City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 2, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Proposal to Modify and Extend the Public Parking Agreement at 115 S. Union Street
BODY
ISSUE: Consideration of a proposal to modify and extend the 1987 public parking agreement at 115 S. Union Street (Attachment 1) with 115 S. Union Street, LLC, the current owner of 115 S. Union Street.
RECOMMENDATION: That the City Council authorize the City Manager to execute an amendment to the agreement dated January 16, 1987, with terms that generally conform to those described herein and are reflected in the draft labeled as Attachment 2.
BACKGROUND: In 1987, the City of Alexandria entered into a public parking agreement with the developer of 115 S. Union Street to construct an additional eighteen (18) parking spaces as part of a new office building project. This agreement required the building owner to set aside thirty-eight (38) parking spaces for hourly, transient, and daily parking at all times and make all one hundred (100) parking spaces available for hourly and transient parking on nights and weekends in exchange for $200,000 (about $438,000 in today’s dollars) from the City of Alexandria. Without action by the City, this agreement will expire July 31, 2028.
In June 2017, the Council considered a request to modify and extend the parking agreement with the then owner of the building who was planning to change the building from an office building to a boutique hotel. Under this agreement, some of the public spaces would have been used for the hotel. In exchange for the reduction to public parking that was available in the garage and the improvements to the building, the agreement was proposed to be extended.
Although the hotel did receive approval of the required special use permit and the Council approved modifying the parking agreement, the hotel conversion did not move forward. A new owner has purchased the building and plans to keep it as an office use. The owner has proposed some changes to the retail space along S. Union Street that will improve access and visibility for future tenants. To implement these changes, fourteen (14) spaces in the garage would need to be removed from the first floor allowing for 86 remaining publicly-available spaces.
DISCUSSION: To compensate the City for the removal of the parking spaces and provide for additional parking benefits above and beyond what was previously envisioned, staff has negotiated an amendment to the parking agreement (Attachment 2). In the case of the proposal for 115 South Union Street, it would not be possible to construct a proposed lowered ground floor without removing the parking. The BAR consideration of this plan was December 19, 2018. The BAR unanimously approved the project, as submitted. Since the building still complies with all zoning requirements, since approved by the BAR, the alterations to the building will be approved by staff through a minor site plan amendment to the original site plan and building permits.
While the agreement allows for removal of spaces on the ground floor of the garage, the City is receiving substantial benefits from the amendment. The parking agreement would include a requirement to maximize utilization of all remaining parking spaces, including the 30 spaces in the upper level of the garage. These spaces are currently included in the 100 spaces that should be made available to the public. However, the upper level is typically not opened to the public except during periods of high demand when the lower level is full. Staff will coordinate with the building owner to identify ways to improve utilization of and access to these spaces, which would essentially add 30 off-street spaces to the Old Town parking supply that are typically not available. In addition, the amendment includes the following changes:
1. Extension of the agreement for all 86 spaces by three years, until July 31, 2031.
2. Provide a Parking Management Plan detailing operation and management of the garage, including ways to maximize utilization of parking on both levels of the garage to the satisfaction of the T&ES Director.
3. Install a City standard parking garage wayfinding sign (like the signage at City garages).
4. Share annual parking occupancy data of the garage with the City as requested and to ensure utilization remains high.
FISCAL IMPACT: There is no new fiscal impact because of this amendment. No monetary compensation will be provided to either the City or the new owner.
ATTACHMENTS:
Attachment 1: 1987 Parking Agreement
Attachment 2: Amendment to Parking Agreement
Attachment 3: Proposed Frontage
STAFF:
Joanna Anderson, City Attorney
Emily A. Baker, Deputy City Manager
Yon Lambert, Director, T&ES
Karl Moritz, Director, Planning & Zoning
Dori Martin, Assistant City Attorney
Christina Brown, Assistant City Attorney
Heather Diez, Deputy Director, Development and Right of Way, T&ES