Orangeline Development Authority Moves Full Speed Ahead

The Board of Directors of the Orangeline Development Authority on September 10, 2008 voted unanimously to enter into a legal services agreement with DLA Piper, one of the world’s largest law firms, which will set the stage for raising private investment for the most innovative transportation and development project in Southern California. DLA Piper will coordinate securing the developer consortia agreements that will play a critical role in realizing the $20 billion in private financing the Orangeline Development Authority requires to implement the Orangeline High Speed Maglev Corridor Development Project.

The Orangeline High Speed Maglev Corridor Development Project is a coordinated undertaking by the Orangeline Development Authority to create transit-oriented housing and other improvements that are connected by a privately-funded, High Speed Maglev transportation system that will serve residents and businesses. The Maglev system uses clean, electromagnetic levitation to lift and propel passenger vehicles along an elevated monorail at top speeds of 200 miles per hour or higher. It will connect two of the most densely populated counties in the country, Los Angeles and Orange counties.

DLA Piper will assist in the preparation of a Request for Qualifications, and thereafter, at the appropriate time, a Request for Proposals (RFP) from infrastructure and real estate developers and investors interested in serving as the Authority’s development partners. The selected consortia would complete the entitlement process and the eventual construction and operation of the Orangeline High Speed Maglev and create the station-area real estate improvements envisioned along the 108-mile development corridor. Orangeline Development Authority has not yet set a date for release of the RFP.

“This is a landmark day for the Orangeline High Speed Maglev,” said Kirk Cartozian, Board Chair of the Orangeline Development Authority. “DLA Piper will bring us the experience we need to raise the important private funding that will make the unique Public-Private Partnership that is Orangeline a reality. We found a law firm that shares the same vision as our Board for bringing a coordinated transportation and development solution to the residents of Southern California.”

DLA Piper, which operates the top-ranked real estate practice in California and the United States and has extensive experience in rail, real estate and government procurement, was selected from among the best, most experienced and highly-qualified project finance law firms in the world. Five of the top law firms in the industry competed as candidates to represent the Orangeline Development Authority on this project.

It is estimated $200 million in private funding is necessary for environmental and entitlement work that is required for the construction of the High Speed Maglev system. The developer consortia agreements coordinated by DLA Piper will help fund this work. DLA Piper will also review existing Orangeline plans and studies, pre-qualify developer consortia proposers, draft RFP documents and evaluate submissions. DLA Piper’s involvement will also include preparation of the concession agreements and final negotiations with preferred proposers.

In commenting on his firm’s decision to partner with the Orangeline Development Authority, Richard M. Ornitz, Chairman of the US Infrastructure Practice at DLA Piper, said, “DLA Piper strongly believes in its ability to help make the Orangeline Development Project a reality and in transit-oriented development for the corridor. Accordingly, we have aligned our interests with the Orangeline’s success.”

The Orangeline Development Authority is a city-based organization that depends on the voluntary willingness of all the cities along the corridor to share the vision and to be active partners in turning High Speed Maglev transportation into reality. The Authority is a joint powers agency, created by cities along the Orangeline corridor, the purpose of which is to enter into one or more Public-Private Partnerships to finance, acquire, design, construct, reconstruct, improve, and operate the facilities and improvements to the Orangeline. “Orangeline” means a high-speed ground transportation service that is provided by an advanced technology, elevated, magnetically levitated (“Maglev”) ground transportation system for moving people and cargo, and is comprised of passenger and cargo vehicles, elevated guideways and support columns, power distribution system, vehicle control systems, stations, maintenance and operation center, and related facilities.

DLA Piper is a global law firm that has approximately 3,700 lawyers in 25 countries and 64 offices throughout the US, Europe, Middle East and Asia. It has leading practices in corporate finance, infrastructure, litigation, real estate, regulatory and legislative, tax, and technology, media and communications.
Website: http://orangeline.calmaglev.org.