Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services in consultation with the Director of Finance

SUBJECT:

Parking Payment in Lieu - Fee Review, Assignment of Payments, and Refund of Payment

 

RECOMMENDATION

COMMENTS

POLICY

The payment-in-lieu parking fee is to be set at the net cost to provide parking after considering potential revenues.

Payment-in-lieu funds received are held in a reserve account until parking spaces are identified and assigned by Council. Before this is done an applicant can request a refundof the moneys paid with interest if the parking requirement is otherwise met or the development does not proceed.

BACKGROUND

Under the Parking By-law, developers are required to provide a specific amount of on-site parking. Typically, most applicants within the payment-in-lieu area provide the full amount of required parking.

Payment in lieu was introduced in 1986 to give developers an option of last resort if they could not provide the parking required for their development. The payment-in-lieu areas include the historic districts (which have reduced parking requirements) and much of the Downtown. These areas were established because the City either has provided or could reasonably provide parking in off-street parking facilities. This provision is allowed for in the City's Charter which in part states:

PAYMENT-IN-LIEU PARKING PROJECTS

The City has recently been involved in a number of parking projects in the payment-in-lieu areas that can be used to give a realistic estimate of the costs involved in providing parking. These projects have been used in the analysis to provide an estimate of both the capital costs, and the offsetting operating income generated by the parking project.

In Yaletown, the City has two parking facilities. One provides 193 parking spaces in a joint venture with Concord Pacific at 1180 Mainland, under a civic square (Bill Curtis plaza). The other is now under construction at 201 Alvin Narod Mews, and will provide 140 spaces under a non-market housing development.

In Gastown, the City is now developing 130 parking spaces under a non-market housing project (Lori Krill Coop). This property located at 65 W Cordova has been used to estimate payment-in-lieu costs for the Gastown area.

In the downtown, the City has two suitable parking facilities, the New Continental (1067 Seymour) which provides 200 parking spaces for the Downtown South area, and Library Square which provides 712 parking spaces for the central downtown area. Both of these facilities have pay-in-lieu parking spaces.

The final payment-in-lieu area is Chinatown. The City helped support the development of the Chinatown parkade, and has contributed payment-in-lieu funds in exchange for committed parking spaces.

PROPOSED PAYMENT-IN-LIEU CHARGE

The payment-in-lieu charge represents the net cost to the City of providing a parking space. Construction and land costs are offset by income from the parking facility. Developers who request the payment-in-lieu option still have to pay market rates for any parking the City provides.

Appendix A shows the payment-in-lieu of parking fees calculated using the methodology approved by Council. This analysis shows the capital cost required to construct payment in lieu parking, and the offsetting operating income and residual value of the projects.

An average of the payment-in-lieu amounts calculated for each area is used to generate a composite rate.

This analysis shows that the average per-stall cost has increased and this report recommends that the payment-in-lieu charge be increased from $13,500 to $14,500. This increase reflects the increased costs of the two new underground parking facilities in Yaletown and Gastown now under construction, and current operating margins from the Parking Corporation of Vancouver.

ASSIGNMENT OF PAYMENT-IN-LIEU FUNDS

Since the program was approved by Council $1,527,800 has been collected for 153 payment-in-lieu parking spaces. $782,400 for 86 parking spaces has been committed by the City to provide payment-in-lieu spaces, and the balance is held in the Payment in Lieu of Parking Reserve.

There are 43 additional spaces that can be assigned at this time as the City can provide parking spaces that meet the needs of these projects. The total funds that would be transferred to the parking site reserve, which funded the development of these spaces, is $556,400 . A detailed listing of the payment-in-lieu funds recommended for transfer is shown in Appendix B.

REQUEST FOR PAYMENT-IN-LIEU PARKING REFUND - 302 DAVIE STREET

In July 1999 City Council approved a request for payment-in-lieu parking for 14 spaces ($189,000) for a proposed hotel development for 302 Davie Street. This money was subsequently paid to the City and Council approved the appropriate By-law waiving theparking requirement on July 11, 2000.

The Owner of the property has now formally applied for a refund of the money paid to the City (Appendix C - on file in the City Clerk's Office). The development proposed will have an additional 5 spaces. Also, on February 22, 2000 Council approved a reduction to the amount of parking required for hotels in the DD including this site. This, combined with the increase in parking, results in the proposed hotel having a parking space surplus. The development proposes 44 parking spaces and the by-law minimum requirement is now 33 spaces.

Council policy allows for a refund of money paid, provided the City has not committed the funds. In this case the funds have not been committed and staff recommend a refund of the $189,000.

- - - - - -

Appendix A

City of Vancouver
Payment in Lieu Analysis
2000

     

Yaletown

Gastown

Downtown

Downtown

Average

Calculations on per stall basis

      

South

    
               
 

DPC Lot

  

#22

#8

#18

#27

  
 

Address

  

1180 Mainland

65 W Cordova

1067 Seymour

Library Square

  
 

# of Stalls

  

140

130

200

712

1182 total

               
             

Average/stall

Capital Cost

    

$24,300

$20,600

$18,600

$23,743

$22,345

Present Value of Net Operating Income

($10,534)

($12,078)

($790)

($10,108)

($8,134)

Present Value of Land Residual

 

$0

$0

($512)

($882)

($618)

Contingency

    

$1,399

$852

$1,730

$1,275

$1,320

               

Payment in Lieu

  

$15,389

$9,374

$19,028

$14,028

$14,523

               

Assumptions

Inflation Rate - Revenues

3%

Inflation Rate - Expenses

3%

Land Appreciation Rate

3%

Discount Rate

9%

Contingency

  

10%

Term (years) of Analysis

30

Appendix B

Recommended
Assignment of Funds Received
Payment in lieu By-laws

Property description (By-law #) Spaces Waived Amount Parkade location

1050 Hamilton St (By-law 7144)

3 spaces

$24,000

Yaletown

1228 Hamilton St (By-law 7304)

2 spaces

$24,000

Yaletown

1118 Homer St (By-law 7703)

3 spaces

$39,900

Yaletown

1240 Homer St (By-law 7691)

8 spaces

$106,400

Yaletown

881 Granville St (By-law 7993)

1 space

$13,300

New Continental

1190 Homer St (By-law 8041)

11 spaces

$146,300

Yaletown

952 Granville St (By-law 8087)

9 spaces

$121,500

New Continental

1220 Homer St (By-law 8214)

4 spaces

$54,000

Yaletown

1226 Homer St (By-law 8214)

2 spaces

$27,000

Yaletown

       

Total to be transferred to Parking Site Reserve

43 Spaces

$556,400

  

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ag010313.htm

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