HomeMy WebLinkAbout03/21/1995, C-2 - TEMPORARY SUSPENSION AND WAIVER OF PARKING LEASE PAYMENTS FOR 1020 RAILROAD AVENUE. ���N�����i�►►NllllllNiiiil�lll � Mme'"a PA y
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COUNCIL AGENDA REPORT ITEM NUMBER:C�a
FROM: Mike McClus , P blic Works D'
Keith OpalewVs a king Manager
SUBJECT: Temporary suspension and waiver of parking lease payments for 1020
Railroad Avenue.
CAO RECOMMENDATION:
By motion, grant a temporary suspension (until July 1, 1996) of parking lease payments for the
property owner (Mr. Michael Rice) at 1020 Railroad Ave. and waive the current amount
($1,234.00) of outstanding payments.
DISCUSSION:
In 1985, the City Council established a joint public/private parking program for the Railroad
Square area. As a condition of use permits, the parking program required property owners to
contribute toward the cost of developing and maintaining the parking facilities through a lease
agreement.
In September of 1989 the Council approved the lease agreements and property owners were
billed for their first quarterly payment. Shortly after the invoices were sent out, a fire destroyed
the building at 1020 Railroad Ave. (Union Station Restaurant). The restaurant has been out of
business since October 30, 1989. Even though the business has not been operational since
October 1989, the property owner, Mr. Michael Rice, has been paying his $864.00 quarterly
payments for 24 spaces which he has not used. Mr. Rice was current with his payments as of
12-1-94 and currently has an outstanding payment due of$1,234.00.
Staff recently received a request from Mr. Rice to suspend his parking lease payments until he
can sell the property. His current financial situation makes it a hardship to continue to pay his
lease payments and he is seeking relief from his lease obligation. Staff concurs with Mr. Rice's
request to grant a suspension of his payments and further recommends that the outstanding lease
payments be waived. Since Mr. Rice has contributed toward the parking program since 1989
and no longer is able to directly benefit from the use, the suspension until July 1, 1996 or until
his property is sold, whichever comes first, along with the waiver of the $1,234.00 lease
payment, is reasonable and warrants approval.
FISCAL IMPACT:
Although the City would lose the $864.000 quarterly payment, the property owner has paid for
but not used parking spaces for over five years (approximately $17,000) so it is reasonable to
waive the $1,234 payment and suspend additional lease payments until July 1, 1996. The loss
of revenue will not have an adverse affect on the Railroad Square service area. However, if the
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COUNCIL AGENDA REPORT
Council Agenda Report
Page two
property is not sold by the 1996 deadline and Mr. Rice does not request another waiver, normal
lease payments would resume at that time. Furthermore, if the property is sold prior to the July
1, 1996 suspension deadline, the parldng lease payments would resume with the new property
owner under a new lease agreement.
Staff feels the request is very reasonable due to the mitigating circumstance of the business not
being operational since 1989. This holds true for the recommended time period for suspending
the lease payments as well as granting the waiver of the outstanding payments. From a
standpoint of fairness, the City should grant the property owner's request for financial relief.
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ALTERNATIVES:
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Either deny the request or modify the suspension time and/or amount of waiver per Council's
direction.
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