Item Coversheet

NEW BUSINESS  12.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: June 23, 2023


SUBJECT:DISCUSSION REGARDING THE DESIGN AND CONSTRUCTION OF A NEW PARKING GARAGE AND AFFORDABLE/WORKFORCE HOUSING PROJECT AT THE CITY OWNED SURFACE PARKING LOT (P-23) LOCATED AT 1625 WEST AVENUE.

HISTORY:

On February 22, 2023, the City Commission, approved a referral to the Finance and Economic Resiliency Committee to discuss the West Avenue neighborhood’s request for a long-term solution to mitigate the anticipated loss of parking spaces due to the West Avenue Neighborhood Phase II Improvement Project (Exhibit A).

ANALYSIS:

On February 1, 2023, the City Commission adopted Resolution 2023-32474 directing the Administration to identify parking options to mitigate the loss of parking in the West Avenue Neighborhood as the result of the West Avenue Phase II Neighborhood Improvement Project, including short-term temporary solutions and longer-term solutions, and look at the feasibility of a parking garage with potential workforce housing on surface lot P-23.

On February 22, 2023, the City Commission referred this discussion item to the Finance and Economic Resiliency Committee, to address the West Avenue neighborhood’s request for a long-term solution to mitigate the loss of parking spaces due to the West Avenue Phase II Neighborhood Improvement Project. As a result of that project, the neighborhood would experience a significant loss of parking spaces. The Commission and residents raised concerns about this issue and the parking plans for the project were re-evaluated. The Design-Builder, under the direction of the Administration, delivered a parking analysis, which City staff continues to utilize and evaluate in the furtherance of reducing, to the extent possible, any parking loss. In summary, the report indicates that there are currently 302 parking spaces utilized within the project’s area, of which 64 spaces do not comply with current parking standards or codes. The proposed plan for the area provides for 196 compliant on-street parking spaces, resulting in a perceived parking loss of 106 on-street parking spaces. The parking loss is attributable to compliance with the stated goals and directives of the project, previously received from the Commission and neighborhood residents, with respect to delivering a project which would provide a pedestrian friendly, walkable neighborhood, through the incorporation of wider sidewalks, larger landscape areas, and dedicated bicycle lanes. Further impacts to parking result from compliance with current design standards and approved guidelines.

The construction of a parking garage at West Avenue and 16th Street (Surface Parking Lot P-23) was approved in the FY 2015-16 Capital Budget as part of the City’s initiative to expand municipal parking garages.

On June 8, 2016, the City Commission approved Resolution No. 2016-29425 authorizing the City to negotiate an agreement with DESMAN, INC. (Consultant) to provide Design Criteria Professional services for City garages. An agreement was executed with the Consultant, and the Administration commenced the preparation of the Design Criteria Package (DCP) for that project in December, 2016.

The DCP prepared by the Consultant in 2017, included concise performance-oriented specifications for the new garage at the Surface Parking Lot P-23. The purpose of the DCP was to furnish sufficient information to allow Design-Build (DB) firms to provide a response to the City’s Request for Proposals (RFP) for Design-Build services.

The proposed seven (7) level parking garage was to accommodate approximately 270 parking spaces (approximately 40 spaces in each level), with a net increase of 238 spaces over the 32 spaces currently available. In order to accommodate the maximum number of parking spaces, waivers of Development Regulations were necessary (heights and setbacks).

On May 17, 2017, the City Commission directed staff to continue with the development of the non-convertible parking structure and pursue necessary waivers of development regulations for a 75 foot high structure, with workforce housing on the top two (2) floors (32,000 s.f.) and retail use on the first floor of the garage. The inclusion of workforce housing reduced the parking space count to approximately 170 parking spaces, resulting in a net gain of 138 parking spaces from the existing surface parking lot.

On September 25, 2017, pursuant to duly noticed public hearings, the City Commission adopted Resolution 2017-30016 granting the proposed Waivers of Development Regulations.

The Consultant completed the DCP and concept studies, and during a February 18, 2018 City Commission Strategic Planning Workshop, the Commission determined that the project would not proceed, de-appropriating the project funding, via Resolution 20108-30277, on April 11, 2018.

Based on estimated project budgets in 2017, and estimated cost escalations over the following 6 years, the total required budget for this project could range between $25 million and $27 million, of which parking costs would range from approximately $10 million to $11 million, and housing costs would range from approximately $15 million to $16 million.

The Administration has received mixed feedback from members of the community regarding the development of the garage. Among comments received were that the garage location is too remote or inconvenient, users would be exposed to inclement weather and that projected monthly costs for access to the garage would be too high. Monthly parking/access cards, even at significantly reduced rates, cost more per month than an annual residential parking permit for on-street spaces. Current garage access rates for residents are approximately $75 per month, while parking permits for on-street spaces are $5 per month or $60 per year. It is important to note that garage revenue is derived primarily from transient use and not from access card users. While some residents will find the $75 per month, or approximately $2.50 per day, rate excessive, the revenue generated at this rate would be insufficient to build, maintain and operate a garage.

CONCLUSION:

After careful review and consideration of the aforementioned facts and concerns, the Administration recommends monitoring and evaluating the current short term parking loss mitigation plan, which provides and subsidizes a limited number of residential parking spaces in a private garage, for a period of time in order to make a proper determination prior to continuing with the development of a city garage at the surface parking lot (P-23) on 1625 West Avenue.

Additionally, the Administration is seeking direction, if a determination is made to proceed with the garage project, regarding the inclusion of workforce housing as a part of the future garage.

Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 
ATTACHMENTS:
DescriptionType
Exhibit A - Referral Memo from February 22, 2023 Commission Meeting Item C4 FMemo