BACKGROUND
At its meeting of January 6, 2015, the Council received an informational update on the history and issues surrounding consideration of constructing a new parking structure in the Brea Downtown. The Council then directed staff to work further with the Downtown property owners group to explore their design concept for a parking structure, with the goal of achieving a more detailed cost estimate for that design. Additionally, the Council directed staff to return with information regarding the potential for new and increased Downtown revenues which could result from adding a new parking structure Downtown.
DISCUSSION
Staff is returning to Council to provide an update on the items requested as directed at your January 6 meeting. A notebook of topically organized information is attached to this report for your information. The notebook includes:
- Materials previously provided at the January 6 meeting
- Updated plans and cost estimate information from the Downtown Owners group for its preferred parking structure design
- The most recent (October 2013) Downtown parking inventory and forecast model from the City’s parking consultants, Gibson Transportation
- Revenue projections from the potential expansion of uses and related new property taxes Downtown which could result from realizing a new parking structure
Updated garage plans from Downtown Owners group - The Owner group has submitted more detailed plans of its parking structure concept as was discussed with the Council at the January 6 meeting. They have also had this design reviewed by a construction firm, Guy Yocum Construction, who have experience with large and similar projects in the region. Highlights include:
- 4 level (grade + 3) design
- 485 parking stalls (307 net, as 178 surface stalls exist today)
- 40’ approximate height (excluding architectural/elevator projections)
- Police annex room (approx. 200 sq.ft.)
- Dedicated trash room for service to tenants on the block
- An estimated construction cost, with necessary allowances, of $8.9M*
For comparison purposes, the City’s parking structure design which was being pursued prior to the disillusionment of the Redevelopment Agency, featured:
- 4 level (grade + 3) design
- 444 parking stalls (266 net w.o. valet, as 178 surface stalls exist today)
- 47.5’ approximate height (excluding architectural/elevator projections)
- 15,000 sq. ft. commercial space shell fronting Birch Street
- Dedicated “washout” area for use by restaurant tenants on the block
- An estimated construction cost, with anticipated allowances, of $13.2M (2011-12 estimate)
*this estimate has only had a cursory review at staff level and would need complete evaluation of qualified construction cost estimator to assure it includes all necessary provisions.
As part of our dialog with the Owner’s Group staff have also received clarification of the group’s vision for how the parking structure would move forward. The Owner’s Group proposal is for the City to pursue the revised design concept and realize the parking structure as part of our Capital Improvement Program (CIP), thus having the City control the construction process and have responsibility for construction costs and related expenditures.
Brea Downtown parking model update (2013) – At the January 6 meeting staff provided a summary of current downtown parking generation from our most recent survey. In response to Council’s desire to better understand parking needs we are providing the background memorandum from our consultants at Gibson Transportation. This October 2013 update was conducted to calibrate the parking model based on both actual and forecasted use. Downtown parking lots were surveyed over the Labor Day weekend that year and parking garage count system data was also reviewed. Additionally, Gibson projected anticipated parking need from then vacant shop spaces and also provided a future scenario where Old Navy is gone, replaced with a live entertainment venue and restaurants (e.g relocated and expanded Improv).
Gibson’s work in 2013 suggests that a future scenario of an expanded live entertainment venue could be accommodated within the current, overall, downtown parking inventory of approximately 2300 stalls. This 2013 update builds off of Gibson’s prior work in the Brea Downtown conducted over many years, which also highlighted the challenges of the distribution of parking—most specifically parking deficiencies on the east side of Brea Boulevard and the need for effective parking management solutions. Additional analysis would be needed to completely evaluate the practical ability to provide for such an expansion of uses on the Superblocks (east side of Brea Blvd.) within the existing parking inventory.
At the time of the October 2013 update no further studies were commissioned to assess the ability to realize an expanded entertainment venue within the existing parking inventory via aggressive parking management solutions. While this may be speculatively possible, it is staff’s understanding that discussions with potential tenants (including expanded entertainment operators) found them unable to accept management solutions alone and that additional parking on the east side of Brea Boulevard was needed to realize such new tenants.
Revenue projections for an expanded Brea Downtown – City Council have asked for a projection of additional revenue to the City which could result from expanded and different uses in Brea Downtown, together with realized increases in property tax, associated with a new parking structure on Superblock I. Staff worked with the Owner group and our longstanding economist, Keyser Marston Associates, and the City’s sales tax consultant MuniServices, to generate some projections. A detailed projection forecast is provided within the attached notebook (Tab 10).
In summary, based on the anticipated tenant mix including an expanded entertainment venue, revenue will come from various components in the downtown and the City will most likely realize $193,700 in annual revenues due to possible expansion.
There is currently revenue generated by leases or contracts in the downtown. A cell tower lease generates $34,000 per year and the current parking valet generates approximately $40,000 per year. If new commercial uses are constructed on the eastern edge of Parking Structure 1 that could increase revenues an additional $43,000. Taken cumulatively, the combination of new revenues and existing cell tower and valet revenue offers an estimated $310,700 in annual revenue to the City.
No revenue was calculated related to charging for parking other than the current valet agreement. Contained within the Keyser Marston Associates report dated June 19, 2012 (Tab 3), assumptions were outlined reflecting potential revenue generation of $36,500 to $129,600 annually from a parking structure with a fee system in place. The report also indicated that charging for parking in Downtown Brea is inconsistent with similar developments in the region. It’s important to keep in mind that these are only projections and our best estimates at this time. Unknown variables could certainly affect revenues.
In addition, proposed larger entertainment venues could affect City expenses to manage potentially larger crowds or maintain a larger more active area of the downtown. This would offset some of the projected new revenues.
Policy Questions and Next Steps - For its study session discussion April 15 staff has identified several policy questions which remain in the critical path toward Next Step direction for the possible pursuit of a new parking structure. These include:
- In light of the revised details of the Owner Group design concept and presented information, does the City Council have a continued interest in pursuing a new parking structure?
- Does the Council have other informational needs prior to such decision?
- If a continued interest exists, and all informational needs are fulfilled, the City Council needs to provide direction to staff on:
- Preferred parking structure design option (Owner Group concept, or ?)
- Funding source for the project
- Initiating work to prepare bid documents for design/build process
- Other direction as determined and/or needed by the Council
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