Washington Metropolitan Area Transit Authority’s (Metro) board of directors approved on Thursday the selection of a development team led by Forest City Enterprises and Urban Atlantic Development to create a signature transit oriented development (TOD) project around the New Carrollton Metrorail station in Prince George’s County.

The board also approved a Memorandum of Understanding (MOU) with the development team, the first step in a joint approval process with the Maryland Department of Transportation (MDOT), which is expected to sign off on the MOU and developer selection in early April.

“Transit oriented development around the Metro system generates millions of dollars for the region,” said Metro GM/CEO Richard Sarles. “We are pleased to be working with Maryland on this public private partnership that allows Metrorail to serve as an economic engine.”

Metro and MDOT combined properties to offer 39 acres for redevelopment around New Carrolton in a joint Request for Qualifications that was issued in September 2010. Following a rigorous evaluation of five groups that responded to the solicitation, the selection team unanimously chose the Forest City/Urban Atlantic Development team to lead the project.

“Forest City and Urban Atlantic were selected based on their superior financial strength, previous experience in public/private and complex TOD projects, experience in all property types and the outstanding experience of team members,” said Steve Goldin, Metro’s Director of Real Estate who led a selection team comprised of four members each from Metro and the State of Maryland.

With Metro and MDOT approval, the MOU will set out next steps in the process, which include selecting consultants to assist in the creation of a conceptual development plan; involving the public and various stakeholders; and meeting Metro and MDOT goals to integrate the future Purple Line, implement the results of Metro’s bus needs analysis, and enhance access to the New Carrollton Metrorail station via multiple modes.

The agreement also includes a new approach to funding predevelopment planning, with MDOT making available $350,000 and Metro agreeing to reimburse the development team for up to $650,000 of consultant costs to support station development planning.

Together, MDOT and developer-provided funds will pay for the comprehensive design of the public and private elements of New Carrollton development, and for the inclusion of Metro, MDOT and community stakeholders as active participants in the process.