Submitted By: Roberto Ellis
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve Parking Agreement for Project Hometown - Downtown Ocala Marriott AC for dedicated parking spaces in the second City parking garage
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The proposed new hotel is located within the downtown area at 211 SW Broadway Street (Parcel ID: 2854-025-001), immediately north of the new parking garage site. It is important to note that the Downtown Ocala Master Plan (Master Plan) focused on the need to emphasize potential opportunities for vacant properties, underutilized properties, and properties developed with surface parking. The parking garage and hotel properties are fitting examples of development/redevelopment opportunities that are an essential component of downtown’s long-term success.
The developer recognizes that the City has offered to facilitate the hotel project by providing parking and other incentives. The terms established under the Parking Agreement for Project Hometown - Downtown Ocala Marriott AC (Parking Agreement) are recognized as a City incentive to the developer, representing no fee for parking for the duration of the Redevelopment Agreement. Upon completion of the Redevelopment Agreement, the developer/hotel operator will be required to pay all applicable parking rates.
FINDINGS AND CONCLUSIONS:
City Parking Incentive
Details of the incentive and the project are summarized below. Refer to the attached document titled Parking Agreement for Project Hometown for more information on the terms and conditions for the City and developer.
Parking Agreement:
The City will provide 225 exclusive parking spaces to the developer. Parking is a prime concern for most development projects downtown and often influences the final project design and business operation.
The main reason for having two agreements documented separately is to provide for possible future amendments and recognition that the exclusive parking will remain in effect (subject to future payment terms) after all other City incentive obligations outlined in the redevelopment agreement are met.
Parking Agreement Summary
• Dedicated Elevator: The original designs for the new parking garage included plans to install at least two elevators. The developer has proposed adding a third elevator to enhance access to the dedicated parking spaces. The City will provide the City Elevator Incentive, covering 50 percent of the cost for the third elevator, which will be designated for the developer’s use, except during certain events organized by the City.
• The developer will be granted the exclusive use of 182 spaces on the uncovered sixth floor and 43 spaces on a portion of the fifth floor of the parking garage.
• City and developer will coordinate in the use of the dedicated elevator and dedicated spaces for certain public events that may require the full capacity of the parking garage.
FISCAL IMPACT:
Per the agreement, the parking spaces will be provided at no cost to the developer. The value of the parking incentive will equate to $72,660 per year based on existing rates for long-term parking. The total City Parking Incentive will be adjusted over the term of the agreement so that the City Incentives Target is met. Upon expiration of the City Parking Incentive, the City will establish new payment terms for continued use of the dedicated parking spaces.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve
• Approve with Changes
• Table
• Deny