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HomeMy WebLinkAboutAgenda Statement 1987/07/14 Item 11a,b COUNCIL AGENDA STATEMENT Item lla , b Meeting Date 7/14/87 ITEM TITLE: a) Resolution r ; Z� Approving an increase in the fair market value of land for the purpose of establishing the in-lieu parking fee b) Resolution Revising the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities SUBMITTED BY: Community Development Directo I1P REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) On June 4, 1987, the Redevelopment Agency approved a report increasing the in-lieu parking fee, allowing in-lieu fee revenues to be used by the Agency for financing parking acquisition or development and using parking meter funds to finance additional security downtown. The in-lieu parking fee program was established by the City Council and any changes to that policy or in-lieu fee formula requires City Council action by resolution. The attached resolutions incorporate the approved changes into the in-lieu parking program. RECOMMENDATION: That the City Council accept the report and approve the following resolutions: a. Approving an increase in the fair market value of land for the purpose of establishing the in-lieu parking fee. b. Revising the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities. BOARDS/COMMISSIONS RECOMMENDATION: On May 21 , 1987, the Town Centre Project Area Committee unanimously recommended that the Redevelopment Agency/City Council approve the proposed increase in the in-lieu parking fee, the use of parking meter funds to finance additional security downtown, and the expenditure of in-lieu parking fee revenues by the Redevelopment Agency for the purchase or development of public parking facilities. DISCUSSION: The in-lieu fee program has contributed to the redevelopment and densification of developed properties located primarily along Third Avenue and "F" Street in Town Centre. On June 4, the Agency agreed that this program should continue to be used to attract and promote downtown development. Page 2, Item lla, b Meeting Date 7/14/87 It is proposed that the land value component of the in-lieu fee formula be increased from $16/square foot to $20/square foot to more clearly reflect the actual cost incurred by the Agency in purchasing land for parking. The in-lieu fee policy is proposed to be revised to allow the Redevelopment Agency to expend in-lieu fee revenues in conjunction with Redevelopment funds for the purpose of acquiring or developing land for public parking. To offset the expenditure of redevelopment monies for the purchase or development of land for public parking, it is recommended that parking meter revenues be applied to finance additional security downtown. Surplus parking meter revenues are sufficient to finance foot and vehicular patrols of downtown. In addition, parking fine revenues accruing from the parking garage should support limited patrol of the garage. Negotiations to restructure the CC&Rs for Park Plaza, including maintenance and security of the parking garage are being proposed in conjunction with the eminent sale of Park Plaza. The revised CC&Rs will address the issue of increasing security. The Police Department recommends the use of Chula Vista Police Reserves to patrol downtown. Implementation of the above mentioned recommendations requires the approval of two City Council resolutions. The first resolution increases the land value component of the in-lieu parking fee from $16 per square foot to $20 per square foot. The second resolution revises the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities. FISCAL IMPACT: Adjusting the fair market land value from $16 to $20 per square foot would increase in-lieu parking fee revenues by approximately 25% to support the acquisition and construction of off-street parking facilities. The in-lieu fee fund has averaged approximately $26,000 per year over the past five years. Based on that same level of activity, revenues would increase to $32,500 per annum (a 25% increase) if the adjustment to the formula is approved. The Agency' s continued participation in financing the acquisition and development of parking facilities is dependent upon continued development downtown. During Fiscal Year 1986-87, the Agency expended approximately $500,000 for the purchase of property on Church Avenue for parking. It is anticipated that the acquisition of land for public parking along Landis Avenue may be necessary to support increasing parking demand. A sufficient amount of money is available through parking meter revenues to finance security. The Parking District has averaged approximately $46,000/year in net operating income for the past five years. It is anticipated that the annual average income will increase due to the development of additional public parking lots and last year' s increase in parking meter rates. The $46,000 in parking meter revenues is sufficient to cover the $35,400 in projected security expenses. WPC 2991H _ by thf. City Comcil of Chula Vista, California Dated ( AIMINtailisaatmoulawain,ea COUNCIL AGENDA STATEMENT Item lla, b Meeting Date 7/14/87 ITEM TITLE: a) Resolution Approving an increase in the fair market value of land for the purpose of establishing the in-lieu parking fee b) Resolution 00-1-1 Revising the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities Cl:kr- -- SUBMITTED BY: Community Development Directo REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) On June 4, 1987, the Redevelopment Agency approved a report increasing the in-lieu parking fee, allowing in-lieu fee revenues to be used by the Agency for financing parking acquisition or development and using parking meter funds to finance additional security downtown. The in-lieu parking fee program was established by the City Council and any changes to that policy or in-lieu fee formula requires City Council action by resolution. The attached resolutions incorporate the approved changes into the in-lieu parking program. RECOMMENDATION: That the City Council accept the report and approve the following resolutions: a. Approving an increase in the fair market value of land for the purpose of establishing the in-lieu parking fee. b. Revising the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities. BOARDS/COMMISSIONS RECOMMENDATION: On May 21 , 1987, the Town Centre Project Area Committee unanimously recommended that the Redevelopment Agency/City Council approve the proposed increase in the in-lieu parking fee, the use of parking meter funds to finance additional security downtown, and the expenditure of in-lieu parking fee revenues by the Redevelopment Agency for the purchase or development of public parking facilities. DISCUSSION: The in-lieu fee program has contributed to the redevelopment and densification of developed properties located primarily along Third Avenue and "F" Street in Town Centre. On June 4, the Agency agreed that this program should continue to be used to attract and promote downtown development. Page 2, Item lla, b Meeting Date 7/14/87 It is proposed that the land value component of the in-lieu fee formula be increased from $16/square foot to $20/square foot to more clearly reflect the actual cost incurred by the Agency in purchasing land for parking. The in-lieu fee policy is proposed to be revised to allow the Redevelopment Agency to expend in-lieu fee revenues in conjunction with Redevelopment funds for the purpose of acquiring or developing land for public parking. To offset the expenditure of redevelopment monies for the purchase or development of land for public parking, it is recommended that parking meter revenues be applied to finance additional security downtown. Surplus parking meter revenues are sufficient to finance foot and vehicular patrols of downtown. In addition, parking fine revenues accruing from the parking garage should support limited patrol of the garage. Negotiations to restructure the CC&Rs for Park Plaza, including maintenance and security of the parking garage are being proposed in conjunction with the eminent sale of Park Plaza. The revised CC&Rs will address the issue of increasing security. The Police Department recommends the use of Chula Vista Police Reserves to patrol downtown. Implementation of the above mentioned recommendations requires the approval of two City Council resolutions. The first resolution increases the land value component of the in-lieu parking fee from $16 per square foot to $20 per square foot. The second resolution revises the in-lieu parking fee policy to allow the Redevelopment Agency to expend in-lieu fee revenues for the purchase or development of public parking facilities. FISCAL IMPACT: Adjusting the fair market land value from $16 to $20 per square foot would increase in-lieu parking fee revenues by approximately 25% to support the acquisition and construction of off-street parking facilities. The in-lieu fee fund has averaged approximately $26,000 per year over the past five years. Based on that same level of activity, revenues would increase to $32,500 per annum (a 25% increase) if the adjustment to the formula is approved. The Agency' s continued participation in financing the acquisition and development of parking facilities is dependent upon continued development downtown. During Fiscal Year 1986-87, the Agency expended approximately $500,000 for the purchase of property on Church Avenue for parking. It is anticipated that the acquisition of land for public parking along Landis Avenue may be necessary to support increasing parking demand. A sufficient amount of money is available through parking meter revenues to finance security. The Parking District has averaged approximately $46,000/year in net operating income for the past five years. It is anticipated that the annual average income will increase due to the development of additional public parking lots and last year's increase in parking meter rates. The $46,000 in parking meter revenues is sufficient to cover the $35,400 in projected security expenses. WPC 2991H c....l by the City Council of Chula Vista, California Dated 7 " ( Y--(T7