PARKING IN-LIEU PROGRAM FEE INCREASE AND PAYMENT PROGRAM

Recommendation:

That the City Council approve the parking in-lieu fee adjustment and time payment program and adopt the attached resolution implementing the changes.

Background:

The City Council, at its meeting of May 11, 1999, directed staff to return with a recommendation to adjust the parking in-lieu fees and set up a time payment program for businesses receiving approval for in-lieu parking.

The present program was established in 1982 allowing up to 100 in-lieu spaces. The City Council used 20 spaces for outdoor dining and two restaurants. No other in-lieu parking spaces have been sold. I believe none were sold because there was not a demand and because of the lack of a financing plan. A financing plan would allow the business to pay the cost as the business is operated rather than a large lump sum payment as is now required. A five year financing plan would seem to be appropriate. This would be an agreement to pay over five years subject to interest, etc..

The parking in-lieu fee should be adjusted to $12,500. This reflects the value and construction cost of the space. The cost of building the parking structure supports this number, as well as the appraisal commissioned by the City which set the market value of a parking space for the hotel project at $11,000. This was completed in March of 1996.

The City could begin accepting payment as soon as you act on this issue. No other actions appear to be necessary as the cost increase and financing plan are the only changes being proposed. Staff is in the process of identifying areas where increased parking can be built within the Vehicle Parking District. The parking in-lieu fee would be used to pay for these spaces. It appears that it is possible for a fair number of parking spaces to be added.

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