to: Roger L. Stancil, Town Manager
from: Kenneth
C. Pennoyer, Business Management Director
Dwight Bassett, Economic Development Officer
subject: Replacement Parking Plan for Lot 5
date: November 24, 2008
PURPOSE
The purpose of this report is to review the proposed plans for providing replacement public parking during the construction of the 140 West development on Parking Lot 5 at the corner of West Franklin, Church, and West Rosemary Streets, and to recommend a budget to implement the plan.
The Town of Chapel Hill has an agreement with Ram Development Company to enter into a long-term lease of Lot 5. Ram Development Company plans to build a mixed use project of retail space and residential condominiums on the site, with two levels of underground parking. One of the levels of underground parking will replace the current public parking on Lot 5. The estimated construction period for Ram Development is two years. The Town is responsible for providing alternative public parking during the construction period.
The Development Agreement of February 12, 2007 between the Town of Chapel Hill and Ram Development Company states in Section 2.16 that “the Town shall be responsible for the development of, and implementation of, an appropriate plan for alternative parking during the construction of the Parking Garage at the Town’s sole cost and expense.”
Currently, there are 169 spaces on Lot 5, of which 103 are daily spaces, and 66 are leased spaces. Of the leased spaces, 29 currently are leased by UNC Physicians, 7 by UNC Management and Development Office, 19 by adjacent merchants and or individuals, and 11 are reserved for current leaseholders on Lot 4. These spaces are leased on a month to month basis with a 30-day notice of termination required.
We estimate that construction of 140 West could begin in the early spring of 2009. We understand from Ram Development Company that the start date will depend on reaching its target level of pre-sales. Ram Development Company is currently completing its final Zoning Compliance Permit plans with the Town. We are proceeding with plans for replacement public parking that would be effective on January 1, 2009.
Proposed Plan
The objective of the replacement parking plan is to replace the 103 hourly spaces currently on Lot 5. The Town would provide hourly parking spaces in the following locations (please see map in Attachment 1):
1) On-street parking spaces on West Franklin Street (up to 15 spaces): The Town is in discussions with the North Carolina Department of Transportation to provide up to 15 new on-street parking spaces on West Franklin Street. The Town’s Development Agreement with Ram Development Company contemplated that the parties would use their best efforts to include 10-15 on-street public parking spaces in the vicinity of the 140 West project. We anticipate the cost of adding parking meters would be about $6,000, plus incidental costs of striping. Anticipated revenues are estimated to be about $20,000 per year.
2) Lot 4 on West Rosemary Street (18 spaces): Parking Lot 4 is located on West Rosemary Street adjoining and to the west of the current IFC shelter. The parking lot currently can accommodate 17 parking spaces sited at right angles (90 degrees) to the street. Spaces are currently leased monthly at $85 providing a total of $1,445 per month or $17,340 per year. We propose to improve the lot by paving it and relocating a pay station from Lot 5 for hourly parking, at an estimated cost of $31,500. This amount would be offset by estimated revenues of $2,800 per month or $33,600 per year.
3) P.H. Craig and Joe Riddle Lots in the West End (up to 73 spaces): We are in negotiations with two private owners, P.H. Craig and Joe Riddle, to lease spaces that would provide up to 73 hourly parking spaces in the West End. The estimated cost for leasing the P.H. Craig site is $23,400 for six months through June 30, 2009 ($46,800 annually); the one-time capital costs of relocating a pay station from Lot 5 and/or installing meters is $16,500. If we are successful in negotiating with Mr. Riddle, leasing the spaces would cost $6,000 for six months ($12,000 annually) with capital cost paid from the $16,500 for meters. These amounts would be offset by estimated revenues of $97,300 per year.
For the 66 leased spaces in Lot 5, we are offering current lessees options to find new replacement leasing opportunities from other private entities (please see letter in Attachment 2).
Implementation of this plan would provide up to 106 public parking spaces to replace the hourly parking being removed by development of the Lot 5.
FISCAL NOTE
This replacement parking plan would provide additional hourly parking in the downtown in both the east and west ends during the construction of development on the existing Lot 5, and beyond. After the completion of 140 West with its public parking, these parking elements could become additions to the supply of public parking downtown or revert to private control.
Leasing and one-time capital improvements to the sites would be paid from the Town’s Parking Fund. Revenues generated would be income to the Parking Fund.
Summary of Revenues and Costs
|
|
Annual Revenues |
Capital Costs |
Annual Lease Costs |
|
On-Street West Franklin Street |
$20,000 |
$6,000 |
-- |
|
Lot 4, West Rosemary Street |
33,600 |
31,500 |
-- |
|
West End |
97,300 |
16,500 |
58,800 |
|
Total |
$150,900 |
$54,000 |
$58,800* |
(*$29,400 for semi-annual cost)
For the on-street parking spaces on West Franklin Street, we estimate the income from hourly public parking would recover the capital costs within 4 months.
For Lot 4, we estimate the income from the conversion to hourly public parking would recover the capital costs within one year.
For the West End parking sites, we estimate the income generated would exceed the annual leasing cost and the one-time capital costs within 12 months.
We estimate that the leasing and capital costs for the replacement parking plan for the current budget year through June 30, 2009 total $83,400 ($54,000 capital costs plus $29,400 semi-annual lease payments). Continuation of the replacement parking plan would be subject to annual appropriations by the Town Council through the regular budget process.
That the Council enact the attached budget ordinance amending the Parking Fund to provide funding to implement a replacement parking program due to the anticipated closure of Lot 5 during the construction of 140 West.
ATTACHMENTS