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Home My WebLink AboutEx 2 BPC 2 14 19 Homebase MemoPage 1 of 3BOZEMAN''Porking ServicesDate:To:Re:From:MEMORANDUMFebruary 7,20L9Bozeman Parking CommissionRequest to convert up to 107 monthly parking permits to UnifiedDevelopment Code (UDC) parking permits as part of a twenty-five (25) yearlease with HomeBase Partners.Ed Meece, Parking Program ManagerOn December !4, 20L8, the Parking Services Division received a request from AndyHolloran, exploring the potential conversion of up to 107 monthly parking permits in theBridger Downtown Parking Garage to UDC-parking permits attached to a twenty-five (25)year lease with HomeBase Partners. Since receiving the original request, city staff havebeen involved in a series of steps to fully investigate this request.HomeBase Partners has prepared a conceptual development application for its 5 Eastproject, which it expects to submit for review in early 2019. HomeBase Partners estimatesthe 5 East project will need to provide 107 parking spaces in order to satisfy the off-streetparking requirements contained in the City of Bozeman's Unified Development Code IUDC);that number may be modified during the development review process. The CommunityDevelopment Department has historically permitted use of a long-term parking leaseagreement to satisf,i the UDC's off-street parking requirements, and defined "long-term" asa twenty-five year period.The City Attorney's office does not have a legal objection to the conversion of monthlypermits to UDC-permits, on condition that the permit conversion request would follow thesame process as approval of new UDC-permits established by the Bozeman ParkingCommission (Resolution 20t7-04; L2/20L7). HomeBase Partners holds 112 monthlyparking permits to the Bridger Downtown Parking Garage which are paid for on an annualbasis. The monthly parking permits held by Homebase Partners are included in the fivehundred and sixty-three [563) total permits authorized for lease by the Lease Limit Policyand Lease Calculator asof t/t0/I9.If the permit conversion were approved by the Bozeman Parking Commission (BPC), theCity of Bozeman and HomeBase Partners would enter into a twenty-five year leaseagreement at the successful completion of the property development process within thetimeframe(s) specified by the Lease Limit Policy. As with existing UDC lease agreements,HomeBase Partners would be subject to future rate increases and operating policiesimplemented by the Bozeman Parking Commission.P.0. Box 1230Bozemon, MT 59771-1230@ +oo-ssz-zso:20 Eost Otive Streetwww.bozemon netTDD:406-582-230.lTHE MOST LIVABLE PLACE Page? o13BOZEMAN''Porking ServicesThe fiscal effect of converting monthly parking permits to UDc-permits is a revenue neutraltransaction. Frequent rate review, and active parking management techniques are a themeof the 2016 Strategic Parking Management Plan (and industry 'best practice'). Theconversion of monthly parking permits to UDC-permits does reduce the ability to managegarage occupancy through the contraction/expansion of monthly permit sales. However,the utility of this specific practice for management of the Bridger Park Downtown Garage isuncertain as the Lease Calculator continues to evolve through modification of the baseformula and occupancy data analysis.In order to develop a recommendation, staff referred to several documents for guidance:The 2016 Strategic Parking Management Plan places a priority on servingtransient parking frst (visitors, customersJ, as well as integrating parkingmanagement decisions with other economic and community developmentstrategies. In addition, active parking management and frequent rate review arerecommended as well.The 2018 Bozeman Strategic Plan emphasizes the need for strategicinfrastructure investments, i.e. leveraging infrastructure for the largest communitybenefit.aao The draft 2019 Downtown Improvement Plan projects growth in downtownoffice space by an additional 250 - 350,000 square feet by 2045; while preserving avibrant mix of primarily first floor retail space.The proposed 5 East project is a mixed use facility that provides office, hotel, and retailspace in the same footprint. The estimate of UDC required parking spaces for the 5 Eastproject is a 50-50 split between visitors (hotel guests) and employee/office use. Onbalance, the conversion of existing monthly permits to UDc-permits so as to leverage theeconomic utility of the parking garage seems a prudent decision. Accepting that such anaction will impact the ability to manage overall transient occupancy of the parking garage.Based on the goals of the aforementioned plans, and balancing all considerations, theParking Program Manager recommends approval of the request to convert up to 107monthly permits to UDC-permits for the Bridger Downtown Parking Garage.P.O Box 1230Bozenron, MT 59771-123020 Eost Otive Street406-582-2903www. bozemo n. netTDD: 406-582-230\THE MOST LIVABLE PLACE Page 3 of3BOZEMAN''Porkilng Services@ +oo saz-zoo:P.O Box 1230Bozenron, MI 59111-123020 East Otive Streetrn¡wrry.bozenlon.netTDD:406-582-2301THE MOST LIVABLE PLACE From: Andy Holloran <andy@ hbpartners.com>Sent: Friday, December 14,2018 8:03 AMTo: Brit Fontenot <bfontenot@BOZEMAN.NET>; Ed Meece <EMeece@BOZEMAN.NET>; Chris Naumann<ch ris@downtown bozema n.org>Subject:5 East ParkingTeam,Attached is our Conceptual Application for our proposed project located at 5 East Mendenhall. As most of youknow, our request for night time parking in the Bridger Garage was denied. lt appears there is not a way todesignate parking uses by time of day, ie. night time use for hotel guests versus day time use for office employeesThis is unfortunate, especially given the limited occupancy of the garage during late afternoon through midmorning.As indicated in our Application, the project has a need for IO7 parking spaces, 16 for hotel employee's, 54 for hotelguests and 37 for the office use.HomeBase currently has 112 leases/permits in the Garage that are not committed. We secured theseleases/permits almost 3 years ago and have been paying these on an annual basis.Specifically for our proposed 5 East project, it seems there are a couple ways to handle the parking requirement:1. Convert the non-hotel guest required leases (qty: 53) to a long term UDC lease in exchange for 53 of our currentleases/permits and approve a new, separate long-term UDC lease for the hotel guest requirement (qty: 54) ,knowing these leases are primarily night time only.2. Convert 107 of our 112 leases/permits to a long term UDC lease with a 25 year term and numerous 5 yearoptions to extendWe are interested in pursuing option 1 and welcome your feedback on how we best maximize use and revenue ofthe Garage, while at the same time creating a structure that allows our proposed 5 East project to move forward,We anticipate submitting our formal Site Plan Application in January and am hopeful this issue can be on theagenda for the January Parking Commission hearing?I am available next week if you have time to discuss.Andy Holloranllatnitttlt't' ()ttr ttt'tr tclt.:il¿ utttl atttuil i.: [llJPorlners.contIIonlcBasc Partrrclsl0 North f racv AvcnueBozcnran. l\{olrtana 5971 -5406.404. rTtitìHBPartners.com NIANIA573435-103672363#VALUE!46Total No.of LeasesSoldShort-TermVe hiclesParked atPeak HourNo. ofLea sesParked inPeak HourLeases Sold Weekday Peakbut Not HourActiviatedt** Occupancy50% of EmptyCars Parked in Empty Stalls StallsPeak Hour (Peak Hour) (Potent¡alNew Leases)Potent¡a INew Leases{less LeasesSold but NotActivated)Tol¡l LeðsesAuthorized For Sale{as of th¡s date)Sta llsNotesBridgerParking Lease Policy: Appendix A[NOTE: Red hight¡ghted boxes ore lot input o1 current doto. All oth€tr categories ore lonutøs thot do not rcquire ínput.]LEASE SUMMARYHOURBREAKOUT tzlLl20t&Sub-Total Non-UDC Leases *3L7Bozeman Parking CommissionBridger Park Downtown GarageLEASE LIMIT CALCULATIONStaff will freeze permitnext lease l¡mit rev¡ewPeak PeriodOct 2018-Dec 2018Parked Peok Hour/Day5 West Mixed Use Office (UDC)Element Hotel (UDC)Lafk Hotel 1 (UDC)Lark Hotel 2 (UDC)Etha Hotel (uDc)Ethâ Hotel (uDcl - PENDINGSub-Total UDC*'rGRAND TOTAT'No hotels ln these teosesrtUDC leoses dre lor o minimum of 25 yeors+"sold but not odlvated meons AVt cods not dtstilbuted.506019544627The purpose of tlre Leose Límít Colculotor ¡s to ut¡lize park¡ng industry bestpracl¡ces ¡n determining how many parking leases the Bozemen ParkingCommissìon (BPC) can sell in the Br¡dger Park Downtown Gerage, wh¡lemaintaining reasonable confidence that adequate capacity exists for bothleased and short term parking. The rationale is that the BPC can 'oversell'monthly/annual leases (more leases than spaces) by meintaining a mârgin ofexcess capacity based on "Peak Hour" ut¡l¡zat¡on. Employing a commonparking management strategy, the BPC, upon advice of Rlck Will¡amsConsultin& hâs chosen to use a factor equal to 50% of unused park¡ng spacesI during the Peak Hour. The Lease Limit celculator w¡ll continue to evolve ini accuracy, as better data is gathered and access¡ble through ¡mplementat¡onì ofthe new T2 gàrage revenue control systems.i363IOTAL Vehlcles et Peat Hour363Dec 1/ 4:51 PMN/ANon Leases in Peak HourLeases in Peak HourDec L/ 4:51 PMN/AReport Generated t/ 30 l2ot9Page 1