Report Prepared by: Amanda Williams, Economic Development Associate
Title
SUBJECT: Approval of Proposed Facility Use Agreement (Parking Agreement) Between the El Capitan Hotel Merced, LLC, and the City of Merced to Lease 59 Parking Spaces in the Ralph Shannon Parcade
REPORT IN BRIEF
Proposed Agreement to lease 59 parking space in the Ralph Shannon Parcade to the El Capitan Hotel Merced, LLC, at $2,520 per month and $30,240 dollars per year.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Facility Use Agreement (Parking Agreement) with the El Capitan Hotel Merced, LLC; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to modification (identify specific amendments in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion; or,
5. Continue to a future meeting (date and time to be specified in the motion.)
AUTHORITY
City of Merced Charter, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
The previous Lease Agreement has now expired, and the El Capitan Hotel is requesting 59 parking spaces from the City of Merced in the Ralph Shannon Parcade. The spaces would be used for valet and self-parking for guests enjoying the hotel, retail, and restaurant used at the El Capitan Hotel. The El Capitan Hotel and City of Merced staff have negotiated a lease, and both parties agree with the proposed terms.
The proposed Facility Use Agreement (Parking Agreement) contains the terms to lease parking from the City of Merced - Parking Authority (Attachment 1.)
Key Terms
Number of
parking spaces: 59 spaces
Consideration: $2,520 per month
(Similar to the rate paid in the prior lease agreement)
Payment: By the first day of each quarter (January, April, July, and October)
Term: 5-year term, with three, 5-year term options
Time of use: 24-hours per day/7-days a week/365-days per year
Identification: El Capitan Hotel Merced, LLC, shall provide signage for
leased parking spaces
IMPACT ON CITY RESOURCES
No impact on the General Fund. The Parking Authority Fund is responsible for maintaining the condition of the parking garage, gates, elevators and lighting in the Parcade. The Parking Authority Fund may realize $30,240 annually should the Council approve the Agreement with the El Capitan Hotel Merced, LLC.
ATTACHMENTS
1. Facility Use Agreement W/ El Capitan Hotel