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HomeMy WebLinkAboutParking Resolution 2018-04 Recommending Amendment of the Fee for Cash-in-lieu Payment to the Off-Street Parking Requirement i BOZEMAN PARKING COMMISSION RESOLUTION 2018-04 A RESOLUTION OF THE BOZEMAN PARKING COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RECOMMENDING AMENDMENT OF THE FEE FOR CASH IN LIEU PAYMENT OPTION TO THE OFF- STREET PARKING REQUIREMENT UNDER SECTION 38.540.050 OF THE BOZEMAN MUNICIPAL CODE BY INCREASING THE FEE FROM $5000 TO 25,000.00 PER PARKING SPACE. WHEREAS, Section 38.540.050 of the Bozeman Municipal Code recognizes an ongoing need for additional off-street parking facilities arising from new development in the B-3 Zoning District; and WHEREAS, Section 38.540.050 of the Bozeman Municipal Code allows payment of Cash In Lieu of certain parking requirements; NOW, THEREFORE, BE IT RESOLVED the Bozeman Parking Commission recommends to the Bozeman City Commission that this fee be increased to $25,000.00 per-space requested for Cash In Lieu. PASSED AND APPROVED by the Parking Co mission of the City of Bozeman,Montana,at a regular session thereof held on the 14"' day of June, 2018. Chris Naumann, Chair Bozeman Parking Commission Ar Ed Meece, Par ing Program Manager City of Bozeman Attachment A: CIL Calculation & Technical Memorandum from Rick Williams Consulting Cash In Lieu- Parking Fee Adjustment Calculation A B C D E F Hard Cost Total Cost to Fee-In-Lieu @ 80% Construction -Per Soft Cost Construction Cost of Land Build Stall (w/o of Total Cost Per Sq. Ft. Per Stall Stall (Per Stall) (Per Stall) land) Stall (w/o land) Varied by size of 350 $23,450 $6,566 lot in B-3 $30,016 $24,012.80 i I The PPM recommends a$25,000 CIL- Parking Fee to establish the cost at a level that accounts for some additional local cost of construction and CIP increase since 2016 when the RWC technical memorandum was written. RICK WILLIAMS CONSULTING Parking & Transportation PO Box 12546 Portland,OR 97212 Phone:(503)459-7638 E-mail:rick@rickwilliamsconsulting.com MEMORANDUM TO: Thomas Thorpe, City of Bozeman FROM: Rick Williams, RWC Owen Ronchelli, RWC Pete Collins, RWC DATE: December 15, 2015 (v.2) RE: Downtown Bozeman-Comprehensive Parking Study Task 3: Strategic Use of Cash-in-Lieu as a Source of Funding for Public Parking I. BACKGROUND Parking standards in city codes often require that each land use provide parking on-site, or limit the use of parking provided to a specific"accessory" use.This can limit density, increase development costs, challenge small sites, and discourage shared use parking.A common solution to this problem is allowing developers to pay fees into a municipal parking fund in lieu of providing the required parking on-site. The fees are then used to provide centralized public parking in place of on-site parking for individual properties. By consolidating parking in centralized public lots or structures and offering developers an alternative to providing parking on-site, a cash-in-lieu system can encourage in-fill development and redevelopment in existing downtowns, support land use intensification, and reduce the overall amount of built parking through more efficient use of the supply. In the 1970's the City of Bozeman implemented a Special Improvement District (SID)for development in the downtown. That SID was based on very suburban minimum parking requirements in the code at that time.The current parking requirements for Bozeman's cash-in-lieu program within the B-3 District are less and result in a large credit for most projects that minimizes the number of spaces to be provided (see: 38,25.040 A.3.13 1-4).This means that unless the project(s) are very large they never need to provide parking and there will be a tiny amount of CIL funds(assessed at a rate of$5,000 per stall), never enough to build a garage. The fact that Bozeman offers cash-in-lieu is progressive; however, current parking requirements, program format and fee may not provide the funding necessary to develop new parking and support the intensification of uses. In addition,the current code is not clear on the strategic intent for use of the fees collected,the expectation of an access entitlement that may or may not be granted to fee payers, or a consistent and equitable methodology for calculating fees. Downtown Bozeman Strategic Use of Cash-in-Lieu To this end,the City is interested in evaluating its existing cash-in-lieu option, particularly in its use as a reasonable funding source for new public parking facilities.The discussion herein will provide a framework for such an evaluation and for potential revisions to Bozeman's existing cash-in-lieu program. The discussion will also be informed by a reevaluation of the City's current minimum parking requirements, which will need to be strategically integrated into whatever fee structure is developed. II. FRAMEWORK APPROACH- PARKING CASH-IN-LIEU Growth in parking demand is becoming an issue in Bozeman. Increased traffic related to new development and visitors attracted to the City's vibrant downtown may create constraints in the existing parking supply.Surface parking lots will become attractive development sites, resulting in potential loss of parking as new development and redevelopment projects progress.The cost of providing parking, especially structured This memorandum assumes the parking, can adversely impact the financial feasibility of new City intends to continue to play development. Inadequate parking places burdens on existing a prominent role in owning, development and is a disincentive for new development.As downtown redevelops,the City must find the right balance managing and(ultimately) between its role and the role of the private sector in financing growing its off-street parking and building parking to support new growth. supply. Therefore,examining and refining the current cash-in- Key challenges for Bozeman in this process are: lieu program supports the City's • Continuing to attract new development to the efforts to create a more downtown. strategically coordinated • Supporting developments constrained by the cost of parking management plan for parking development while reducing reliance on and the downtown. impact of surface parking areas. • Recognizing site constraints, including historic preservation that may limit the ability to incorporate parking. • Removing barriers to new development or redevelopment of existing buildings. • Maintaining and encouraging an urban form for new development that is consistent with the downtown vision. • Appropriately recognizing previous investments in parking both public and private. Cash-in-lieu allows a new or intensified development to buy out of a requirement to provide a minimum number of parking stalls. Fees paid by the developer are used by the City to fund development of new public parking facilities. RICK WILLIAMS CONSULTING Appendix B—Page 2 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu Cash-in-lieu is an option to providing parking.'A strong cash-in- lieu program can be a powerful tool for achieving efficient Few cash-in-lieu programs development through the provision of common,centralized around the country cover the and/or district parking facilities. Giving developers the option to - - reduce or eliminate their on-site parking requirement can result full costof parking in better-designed and more productive developments and development. Most cities streetscapes. couple cash-in-lieu with other strategically identified revenue Offering developers the option to pay a cash-in-lieu for all or a sources to create a package,of portion of their minimum parking requirement may be an attractive alternative for addressing the challenges outlined funds that can fullysupport above, and provide a means for building structured parking in newparking deveeopment: ' the future.A cash-in-lieu rate is generally set at a level less than the cost for a developer to provide parking themselves.The rate can also be variable to reflect specific benefits of use between projects;varied (for instance) between those that use more or less parking in relation to a minimum parking standard. Overall, a cash-in-lieu option encourages developers to seriously consider downsizing their parking need,and to explore shared-use opportunities in reasonable proximity to their development site.When successfully structured, cash-in-lieu programs can reduce development costs, making projects more feasible and providing a revenue source that the City can invest in a consolidated parking development plan. Implementing a cash-in-lieu program commits the City to playing a key role in developing and managing off-street parking, a role that Bozeman already fills. This memorandum assumes the City intends to continue playing a prominent role in owning, managing, and ultimately growing its off-street parking supply. Examining and refining the current cash-in-lieu program supports the City's efforts to create a more strategically coordinated parking management plan for the downtown.2 This will entail active planning for future parking,and identifying additional sources of funding to supplement and leverage funds derived from cash-in-lieu.3 'A private development should not be discouraged from providing parking without City assistance,within the requirements of the code. 2 Many cities do not have cash-in-lieu or similar programs related to public off-street parking,choosing to put the responsibility for off-street parking growth completely on the private sector. 3 Few cash-in-lieu programs around the country cover the full cost of parking development. Most cities couple cash-in-lieu with other strategically identified revenue sources to create a package of funds that can fully support new parking development. These include fees generated from parking,bonds,infrastructure financing districts, parking benefits districts,etc. RICK WILLIAMS CONSULTING Appendix B—Page 3 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu III. PROGRAM ELEMENTS As previously stated,the waiving of minimum requirements in a private development through a cash-in- lieu option requires a firm commitment by the City to provide public parking in Downtown.4 Clear expectations regarding the City's use of funds raised by cash-in-lieu payments should be developed. For Bozeman,there are several considerations in designing and refining the existing cash-in-lieu option. Below are several program elements that should be considered in refining the current cash-in-lieu option. A. Use of Funds Barring the existence of immediate funds to construct a parking facility in advance of a cash-in-lieu option, it is doubtful that the City could commit to a structured facility in the initial stages of a more robust cash-in-lieu program. As such, payments will need to be collected and allocated to a dedicated parking fund, configured to provide for a future parking garage when coupled with other funding sources (e.g., bonding, Local Improvement Districts, urban renewal).5 The fund should be flexible enough to allow the City to: The City will need to create • Develop new parking structures clear expectations regarding its • Purchase or lease underutilized private parking in the Downtown for conversion to public access obligations for funds raised by • Partner with the private sector to add public parking in cash-in-lieu payments. These new developments obligations need to be developed and adopted B. Level of Expectation concurrent with whateverfee is Cash-in-lieu fees are generally calibrated to the level of implemented. The lower the commitment the City makes to the payer for access to an off- expectation for the payee that site parking supply: an "entitlement"to parking access.The parking is being provided as a lower the payer's expectation of entitlement as a result of the result of the fee the lower the fee,the lower the fee assessed. Conversely,the higher the fee assessed. Conversely,the expectation of entitlement to parking,the higher the fee. Currently,38.25.040 does not meet this standard.The City will higher the expectation that the need to determine its comfort level in terms of expectation payee is entitled to parking,the which will then dictate the assessed fee. Creation of clear higher the fee assessed. expectations regarding its obligations for funds raised by cash- 4 This would not disregard the viability of a shared use agreement credit if it could be successfully developed and administered. 5 Bozeman may already have such a fund established for its existing program.The consultant had not verified this by the time of this writing. RICK WILLIAMS CONSULTING Appendix B—Page 4 Paa !,,r: o rt -t It,r.., . . . ._",_ Downtown Bozeman Strategic Use of Cash-in-Lieu in-lieu payments will result is a more efficient cash-in-lieu parking program.These obligations need to be developed and adopted concurrent with whatever fee is implemented.The present fee charged of $5,000 per stall represents approximately 17%of the cost of a constructed parking space and a correspondingly low level of commitment. Several key questions about cash-in-lieu are outlined below. The consultant has provided single answers to the questions, but only for context as to how they might be addressed. It is recommended that these questions form the basis of future stakeholder discussions regarding the role of cash-in-lieu within the downtown parking management plan. Consensus answers derived from this process would then inform a revised cash-in-lieu program and set of specific expectations: a. What type of access entitlement is a development assured in return for payment of a cash-in- lieu fee based on an established minimum parking requirement? Entitlements do not imply ownership, but long-term rights to parking.These access rights can be attached to the property title and carried with it over time, including transfer in a sale. Because the cash-in-lieu fee is assessed at a rate less than the cost of construction,those entitled to parking agree to pay the current posted rates for parking in facilities built with cash-in-lieu in the form of monthly passes, daily and hourly rates.These rates can be transferred to tenants,employees,and customers. b. Is a development entitled to full access to a specific parking facility,or can access be spread across multiple locations?The payment of the cash-in-lieu to the City would allow a development to take advantage of all available parking under the City's control, but would not guarantee parking at any specific facility. This can be an important element when cities begin to assemble cash-in-lieu payments in advance of building a new parking facility; using surplus in existing supplies to accommodate cash-in-lieu entitlements. c. Are there proximity entitlements that assure access within a specified distance of a development site?The City would ensure that development of new parking funded with cash- in-lieu revenues is located within the Downtown Parking Management area.The area boundaries and, in turn,the reasonable proximity to the development would be determined by the City. The current code limits off-site parking to a 1,000 foot distance(just under%mile or a about three blocks downtown. d. Can access entitlements be changed over time? For instance,could parking be moved from one location to another over time as development patterns evolve?Yes.The City would retain the right to redevelop parking facilities and to provide entitlement parking in different locations within the downtown overtime.This type of flexibility is important, as was referenced in (b) above. The City may need to create temporary or interim sites as new structures are built. Surpluses within the parking system will need to be actively monitored so that entitlements may be allocated accordingly. RICK WILLIAMS CONSULTING Appendix B—Page 5 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu e. What if the City is collecting cash-in-lieu payments,but cannot concurrently build a parking facility? Cash-in-lieu could be used to build interim surface lots to meet entitlements until a new supply(e.g.,a garage) is both needed and feasible. If the City cannot meet near-term cash- in-lieu demand requirements,the program can be suspended to ensure that existing/paid entitlements can be accommodated. f. Can cash-in-lieu payments be used by the City to fund other forms of access(e.g.,transit or bike/walk options)?In some cities,that is the case. However,given the costs necessary to develop structured parking, it is not anticipated that cash-in-lieu payments, as currently configured,would allow the City of Bozeman to fund other forms of access. g. Are there any other charges associated with cash-in-lieu to those with access entitlements? There could be.Given that most cash-in-lieu entitlements are assessed at a rate less than the cost of actually developing off-street supply, agreements formalizing the entitlements would allow the City to charge the then-posted monthly,daily and hourly rates at public facilities in the downtown.As demand for parking increases, monthly and daily rates would also increase.Such charges are necessary to cover, at minimum,costs of maintenance, operation,and administration of the public facilities, as well as debt service. h. What happens if a development does not fully utilize its access entitlements?Given that access is an entitlement and not a form of ownership,the City(or owner of the parking facility) has the right to sell underutilized parking to the general public on a month-to-month basis.This ensures that the City can maximize parking on weekdays,weekends,and evenings.Access entitlements give priority to those with entitlements, but do not prevent the City from capitalizing on unused space. Management of cash-in-lieu entitlements will require accurate and ongoing data on occupancy and utilization of parking. C. Rate and Format The appropriate rate for a cash-in-lieu varies by city and is influenced by the type of parking provided (surface versus structure),costs of land and development in specific areas,and expectations associated with the level of entitlement granted with payment of the fee.in order to make an informed recommendation,the consultant team reviewed cash-in-lieu programs in jurisdictions throughout the country. The City of Tualatin,Oregon assesses a cash-in-lieu of$3,500 per stall required.The City of Bend, Oregon's cash-in-lieu is$26,000.6 A 2008 study of 27 cities by Carl Walker Consulting established a range of fees between$2,000 and$27,520,with an average of$11,500 per stall.The formula for determining 6 Tualatin's original fee-in-lieu was calibrated at approximately 50%of the cost of developing surface parking and Bend's fee was calibrated at approximately 67%of the cost of structured parking. RICK WILLIAMS CONSULTING Appendix B—Page 6 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu rates in the sampled cities was generally based on a wide variety of factors, both parking-related and non-parking-related; as such,the literature offers no clear standard on which to draw in Bozeman. It is recommended that the City of Bozeman consider restructuring its current cash-in-lieu program accordingly: 1. The current unit cost of garage development in the Pacific Northwest is approximately$28,000 to$35,000 per stall, including land,design,and construction.Variation in the range is most typically influenced by land cost.This range offers a good starting point for a cash-in-lieu rate discussion,which would be refined with further research on the actual cost of developing parking in Bozeman versus the average used here for discussion purposes. 2. Once a unit cost is established for parking in Bozeman, base the cost of cash-in-lieu at a rate less than this cost—e.g., 60%(see Section IV.A Sample Methodology for Rate Setting, below).'As described earlier,the lower cost is intended to encourage developers to downsize their on-site parking and explore the shared-use opportunity that would exist within a consolidated public parking supply.The cash-in-lieu rate should provide a reasonable funding base from which the City can then develop a full funding package that would likely leverage other funding sources (i.e., user fees, bonding, local improvement district,etc.). 3. Establish a periodic review of the cash-in-lieu program, allowing the City to evaluate(a)the number of developments exercising the options, (b)factors contributing to developers' use or non-use of the program,and (c) adjustments to the rate as necessary based on (a)and (b). The periodic review would also evaluate the capacity of the City to absorb new cash-in-lieu entitlements. 4. Adjust the cash-in-lieu payment annually based on the Engineers News Record Index(ENRI).The ENRI is a respected standard within the industry and would provide an objective index for adjusting City fees and charges associated with a cash-in-lieu program.$ 5. Recognize that other funding sources will be necessary for successful development of public parking facilities, particularly structured facilities. These could include public facility districts, business improvement districts, local improvement districts,general fund allocations,and state and local grants. Assuming the City intends to create a more efficient downtown, one capable of accommodating the intensification of land uses,continuing to offer a cash-in-lieu option is reasonable and strategic.This is This figure was chosen only for purposes of discussion.It is hoped that this memorandum is used as a basis for structuring work sessions and/or in-depth discussions with stakeholders to develop a rate format that is both appropriate and feasible for Bozeman. 8 The City of Bozeman currently uses the ENRI for inflation adjustments for impact fees and this source has been accepted by the development community.There are other construction indexes as well,including the Rider Levett Bucknall quarterly construction cost index and the Turner Construction index. RICK WILLIAMS CONSULTING Appendix B—Page 7 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu underscored by the financial challenges associated with developing structured parking facilities. It is recommended that the City reevaluate and refine its current cash-in-lieu program so that it can be successfully applied as new development and intensified uses emerge.That process should take place within the context of the elements outlined above. IV. A SAMPLE METHODOLOGY FOR RATE SETTING As stated above, a review of other jurisdictions did not provide a clear methodology for determining cash-in-lieu rates. Generally,the rate bears some relationship to the full cost of constructing a surface or garage parking facility. Most jurisdictions set rates at less than the full cost of construction.The fee should be an incentive for developers to work with the City to consolidate the parking supply in district facilities. Cash-in-lieu funds are then complemented by other sources to construct the consolidated supply. For Bozeman, new cash-in-lieu payments would be allocated toward future parking garage development, as full funding for a garage is likely not in place at this time. Future cash-in-lieu fees would be calibrated to the full cost of constructing a garage in downtown Bozeman, a key change to the current program.9 Table 1 offers a potential methodology for deriving a cash-in-lieu rate.The discussion that follows provides additional information and data sources. Any methodology would need to be regularly revised and data sources refreshed, as stated in the discussion of Rate and Format above. [NOTE: The cost assumptions used in Table 1 are considered reasonable based on the consulting team's experience in Pacific Northwest parking garage developments. Final figures should be informed by additional discussion with stakeholders and research in the actual Bozeman market. The purpose of this exercise is to provide a realistic and usable framework for structuring a cash-in-lieu approach and facilitating discussion.] 9 The final fee rate would be completed as per Section III,c, Rate and Format above. RICK WILLIAMS CONSULTING Appendix B—Page 8 Downtown Bozeman Strategic Use of Cash-in-Lieu Table 1 Sample Model: Cash-in-lieu Rate Methodology A B C D E F Soft Cost of Total Cost to Hard Cost of Fee-in-lieu Square Feet Per @60%Construction per Cost of Land per Build per o Construction per of Total Stall stall(@ 28/of Stall Stall(w/o stall(Garage) Cost per stall hard cost) land) Varies by size of 350 $23,450 $6,566 lot/mix of uses $30,016 $18,010" and size of garage Total Cost to Fee-in-lieu Hard Cost of Soft Cost of Cost of Land Per 6090 of Total Square Feet Per Construction per Construction per Stall per Square guilder p @ Stall Square Foot Cost per Square Square Foot Square Foot Foot (w/o land) Foot 350 1 $67.00 $18.76 N/A $85.76 $51.46 A. Square feet per stall The total square feet per structured parking stall varies greatly, ranging from as little as 300 SF per stall up to 400 SF per stall." In general, 350 SF per stall is a reasonable standard used in most private development proforma,which accounts for the parking stalls,two-way drive aisles, and area for pedestrian ways and plazas, and is consistent with efficient and attractive facilities constructed in medium-sized cities.12 This number is reflected in Column A in Table 1 above. B. Hard cost of construction Hard costs are direct costs incurred by a specific construction project. For a structured parking facility, this would include site preparation, including labor, materials, and equipment. Several West Coast sources were evaluated to determine the hard cost of constructing a garage parking stall in an urban setting like Bozeman.A 2010 study in Ventura, California estimated hard construction costs for a 283-stall downtown parking garage at$23,288 per stall ($67.25 per foot).13 A study conducted for Providence Health Group in Portland, Oregon estimated the average hard cost of above- 10 As stated above,the final fee would be adjusted periodically(preferably annually) based on an adopted index of construction costs. 11Seehttp://www.websl.uidaho.edu/niatt lab man ual/Chapters/parkknelotdesign/theoryandconcepts/ParkingStalI LayoutConsiderations.htp as well as VTPI (2008),Parking Cost,Pricing and Revenue Calculator,Victoria Transport Policy Institute(www.vtpi.org);at www.vtpi.org/parking.xls. 12See http•//www sguarefeetbIos com/commercial-real-estate-bloa/2008/07/08/construction-costs-for-parkinl;- stalls 13 See Rick Williams Consulting,Review/Assessment of Block 35 Associates Parking Structure Proposal,January 3, 2011 RICK WILLIAMS CONSULTING Appendix B—Page 9 ."i €< l , n ns('or cr,1 Downtown Bozeman Strategic Use of Cash-in-Lieu grade parking construction at$24,661 per stall (or$71.50 per square foot)for a 384 stall garage.l4 A 2015 study by IPD Consulting and Rick Williams Consulting for Santa Monica,CA estimated hard costs for a 500 stall garage (with retail)at$22,785 per stall ($65.10 per foot). Walker Parking Consultants estimated hard costs for development of a 500-stall above-grade parking garage in Venice,California to be$18,010 per stall ($63.00 per foot)." For purposes of.this exercise,the consultant used a conservative estimate of$67 per foot hard cost for parking structure development.This is reflected in Column B in Table 1. C. Soft costs related to construction Soft costs are those incurred in addition to direct construction costs. Items generally categorized as soft costs include design and design fees, legal fees, permits,engineering, licensing fees,toxic report fees, and plan check fees.A reliable and widely used source for estimating soft costs is RSMeans and Reed Construction Data.These databases serve as national resources for tracking construction costs. According to a recent search of Reed Construction Data, soft costs for parking construction generally run at about 31%of hard costs.16 A 2015 parking project in Santa Monica, California, in which Rick Williams Consulting was involved, calculated soft costs of 25%,as developed by IPD Consulting, an international engineering and project management firm. For purposes of a base methodology for Bozeman,the consultant used a soft cost calculation of 28%of hard costs;an average of multiple data sources that includes national sources(e.g., RSMeans)and the experience of the consultant team.This is reflected in Column C in Table 1. D. Cost of land Land costs are generally difficult to establish for a model such as this, and can be "spread" differently into a development depending on the mix of land uses that might be associated with a parking garage (i.e., how much of total land cost is allocated to the overall per stall cost in a development proforma). Column D,Table 1, is left open in this model, assuming that if such a model were used by Bozeman, real cost information would be developed specific to a site and applied accordingly in determining a reasonable cash-in-lieu rate. 14See JE Dunn, Hard Cost Estimate Sheet for POP is Information provided by Walker Parking Consultants. MSU is also currently in construction for a new parking garage.The MSU project could provide a current and locally relevant data point to be included in any final calculation of construction costs for purposes of establishing a revised cash-in-lieu fee. 16 http://www.reedconstructiondata.com. RICK WILLIAMS CONSULTING Appendix B—Page 10 Parking & Transportation Downtown Bozeman Strategic Use of Cash-in-Lieu E. Total cost to build Based on the methodology in Table 1,the total average cost of a structured, above-grade parking stall in Bozeman would be$30,016 per stall or$85.76 per square foot per stall, assuming 350 square feet per stall built.This is reflected in Column E in Table 1 above. Again,this does not assume the cost of land. F. Cash-in-lieu rate If the actual construction cost of a stall is$30,016 (Column E),the total cost would be factored by a predetermined percentage (in this case 60%)to derive an in-lieu fee rate of$18,010, or$51.46 per foot (Column F). Bozeman already provides a cash-in-lieu option for new development and/or intensification of land uses.The program needs to be reevaluated to ensure that it offers developers a reasonable option to . consider, and provides a sound financial basis for the City to build new parking facilities.The fee must be calculated using a credible market-based methodology that can be regularly updated as economics and parking development costs evolve.The rate must be calibrated to reasonable expectations for access that the payer can rely on. Finally,the fee must be strategically coordinated with other funding sources to ensure that the City has a financially feasible system for offering the cash-in-lieu option as a development incentive, and can meet any demand for parking by those who pay the fee. V. SUMMARY The authors of this memorandum have endeavored to provide context for and key elements of a cash- in-lieu program as an option for managing and growing downtown Bozeman's parking supply.This information is intended to facilitate additional discussion and questions from staff and stakeholders on the continuing role of cash-in-lieu, and how it is integrated into the downtown's parking and economic development planning. Cost estimates are only a means to focus discussion and create a platform for examining, refining, and clarifying Bozeman's current program.The consultant team hopes the information provided helps to increase understanding of cash-in-lieu and stimulate discussion on the appropriate role for such a program in the larger context of a strategic downtown parking management plan. RICK WILLIAMS CONSULTING Appendix B—Page 11