Business Retention and Development Committee Minutes 2008 12 01

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City Council Business Retention & Development Committee Meeting Minutes December 1, 2008 Page 2 of 4 DISCUSSION/DIRECTION -FEE IN LIEU OF PARKING FOR DOWNTOWN McMillan gave an overview of the memo the he had prepared highlighting the range of costs for parking based on land costs, structures, and other costs as well as the range of fees that other municipalities charge. Dalton stated that few other municipalities charge the actual cost of parking. If Louisville does, we may look as though we are being punitive. Wood stated that this is similar to tap fees. Other municipalities generally catch up to those that are charging the actual amount. He added that those cities in a similar position to Louisville are charging actual costs. Michael Menaker, 1127 West Choke Cherry Drive, stated that at the current rate of $3600 per space, the City is subsidizing the cost significantly. It would make more sense to have a higher fee that could be lowered as an incentive for a good project. McCartney stated that the market rate for a surface space would be $14,700 whether it is paid by the developer or the City. So $14,700 may be the tipping point for a developer of where or not to pay the City or find an alternative on site. Ronda Grassi, 916 Main Street, stated that when the price was higher when originally set it stifled development and there is concern that raising the price would do that again and she doesn't want to jeopardize new development in downtown. Dalton asked if the cost should be different for parking on the east side of the tracks. Fleming stated it is critical to determine what the parking demand is, exactly how many are needed and where, before proceeding. There needs to be clear justification for the fee. Dalton noted that one alternative is not to offer afee-in-lieu but just require development to meet parking requirements on site. Menaker noted that the City needs to push for shared parking that is appropriately located for future uses. Grassi stated that some developers will buy property to scrape for parking if it is cheaper than the fee-in lieu. Krueger reported that Arlin Lehman was unable to attend, but asked her to mention that form a developer perspective the current price of $3600 is too low, but the first price of $10,000 is too high as well. He feels that somewhere in the $6000 per space range is reasonable. Hogan noted that the City has never looked into metering parking for downtown. Lathrop said that the City needs to be realistic in the fee and it should be very close to the actual costs the City pays for creating spaces. Also, the City needs to know where parking can be located and is needed so that the City doesn't let everything develop