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HomeMy WebLinkAboutSS2 - Parking In-Lieu FeeCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. ss2 February 27, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Daniel Trimble, Program Manager (949) 644 -3230, dtrimble @city.newport- beach.ca.us SUBJECT: Parking -In -Lieu Fee. RECOMMENDATION Provide direction to staff on the establishment of a new in -lieu parking fee program by amendment or rescission of the existing program. BACKGROUND The City of Newport Beach currently has an In -Lieu Parking fee program. However since 1989 there has been a moratorium on its use with only a minor exception for small scale eating and drinking establishments. The original intent of the program was to provide shared parking in commercial districts. The moratorium was placed on the use of the program in 1989 after the Council questioned the adequacy of the fee and whether the program had increased demand without increasing supply. The following is a timeli�of the changes to the program: • In 1972, the City Council passed Ordinance No. 1433 establishing the parking -in -lieu program, adding section 12.44.125 to the Municipal Code. The code established the use of in -lieu parking fees to provide off - street parking to commercial businesses for an annual fee of $250 per space. • In 1974, Ordinance No. 1578 amended the code to decrease the annual fee to $150 per space. • In 1989, the City Council adopted Resolution 89 -7, establishing a "moratorium" on the issuance of commercial in -lieu parking fees. The resolution prohibited the sale of new in -lieu permits until the Central Balboa Specific Area Plan was adopted and the City Council took action on a new Ordinance to revise the Commercial In -lieu parking fee program. However, no further action was taken on the proposed legislation due to a disagreement regarding the amount of the fee and the ordinance was tabled. • In 1998, a resolution was adopted amending Resolution No. 89 -7 regarding in -lieu parking fees. This amendment was passed to allow for Parking -In -Lieu Fee Study February 27, 2007 Page 2 certain small scale eating and drinking establishments to use the in -lieu program due to their limited impact. At present two restaurants, 508 29th Street and 325 Old Newport Boulevard, have been permitted to use the in- lieu parking program under this provision. Despite the moratorium being in place for some time, the Revenue Division reports that 28 commercial establishments are still billed on an annual basis. The annual fees collected are approximately $46,000 and are designated to go to the In -Lieu Parking Fee Reserve Account. The current balance of this account is $362,969. The need for a new in -lieu parking program was identified by the Planning Commission. The Commissioners were concerned with the cumulative impact of the numerous parking waivers being granted with no provision for additional parking being added. General Plan policies CE 7.1.2 and CE 7.1.3 specifically call for the establishment of an in -lieu parking fee and the development of shared public parking facilities. The Implementation Program in the new General Plan (13 -22; Imp 16.10) also mentions the in -lieu fee program as an element to be considered for the development of public parking. Parkina Development Costs Four different costs of developing new parking spaces have been calculated for the purpose of this study. Two geographic areas where parking for commercial uses is an issue (Corona del Mar and Balboa Peninsula) were examined, as well as surface parking and structured parking in each area. The costs are detailed in the chart below: Parking Development Costs by District Land Improvements Corona del Mar Surface $6,226,082 Structure $6,226,082 Average: $240,000 $3,150,000 Total Cost Space yield Cost per space $6,466,082 $9,376,082 80 $80,826 210 $44,648 $62,737 Balboa Peninsula Surface $9,786,172 $240,000 $10,026,172 80 $125,327 Structure $9,786,172 $3,150,000 $12,936,172 210 $61,601 Average: $93,464 Parking -In -Lieu Fee Study February 27, 2007 Page 3 Methodology The cost estimates were calculated using the following assumptions: • The land required for a typical garage would be 120x220 feet or 26,400 total square feet. • The cost per space for construction of structured parking is $15,000. • The cost per space for construction of surface parking is $3,000. • Structured parking would be at least three levels. The land cost estimates were calculated using actual appraisals for commercial properties in the McFadden and Corona del Mar business districts and residential properties adjacent to the commercial areas. The appraisals were conducted on 11/07/2006 and 11/22/2006. A weighted average of 4 to 1 commercial land was used. This is based on the assumption that a new structure or lot would be primarily on commercial land, but that an adjoining residential parcel may need to be included. Survev of Other Cities Staff surveyed adjoining cities as well as other coastal cities. Both Huntington Beach and Laguna Beach currently have In -Lieu Parking fees. The City of Huntington Beach has two fees, $12,000 and $13,870, for different areas of the city. The fee for the City of Laguna Beach is $8,000 per space and applies to designated special parking districts. The further inland cities of Costa Mesa and Irvine do not have In -Lieu Parking fees. Other California coastal cities that were surveyed included Hermosa Beach which has a fee of $6,000 per space and Morro Bay which has a $15,000 fee in their downtown area and a $30,000 fee along the waterfront. The above mentioned fees are all lump sum and most of the cities offer installment payment options of up to 15 years. Some cities follow the cost method for determining In -Lieu Parking Fees while others determine the fee, usually lower than the actual cost, based on other policy considerations such as historic preservation or the encouragement of redevelopment in a downtown commercial area. Discussion Items 1. Should the City of Newport Beach re- establish an in -lieu fee program for commercial uses that cannot provide on -site parking required by the Zoning Code? 2. Should the City approve special districts were the In -Lieu program would be effective or should it be citywide? Parking -In -Lieu Fee Study February 27, 2007 Page 4 3. Should a single fee be adopted or should each district have a specific fee? 4. Should the fee be imposed prior to permit issuance or should the City allow payment on an extended installment? 5. Should the fee be set based on estimated cost per space or a portion of the cost? 6. What should be done with the existing businesses that pay the current in- lieu fee? (for example: continue paying $150 per year, pay until the fee amount is reached, etc.) 7. Should parking waivers be eliminated as an option for future applications? Prepared by: Submitted by: D I mbli �� Sharon Wood Program Manager Assistant City Manager Attachments: A. Ordinance 1433 B. Ordinance 1578 C. Resolution 89 -7 D. Resolution 98 -28 n ORDINANCE NO. 14 8 3 < AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADDING SECTION 12.44.125 TO THE NEWPORT BEACH • MUNICIPAL CODE TO PROVIDE FOR COMMERCIAL IN LIEU PARKING FEES • The City Council of the City of Newport Beach does ordain as follows: SECTION 1. Section 12.44.125 is added to the Newport Beach Municipal Code to read: "12.44.125 Commercial in lieu parking fees. A. PERMIT REQUIRED. In lieu of providing the required off - street parking on -site pursuant to Section 20.08.191 of the Newport Beach Municipal Code, a commercial business may provide all or a portion of its required commercial off - street parking in a municipal fee owned lot by paying an annual fee of $250 per parking space. Said municipal parking lot must be so located within reasonable proximity to the commercial business as to be useful to said business. (B) EXISTING USES. The requirements set forth in subsection (A) above shall not apply to those busi- ness establishments already in existence on the effective date of this ordinance; said businesses may be continued or changed to a use of the same or a more restricted nature without com- pliance with said requirements, provided that said use or building is not enlarged or extended to occupy a greater area than that occupied by such building or use on the effective date of this ordinance; and further provided that said busi- nesses shall continue to be subject to the parking requirements -1- ^ti 11 0 under which they were established; and shall continue to pay the parking fees as required pursuant to Section 12.44.120 of the Newport Beach Municipal Code, where such fees are applicable. SECTION 2. This ordinance shall be published once in the official newspaper of the City, and the same shall be effec- tive 30 days after the date of its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 27th day of March 1972, and was adopted on the 10th day of April 1972, by the following vote, to wit: ATTEST: City Clerk CERTIFIED AS THE ORIGINAL AND CERTIFIED AS TO PUBLICATION APR 141972 DATE _.,_�. CITY &R V F TXF CITY ( HEWPORf BEACH AYES, COUNCILMEN: Hirth, Parsons, McIrmi.s, Kymla, Ibstal, Croul NOSS, COUNCILMEN• None ABSENT COUNCILMEN: None Mayor -2- DON dm 3/27/72 r� I* ORDINANCE NO. 1578 AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING SECTION 12.44.125 OF THE NEWPORT BEACH MUNICIPAL CODE TO PROVIDE FOR A DECREASE IN COMMERCIAL IN -LIEU PARKING FEES The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. Section 12.44.125 of the Newport Beach Municipal Code is amended to read: "12.44.125 Commercial in -lieu parking fees. A. PERMIT REQUIRED. In lieu of providing the required off - street parking on site pursuant to Section 20.08.191 of the Newport Beach Municipal Code, a commercial business may provide all or a portion of its required commercial off - street parking in a municipal fee -owned lot by paying an annual fee of One Hundred Fifty Dollars ($150) per parking space. Said munici- pal parking lot must be so located within reasonable proximity to the commercial business as to be useful to said business. (B) EXISTING USES. The requirements set forth in subsection (A) above shall not apply to those busi- ness establishments already in existence on the effective date of this ordinance; said businesses may be continued or changed to a use of the same or a more restricted nature without compliance with said requirements, provided that said use or building is not enlarged or extended to occupy a greater area than that occupied by such building or use on the effective date of this ordinance; and further provided that said businesses shall continue to be subject to the parking requirements under which they were established; and shall continue to pay the parking fees as required pursuant to Section 12.44.120 of the Newport Beach Municipal Code, where such fees are applicable." SECTION 2. This ordinance shall be published once in the official newspaper of the City, and the same shall be effective -1- mf 30 days after the date of its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of July 1974,,and was adopted on the 12th day of Ault ,1974, by the following vote, to wit: AYES, COUNCILMEN: McInnis, Dostal, Barrett, Kuehn, Rogexs, Pyckoff, Store ' NOES, COUNCILMEN: None ABSENT COUNCILMEN: None 5: 4..'Y ` ATTEST: City CERTIFIED AS THE ORIGINAL AND CERTIFIED AS TO PUBLICATION D ry OF THE OF NkW t BEAGi '2' DDO:mh 7/22/74 WHEREAS, the Council desires to impose a moratorium on the issuance of "in lieu" permits, pending approval of the Central Balboa Specific Area Plan, to insure there is no intensification of uses based upon the "in lieu" program and to avoid potential hardship on new permittees in the event the program is abolished. NON, THEREFORE, BE IT RESOLVED that no permits shall be issued pursuant to the provisions of Section 12.44.125 of the Newport Beach Municipal Code until City Council approval of the Specific Area Plan for Central Balboa and Council action on Ordinance No. 88 -47. ADOPTED this 27th day of February, q� 1989. ad [6tW Mayor ",ij • RESOLUTION NO. 98 -2-8 • A RESOLUTION AMENDING RESOLUTION NO. 89 -7 OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REGARDING IN LIEU PARKING FEES WHEREAS, the City Council adopted Resolution No. 89 -7 on February 27, 1989, which prohibited the issuance of new permits pursuant to the provisions of Section 12.44.125, until the City Council's approval of the Specific Area Plan for Central Balboa and Council action on Ordinance No. 88-47. The Central Balboa Specific Area Plan has been adopted; however, the City Council has not taken action on Ordinance 88-47; WHEREAS, the City Council has authorized the preparation of a Parking Management Action Plan for Balboa Peninsula; • WHEREAS, the City Council anticipates that, as a result of said Plan, action will be taken to address Ordinance No. 88-47 in the near future; WHEREAS, the City Council finds that eating and drinking establishments that operate with certain characteristics have a very low parking demand, which can be met with street parking without causing adverse impacts on the surrounding neighborhood. Said characteristics include small scale (fewer than forty-five seats), very low turnover, closure earlier than midnight, and location in an area with ample and convenient street parking for which there is limited demand; WHEREAS, the City Council finds that an exception to Resolution No. 89 -7 is warranted for eating and drinking establishments with the operational characteristics described above. Said exception will provide for an aitemative arrangement for parking • consistent with the waiver standards provided in Title 20 of the Newport Beach Municipal -1- L� • u Code and with the requirements of the Coastal Act; will not be detrimental to the health, safety and welfare of the areas surrounding qualifying eating and drinking establishments; and will not have a detrimental impact on available parking or on any future decisions to amend the provisions of Section 12.44.125; NOW, THEREFORE, BE IT RESOLVED that a permit pursuant to the provisions of Section 12.44.125 of the Newport Beach Municipal Code may be issued to eating and drinking establishments with the operational characteristics described in the findings above. This issuance shall be an exception to the prohibition for issuance of new permits contained in Resolution No. 89 -7 limited to the unique circumstances provided in the findings above. ADOPTED, this z7ehday of April 1998. Thomas Cole dwards, Mayor ATTEST: t2�Vor�� fi1. LaVonne Harkless, City Clerk F:1 cat \ks \Resolution\ParkgPermitdoc '2- STATE OF CALIFORNIA ) • COUNTY OF ORANGE CITY OF NEWPORT BEACH ) I, LEILANI V. INES, Deputy City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 98 -28, was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 27th day of April, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, Mayor Edwards Noes: None Absent: None Abstain: None IN WITNESS WHEREOF,.I have hereunto subscribed my name and affixed the • official seal of said City this 28th day of April, 1998. o n Deputy City Clerk of the City of Newport Beach, California