City Council Agenda and Packet 2002 02 12 SP

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PROPOSAL TO MODIFY THE FEE TO BE PAID IN LIEU OF ON-SITE PARKING SPACES FOR PROJECTS IN DOWNTOWN LOUISVILLE. For consideration by the City of Louisville City Council and Staff Presented by the Downtown Business Association of Louisville January, 2002 Background: In Oct. 1998, the City Council adopted Ordinance No. 1287, Series 1998, which codified the parking requirements for properties ]located in the area designated as "Downtown Louisville". This ordinance established the requirement for new or expanded businesses in Downtown Louisville to provide one parking space for each 400sf of new or expanded floor space, as well as providing for other administrative parking requirements. (Note: Original drafts of this ordinance included a $5,000/space fee, in-lieu of providing on-site parking. This provision was struck from the final ordinance, requiring business and property owners to provide their required parking on-site.) Also in 1998, the Council adopted Ordinance No. 1288, Series 1998, which established a parking permit system for on-street parking and public lots within downtown Louisville. This ordinance allowed the City Administrator (Manager) to designate and regulate parking areas downtown by requiring permits for parking in these designated areas. This ordinance also provided for the designation and regulation of residential, on-street permit parking areas. The ordinance allows for the charging of fees for pemlit parking as authorized by Council. In 1999, the extent of the area covered by these regulations was expanded to include all of the Old Town Overlay District. (Note: To date, no downtown parking permit system has been established) In Oct. 2000, the City Council adopted Ordinance No. 1341, Series 2000, which established a parking improvement fee, which could be paid in lieu of providing on-site parking for properties in Downtown Louisville. The fee was set by ordinance at $10,500 per parking space. This ordinance also established an area calculation method for freestanding restaurants to include the "public use" areas only. This ordinance also contains an "amnesty" provision for PUD's recorded before June 7, 1999 which will not be required to meet the parking requirements if a building permit is issued by Oct. 31, 2002. Purpose of proposed changes: The DBA believes that the ordinances referenced above have discouraged businesses from expanding downtown, especially small business expansions, and have deterred new downtown projects, which could bring new businesses to downtown. (As evidenced by several approved, but unbuilt PUD's, and the lack of development activity since the passing of these ordinances.) We also believe that the fee imposed in lieu of providing on-site parking is not appropriate. Due to the fact that the fee is set high enough to cover land acquisition, construction of improvements, city administration costs, and contingencies, it is not reasonable for a property owner, or developer to pay this fee for land and parking improvements that they have no rights to. (As evidenced by the 901/917 Front St. development, in which the property owner has