ,919 48,076 40,265 39,751 Source: U.S. Department of Commerce, Bureau of Economic Analysis Table 3.2 Per Capita Personal Income as a Percent of United States New Jersey New York Pennsylvania % 117.5% 100.0% % 116.9% 99.5% % 116.5% 99.1% % 114.7% 100.8% % 114.4% 101.4% % 115.6% 101.2% % 117.6% 100.2% % 118.8% 100.0% % 120.1% 100.5% % 120.9% 101.3% Source: U.S. Department of Commerce, Bureau of Economic Analysis 3.2 Demographics of NJ TRANSIT Customer Base The American Community Survey estimates that in 2008, the median household income in the State of New Jersey was $70,373 compared to a median of $52,029 in the United States overall. NJ TRANSIT estimates the following household income of its customer base for 2008: Mean rail rider household income of $126,000. Peak period rail riders have an even higher average household income of $142,000 with off-peak period rail riders having a mean household income of $94,

19 Express bus riders to Manhattan have an estimated mean income of $89,000 and express riders to Philadelphia have a mean household income of $56,000. The NJ TRANSIT customer base is diverse and state-wide with NJ TRANSIT servicing a wide array of communities both urban and suburban. As a result, NJ TRANSIT follows a multimodal approach to provide access to transit services and address the various needs of NJ TRANSIT customers. The relatively strong and varied demographics of the NJ TRANSIT customer base implies that there will be continued demand for the use of the Concession Assets. 3.3 Stable Historic and Projected Ridership Trends NJ Transit Historical Ridership (in Millions) Source: NJ TRANSIT NJ TRANSIT has a long and stable history of providing services to New Jersey residents. NJ TRANSIT ridership has exhibited stable growth and it is expected that this growth will continue. Demand for NJ TRANSIT services is relatively insulated from economic fluctuations, as evidenced by steady ridership levels through the economic recession of 2008 and Future expansion projects could enhance service and increase demand, especially for New Jersey residents commuting to New York City. 3.4 Opportunity for Technological Improvement and Space Optimization The Concession Assets offer opportunities for operating enhancements through the use of new revenue collection and control systems. It is anticipated that the use of this technology could enhance value and further customer service and security. Further, space optimization could be explored as a way to enhance supply and increase potential revenue. 3.5 Price Rationalization Potential It is currently contemplated that this transaction will include an opportunity to adjust parking rates in accordance with market demand and to develop a rationalized parking policy that takes into account location, convenience and demand. The ability to set prices based on parking demand could further enhance revenue while ensuring that NJ TRANSIT customers experience improved services. As part of this procurement process, NJ TRANSIT may solicit from qualified Proposers innovative pricing structures and reasonable rationalization proposals and recommendations that are attuned to NJ TRANSIT parking customers. The price rationalization process is expected to include the transition of free parking to paid parking. Any pricing schedule will be a term of the Concession Agreement, the form of which must be approved by the NJ TRANSIT Board. 17

20 3.6 Potential Revenue Enhancements through Marketing Initiatives Potential revenue enhancement could be achieved through marketing initiatives which may include increased signage, added amenities, special offers, innovative parking programs and arrangements with local businesses. 3.7 Geographical Diversity The Concession Assets are expected to be located in at least 12 different counties and over 50 different municipalities. NJ TRANSIT services customers on their daily commutes to and from New Jersey, New York and Pennsylvania. The large footprint of the Concession Assets ensures a diversity of certain risks and access to a large and varied customer base. 3.8 Market Advantage Certain Concession Assets are located in areas where new competing parking facilities are unlikely. Further, the Concession Asset locations are typically the most convenient for those parking to use NJ TRANSIT services. 3.9 Compelling Market Dynamics and Competitive Attractiveness 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Average Weekday Passenger Boardings New York Penn Station Hoboken currently peaking at $8 for cars for round trip access. Many customers use NJ TRANSIT services to commute to New York City. NJ TRANSIT services offer a strong value proposition compared to the alternative of driving into and parking in New York City. According to Colliers International s 2010 Parking Rate Survey, the average daily parking rate is $31 for Downtown Manhattan and $40 for Midtown Manhattan. Adding to the cost of driving into Manhattan are the tolls on bridges and tunnels that offer access, with tolls 18

21 Section 4 RFQ Submission Requirements 4.1 Qualification Requirements and Evaluation Criteria This RFQ is open to Prospective Proposers who seek qualification to submit a proposal to serve as Concessionaire for the Concession Assets. Qualification will be based on a determination by NJ TRANSIT, in its sole discretion, that the Prospective Proposer meets the requirements highlighted in this RFQ. NJ TRANSIT will assess each respondent s qualifications in the areas of experience and technical and financial capability. There will be no restriction as to the number of Prospective Proposers that may qualify under this RFQ. Certain Prospective Proposers may find that forming a team with partners will enhance their ability to meet the requirements of this RFQ. A team may consist of a prime/subcontractor relationship, a partnership or a joint venture, or any other arrangement that is legally binding under the laws of the State of New Jersey. Any changes in the composition of a team after the qualification process is complete are subject to the prior consent of NJ TRANSIT. NJ TRANSIT s evaluation will be based on the following criteria: PROPOSER STRUCTURE To qualify as a potential Concessionaire, the Prospective Proposer must demonstrate sufficient team structure with respect to the following areas: 1. Adequacy of proposed team legal structure to provide sufficient assurance that all technical and financial obligations will be met over the life of the Concession. 2. Adequacy of definition of roles and responsibilities of team members and key personnel. 3. Adequacy of disclosure of controlling interests and team integrity. DESIGN, BUILD AND OPERATE CAPABILITY To qualify as a potential Concessionaire, the Prospective Proposer should ideally demonstrate design, build and operate capability with respect to the following areas of expertise: 1. Experience in designing and constructing on schedule and within budget at least 3 parking decks that contain at least 500 spaces each. 2. Experience in operating computerized parking-access and revenue control systems at no less than 3 parking deck structures with at least 300 spaces in each. 3. At least five years of current experience managing, operating and maintaining parking facilities. 4. Current responsibility for managing, operating and maintaining (by contract, lease, or ownership) an aggregate of at least 5,000 parking spaces in multiple facilities which may include parking meters, surface lots, and parking decks. 19