City Council Study Session Agenda and Packet 2017 05 09

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SUBJECT: DOWNTOWN PARKING IMPROVEMENT FEE DATE: MAY 9, 2017 PAGE 3 OF 7 The parking space = Access Aisle per space = Access and landscaping = TOTAL sf per space = 162 sf (9ft x 18ft), 108 sf (9ft x 12ft), 54 sf (270 sf x 20%) 324 sf Determining the cost of land in downtown is subject to many variables and the value can vary widely depending on the location, zoning, access, and size of the property. Staff was able to identify 7 arms -length sales in downtown occurring during the last two years. However, these sales were not for undeveloped land, and thus it is necessary to extrapolate the land value from the total property value. For this analysis, staff relied on the County Assessor's percentage of land value to total value assessed for property tax purposes. We then used that percentage and applied it to the purchase price to separate it into land and building components. The recent sales analyzed include: 612 Main Street (13,910 sf) Purchased by the City in 2016 for $694,711 o $50 per sf 636 Main Street (14,090 sf) Purchased Jan. 2017 for $2,420,000 o County has land value equaling 37.6% of total value - $909,920 for land o $64.58 per sf 817 Main Street (3,477 sf) Purchased Sept. 2015 for $1,442,000 o County has land value equaling 21.9% of total value - $315,798 for land o $90.82 per sf Cannon Street Parking Lot (27,752 sf) purchased Feb 2016 for $416,280 o $15 per sf 950 Spruce Street (19,796 sf) purchased Jan 2016 for $3,700,000 o County has land value equaling 29.1% of total value - $1,076,700 for land o $54.38 per sf 608 Main Street (6,519 sf) purchased Sept 2015 for $630,000 o County has land value equaling 78.3% of total value - $493,290 for land o $75.66 per sf 940 Main Street (7,000 sf) purchased Dec 2016 for $740,000 o County has land value equaling 87.1 % of total value - $644,540 for land o $92.08 per sf The weighted average of these recent sales equals $49.18 per square foot. Assuming 324 sf is needed to accommodate a parking stall, the land cost for a parking space in downtown currently is $15,934, which can be rounded to $16,000. The contract price to construct the public parking lot on Cannon Street is approximately $170,000, including contingency funds. The parking lot has 68 spaces. Based on these figures, construction costs (inclusive of asphalt, concrete, landscaping, and lighting) are $2,500 per space. COUNCIL COMMUNICATION