DEPARTMENT: Center City Development & Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Lease of Parking Lot from General Services Administration
SUMMARY:
This ordinance authorizes a five year lease of real property with the General Services Administration for the City's use of the 325 space parking lot at 727 Cesar Chavez from 6 p.m. - 6 a.m. Monday through Friday, all day Saturday, Sunday, and Federal holidays beginning September 1, 2017, at an initial rate of $50,103.36 annually.
BACKGROUND INFORMATION:
On August 16, 2012, City Council approved Ordinance 2012-08-16-2012 with the General Services Administration (GSA) which owns the 325 space parking lot at 727 Cesar Chavez, located across the street from the Federal Building in Hemisfair. Since 1987, the City and the GSA have entered multiple leases authorizing the City's use of the parking lot on Monday - Friday from 6 p.m. until 6 a.m. and all day on Saturdays, Sundays, and Federal holidays. The City's Parking Division utilizes the lot for special event parking in support of downtown activities and to relieve the pressure of on-street parking in surrounding neighborhoods during special events. However during non-event nights and weekends the lot is available to the public for free. For FY2016, the City captured $99,850 in revenue from this parking lot.
The current agreement term is set to expire August 31, 2017.
ISSUE:
The Center City Development & Operations Department is seeking to continue the use of the 325 space parking lot at 727 Cesar Chavez, located across the street from the Federal Building in Hemisfair for 60 months beginning September 1, 2017 through August 31, 2022.
ALTERNATIVES:
The City may elect to discontinue its lease of the GSA parking lot at 727 Cesar Chavez; however, doing so could limit the City's ability to provide parking in direct support of downtown events and activities.
FISCAL IMPACT:
The following table identifies the annual payments due to the GSA from the City for use of the 325 space parking lot at 727 Cesar Chavez. Either party may terminate the agreement with a six-month written notice.
Year 1 September 1, 2017 - August 31, 2018 $50,103.36
Year 2 September 1, 2018 - August 31, 2019 $54,111.63
Year 3 September 1, 2019 - August 31, 2020 $58,440.56
Year 4 September 1, 2020 - August 31, 2021 $63,115.80
Year 5 September 1, 2021 - August 31, 2022 $68,165.06
RECOMMENDATION:
Staff recommends approval of the five year lease with the General Services Administration for use of the parking lot at 727 Cesar Chavez, beginning September 1, 2017 at an initial rate of $50,103.36 annually.