DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
Parking Agreements at One Alamo Center
SUMMARY:
This ordinance allows City staff to negotiate the usage of 100 parking spaces in One Alamo Center to facilitate the redevelopment of East Commerce corridor and the downtown core.
BACKGROUND INFORMATION:
On April 17, 2014, City Council approved an economic development agreement with the Klabzuba Realty, LLC to assist with tenant recruitment and retention. Through the agreement, the City executed a parking license that provides100 parking spaces which could be utilized to further facilitate the redevelopment of East Commerce corridor and the downtown core.
The parking license provides the City access to 100 parking spaces for a period of 10 years, with 10 spaces available seven days a week at all times and the remaining 90 spaces available in the evenings Monday through Friday and all day on Saturday and Sunday. The City has the ability to sublease the spaces to third-parties to facilitate retail and housing development along the Commerce Street corridor.
Under this ordinance, City staff will be allowed to negotiate parking contracts which are not limited to parking agreements, valet parking services and/or month-to-month individual parking. The City Manager or designated City staff may alternate the terms or licensees for the use of these parking spaces at any time in order to increase or enhance the future development of the Commerce Street corridor or the downtown area.
City staff will establish a rate of $50 per space on a monthly basis for any parking spaces used in a valet capacity with limited usage hours. The remaining 10 parking spaces will be available seven days a week at all times at a cost of $105 per month. For each subsequent year, the per space rate can be raised 5% over the previous year's rate based on market demand.
ISSUE:
This item will establish a minimum rate for parking at One Alamo Center and will provide staff the authority to negotiate parking agreements for the spaces secured in the previous Council approved agreement with One Alamo Center.
ALTERNATIVES:
The City may elect not to approve these Valet and Parking License Agreements and seek an alternative that would encourage job creation and assist with the parking needs and redevelopment in the East Commerce Corridor.
FISCAL IMPACT:
The anticipated revenue from these parking agreements is $66,600 in the first year based on the rates established in this Ordinance. For each subsequent year, the per space rate can be raised 5% over the previous year's rate based on market demand. Ten spaces will be reserved for individuals which may include City employees that are interested in leasing the parking spaces. All funds will be deposited in the Inner City Incentive Fund.
RECOMMENDATION:
Staff recommends approval of this Ordinance which will allow City staff to negotiate parking agreements at the One Alamo Center in order to support downtown retail and commercial development.