Report Prepared by: Frank Quintero, Director of Economic Development
Title
SUBJECT: Proposed Facility Use Agreement (Parking Agreement) Between the Regents of the University of California, on Behalf of its Merced Campus, and City of Merced
REPORT IN BRIEF
Proposed Agreement to lease 125 parking spaces in the Merced Center Garage to the Regents of the University of California, Merced campus, for the University of California Merced Downtown Campus Center.
RECOMMENDATION:
Parking Authority - Adopt a motion approving the Facility Use Agreement (Parking Agreement) with the Regents of the University of California; and, authorizing the City Manager or Assistant 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 2018-19 Adopted Budget, Economic Development, Objective 3) “Coordinate with High Speed Rail, ACE Train, and other projects that may serve as economic engines in downtown.”
DISCUSSION
The University of California Merced and community celebrated the grand opening of the UC Merced Downtown Campus Center in January 2018. The $45-million, 67,400 gross square foot building has capacity for up to 370 employees. UC Merced representatives discussed with City staff a request to lease parking spaces in the Merced Center Garage to accommodate the employees at the Downtown Campus Center. UC Merced desires to lease 125 parking spaces in the Merced Center Garage (100 covered parking spaces and 25 non-covered parking spaces.) 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: 125 spaces (100 covered, 25 non-covered)
(Covered parking, 2nd Level - Exhibit B)
(Uncovered parking, 3rd Level - Exhibit C)
Consideration: $50 per month for each covered parking space
$35 per month for each non-covered parking space
Payment: By the first day of each quarter (January, April, July, and October)
Term: August 1, 2018 to December 31, 2023
Time of use: Monday through Friday, 6am to 7pm
Identification: City shall sign spaces or rows, and the University shall provide hangers for its employees
Merced Center Garage
In 2006, the City Council approved funding for the construction of the Merced Center Garage by the former Redevelopment Agency. Plan specifications called for a 3-story structure with 335 parking spaces and 10,180 square feet of leasable commercial space and storage. Development of the Merced Center Garage was intended to support the Merced College Business Resource Center and Ghia Hotel. The Business Resource Center is in full operation, but the Ghia Hotel project developer did not move forward.
There are 10 parking spaces on the 3rd Level of the Merced Center Garage dedicated to Merced College. The College participated in payment to design the parking facility, and received the 10 dedicated parking spaces in exchanged for their contribution. WestAmercia Bank leases 12 spaces from the City of Merced Parking Authority on the ground level as part of their lease.
On May 19, 2014, the City Council adopted Ordinance 2428 making parking within the entire Merced Center Garage available for lease with the exception of the spaces dedicated to Merced College and leased to WestAmerica Bank. The intent of the Ordinance Amendment was to provide an incentive to developers interested in the Merced Center Project.
Should Council approve the Facility Agreement with the Regents, 147 of the 335 parking spaces in the Merced Center Garage would be committed leaving 188 spaces available to the public.
Adjacent Parking Lots
The City of Merced owns four parking facilities within one-block of the Merced Center Garage (See Figure 1). Three of the four parking lots are available to the public. Parking Lot #15 is dedicated to City of Merced employee parking. The following public parking lots are available to serve businesses and organizations located near the Downtown Campus Center:
Parking Lot #3 57 spaces Time restricted
Parking Lot #4 46 spaces Time restricted
Parking Lot #15 41 spaces City employee use
Shannon Parcade 146 spaces Open from 6am to 10pm.
The key mission of the Downtown Parking Plan is to provide plentiful parking to downtown customers and visitors. Staff will continue monitoring parking patterns in the adjacent lots and recommend changes as necessary.
Forthcoming Downtown Development
Two of three exciting downtown projects are in close proximity to the Merced Center Garage and Downtown Campus Center including the El Capitan Hotel Renovation, Hotel Tioga, and upcoming Mainzer Theatre improvement. With these projects in mind and other anticipated Downtown Merced projects, there will be greater pressure on nearby parking resources. Staff is reaching out to two consultants, soliciting proposals to assist the City with providing more parking opportunities for customers, visitors, and residents.
IMPACT ON CITY RESOURCES
No impact on the General Fund. The Parking Authority Fund is responsible for upfront cost such as posting or painting signs where the UC Merced employees will park, followed by regular maintenance. With the exception of the start-up period, the Parking Authority Fund may realize $70,500 annually should the Council approve the Agreement with the Regents.
ATTACHMENTS
1. Facility Use Agreement