��TY OR
PISMO BEACH CITY COUNCIL STAFF REPORT
A- BEPc� Agenda Item 12.0
Meeting Date: October 15, 2024
TITLE:
Parking Advisory Committee Downtown Parking Program Recommendations RECOMMENDATION:
Provide direction to staff regarding Parking Advisory Committee proposed downtown parking program recommendations.
DISCUSSION:
During the February 16, 2024, City Council goal-setting workshop, the Council directed staff to explore options for updating the parking in-lieu fee program, including:
1) Investigate reducing the parking requirements for properties in the downtown. 2) Examine reducing the in-lieu parking fee to 25% or less of the current $36,000 in- lieu fee for each parking space.
3) Research what percentage of the overall required parking for new projects should be allowed to be paid with the in-lieu parking fee.
Staff brought the above referenced items before the Parking Advisory Committee (PAC) on April 24, 2024, and July 24, 2024, for discussion. Both the April 24, 2024, and July 24, 2024 PAC staff reports can be found online at www.pismobeach.org/agenda . An expanded discussion of the topics above can be found below.
Maximum Parking Requirements
With the realization that parking is an often-inefficient use of land and when paired with a desire to encourage commercial investment/reinvestment in certain areas, many cities have implemented maximum parking requirements. Some cities that have maximum parking requirements include:
• Town of Mammoth Lakes - Municipal Code Section 17.44.030(c)(2)1 (Minimum and maximum parking requirements)
• City of West Sacramento - Municipal Code Section 17.27.040(B)2 (Maximum Number of Spaces Allowed)
• Park City, Utah - Municipal Code Section 15-6-5.E.3.3 [PDF p. 35] The concept of moving from parking minimums to parking maximums is to promote walkability, improve the pedestrian experience, encourage the "park once and walk" concept, reduce greenhouse gas emissions and to limit the construction of parking lots Full URL:
https://library.municode.com/ca/mammoth lakes /codes/code of ordinances?nodeld=COOR TIT17ZO ARTIIISIPLGEDEST CH17.44PALOST 17.44.030NUPASPRE
2 Full URL: https:Hecode360.com/43206158
3 URL: https://tinvurl.com/parkcitylandmgmtcodeamdmts
Council Agenda 10-15-2024 12.C-1
that are larger than necessary. The 2016 Walker Parking Study identifies that 40% of parking spaces on private property are vacant in the downtown during the busiest weekends. The high number of vacant spaces on private property suggests that in some cases commercial properties may actually be overparked, considering the visitor pattern of visiting multiple commercial locations instead of parking at one location and moving the vehicle to the next commercial business. Many cities have eliminated parking minimums and have done so with the goal of encouraging multi-modal transportation options.
Revising minimum parking requirements to encourage commercial investment flexibility or establish a maximum parking requirement decouples the high cost of parking from potential new development opportunities in the downtown.
In-Lieu Parking Fee
The in-lieu fee is intended to encourage rehabilitation and expansion of existing and new commercial uses in the downtown and to generate revenue for shared parking solutions.
The current in-lieu parking fee is $36,000 pursuant to City Council Resolution R-2019- 010, adopted February 19, 2019 (Attachment 1). The actual cost of a surface parking space in Pismo Beach is on average $112,000 based on a recent survey of property acquisitions options by the City for additional parking in the downtown.
Between 2014 and 2019, the City Council approved reduced parking in-lieu fees at$9,000 per space in order to incentivize commercial investment based on the previous high-cost parking in-lieu fee requirement. During that time period, there was some participation from businesses including Central Coast Meat Market, Cracked Crab, and Vespera Hotel.
However, after 2019, the fee was raised back to $36,000 since it did not produce the intended commercial investment.
One of the likely reasons the intended commercial investment did not materialize is because Pismo Beach Municipal Code (PBMC) Section 17.108.040 only allows payment of in-lieu fees for 30% of the required parking spaces. For example, if a commercial project required 10 parking spaces, 30% of the requirement could be met with payment of in-lieu fees (3 spaces * $36,000 for a total of $108,000) and the remaining seven spaces would be required to be provided onsite. However, it typically does not make financial sense to pay the fee to capture only 30% of the requirement. If property owners could capture 100% of the requirement at a lower fee, that would better promote the use of property at its highest and best use in the downtown area.
Revising the allowed use of the in-lieu fee from 30% to 100% of a parking requirement will necessitate a revision to the Zoning Code. However, PBMC Section 17.108.040(F) states the Planning Commission can grant a higher percentage of use of the in-lieu fee if a hardship occurs due to size, shape, location, or topography of the property involved. To promote a higher use of the in-lieu fee in the near term, the Planning Commission can provide flexibility in its interpretation of what constitutes a hardship. As an example, if an existing business desires to expand, the Planning Commission could make the interpretation that the size of an applicant's parking lot is not large enough to accommodate the proposed square footage and parking required.
Council Agenda 10-15-2024 12.C-2
Allowing purchase of 100% of the required commercial spaces would allow for greater utilization of the properties in the downtown by freeing up square footage on individual lots in the downtown for development. This policy change has the potential to improve the pedestrian/visitor experience by locating storefronts along areas where parking lots currently exist, removing curb cuts, and increasing economic opportunities in the downtown. Reducing the number of onsite parking spaces also increases the financial feasibility of a future parking structure as it would increase usage of any such parking structure.
Currently, the Planning Commission has the authority to grant a greater percentage of in- lieu fees to be purchased if it makes findings that a hardship would occur due to the size, shape, location, or topography of the property involved, pursuant to Zoning Code Section
17.108.040. In the near term, this policy would allow for the Planning Commission to increase the number of in-lieu fees to be purchased beyond the 30% limitation, however, to fully implement the policy an amendment to the Zoning Code would be required.
It is also worth noting that the draft updated zoning code does currently include a policy that would allow purchase of 100% of the parking requirement for new development or for additions or renovations. This policy can be found in section 17.60.050.134a of the draft zoning code and reads as follows:
4. Payment of Fees In Lieu of Providing Parking.
The parking space requirements of Table 17.60.040-A (Required Number of Parking Spaces) may be satisfied through the payment of an "in-lieu"parking fee subject to the following requirements:
a. Applicability.
This provision shall apply to commercial uses and development within the CD-C and MU-C zones, as follows:
i. Within the CD-C and MU-C zones, up to 100 percent of the parking requirement for new development, additions or
renovations may be satisfied by the payment of in-lieu fees. ii. Within the CD-C and MU-C zones, up to 100 percent of the parking requirement generated by new development, additions, or renovations on sites of less than 4,000 square feet may be satisfied by the payment of in-lieu fees, and up to 50 percent for parcels or sites larger than 4,000 square feet.
iii. The payment of in-lieu parking fees shall not be used to satisfy the parking requirements of any transient lodging or residential use.
The parking policies found in the draft zoning code have yet to be reviewed by the Planning Commission or City Council and the In-lieu fee policy noted above will likely require some editing to provide greater clarity.
Council Agenda 10-15-2024 12.C-3
Parking Advisory Committee Review
The April 24, 2024 PAC staff report included the following staff recommendations:
Near Term
The following action items can be implemented in the near term with minimal staff resources:
• Reduce the in-lieu parking fee to $9,000 per space, or tie the parking in-lieu reduction to a limited time period.
• Planning Commission can make hardship interpretations that maximize flexibility when granting a higher percentage of spaces for use of the in-lieu fee, with a staff recommendation.
Long Term
The following actions would be further analyzed and discussed at future Parking Advisory Committee meetings, and ultimately included in the upcoming update to the Zoning Code:
• Reduce parking requirements for commercial uses or mixed-use commercial/residential.
• Allow in-lieu fee to cover 100% of the parking requirement, meaning a property owner could pay in-lieu fees for 100% of the required parking spaces. • Establish parking maximums, in addition to parking minimums. • Include off-site parking as an option to satisfy parking requirements. • Invest in-lieu funds toward a public parking structure, or additional public parking facilities.
• Allow reduced parking requirements for projects that include senior housing or workforce housing in area zoned for mixed-use on upper floors.
PAC Recommendation to City Council:
The Parking Advisory Committee recommends that the City Council consider the following:
1. Reduce parking in-lieu fees from $36,000 to $9,000 per space. This would require adoption of a resolution setting the in-lieu fee at $9,000.
2. Look at reducing overall parking requirements for allowed uses in the downtown.
This would require a Zoning Code amendment and could be incorporated into the forthcoming update to the ZO.
3. Create parking maximums to go along with the existing minimum parking requirements. This would require a Zoning Code amendment and could be incorporated into the forthcoming update to the ZO.
4. Revise the Zoning Code to allow uses in existing buildings in the downtown to change out without triggering a requirement for additional parking. This would require a Zoning Code amendment and could be incorporated into the forthcoming update to the ZO.
5. Increase the number of in-lieu parking spaces that can be purchased from 30% to 100%, with Planning Commission approval. This would require a Zoning Code amendment and could be incorporated into the forthcoming update to the ZO.
Council Agenda 10-15-2024 12.C-4
6. Prohibit the payment of in-lieu fees in association with satisfying the parking requirement associated with any transient lodging, residential, or non-commercial use in the Downtown Planning area. This would require a Zoning Code amendment and is already included in draft updated Zoning Code.
Recommendation 4 above is the result of a conversation between staff and the PAC regarding ways to more easily allow the change-out of business tenants in the downtown.
Many of the downtown properties either have no parking or minimal parking, which can create an issue when a more intense use replaces a use with a lesser parking requirement. An example of this situation is found when a retail use changes out to a restaurant use.
Conclusion and Recommendation
The City seeks to maximize the effectiveness of public parking and publicly accessible parking in the Downtown Core. The six recommendations provided above by the PAC seek to improve long-term parking and investment in the downtown. Staff recommends that the City Council provide direction related to the recommendations provided by the PAC. Several of the recommendations will require amendment of the City's Zoning Code, which is currently in the process of being updated.
FISCAL IMPACT:
Implementation of PAC recommendation to reduce the parking In-lieu fee from $36,000 to $9,000 would reduce the amount of in-lieu fees received by the City for each parking space purchased. However, the current in-lieu fee amount appears to be a deterrent to participation in the in-lieu fee program. Implementation of PAC recommendations 1 and 5 would likely increase participation in the in-lieu fee program, increasing the amount of in-lieu fees received, while also serving to facilitate investment in the downtown. New development in the downtown would generate property tax, and potentially sales tax or even transient occupancy tax depending on the type of development proposed.
ATTACHMENTS:
1. Resolution R-2019-010 Establishing current In-Lieu Parking Fee Program Submitted by:
Scot Graham, Community Development Director
City Manager Approval:
Council Agenda 10-15-2024 12.C-5
Attachment 1
2019 Resolution
RESOLUTION NO. R-2019-010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA ESTABLISHING AN IN-LIEU PARKING FEE PROGRAM; RESCINDING RESOLUTION R-2016-088
WHEREAS, Section 17.108.040 of the City of Pismo Beach Municipal Code authorizes waivers of off-street parking requirements for new commercial construction in the downtown area, " [...] if the City Council adopts a Resolution of policy setting out the value of the off-street parking space based on land value plus not less than one and one-half (1-1/2)times the construction cost of a top grade parking lot at the time of the adoption of this Title unless otherwise designated by the City Council"; and WHEREAS, in 2005, the City Council, via Resolution R-05-024, established an in-lieu parking fee of $36,000 per each off-street parking space and, between the approval of the in-lieu fee in April 2005 and July 2014, only two project took advantage of the program; and
WHEREAS, in 2014, the City Council, via Resolution 2014-080, established an enhanced off-street parking waiver program and reduced the in-lieu parking fee to $9,600 with a requirement for the participating project to provide a minimum of three community benefit items which proved to be effective during its two-year trial period; and i
WHEREAS, combining the key elements of Resolutions R-05-024 and R-2014-080 will allow an applicant the option to participate in either the reduced parking in-lieu program, subject to all requirements including providing a minimum of three community benefit items or pay the full in-lieu fee of$36,000 per space; and WHEREAS, on January 15, 2019, the City Council determined that it is no longer in the public interest to continue to offer the reduced in-lieu fee portion of the parking waiver program and directed staff to limit the program to the $36,000 per each off street parking space which will continue the opportunity for businesses without on-site parking within the Downtown area to expand and will, in turn, add needed funds to the parking program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby finds and resolves as follows:
1. Resolution No. R-2016-088 is hereby repealed.
2. The Downtown Core Planning Area, LU-K-1, as identified in Exhibit A, attached hereto, and adopted by City Council Resolution No. R-03-50 in June 2003, is hereby designated as the new downtown area referred to in Municipal Code Section 17.108.040.
PAGE 1 OF 4
R-2019-010
Council Agenda 10-15-2024 12.C-6
Attachment 1
2019 Resolution
3. The City Council establishes the following Full Cost Off-Street Parking Waiver Program:
A. The full cost in-lieu parking fee is $36,000 per space.
B. Within the defined Downtown Core area, the amount of the in-lieu fee for parking requirements resulting from additions or renovations to existing buildings shall be one-hundred percent (100%) of the value established in item A, above.
C. The payment of the in-lieu fees shall not be permitted to satisfy the parking requirement of any transient lodging or non-commercial use in the Downtown Planning area.
D. The City Council authorizes the use of these "in-lieu" certificates.
Each such certificate shall represent the value of one (1) off-street parking space. The certificates run with the land and shall insure the benefit of each subsequent owner or transferee of the property for which the certificates were issued.
E. The certificates shall not be transferrable for the benefit of any property owners of property other than the property for which the certificates were issued.
F. The certificates shall have no monetary
independent
p o etary value apart
from the real property and shall not entitle the holder to any interest in real property underlying any parking space constructed with funds paid to obtain the certificates.
G. Payment in full for said certificates shall be made prior to the issuance of the certificates and any applicable building permits.
H. In-lieu parking fees shall not be permitted for more than 30 percent of the required off-street parking spaces for new development unless the applicant proves, to the satisfaction of the Planning Commission, that a hardship would occur due to the size, shape, location, or topography of the property involved, in which case a higher percentage may be granted by the Planning Commission.
UPON MOTION OF Mayor Pro Tem Howell, seconded by Council Member Blake, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 191' day of February 2019, by the following vote:
AYES: 4 Howell, Blake, Reiss, Waage
NOES: 1 Guthrie
ABSENT: 0
PAGE 2 OF 4
R-2019-010
Council Agenda 10-15-2024 12.C-7
Attachment 1
2019 Resolution
ABSTAIN: 0
RECUSED: 0
Approved: Attest: ,
Ed Waage, Mayor a Inderlie ' y Clerk
L
PAGE 3 OF 4
R-2019-010
Council Agenda 10-15-2024 12.C-8
Attachment 1
2019 Resolution
Exhibit A
f
F
f f
cc
I�
W�1�JJ
I
02 L
� a
O arm
IC
3 a
o -
� a
v
l
PAGE 4OF4
R-2019-010
Council Agenda 10-15-2024 12.C-9