HomeMy WebLinkAbout6/7/2022 Item 6a, Olds
Delgado, Adriana
From:Jeff Olds <jambaviking@gmail.com>
Sent:Tuesday,
To:E-mail Council Website
Subject:Strongly Support the Parking Rate Hike to Get the Cultural Arts Parking Structure Built
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Dear City Council Members and Mayor Stewart,
I own the Jamba (formerly Jamba Juice) at 890 Marsh Street in San Luis Obispo. I have been an advocate for the new
Cultural Arts District parking Structure for about a decade now. There is a strong perception that there is not enough
parking downtown and a new parking structure is needed to change that perception and to keep our downtown healthy.
If you do not immediately approve the proposed parking rate increases, I fear that this needed parking structure may
never get built. Every time we delay this project, it is costing us millions of dollars in increased costs of construction and
financing. The Parking Program has worked with I-Bank to secure an interest rate of 5% on the $43,000,000 loan that is
needed to fund this project at this time. Without this parking rate hike now, that interest rate is very likely to go away
and to be much higher if this project is brought back at a later time. My understanding is that debt service is
$46,000,000 for this project at this 5% rate for 30 years and that is $22,000,000 more than it would have been if the
interest rate were the 3% that was originally projected for this project. The Fed is increasing interest rates by .5% every
month for the foreseeable future, so we need to raise the parking rates now to lock in this favorable interest rate as
soon as possible and to get this new parking structure built.
I attended the Downtown SLO Parking and Access Committee meeting this morning and saw one businessperson go
from adamantly opposed to the parking rate hikes to a supporter of the parking rate hikes after learning that this is the
only way to get the new parking structure built in a timely manner. We have been planning this parking structure for 11
years and we cannot delay it again. Please take the survey from the Downtown SLO members with a grain of salt and
know that they did not have all of the facts when they were responding to the survey. Most business owners do not
even understand that the Parking Program is an enterprise fund separate from the City's General Fund. Several
downtown business owners who understand this issue are supportive of the increase in parking rate fees as proposed by
City staff. We need to all do educational outreach to help our community better understand the necessity for this
parking rate increase.
There might be room to change some of the details in the parking rate increases in order to appease some interest
groups down the road. But the initial plan to increase parking rates to provide the Parking Program with the funding
needed to qualify for this loan needs to be approved tonight. We can work out the minor details down the road. But we
cannot risk this parking garage project getting delayed again. It might make it impossible to ever get built.
Thank you for your consideration of my perspective. And thank you for doing your best for our beloved City of San Luis
Obipso.
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Sincerely,
Jeff Olds
Jamba Franchisee
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