The URL can be used to link to this page

263032 WHI7E - CITV CLERK COL1I1C11 263032 PSNK -'FINANCE GITY OF � SAINT PAITL CANARY -= EPARTMENT BL�E � -� AYOR File NO. � ounci� Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS La.ws of Minnesota 1973, Chapter 764, expressly authorizes t�ie City to acquire property and construct public improvements thereon in furtherance of the purposes of said law, including� but not limited to� procuring structures for the public pa.rking of motor vehicles; and WHEREAS� This Council has authorized administrative staff to proceed with the planning of a downtown develop�nent district within the corporate boundaries of the City and ha.s further authorized the development of a program for capital improvements within sueh district for the express purpose of providing impetus for additiona.l commercial development, increased employment, needed clima.te controlled linkages� pa.rking facilities and other necessa.ry facilities to be included in the development district program; and WHEREAS� The City ha.s determined tha.t there is a need for public parking within the proposed development district; and WHEREAS, The Council has received an agreement proposed to be entered i:nto between the City of Sain� Paul and. Jack N. Geller, which agreement contemplates the future construction of an apa.rtment facility by Jack N. Ge11er and an adjacent public pa.rking facility by the City, all within the proposed development district; now, therefore, be it RESOLVED: 1. That the Council hereby expresses its desire tha.t this project proceed in accordance with the guidelines of the Develop�nent District Act and that the necessary steps be taken to locate an apartment and public pa.rking facility in Block L of the City of Saint Paul. � COUI�ICILMEN Requested by Department of: Yeas Nays Hunt Konopatzki In Favor Levine Meredith A gai ns t By Sprafka Tedesco Mme.President Butler Form Approved by Ci y A rney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by MaXor: Date Approved by Mayor for Submission to Council By BY / WHI7E - CITY CLERK - COIIIICll .^` PINK -�INANCE GITY OF .SAI��TT PAZTL !. CANARY - �EPARTMENT BLl}E � - MAV OR File �0. �_•�� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 2 . 2. Tha.t the proper City officials are hereby authorized to execute the Agreement attached hereto as Exhibit A. 3 . Tha.t copies of this resolution be forwarded to the Task �` Force Committee for the proposed downtown development district. COUI�ICILMEN Requested by Department of: Yeas �c=• Nays Konopatzki In Favor Levine Meredith � Against By �c As�er T•e�esttr� Mme.President� $tlttt �Eg 1. 19T4 Form Approved by C' y Att ney Adopted by Council: Date Certif'ed sed by il ry By By Appr by M or: Da EB 5 19 Approved by Mayor for Sub ission to Council gy BY �u6«s�t�n FEB 9 �974 r-----"_ ' , 253032 A G R E E rI I; Tv T TFiIS AGREEMENT, rlade and entered into this ciay of , 1974, by and between the CITY OF SAINT PAUL, a municipal corporation, hereinafter referred to as "City", and JACK l�. GELLER, of Saint Paul, Minnesota, hereinafter referred to as "Developer"; WITNESSETH: WHEREA5, City, through its Council, has authorized the admin- istrative staff to proceed �aith the planning of a do�antown development district �aithin its corporate bounc�a-ries and has f�arther authorized the development of a program for capital improve- ments within such district for the expressed purpose of providirig impetus for additional commercial development, increased employment, needed clima.te controlled linka.ges, parking facilities and other recessary facilities to be incl-u.ded in the development district prodram; and WHEREAS, The boundaries of and improvements within. such district are proposed to appear as sho�,m on Exhibit A attached hereto; and WHEREAS, I.aws of Minnesota for 1973, Chapter 764, expressl}T authorizes the City to acquire"•proper'ty and construct public improvements thereon, including, but not limited to, parlcing st:rt�cttires for the pLblic parl:.ing of motor vehicles ; and. WHEREAS, City has determined that there is a need f_or p��blic p�lrl:i.ng �aithin the proposed development dis trict; and , � � . � , � �� h�;EREAS, D;:veloper has e}:pressed its desire to locate an ap�a�'tment facility within the developmenL- district i�a be of_ficially designated and approved by the Council of the City in accordance � with the provisions of Chapter 764 hereinabove referred to; and WHEREAS, It is agreed between the par'ties that the proper location f or such apartment facility should' be above and adjacent to a public parking facility to be constructed by City within the , proposed development district; and WHEREAS, It is necessary for the completion of the propased project tha.t certain agreements be entered znto and other conditions be satisfied; and . �JHEREAS, It is the express intent af the parties in entering into this agreement to facilitate the completion of necessary steps for construction of a public parking facility and an apartment facility within the development district, subject to the conditions herein expressed and the obligations imposed upon the City by Laws af Minnesota for 1973, Chapter 764, and other applicable la�as, Internal Revenue rulings and regulations; i•dOW, THEREFORE, In consideration of the mutual covena.nts herein contained, it is agreed, by and between City and Developer, as follo��s : l. It is understood that the City will not commit itself to the expenditu.res of any funds other than those authorized herein for legal, architectural or consultant �aork regarding the constr�c- tion of said public parking facility in conn�ction �aith this . • 2 . i � � � � 26�032 � project until Developer assures City that Developer has ob�ained � the i�ecessary financing commitments to construct said apartment facility. 2 . The City shall acquire from Developer (whether by eminent dor.iain proceedings or by direct purchase in Iieu of such eminent domain proceedings) for said public parking facility, all or that portion of the land known as Block L as is �deemed necessary in the opinion of the City for the proposed public parking facility. It is understood that said Block L is situated in Saint Paul, Minnesota, and is bounded by Jackson Street, Fourth Street, Sibley Street and Kellogg Boulevard. It is understoad that Developer is to retain the air rights over said Block L and in addition retain or reserve easements and other rights covering those locations . determined to be necessary by both the City and Developer far , elevators , loading docks and other facilities necessary to the apartmen.t facility. 3 . Developer shall pay directly the costs incurred for the oversized columns and footings determined by the parties hereto to be required for the construction of the apartment facility above said public parking facility. 4. Upon obtaining the necessary agreements and upon adopting such resolutions, ordinances and procedures as are deem�d necessary by its legal counsel, and upon .receiving assurances satisfactory to City that Developer shall com�ly with the provision.s o:E this agreement, iii the form of escrow deposit, a performance bond, or 3. . . . . 263Q32 otherwise, the City shall issue its general obligation tax zncre-- men.t. l>onds pursuant to the provisions of La�as of rlinn�sota for I973, Chapter 764, and attendant la�as and Internal Revenue Code provi.sions in an amount determined necessary by City to provide for the construction and equipping of a public parking facility pursuant to specifications to be determined by City, which parking ramp will be operated by City or by independent third parties whase qualif ications shall be detexmined through competitive bid in the final judgment of City. The City and Developer agree that such ramp �aill be available for use by the general public on a regular basis . 5. Developer agrees to pay any and all cos�s incurred by City in connection with the � project outlined herein, or as amen.ded by agreement of the parties, whether or not carried to completion, including, but not limited to: ' (a) Engineering and architectural fees incurred or to be incurred by City. (b) Attorneys fees incurred or to be incurred by City in connection with any research for and the prep- . aration of applications for revenue rulings, agreements, and resolutions relating to the sale of bonds and all other services necessary or incidental to the planning of, preparation f or and financing of and construction of the project. (c) The cost of publication and printzng incurred or to be incurred by City in submitting or resub- mitting advertisemen�s for bids on the construc- tion of the facility, the sale of the bonds or for any other purpose required by latv. (d) Such other expenses as are reasonably incu.rred by the City in direct connection `vith the planning and preparation, the financing and construction of the project. - �F, , � �. . 6 . In trte event general oUligation bonds are issued for fin<ancing the pub2ic pa.rking _facility a-nd the project is cornpletecl, the costs inct�rred under Paragraph 5 herein shall be determined i�o be proj�ct costs payable or reimbursabie out of the proceeds of said bonds. 7 . It is understood that the developer may assign his interest under this agreement to a corporation of which the Developer will be the sole or one of the principal stockholders or to a partnership of which the Developer will be one of the principal partners . IN tJITNESS WHEREOF, The parties hereto have caused this agreement to be executed as of the day and year first above �aritten. Approved as to Form: ' CITY OF SAINT P�UL By ' Assistant City Attorney Its Ma.yor Its Director of the Department of Finance and Mana.gement Services By ' Its Its 5 . WHI7E - CITY CLERK � � � � � � � � PINK - FINANCE � � TT COl1I1C11 - . (((�� - CANARV - DEPARTMENT GITY OF SAINT PAl.1L � Ft�UE - DAAVOR - Fll@ � NO. � p ��ncil ��Zesol�tion =� Presented By , Referred To Committee: Date Out of Committee By Date WHEREAS� La.ws of Minnesota 1973? Chapter 764, expressly authorizes the City to acquire property and construct public improvements thereon in furtherance of the purposes of said law, including, but not limited to, procuring structures for the public parking of motor vehicles; and � WHEREAS, This Council has authorized administrative staff to proceed with the planning of a downtown development district within the corporate boundaries of the City and has further authorized the development of a program for capital improvements within such. district for the express purpose of providing impetus for additiona.l commercial development, increased employment, needed . _ clima.te controlled linkages� parking facilities and other necessary � facilities to be included in the development district program; and WHEREAS, The City has determined that there is a need for public parking within the proposed development district; and _ WHEREAS, The, Council has received an agreement proposed to be entered into between the City of Saint Paul and Jack N. Geller, which agreement contemplates the future construction of an apartment facility by Jack N. Geller an.d an adjacent public parking facility by the City, al1 within the proposed development district; now, therefore, be it RESOLVED: _ 1. That the Council hereby expresses its desire that this - project proceed in accordance with the guidelines of the Development District Act and that the necessary steps be taken to locate an apartment and public parking facility in Block L of the City of Saint Paul. � COU!VCILMEN Requested by Department of: Yeas Nays Hunt . Konopatzki In Favor Levine iVIeredith Against BY Sprafka Tedesco Mme.President Butler Form Approved by.Ci y A �mey Adopted by Council: Date � Certified Passed by Council Secretary BY By � Approved by Mayor: Date Approved by Mayor for Submission to Council By ' I BY , i ! PINK� � .- FINANCE . - �-7 � - COUIICll. � � . -- � CANqRY - DEPARTMENT � � � GITY OF �SAINT P�llL (� � BLUE -MAYOR . � � . Flle �O. � �� I� • , � , � Council ��esolution � Presented By Referred To Committee: Date Out of Committee By Date 2 . - 2. Tha.t the proper City officials are hereby authorized to execute the Agreement attached hereto as Exh.ibit A. 3. Tha.t copies of this resolution be forwarded to the Task " , Force Committee for the proposed downtown develop�n.ent d�.strict. , COU(VCILMEI�T Requested by Department of: Yeas Nays Hunt Konopatzki In Favor " Levine Meredith Against B3' Sprafka Tedesco Mme.President Butler Form Approved by C y Att� ey Adopted by Council: Date Certified Passed by Council Secretary By r By Approved by Mayor: Date Approved by Mayor for Submission to Council By ' By � � . - . 253032 CITY OF SAINT PAUL OFFICE OF THE CITY ADMINISTRATOR FRANK D. MARZITELLI January 31 , 1974 T0: Harry Marshall , City C1erk � � FR: Frank D. Marzitelli � Pending before the City Council is a proposed resolution approving an agreement between the City of Saint Paul and Jack Geller and also determining that there is a need for public off-street parking in the vicinity of Jackson and Kellogg Streets.. I hereby request that you attach the enclosed parking study made by National P�anning, Inc. dated December 28, 1973 together with the letter of addendum dated January 29, 1974 to said resolution for inclusion in the City Council deliberations. FDM/ca cc: Mayor Lawrence D. Cohen Members of the City Council R. Scott Davies Vincent Coughlin Edward Helfeld Jack Geller Clarence Simonowicz City Haal, Saint Paul, Minnesota 55102 . - r� � � � ��; �� CITY QF SAlNT PAUL OFFlCE OF THE CiTY ADMENISTRATCJR December 31, 1973 FRl�NK D. MARZITEL.LI TO: R. Scott Davies Vincent Coughlin � ..-' .,�"1 ��t /�'J i,%� .-� . FR: Frank D. Marzitelli � r; RE: Interim Report an the Proposed Municipal Garage at Jackson and Kellogg Streets Attached for your information is a copy of a preliminary parking study report prepared by National Planning, Tnc. of Detroit, Michigan dated December 28, 1973. Your review and comments concerning same would be ap- preciated. FDM/ca . cc: NIayor Lawrence D. Cohen Members of thE City Council Edward Helfeld Jack Geller i , . � ' t City Hall, Saint Paul, Minnesota 55102 • '. . � `� ��-�� 26��}�� '�� .�� : �.��'��:.��w�. 550 WEST FORT STitEET J DE'iROOi, MICHIGAN 48226/PHONE 963 3084 AREA 313 DECEMBER 28, 1973 .� � � �l � MR. FRANK MARZITELLI " CITY ADP�IINISTRATOR ,i �; � n•�`+ if ..�,.� ., 1 C I TY 0�= ST. PAU� ;� ST. PAUL, MINNES07A 55101 � � � � ° � '.t•'` J DEAR MR. MARZITELLI: AS IN OUR PREVIOUS STll�DY, LNE ARE SUB��IITTING FOR Y0112 REVIEW AN INTEF2I(�1 REPGRT ON THE REVENUc AND �XPENSE ESTIMATES FOR THE PROPOS�D P-1UNICIPAL GARAGE AT .IACKSON AND KELLOGG STREETS IN D0��INTOWN ST. PAUL. WE HAVE V I SI TED ST. PAUL AND I M'ERV I E�N1ED THE OPERATt�RS OF P1ANY OF THE PARKING FACILITIES YN THE Af2�A. �1�E HAVE ALSO BEEN PROVTDED WITH AR�D FiAVE ANALYZED THc 1966 RE°ORT BY BARTON-ASCt-�1AN ASSOCIATES AS L'JC.LL AS PERTIN�NT f�lAPS AND DATA �ROM THE ��OPERATION 85�� STUDY. BASED ON OUR FINDINGS, WE ESTIMATE THAT THERE IS SUFFICIENT DEMAND FOR PREh1IUM TYPE PARKING IN THE AREA TD VJARRANT CONSTRUCTION OF A GF�RAGE ON THE SITE. GN Th;E EfV�.L.OJCD E1:FiI�i i, ihiE 'riA�c FREFAREv ECONuP��IC PYCOJCC'I lONJ t=OR SUCH R GARAGE INDICATING ANTICIPATED PARKING REVENUES AND OPERATING EXPENSES, AS YOU Kf��N, WE I-l4VE NOl' BEEN PROVID�D WITH ANY PLAnS FOR THE FACTLITY, SO THE ESTIMATES ARE SOMEVJHAT PRELI�4INARY IN NAiURE. HOVJ�VER, BASED ON THE SITE DIPfENSIONS, WE HAVE CALCUL.ATED THAT THREE LEVELS OF PARKING ON THE SITE�WILL ACCOM(�10DATE APPROXIMATELY 700 SPACES AND WE ASSUME THA7 7HE GARAGE I�JILL BE DESIGNED SO AS TO ENCOURAGE PUBLIC ACCEPTANCE. AS YOU CAN SEE Bl' Tt-� ECOt�lOMIC PROJECTIONS, THE FACILITY WILL SERVE MAI�Y LONG TERM OR MQNTHLY CONTRACT PARKERS, SINCE THERE ARE NO MAJOR TRANSIENT DEf�1AND GENERATORS IN THc VICINITY. I"IE HAVE, HOt�JEVER, ALLOCATED APPROXIMATELY 100 SPACES FOR USE BY VISITORS; TO THE FEDERAL BUIL.DING, POST OFFTCE, SP-1ALL RETAIL SHOPS, ETC. , WHO S!-IUIJLD : FI1� THE RATES AND SITE LOCATION ACCEPTABLE. THE AVERAGE REVENUE PER TRANSIENT CAR IS BASEp ON OUR EXPERIENCE WITH OTHER FACILITIES CHARGING SIMILAR RA'TES. AS NOTED, THE CHARGE FOR THE FIRST HALF HOUR HAS BEEN INCREASED BY 5�` IN THE FOURTH YEAR IN RECQGNITION OF THE I�LATIONARY TRE(� OF THE ECONOP•1Y. ' � WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTA7E DEVELOPMENT , •, � • FRANiG �ARZITELLI DECL-Vf�iB�R 28 1973 ��0� , I� ST. PAUL, MINi�;�SOTA �AGL 2 THE CATEGORY ��OVERNIGHT CARS" R .�rER� TQ REVEI�UE FROM NIGHT SHIFT EMPLOYEES IN Tt-1E AREA. BASED ON CONVERSATIONS 4�1I�H A LO��.P:! Oi��?ATQR, t�JE HAVE ASSU(�"ED THAT AN AVERAGE Or= 60 OF� THES� Eie1r'LQYEES I�dOULD PARK `iN TrIE GARRGE FOR AN I�lITIAL CHARGE 0� 75� PER NIGHT. REr=ERRING T�J T}-� NEXT MAJCR REVENUE C;�TEGORY, IT IS QUR U�[DE�STAN�ING THAT AN APAR7t�lENT CCP�'rLEX WI�L B� COIvSTRU�TED ON ATR—RIGHTS GVER TI-iE F'ROPOSED GARAGE. IT IS VERY DIFFTCU�T TO DEi E��1IN�, AT THIS STAGE, 4JHAT TYPE TEt�:4VT l�?LL OCCUPY -f'NESE APrRTP�I�N7S A.t��D, THER��nRE, Ht.7±n1 THE APARTtJENTS UJILL AFFECT THE GARAGE. FOR EXAMPLE, A.GED OR LOtti' INC0��1E TENANTS COULU AVERAGE LESS Tf-{l�N ONE CAR PER Ap�P,T�f`NT UNIT; AFFLUENT TENANTS COULD AVERAGE CONSIDERABLY f�IORE. IN ADDIl'ION, RETIRECS V�lOULD REQUIRE A PARKING SPACE 24 1-rJURS A DAY. A YOU�GER CLAS� OL TENANT WOU!_D UIv�OUBTED!Y CONTASN A PROPORTYON OF COMMUTEF�S L1�H0 YJOUL�J VACATE TFiE GARAGE DURIf�Y THE 'JAY LEAVIN:� THEIR rARKING S°A�E AVAILA�E rQR USE BY TRANSIENT OR MONTHLY CONTRACT PARKERS. FQR THE PURPOSES Of= THIS F2EPORT, WE HAVE ASSJMED THAT 200 APAR1°MENT UNITS WILL BE BUILT AI� THAT THEY WILL AVE�RAGE ON� CAR PER UNIT. FOR THOSE V'J!-i0 REQUIRE PARKING DURING NIGHTS AND WEEKcND5 0!'JLY, Y�E HRVE SUGGESTED AI�! INITIAL RATE OF �20 PER MONTH, WHICi-� �ti'OULD PROBAB�Y BE INCLUDED IN THE RENT AND REMITTED BY THE LAf�lDLCf:J. AS Si-�'�JN, THIS RATE HA5 BEEN INCREASED PERIODICALLY TO O�=�S�T Tl-ir E�rECTS O� It�LATION ON OPERATING COSTS. FOR T!-lOSE TENANTS l^!HO ;�IILL REG'UI�'E 2�o- !-��1,�? PARKI�.G, ::�E HAV� A.SSU"^.-rT'_.., Ti-iAT THE GARAGE OPERATION CAN SHOVJ �JO PARTIALITY AND P�lUST CHARGE THEM THE REGU�AR MONTHLY RATE IN ADDITION TO THE NIGHT—PIEEKEt�lr'J RAl'E. 7HE REVENUE FRQM THIS SOURCE IS INCLUDED 1NITH THAT FRCiM REGULAR CONTRACT PARKFRS UNDER THE f�MONTHLY�� CATEGORY. FOR MONTF-LY PARKING* WE SUGGEST A RATE OF ffi40 DUF�Ifw THE INITIAL YEARS OF OPERATION. WE FEEL THAT THIS IS SUFrICIENTLY CONSERVATIVE 70 ENCOURAuE EARLY LEASES. THE R,4TE HAS BEEN INCREASED IN THE THIRD At� FIFTH YEARS, FTRST, TO OFFSET RISING COSTS AI� SECOND, TO BRING THE CHARGES MORE IN LINE WITH EXISTING RATES FOR SIMILAR PARKIIvG IN THE AREA. WE HAVE AI..LOWED FOR SOME OVERSELL OF THE MONTHL.Y SPACES, IN LINE l�JITH ' CURRENT PRACTICE, TO TAKE ADVANTAGE OF NOF2MAL P,BSENTEEISM AMOlVG EP�iPLOYEES. THE RATE OF THZS OVERSELL VARIES FROM SIX TO TEN PER CENT DE�ENDING ON ' THE NUMBER OF APARTP�1ENT TENAN7S Wf-i� WILL REQUTRE SPACE DURIP�iG THE DAY. TNESE TENANT SPACES 4:�OUl_D, OF COURSE, BE GUARANTEED AND SO NOT SUBJECT � TO OVERSELL. THIS LCJSS IN POTENTIAL REVENUE, HO�VEVER, IS �ORE THAN COMPENSATED FOR BY TF-� CHASi�F FOR TENANT U5E OF THE GARAGE AT NIGHT AND OVER THE WEEKEi�. � • i ~�.�'�. �P . "��WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANT'S FOR REAL ESTATE DEVELOPMENT � ` F�ztir�K. N;AF'.ZITELLI DECEMBER 2B, 1973 S7. AAl1L� ��1 I NNESUTA Pa.c� 3 THE TOTAL GRO�-S PARKTt��G REVEt�Ii� F'OR TH� GARAGE IS }�20JEC.TED AT $423,750 THE FIR57' Y�At2 R'15IiJ� i0 �486,82u 1N iF-� FIt=Ti-i YEAR ��F uPcr1,�TIQi�. i7 SHOl1LD BE R�"J7ED THAT, SIt�iCE THERE A(�E NO CI.iRC?ENT CO�S7RUCTIC;N SCHEDULE�=, Tt-I�SE ESTIt�^.P.I�cS QO NOT TAKc IN'tC CU��ID�RA'fI�N ANY L.4G 7I�41E BETWE�V ii-� CONPLETIOP�! G�= TNE GARAGE A�� 1"HE LEASII.'� Or= THE APARTi�^�i�'TS. NO'�".E�`ER, ��HER CONSTRlfC7ION SCHEDU!.E'S ARE KNJW�l, THE LAC TIrs` CAN BE RcFi�ECTED O�1 TH� ECONO�'IIC SCNEDJLES BY DEDUCTII�lG APPROXI��,4I'ELY 9<51 O� TOTAL PARKIN� REVENU�S FOR TYE AF�ECTEC YE.ARS. TFiIS VJII�L, ITd EFFEC'r, ELIMIt�'ATE ALL APARTPfENT RE_ATED REVEI�IUE AND RECDGNIZE THE PO-I'ENTIAL INCREASF IN PfONTNLY CQNTRACT REVENUE UIHICH COULD BE RLALIZED BY OVERSELLIh'G THE GUARANTEED "TENANT" SPAC��. THE NEXT HEADING ON THE ECONOMIC SCHEDULF REFEf2S TO THE COST OF OPGrt;A— TING THE GA.RAGE. I"lI1h-�IUT GOIt�G INTO DETAIL HERE, 1'dE ESTIP�IATE THAT �fH� EXt'ENSES LISTED ARE SUFFICIENT r0� A ROUi�ID ThiE C.LOCK, 365 QAY A YFAR OPERATION. OF COURSE, WE HAVE t��JT PROVIDED FOft ANY H�ATING OR VENTILATION OF PARKING AR�S SINCE IT IS l��JT KNOt�JN AT THIS TIh1E l^lHETHFR THIS INILL BE REQUIRED. I'JITi-i THE IN�=LATIONARY ECONJMY IN MI��iD, WE HAVE INCREASED THE VARIOUS EXPENSES ON AN ANNJAL �ASIS. TFiE INC[�EASE IN LNAGES P.�•10UNTS TO 5� COMPOUNDED; FOR ALL. OTHER EXPENSES, WTTH THE FY.CEPTION OF BOOK— KEEPING, 3% COMPOUNDED. THE BOOKKEcPING CHARC�E IS N�Rt�1ALl_Y NEGOTI,4TED BUT FOR OUR PURPOSES, 4'JE ARE ESTIMATII� A CHARGE OF ��.50 PER SRACE PER YEAR. THE FSTIMATED P�ET PARKING REVENUE �OR THE GARAGE UN�ER THE GIVEN CON— p7TI0NS AMC7UNT� Tc� $334�750 FOR THE FIRST YFAR OF OPFRATION RISING T�J $383,460 FUR THE FIFTH YEAR. ON A PER SPAC� BASIS, THE CQRRESPONDING FIGl�2ES ARE $478 AND $5786 THAT FAIRLY VdElL SUMMARIZES Olk� FII�IDINGS AND ECONOMIC ESTIMATES FOR THE PROPOSm PROJECT. THERE 4+lILL UNDOUBTEDLY BE SOF4E DISCUSSIQN REC�UIRED CONCERNING THE RATES FOR TEN�ANT PARKII�, AM�NG OTHER THINGS. 1"IE DO FEEL, H01U�VER, THAT °i'HE EXISTING DEMAND FOR PREMTUM TYPE LQNG TERM PARKING IN THE AREA I5 SUFFICIENT TO JUSTIFY THE PROPOSED GARAGE. THE Ot�Y ADDITIONP.L REVENUE Lti�HICH THE APARTMENTS tiVOl1LD PRODUCE RELATES TO THE OVERNIGFiT USE OF THE PARKING FACILIIY, THERE ARE A NUMBER OG OTHER ASPECTS OF THE PROJECT I�JHICH WILL BE COVERED MORE FUL_LY IN OUR FINAL REPORT. FOR ONE THING, THE CURRFNT - TREI� i0 SMALLER CARS WILL ALLOW CAPACITY INCREASES AT VIRTUALLY NO EXTRA COST. OF COURSE, THE ADVAN7AGE OF THIS FOR ANY SPECIFIC GARAGE DEPEt�S ON THE GESTGN. 4'�E ESTIMATE, I-lOWEVE�, THAT EACH LARGE SIZE STALL WILL ACCOMMODATE BETINEEN 1.?_ AND 1.4 STALLS FOR COf�PACT CARS. IT IS INCF2EASINGLY IMPORTANT, THEF2EFORE, THAT PARKIfJG GARAGES BE DESIGNED WITH THIS CONVERTABILI7Y IN P�1IND. � �� "�"' „� �WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT � � . . � �V ' . • DECEMBER 28 1973 �D� FRANK MARZITEt�.I 9 � ST. PAUL, P�l T t�NESOTA PAGE 4 ANOTF-?c� Ih9PCRTANT CfJNSIDERATION IS TH� O,VAiLABILI7Y OF S�CGNDARY PARKIt� FOR i�:i:iSt !�!C�RK��`S ;NHa CP,N��''J7 PAY THE FREt�9Iilif Rl�,TES RF�'GUIf�ED FOR NODERN9 CONVENIEN�(' GARAGES. l'r'E HAVE BcE;J ,4DVT5ED OF THE POTENTIAL CF,PACITYj IN THE af�EA UF T'HE UN�ON DEPGT A�I� OTI-IER FRINuE AREA,S� 6UHICH COULD BE USED F(7!� :�HIS PURP�SE. AFTER YQU HAVE HAD f� CHA�.ICE TO GO OVER THE ENCLOSED MATERIAL, I HUpE YC�U WILL CONTACT US WITH ANY G�UESTIGNS OR COi�MENTS 1'JHICH YOU, OR ANY OF 1�HOSE It�VUL.VED, �4IGHT HAVF_, 1"t� �NIL!_ F-!O�D U? CCM�LETICN �F TNE FINAL DRAFT OF THE REPOi�"f UNTTL WE GEi YDUr� GO AHEAD. P�EP,N'taJHILE, WE V,IISH ALL OF YOU IN ST. PAUL. A HAP�Y AND SUCCESSFI)l_ NEl4 YEAR. RESPECIFULLY, NATIOR/�L °LANNING, INC. !'J..� -� , �.i�='%✓.t.,�.-,_z:_..._�. Bff2NARD ��AIURICE SENIOR STAFF ENCLOSURE BM�.�� i �� t �� ' :��°'; ��WORLDWIDE PROJECT M � �, ANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 1 �. - . , EXHIBIT A f REVENUt AND FXPENS� PROJECTIONS PRGPOS�D FARKING FAu1LTTY JACKSON �R�J YELLDGG SI-REETS S!. PHU�, f�INi\�;u I A 1'L-30-73 CAPACT�iY: 70o SQACEs RATFS . TRAtvSIENT - 20`r PER H•4LF f-��UR - ffi2_.SO i��AX. - 75� QVERtvIGHT�` MONTHI_Y CONTRA.CTS - �4�,Gb'�'� TENANT - NIGHTS AN� V�EEKE�.�JS - �20�`�`�` iST YR,� 2ND YR. 3RD Y�. 4T,x YR. 5TH YR. REVE '� TRANSIENTS CARS 5G,0(�0 65,000 75,000 76,000 77f000 a� 81�` $ 4Q,500 $ 52,650 5 60,750 $ 65,360 $ 66,220 OVERNIGHT 11,250 11,250 12,i50 12,75U ` 15,000 APARTMENT TCNANTS NIGHTS � VJEEKEN7S 48,000 48,000 54,000 54,000 b0,000 MONTf-i_.Y __ 675 a $��0 650 a� $40 f�40 a� $42.50 640 a �42.50 640 a� $45 $3?_4,000 �316,800 $326,400 �326,400 $345f600 TC�TP,'_ PAQKrnK; RFyFnn_iF �G�3�r,750 �4�R,7Q0 �4�3�90n �fiSA.51.0 $486�R20 CFERAT I NG EXPF_I�lSES �I��AC3ES ^� $ 5J,000 � 52,500 $ 55, 125 � 57,900 $ 60,800 U7ILITIES 15,000 15,450 15,910 16,390 16,8f30 INSURANCE 2,500 2,575 2,650 2,730 2,810 MAINTENANCE 3,500 � 3,600 • 3,7�.0 3,820 3,935 BOOKKLF_F'T�:G � P�1GT. 10,500 10,5U0 10,500 10,500 10,500 OTHER 7.500 7.725 7.955 8. 190 8.435 TOTAL OPE�ATIhG EXF. � 89,000 $ 92,350 $ 95,850 $ 99,530 �103,360 NEi' Of'ERATIh'G RGVE�!UE $?34,750 $336.350 $358.050 $358 980 $383.460 NE7 °E32 SPACE 478 480 512 513 548 • '� 254` 1�T 1/2 HJUR - 20S` EACH �DDITICP.lAL i/2 HOUR FROM FOI.�RTH YEAR OVERI�!IGHT - 854` 3RD YEAR - $1 .00� 5TH YEAR , ** �42.50 3}�D YE:AR - $45 FIrTH YEAR � **�` �22.50 3i2D YEAR - �25 FI�7H YEAR ' � .- ` , . . . �„R,�,�``�..`'�,�91��T��a��. - � 26�� . � � ``��t ��.�� 2 t►� � ��;. 550 WEST FORT 57'RE�T/L ' ;F�OiT, �4llCwtiGAN 4822h/PFirJNE �63 3054 A�EA 313 �Taiivary 7_9, 197� I'�ir. Clarence �imono��icz Uc�velo1�ment llisi�r�_ct ChieL Ci�.y Pl.anni�zc� llepartri��z1� C�_ty I�a1.1_ " 5�.. ];'attJ_, NI_inr.�rsota 12r� : �r_or�o�;�� I7ar_Y.i.n�� Gara�:f� • Jac��;{�n ��. 1'cJ..lt;��g J llea�' Mr . S11110110WLC! : Su�mi�a�:i_za_n�� ou.r. te7_r.�.�hor�e conv�,,_r;ation vi' �his a�tc�_r�o��r� , �: ��oL�7.d ].i]cc� to re�.ate our i'inui.rzgs relative tn t,he r�fer��nc.-,�� i?rojcCt,. X1:; yotY kriow, �:ll�Y� c�ui��l.c�y��c t�o��,�]_��i.c�n �fJ:i_�:h.in tiic: r:;L-t�c�y ar�.a :;.�; ci.ziLri�tl_y 11250 w�_th �� ac�clit.i_onaJ_ 750 l�eir,<� L,roj��ct��c� ,_z��:�r� i;li� cozn;�].e��i.on o:C .rc��ovat;ion o� the l�uiJ_�iing locatEAd sai.itii o:(: •�.lze 1?ecleral 13ui1<1:ing. I�maazc� t):ii;; n��n�l;c�r of- r_�;nr,lo�^e� , ;�:_. t'JUL1�.C�. �-'.�'L:L1I1c1I:.0 t.11c�i'L �"�(_t:�,�i�?C?)� 7�JnO :�t�r7 f?(1(1Q :�:"�_`.'C {:O W�_�i=i:. ��:i[i�_r.. '�.�1C'.]:C? cl]:C :�t�'�V�":Y' L}7cliZ ��J Y)c�Yi':7.IlC� �;}�aC�`�,c, �J1 t:111.`; Si.�T1r..' c:t�:'c;� J_l: is obvi.ous tn.«�;. man�� o� th�� clrivers ;�arJ; c,utsiae oi i.h�_ ni.n<� k>7_acl. st�zdy ar�a, cii:lic�: in ne�r.,��' :�aCl�_Zf:J_(�:S o�i r.�,C��G��_i}].Tl�� l�1_ocl;s or in OU't.I_�%1.11C� d.:i_st�ricts. / Y:it�W�.::V(�l:'� c�'..S WC S'�.c�tE'C�. J_11 OLI:,_ �_�3'��CL �O I`'�.L". i`ic.lZl.t.C'�_�.l_ � iTC, 1::�eJ_�.�v<� tl��t ::u:�:cic:�cn� aerr�anc:t :�or j.�,-ir��e �>ar}:ii�g ex.�s�:s �� a�_a°ani: cons�rlaction of a ��ara��e oiA �ne ;�rc ��os��a si.t�. '��„' ., C�Cli1�1i1(Z OL"lcJ.l.11�l'l:('.'.S c.li(IUTICJ t,11C Y1J.c�l1CZ' .lilCOifl�? ��Tlli)1.(�'�nr3S pl)"lp `"�r,••.. - � 1 1.� :a_:.J -- aun�:l:i•�L1L•r. some 2.0„ c,:f' ti�c wor)� �orcc and �:�}io ar_e �•�i.11.ii.,�� t:v � 1.�1Y � 1>rcma_tiin :Eo.r COIl�Yr�11:LG17t, ;?rotc�c�L-ecz ,>�r7.ing. Tt sh4�u.?..0 - la� ilo�L-f:�d, a1.:;o, tiiat t,):�is ��roL,.�_> o� r��n»1.�,ye�,s wi11. 'ne l.�a;.f: : 17.);e7.y to he a:f_=�ecteci by iazcr.��a:;i_ng c�asoline pri.cc�s, as �.a�- as tlie:ir drivi_n<;� hal�its az:e cor�c��.nca. , . t . r, ;a . 77_ �Ll�i�.s �ccti.on of: c��c,f�ltc��n St. I�aul_ %.s typical., ti��>r�� is �. • f ; ��ot.c�rii�ia]. dern�ncl ro.r. 2��G0 ;�ri_tnc c��1_oY�e ,,ar)-i_;�� ..,ar_��:;. '1'lii.�; • � ;. , ��r>i�i��irc, to an exis�ti.»�� s�7��1,).y o�' a;.f��rufirnately ].�50 ��n�i��r_ � . cc.�v�L :��cc��, sorn� c,1' ��h:i.cl� ai-e anta.qua{��c� }�1� toc�ay ' , st�?r,J�txc�is. � . ln �c1d.i.L-i.c�r► t.o �:li:i.�> >ir�r,,.iL•�;.,;:r�icc7. -,�n;,) c,��,�s �'1.��►n�t�c1, Lh�:r.�� i.;s a -i t��`1�1<7)IC� CUl' ��(�Yjl�li��3 .� OO ��'Y.).f[1C`. ;i;>i1�:��;3 ��C:Y�{`1"c']1:�:�� });f �Y_'c7C1`..LC'11�: .�1, . ,� „ visi.torr_; to hua_J.c�i.n��s a_n thc ar_��a. ��incc t;;.i� t�I�c ��arl-�,r � ' '' wr,ii l.c� )�c er�potnicaJ.l ad.v�rii:a�r�� , r ,, Y � o .�.� ,::o the c�ar_a<��, ��e ;;u�J��_,.:t ; � '� i:l�at t�lie txan�icnts hc� dCCO1111110�.11�C.�'u �in {:lle Eaca�lit�y. � ..a WORIDWIDE FROJECT MANAGEMENT AND P�RKING CONSULTAN7S FOR REA! EST117E b�VEIOPMENT , f • , � , � � ' ' 263UV� Mr . Clarenc� Simonawic� Jar�uary 29, 1974 Ste Paui, r�linnes�ta �'ac�e 2 Duri.ng �ur conversatian, we also discussed -�.he o�_}L-irnurn cap�.cii�y oi' the �ro}�os�c7 gar_age, t,s �-ae pointed out to I�Ir. . R1�rzi�.el7_i, tha�ee par7cing level�=. on thc ;i�L-� woulcl par_):. appz,o::a.mai:ely 700 car_s. It is quite l�QJJ.Lhle tha.t the lo�aest level watxld reqlzir� f_orced veni:iJ.a�L-ion anc1, l�ecause o:C t�ie ven.tilation ana cons_�der_ii�� the lccal cl.iinate, �rovisions Lor heat�_nc1. This wa,.z]_cl, o; coi�r�r�, a_ncre�ise the cost and, consequ�nt7_y, the cha�ge f_or_ this parking. tivlaile there is unc�.oubi�edJ_y sorn� c�erna.nd a or this hic�yher l�rxced L>ai]�ing space, :;uclz demaricl i; certa:i.rllj J_i�nit��c�. ��_ �.11��-e_Cor� recomrnend t11ai: no more than vne of these ventilatecl:. 1}aa:}�irzg levels be ��rovic�ed. 7�ny adcliti_ona]_ �ar'l:a_�Zg in cxc��s of 700 sl�aces, then, SYlOUZC� ��CG �rova_dec� ahnve grade. Conce�-ninc� th� need for more than the 700 origina� spaces, ai: leasL- tc�o aspec�Ls shoul.d be co:�siclerec�. First, as ti�e n,�tcd ir� our_ previotzs lctte.r, norrnal. ab�ente�ism arnong the worlc f_erce w�il_Z al]_ow a certain ovezs�ll. o:� it�onthly par;:�_n<� si�aces so that the �Lotat dernand sa�tis f"iea ��il� he in excess a:E thc: aci:ual zzumber of s�?aces 1�r.ovi_cled. Second, as also noted previau sly, t3ie esti_ma�.ec1 ca;�acity asstzm.s all full �a.ze cars. The cu�rent tre�zd to com;�act c�rs could allow a c�a:in a.n this ca1�aci,,�y o£ 40% by simnly r�stri��ing the � st11.1 7.ayout� X�ddea �to this, th� uncertainties brough� about by the ener.gy crisi.s shotz.ld be consi.d�red. One �'inat }�oint shoi�.ld h�� mac�e i.n -L-h�_� r_c�qarcl. T.'r.ar,i tn� si:a»d}�oa.nl-. o:f��arlca.ng ecoriom:ics, a c��r_ta:i_x1 �rnount ai cJ.�•rn�n�� pressure is requir.ec� in orc�er to �naintain parYing r_ate:� at . a satisfactory level. Y�l�ii7.e we k�.�o.�r that the city cannot � be swa5red by econom�_c c��nsiclerations alone, we do hoZ�e that ' �.his :Cact wa_11 enter into your delir�erations. I llope tYiat this inlorination i.s sua fi.cient for. yaur current pua�}�oses. We wi11 exp�ct �.o hear tro�n y�u shortly for the go ahead on the final dra£t of the report. � Res;�ecL:EuI.J_y, AIi�T:CG;TI�L, I'LI�;:IitI21G, Tl_IC. + � .i7�/< � I3ernard I�iaurice � �'' Bt�i:amc Sen�.or ;�aff "� � l..� �. �""��WORLDWiDE PROJECT MANAGEMENT AND �,t, PARKING CONSULT�NTS FOR REAL ESTAT� DEVELOPMENT . Z `° 3 � 3 , � CtTY OF SAINT PAUt QFFICE OF THE CITY ADM1Nl5TRATOR FRANK D. MARZITELLI March 8, 1974 To: Harry Marshall, City Clerk � / Fr: Frank D. Marzitelli � . f ' Re: National Planning Inc. Economic Feasibility Report on the proposed Municipal Parking Garage Continuing our correspondence of January 31, 1974, enclosed is a copy of the final report, dated February 15, 1974, of the National Planning Inc. report on the Economic Feasibility of the Municipal Parking Garage proposed for the site in downtown St. Paul bounded by Fourth, Kellogg, Jackson and Sibley Streets. I hereby request tYiat you attach the enclosed report to the Council Resolution #263032 dated February 1, 1974. FDM/pm cc: Mayor Lawrence D. Cohen . Members of the City Council R. Scott Davies, City Attorney Roger Ryan, Acting Planning Director � Edward Helfeld, Executive Director, H.R.A. Glarence Simonowicz Jack_Geller _ City Ha�ll, Saint Paul, Minnesota 55�02 , . i . - � " ± , ECONOMIC'FSA3IBILITY R88QRT i PR4P438� PAR�I�i�G FACILITY AT". � JACR430N AND BOVRTH 3TRSET3 sr. p�g ��rrA NJ�TIONAL PLANl+�11NG INC. DETRQIT TABLE OF CONTENTS . Paqe INTRODUCTION AND SCOPE . . . . . . . . . . . . . . . . 1 PARKING DEMAND AND SUPPLY . . . . . . . . . . . . . 4 RATES, REVENUE AND EXPENSE PROJECTIONS . . . . . . . . . . . . . . . 12 EXHIBITI . . . . . . . . . . . . . . . � . . . . . . . . . 18 EXHIBITII . . . . . . . . . . . . . . . . . . . . . . . . 19 EXHIBIT III. . . . . . . . . . . . . . . . . . . . . . . � 20 WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT i �NTRODUCTION AND SCOPE In accordance with the terms of our proposal dated December 6, 1973, we submit, herein, the report on our parking demand and feasilaility �tudy for the proposed Municipal Parking Facility an the site bounded by Jackson, Sibley, Kellogg and Fourth Streets in downtown St. Paul. In compiling the data necessary for this report, we have visited St. Pau1 to familiarize ourseZves with the site and with the demand generators and alternate parking facilities in the area. We have alsa analyzed pertinent data which has been provided us including: A General Appraisal of Parkinq in the Central Business Axea of St. Paul, Minnesota, by Barton- Aschman Associated, dated February, 1966, and Base Maps 1 and 3 with accompanying block data as excerpted from the study by "Operation 85". Finally, we have consulted with our affiliated firm, National Garages, Ine. , which is active in the operation �of various parking facilities in St. Paul, and with other knowledgable individuals, ta gain further insight into the parking situation in the downtown area in general, and, specifically, in the WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 2 vicinity of the site. We understand that the tentative plans f.or the development on the site include an apartment camp�ex and other possible improvements on air rights over the garage. We are aware, however, that the proposed parking facility will be open to the general public and that no priority will be given to any specific category of Parker. Based on our observations and on the information made avail- able to us, we have: . Determined the level of demand, existing and anticipated, for both long-term and trarisient parking space in the vicinity fo the site. . Evaluated alternate parking facilities in the area as to the number o� spaces available to serve the indicated demand and the current level of usage of these spaces. . Determined the level of parking rates currently being charged in the area. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 3 , . Recommended acceptable parking rates to be charged in the proposed garage. . . Estima�ed the number of long term and transient cars which would use the facility, based on an approximate capacity of 700 spaces. . Provided projections of parking revenues and operating expenses for each of the first five years of operation of the proposed garage. . From the above, determined the net revenue wk�ich will be available for Debt Service and other fixed charges. We wish to thank all those who have aided us in the campilatian of the data necessary for this report. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT � 4 PARKING 'DEMAND AND SUPPLY � The parking demand area which will be analyzed, extends from the Mississippi River on the South, to Fifth Street on the North, and from Robert Street West to Wacouta Street. (See Exhibit 1) . These blocks constitute the approximate zone of influence of the proposed garage. We assume that any outside demand for parking on the site will be largely offset by out- side accommodation of demand originating within the study area. Based on c�ata contained in the "Operation 85 " Study, ther� are currently approximately 11, 250 employees within the area. An additional 700-800 emplayees will occupy the buildinc�, currently being renovated, located south of Kellogg between Robert and Ja�kson Streets. In the immediate future, then, some 12,OQ0 employees will be working within tne nine-b�.ock area being considered. Our past experience in conducting numerous parking studies in cities similar to St. Paul, indicates that between 60% and 70/ of aIl downtown employees • drive to work on a regt�lar basis. For the purpose of this , _ study, we will assum� an average re�uirement of 7,800 long- term parking spaces for the driving employees who work in the vicini.ty of the site. As il.lustrated on Exhibit II, there WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 5 . are currently only 1,830 spaces within the nine-block area to serve this long term demand generated thera. It is obvious that most of the existing demand is accommodated outside the area. Since the parking facility being proposed wi1.1 require relatively high construction cost outlays and correspondingly high parking rates, it is necessarily intended to serve- only - - those employees who are willing or able to pay a premium for convenient, protected parking. Typically, these are the higher income workers : managers, supervisors, officers, professional people, etc. , who normally make up same 20°0 of the downtown work force. The remaining employees will utilize the less expensive surface lots in �he area or will eontznue to park in less convenient locations for a xeduced rate. Among the 12,000 metzlber work force in th� study area, we estimate that �s many as 2,400 desire prime parking a�commo- • dations at the rates which this type of parking would require. Z'here are currengly approximateZy 3e25� protected spaces within the s�udy limits, of which no more than ?,400 serve monthly -- _ demand. These include the parkix�g spa�es lacated beneath the WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 6 U,nion Depot, which are fairly antiquated by to�ay' s standards, 300 of the 425 spaces in the Jackson Ramp on Jackson Street; the limited number of spaces contained in the Federal Building, and 30-40 spaces in the small garage across Fourth Street from the site. We conclude that there is an unsatisfied demand, from employees within the study area and at the �rates which will be required, for approximately 1,30Q prime parking spaces. In addition to the above demand for long-term parking, the site is ideally located to serve the transient visit�rs to the Federal Building, the Post Office, etc. , Because this revenue would be economically advantageous-to the parking operation, we suggest that l00 spaces b� pr.ovided in the proposed garage to accommodate this short term demand. Add- ing this to the parking needs outlined abave, results in an ea�isting deficit of 1,400 prime parking spaces in the vicinity of the site. � This does not suggest, however, that all of these spaces should be provided in the proposed garage. A number of other factors should first be considered before the optimum capacity can be determined. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVEIOPMENT � � � As previously noted, the proposed facility will mainly serve , the long-term parking rc:quirements of employees in the are�. Normal absenteeism among the work force will allow a certain proportion of oversell of available parking spaces so that the total demand satisfied will be in excess of the num'�er of spaces provided. We anticipate that this factor will increase effective capacity by as much as ten (10/) percent. Another aspect which shvuld bs considered is the recent trend, accel.erated by the energy crisis, to smaller cars. We estimate that a garage, designed for full sized cars, but with the in- built ability to convert to compact �ars, could realize a capacity gain of up to 40/ depending, of course, on the ratio of full size to small cars. This increase would entail only the minimal cost of re-striping the parking stalls. A third factor which should be considered in arriving at a determination of optirnum cap�.city concerns the demand pressures as they affect parking �ates. If these pressur�s can be characterized as the ratio of total de�nand to available spaces, the higher demand ratios would foster higher parking rates. Since, as noted earlier, the cost of building and operating the proposed garage will necessitate relatively high monthly parking charges, particularly in the absence of substantial WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 8 transient activity, a certain degree of deMand pressure will be essential for a feasible parking operation on the site. Finally, some thought should be given to the effect of the energy crisis on overall driving habits. For exam�le, the increasing price of gasoline or, ultimately, gaso].ine ration- ing, could result in the greater use of car pooling or mass transit as more viablP means of transportation to job sites. While we are of the opinion that most car poolers would seek out th� most convenient parking faciZity available, since parking charges would be minimal when divided among the passengers, the number of unknowns genarated by the curr�nt energy situation seems to us to encourage a degree o� conserva- tism in projections of parking requirements. If the energy crisis proves to be less serious than currently depicted, we assume th�.t things wil3. return to near normal with the small car trend continuing, but at a decreased pace� In this event, again, sufficient deman.d pressure would be necessary to sustain the suggested monthly parking rates. We have been provided with a map of ths site and, while we have not prepared substantiating drawings, we estimate, from WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 9 the given dimensions, that a garage constructed on the site would contain approxirnately 235 parking spaces per level. Two levels, then, would provide only 470 spaces, below what we would consider minimum requirements. The approximately 700 spaces in three levels would, in t�emselves, be somewhat less than optimum. However, an eventual small car ratio of 50/, combined with the potential oversell of monthly spaces previously mentioned, would effectively increase this capacity by 30/, to close to 900. ��hile this might still be slightly less than optimum, the addition of a fourth, level, under the � same given conditions, wou2d add almost 300 spaces, greatly diminishing total demand Pressure and, in our-opinion, en- dangering the level of parking charges. Assuming the construction of three parking levels on the site, it is quite possible that the Iowest Zevel will require forced ventilation and, consern.zently, provisions for heating. This would, of course, increase the cost and the corresponding charge far this parking area. While �here is undoubtedly some demand for this higher priced parking, such demand is certainly limi�ed. Therefore, if th� City d�cides to pravide a �ourth parking level, we would recommend that i� be built above grade, if possible. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 10 As noted earlier, tentative plans for the development of air-rights aver the proposed garage incZude 150 to 200 apa.rtment units. We have no definite information as to what type tenants will occupy these apartments and so cannot determine with any certainty the numbe� of parking spaces which the tenants will require. For example, if the apart- ments are meant to provide public housing for the aged, p�rking requirements would be minimal. At the other extreme, tenants of luxury apartm�nts coLild requirs rnore than one park;ing space per unit. For the purposes of tY�is study� we will assume that �he a?�artment complex will consist of 50% luxury apartments and 50,a efficiency units and that the ten�nts of the luxury apart- ments will require parking on a 24-hour basis. Under these condi�Eions, it is virtuall.y imperatiue that the �andlord have complete control over these parking spacss. We will further assume, therefare, that the deT�eloper will provide sufficient parking within the air rights development to accommodate the requirements of the tenants o� the luxury apartments. The tenants of the lower priced apartments wil� not likely be - willzng to pay the rates requzred far 24-hour parking privileges. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 11 zt is reasonable �o zss9ame, howeve�_, tli�.�.�h a majority of �hern would desire parking at riig�-it and ov��.- .the weekends, dura.ng which periods the prnposed municipal garag� wil.l have ampZe space ava�lable. We conclude, b�sed on the above assumptions, that the parking req�.z�rements for the apartment complex w5.11 not necessitate further e:cpansion of the municipal garag�. It should be emphasized that the introduction of a second garage on the site, to serve the luxur� apartm�nts, cQUld present some_ problems unless steps ar� taken to ztlsure that each facility wiI]. serv� its sep�rate yunc�ion. , It should . be made clear .from the ��ar�� therefore, that .the air-rights p�rking must be limi�ed to b�n� fide tenants oF th� luxury units. A11 athers c�.esiring parkiz�g on �.k�� si•��, includir�g _ v�si�ors to �h� a�a�tm�nts .and any oth�r a�mand generat.�d by . - -- the a3r rights deve?opmAx��., wauld be acco=nmodated in-the muni.cipal garag�� WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 12 RATES, REV��;UE AND EXnENSE PFOJECTIOi1S On Exhibit III, we nave provided parking rate recnmmendati�ns and, based on these, estimates of parking rev�nue for the proposed garage. We have assumed, for our, purpases and to insure adequate demand pressure, a parking capacity of 700 full-size spaces on three leveZs. Tne transient rate has been set at 20� per 1/2 hour which, w� zeel, will encouragc� r,laximum usac�e of the snort--terrr� - -- parking spaces allocatec�. The ratP has been- ad jixst-ed in th� third �nd .fift'ri years in order to offset rising op�xa�ing ex�enses. ��le h�v� a?lo�aec� ttYo y�e�rs �ox the build-up of p�.t�:lic ki�o�.rl�:a�� ancl accep`anc� of the �,arag� during �riiicn tim� tk�,� excess �ransient capaci�y has b�en rivera. over to use by mon�thly parr.ers. The 75� overnight r�te has been added s�ecifically far night shift employees in n�arby buildings. F3ased on con- versations witn a local operator, u=e expect t�at pexhaps 6Q of these empl.oye�s �:ill d�sir.e parking at tY:e suggested rate. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 13 The initial $4u mon�th�y pa�kixiy charge is, we fee1, suf- ficiently conserv�tive to encoura�e early leases. The rate has been increased slightly in the second and four�r� years, again in recognition of the inflationary trend in the economy, but a�so to bring the charge more in line with existing rates . for �similar parking. We have not, at this time, attempted to speculate whether or_ not v�ntilation and hea�ing will be required for a port ion of the garage, nor have we includ�d in our projections the premium charge ior heated stai?s. 5imilarl ' , �- _ y, we navE :�a,, c�etermined what rat?o of smal� cars can be expecte�' to u�i1i?e tne garage k�ut have assurn�d, for - . , ' th� pur�oses oi �k�is rep�rt, all f,.ill-size . cars. The pro- . . jections do, �io�:�ever, rei_Lect the .�dvantage gain�d from ov�r- - � - - - -� sell�ng the r2onzliTy' sp�ces in rec�gri;tiori of� normal ak�seni:eeisrn among employees. Th� final source of �ark:ing revenue ref��rred �o an Exhibit III is deri�ed fr�m the tenants of �he lawer pr.ices apartment units. :de have used an estima�re ot 75% of these who will dzsir� to park in the garage at, ti�e statec� rates. It should be emphasized, however, th<:�t �rhis reduced �ate entitles them to nighttime and WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT z4 wee?,cend. priveleges �nly and �rat t?�eir spac-es must be �a cated dur�.ng norir,al business hours durin� the week. We assuine that any tenants violating this agreernent �aould be cha.rged at �the regular transient rat�a for the duration of the violation. Refer_ring to the Rev�nue �rojections, the total of transient cars reflec�s a moderate to heavy usage of the shor.t-term spaces during the week, and minimal usage on weekends, when most of the nearby officP buildings are closed. The average _ r�venu� �e-r tra.nsient car is based an our experienca with � �other �aci7.ities charging similar ra�es. The revenue iraz� overni�'nt parkers refers �o the night shiFt warkers raentiane� earlier ar�d assumes 250 working days p�r year per empl.oye�. The revenua from apartment tenants and montlil.y contract park�rs �aas explain�d earlier. Adding these to �he transiarrt ard overnight totals results in gross �arking revenue of $405, 750 during the first year of operation, rising �co $460, 120 for th� fiit'r� year . In oa�xer to ill.u.strate bot�-� - the initial r�uildup- ��riod £o?- the garage and the r�venue WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 15 realized from a�artMent t�n��nts, we have based tilese projections on the unl�.kely assumption that the �ulZy leased apartments �nd the garage will open s2multaneously. Lag time can be compensated for by deduc�ing apartment related revenue from the projections during •�he early years of the _ - p�r',cing operat�on. . � • - :. . .: From total parking revenue we have deducted the expenses of operating the facility. Although �oe do not have design dr awings available, we assume that the garage will have t�ao entrances and turc� cashiered E�xits, one of which wi11 see limited dtzty_ durin� most of .tne. day due to the �ir.litsd . transien� voZun�e. Ti�e v�age expense, ther��ore, provides �or a rnanag�r - �- -and �ull aric� part time cas�iier and rn��int�enance help`suffic��.t ' for a 24-hour operation, 365 days a year. The amount alZocated for utiiities does not p:rovide for any forced ventilation or heating cf parking areas and assumes tha� part of the ramp will be unused during the nighttime hours. The items "Insurance" and "i�:aintenance" cover tne normal expenses of garag� operations includzng a garagekEepers policy and contracts for upkee;� o� eleva��rs. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 16 The Bookkeeping and N�anagei�lent is often contracted to independent opera�t.ing firn�s and fees, under those conditions, would be nego�ciated. For the purposes of this study, we are �.ssuming a charge to the parking operation of $1.50 per spac� per year. . "Other" expenses includes such items as tickets, office suppl.ies, depreeiation of operating equipmPnt, teTephone, -- janitorial supplies, etc. . - . As shown on th� Exhibi��, t�e expen�es have .b�en increased over �:he projec�t ion period in recognition o:E the in�lationary trend in the �conomy. In the _ case o�' waqes, the incr�ase amounts to Sio �.nnual.ly. All other expz�nse c�tegaries, w�th th� exc�ption of boo,ckeepiny, show a �% annual ri�e. After deducting these c�perating expezis�s, we project net operating revenues of $316, 750 for th� .first year, a^ising �o $356, 760 in the Fif_th year . Again, adjustmen.ts will b� necessary to delete apar�m�nt r�lated parking reve��ue. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT �� On a per spae� basis, .tl�.� s��ted ric,u?-es amount to $�52 in the first year, rising_ t� $510 the fifth year . _ - - - - . , It should be noted that the seope of this study is limited to demand analysis and revenue and exp�nse pr�je�ctions with no regard for construction cos�s. The figures presented, therefore, do not include provisions �or land cost, debt service on construc•tion funds, taxes or any other nan- � - op�rating costs whi__ch may be assessed against the garag� or the parking operation. _ WORLDWIDE PROJECT MANAGEMENT AND FARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT � � 18 EXHIBIT I � << �� l� � �� Sth STREET � � Z O � � Y J U [d � N 4th STREET �r� S' 1 � l KELIOGG ST_ WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 19 EXHZ�3IT IT PAFtKING SUPFLY P.iJD IllE�'L�ND UNDG RC C�i��ER SURFACE Block 6 (Site) 360 Block 3 650 Block � - - Block 5 7_50 Bloc;� 7 90 31ock 17 75 Block 1^0 80 E�lock 19 425 TOTAL SUPPLY � 1, 245 585 TOTAZ PARKING CAr�ACITY 1, 83�3 TOTAL LONG-T:ERP�1 �yN:1�r;D (12, Od0 x F�5`/�) 7,�00 1�1TiVIMUNT D.C,FICIT - 'LOi3G-TEF2�`�I CA�ACTTY 5, 970 TOTAL UNDERCOjTL;R P�2r:ING Cr'�PACITX . � ,245 LESS TRANSIENT USAG�� 145 �TET UNDERCOVER LONG-TER�tii PAI�KI�tG CA.�'ACITY l, 100 TOTAL PRIME PARKIN^v. L��If,A�VD (].2, 000 x 20% + 100 Transzen+� Sy�aces) 2, 500 . - ESTIN3ATED D�.i:'TCTT - PRINIE PARKT�TG C:�P�CITY 1,400 WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSUITANTS FOR REAL ESTATE DEVELOPMENT \ EXFIIBIT TII 20 REV�?3UE AI>TD EXPENSE PROJECTIONS PROP�Sr�D PARK7:vTG FAC?�LITY JACKSOV [�ND FOJRTII STFtEETS ` u�T. PAUL, NII�TNESUTA 12--30-73 CAPACITY: 700 Spaces - RATES . Tranai�nt -.: 20� _per ha�f hour - $2 .5.Q max. - 75� overnight�, . Monthly Contracts - $40 .00*'�� Tenant - Nights and �•�eekends - $20.00k** - lst Yr . 2nd Yr. 3rd Yr. 4th Yr. 5th Yr . REV�NiTE Transients � Cars . 5Q, 000 . 65_, UO(7 75,000 76,OOQ 77, 000 . �� El� $ 40, 500 $ 52,650 $ 64, 500 $ 65,360 $ 66,220 - Overniqht 1]_, 250 _l_1, 250 12, 750 12,75Q 15,000 Apartment Tenants isight s & :A7eek�nds 1�, 000 18, 0�0 2C�,250 20, 250 22, 500 P�lonthlv 7�0 L $�0 G'7`� :� $42. .50 6�0 �'� ;�42.5G �6�. Ca� $45 660 C� $45 $33�, 000 $344, 'L50 $33E,b00 $35�,400 $356,400 . TOTAL PARKING - Rx�Vr�NUE .. _ $�0:5,_75Q. $4?6,15Q . $434,100. _ $45�`�,760 : $46�� 120. . UPF.,RATING EXi�Ei3SFS Wages $ 50, 000 $ 52, 5�00 $ 55, 125 $ �57, 900 � 60, BQO Utili�ies 15,OG� 15,450 1�, 910 16,390 16, 80�J � Insur-�nce 2, 500 2, 575 2, 650 2, 730 2,�10 Nai�tenance 3, 50U 3, 600 3, 710 3,820 3, �35 Boo',ckeeping & Manac�ement 10, 5�0 10, 50Q 10, 500 10, 500 10, 500 Other 7, 500, 7, 725 ?, 955 8, 190 F,435 TOT�L OPEIZATING E.`�PEi�SE $ 39, OQ0 $ 92, 350 $ 95,t?50 $ 99, 530 $10�, 360 NET OPERATING Y.EV�Nt1E $316, 7�0 �333,c�00 $33�, 25C? $355, 230 $3�6, 76t) - Net/Space • 452 _ .. 477 - 48:i 507 510 � �� *�* (Followir.r� ��age) WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT 21 EXHIBIT III (Continued) * 25� lst Hour - 20G eacn ad�itional 1/2 hour from 3rd Year . Overnight - �5fi 3rd .Year - $1.00 5th Xear. *�' $42 .50 2nd Year - $45 .00 4th Yea�. *** $22.50 3rd Year - $25 5th Year. WORLDWIDE PROJECT MANAGEMENT AND PARKING CONSULTANTS FOR REAL ESTATE DEVELOPMENT