Title
Gainesville Greens (GG Development Associates) Parking Agreements (B)
This item recommends the City Commission approve: 1) a License Agreement to allow Gainesville Greens the use of 233 parking spaces in the Southwest Downtown Parking Garage; 2) a Second Amendment to the License Agreement with Ken and Linda McGurn to accommodate the License Agreement with Gainesville Greens.
Explanation
Gainesville Greens, a mixed use project, will consist of a 10-story building with 144 condominium units and 17-20,000 square feet of retail/restaurant space to be constructed on property commonly known as City Parking Lot 10 (SW 1st Avenue and 2nd Street). The developer has requested 233 parking spaces in the City's Southwest Downtown Parking Garage.
Ken and Linda McGurn (KLM) have a prior agreement with the City which grants them the rights to 225 'development spaces' in the City garage for future development. KLM has executed an agreement with Gainesville Greens to assign the rights to these 225 development spaces to Gainesville Greens. In addition, the City has agreed to allocate eight additional parking spaces to Gainesville Greens. This assignment of parking spaces requires modifications to one of the original parking garage agreements between the City and KLM and an additional agreement between the City and Gainesville Greens.
Staff has reviewed the allocation of parking spaces in the garage. Based on parking agreements with Alachua County and KLM, as well as the request from Gainesville Greens, the allocation of the 842 parking spaces in the garage will be as follows:
Public = 375
KLM = 138
Gnv Greens = 233
Unallocated = 96
Total = 842
The 375 public parking spaces will meet the demand for public parking.
The SECOND AMENDMENT TO LICENSE AGREEMENT FOR USE OF PARKING GARAGE, between the City and KLM, provides for the following:
1. The Agreement acknowledges that KLM has assigned its rights to the 225 development spaces to Gainesville Greens.
2. Should the developer default in his agreement with KLM, the City shall execute the necessary documents returning the rights to the 225 development spaces to KLM in accordance with KLM's parking agreements with the City.
3. If Gainesville Greens is not constructed and completed, then this SECOND AMENDMENT shall be treated as if it were never in effect.
The LICENSE AGREEMENT FOR USE OF PARKING GARAGE, between the City and Gainesville Greens, provides for the following:
1. The Agreement acknowledges that KLM has assigned to the developer of Gainesville Greens its rights to 225 development spaces and that the City has agreed to allocate eight additional spaces in the garage for the project.
2. Parking spaces in the garage shall be "floating spaces" and shall not be designated or marked within the garage.
3. Allows the developer, at his expense, to construct and operate a pedestrian bridge between the project and the garage.
4. The City will grant an air rights easement to Gainesville Greens.
5. The developer shall pay a monthly fee for the parking spaces. This fee will be equal to 80% of the prevailing long term monthly rental rate charged by the City for monthly parking. Based on the current garage rates, the fee paid by the developer today would be $20/space/month through September 2007. The monthly fee will not be increased by more than 10% per year.
6. The Term of the Agreement is for 99 years or the life of the Project, whichever ends sooner.
Approval of these two Agreements will provide the 233 parking spaces requested by the developer of the Gainesville Greens project.
. Fiscal Note
Based on Fiscal Year 2007 parking garage rates, Gainesville Greens will pay the City $4,660 per month ($55,920 annually) for their 233 parking spaces in the Southwest Downtown Parking Garage. The payments will commence the first month after the Certificate of Occupancy has been issued for the project.
Recommendation
Recommended Motion: The City Commission authorize the City Manager to execute (1) the SECOND AMENDMENT TO LICENSE AGREEMENT FOR USE OF PARKING GARAGE between Ken and Linda McGurn and the City of Gainesville and (2) the LICENSE AGREEMENT FOR USE OF PARKING GARAGE between GG Development Associates and the City of Gainesville, subject to approval by the City Attorney as to form and legality.
Alternative Recommendation: The City Commission not approve the SECOND AMENDMENT TO LICENSE AGREEMENT FOR USE OF PARKING GARAGE and not approve the LICENSE AGREEMENT FOR USE OF PARKING GARAGE.