HomeMy WebLinkAbout03-19-2019 Item 11 - Potential City County Parking Structure Project Department Name: Public Works
Cost Center: 5101
For Agenda of: March 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Timothy Scott Bochum, Deputy Director of Public Works/Interim Parking
Services Manager
SUBJECT: FUNDING OF ADVANCE DEVELOPMENT WORK FOR A POTENTIAL
PUBLIC-PRIVATE PARKING STRUCTURE PROJECT LOCATED EAST OF
SANTA ROSA STREET (UPPER DOWNTOWN)
RECOMMENDATION
1. Appropriate $125,000 from the unappropriated working capital balance of the Parking Fund
for use in advance development work for the potential Higuera /Toro Street Parking Structure.
2. Authorize the City Manager to negotiate final terms and scope of services, not to exceed
$35,000, with PFM to provide financial assistance in the preparation of a Memorandum of
Understanding (MOU) for future Council consideration for the project.
DISCUSSION
The City is interested in developing a memorandum of understanding (MOU) with Nick
Tompkins (1144 Higuera Investments LLC) and the County of San Luis Obispo to develop a
public/private parking structure in the one block area bounded by Santa Rosa, Monterey,
Higuera, and Toro streets. This property represents a unique opportunity to partner with a
landowner and the County to leverage efficiencies in creating parking capacity for upper
Monterrey and the surrounding area. This agenda item seeks Council approval to appropriate
funding to conduct advance development work for the project (in cooperation with the County of
San Luis Obispo) and specifically to allocate $35,000 for financial assistance to help guide
discussion on development of an MOU for the project.
Background
The City of San Luis Obispo has been contacted by Nick Tompkins, a local property owner and
developer. Mr. Tompkins is constructing the mixed-use project at the old Shell Station site on the
corner of Monterey and Santa Rosa, and is also looking to develop two adjacent parcels of land
in the 1100 block of Higuera Street which he either owns or has an option to purchase. Mr.
Tompkins has expressed an interest in working with the City to build a public-private parking
structure on these parcels to increase parking in the area to address parking deficiencies of
current businesses such as the County.
The initial proposal was a build-to-suit lease, where he would construct and finance a 601-stall
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public parking garage, and the City would lease the structure for a term of 50 years with the City
receiving an option to purchase the structure and land during the tenth (10 th) year of the lease
term. Ensuing discussion have resulted in the solicitation of the County of San Luis Obispo as a
third participant on the project and the potential for the County to act as the lead in bringing the
project to completion. Terms of the potential project and a draft Memorandum of Understanding
(MOU) are being completed and will be forthcoming to Council for consideration.
This structure is consistent with the General Plan for the Upper Monterey area and is identified
in the Downtown Physical Plan (2017) as a potential location for parking to service the Upper
Downtown Planning Subarea.
Figure 1 – Figure 3.3 from the San Luis Obispo
Downtown Concept Plan – Page 3.20
The County has expressed interest in utilizing approximately 20 0-250 stalls in the structure
during the daytime working hours, has agreed to act as lead in bringing the MOU forward and
likely will lead project approval and development. The City will be a financial participant and
likely operator of the project once complete. PFM, a contract financial advisor for the City, will
be critical in assisting the City with not only evaluating the financial feasibility of the
arrangement between the City, the County and Mr. Tompkins on both the construction of the
structure itself, but also the long-term maintenance and operation.
Previous Council or Advisory Body Action
In 2003, the Council reviewed various alternative s for a joint transit and parking structure
concept for this area but decided to not move forward at that time and instead focus o n
completing other parking supply projects that were underway.
In 2014, the City adopted the new Land Use Element of the General Plan that includes Special
Planning Area 8.2.2 which looks to place an emphasis on revitalization and enhancement of the
Upper Monterey area. The special planning area includes recommendations for considering
expansion of, or a new, parking in-lieu fee to promote better land utilization and mixed-use
development. New, available public parking supply will be essential for any expanded parking
options program needed to accommodate development in the area.
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In 2017, the City adopted an updated Downtown Physical Concept Plan that makes specific
suggestions for areas within and surrounding the Downtown. The plan contains suggestions on
this one-block area which includes the concept of parking. (see Figure 1 above).
Policy Context
• Land Use Element - Special Planning Area 8.2.2 establishes this area seeking revitalization
and redevelopment including parking facilities
• City’s Access and Parking Management Plan:
1. Policy 5.1 - Parking should be provided in the commercial core for shoppers, tourists, employees
and patrons of government and private offices.
2. Policy 5.4 - Parking structures and surface lots should be located along the periphery of the
commercial core as a means of eliminating traffic congestion and enhancing pedestrian activities.
Public Engagement
The City has been working with staff from the County of San Luis Obispo in coordinating early
development issues and discussion on potential terms of the draft MOU and project components.
Public outreach and engagement have been limited so far as the terms and issues are being
completed and brought forward for Council consideration.
CONCURRENCE
The Economic Development Manager has reviewed and concurs with the recommendations.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378
and is otherwise categorically exempt from environmental review per CEQA Guidelines 15306,
Information Collection.
FISCAL IMPACT
Budgeted: No Budget Year: FY 2018-19
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Other: Parking
Fund (611)
$125,000 N/A N/A
Total $125,000
There is no impact to the General Fund as part of this recommendation.
This project is part of the City’s public parking program and is to be funded using available
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unappropriated Parking Fund balance. The Comprehensive Annual Financial Report (CAFR) for
FY 2017-18 identifies that the Parking Fund ended with $12.5 million in unrestricted working
capital on June 30, 2018. The working capital in this fund is being accumulated to help fund the
Palm-Nipomo Parking Structure anticipated to begin construction in 2020 or 2021. The
recommendation for use of $125,000 of this working capital will not affect financing of the
Palm-Nipomo project .
The recommendation proposes to use PFM consulting, the City’s Municipal Advisor, to analyze
issues of the proposed partnership and help finalize deal points for the draft MOU for Council
consideration.
It is important to note that funding for eventua l construction of this parking structure project has
yet to be identified will likely need new funding sources to accomplish. The financial consultant
hired as part of this Council action will assist the City in identifying potential funding options for
the project to consider for both capital and operational needs.
ALTERNATIVES
Do not allocate funding for this effort at this time. Staff does not recommend this option.
Financial assistance is needed at this time to help formulate, and consider, issues as sociated with
bringing a draft MOU and terms forwards for Council consideration. The city has limited
experience with establishing Public-Private agreements of this nature and needs assistance in the
consideration of issues associated with this proposal.
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