G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo��Pc� Agenda Item 9.J
Meeting Date: November 19, 2024
TITLE:
In-Lieu Parking Fee Reduction
RECOMMENDATION:
Adopt a Resolution amending the In-lieu Parking Fee Program to reduce the in-lieu fee to $9,000 per space and repealing Resolution R-2019-010.
BACKGROUND:
On October 15, 2024 the City Council considered and directed staff to proceed with the following recommendations from the Parking Advisory Committee relating to the downtown parking program:
1. Reduce parking in-lieu fees from $36,000 to $9,000 per space.
2. Reduce overall parking requirements for allowed uses in the downtown.
3. Create parking maximums to go along with the existing minimum parking requirements.
4. Revise the Zoning Code to allow uses in existing buildings in the downtown to change out without triggering a requirement for additional parking.
5. Increase the number of in-lieu parking spaces that can be purchased from 30% to 100%, with Planning Commission approval.
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.
The October 15, 2024 staff report is available online in the Access Pismo public records portal at www.pismobeach.org/accesspismol . Items 1 and 6 are near-term items that can be addressed through adoption of the attached resolution. Items 2 through 5 require amendment of the City's Zoning Ordinance and will be brought forward as part of the ongoing Zoning Ordinance update.
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution (Attachment 1) which will reduce the parking in-lieu fee from $36,000 to $9,000 and repeal Resolution R-2019-010 (Attachment 2)which enacted the prior fee. The implementation of the proposed reduced fee would go into effect immediately.
FISCAL IMPACT:
Adoption of the attached resolution will lower the parking in-lieu fee from $36,000 to $9,000. The reduction of the in-lieu fee cost when combined with the implementation of items 2 through 5 above will likely increase participation in the in-lieu fee program, Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=552164&dbid=0&repo=Laserfiche Council Agenda 11-19-2024 9.J-1
increasing the amount of in-lieu fees received, while also serving to facilitate investment in the downtown. New development in the downtown area could generate property tax, potentially sales tax, or even transient occupancy tax, depending on the type of development proposed.
ATTACHMENTS:
1. Resolution
2. Resolution R-2019-010 Establishing current In-Lieu Parking Fee Program Submitted by:
Scot Graham, Community Development Director
City Manager Approval:
Council Agenda 11-19-2024 9.J-2
Attachment 1
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AMENDING THE IN-LIEU PARKING FEE PROGRAM TO REDUCE THE IN-LIEU FEE TO $9,000 PER SPACE AND REPEALING RESOLUTION R-2019- 010
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 times the construction costs of a top grade parking lot at the time of the adoption of this Title unless otherwise designated by the City Council"; and WHEREAS, on February 19, 2019, the City Council, via Resolution R-2019-010, established a parking in-lieu fee program, including setting the in-lieu fee at $36,000 per each off-street parking space; and;
WHEREAS, on October 15, 2024, the City Council reviewed the parking in-lieu fee program, including recommendations from the Parking Advisory Committee, and directed staff to lower the in-lieu fee to $9,000 per each off-street parking space with the intent to encourage investment/revitalization in the downtown.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. Resolution R-2019-010 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 "downtown area" or the "downtown commercial area" referred to in Municipal Code Section 17.108.040.
3. The City Council establishes the following Off-Street Parking Waiver Program:
A. The full cost in-lieu parking fee is nine thousand dollars ($9,000) 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.
Council Agenda 11-19-2024 9.J-3
Attachment 1
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, to the benefit of each subsequent owner or transferee of the property for which the certificates were issued.
E. The certificates shall not be transferable 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 independent monetary 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 or business license.
H. In-lieu parking fees shall not be permitted for more than thirty percent (30%) 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, or until such time as the City Council approves revisions to the zoning code allowing for a greater percent of off-street parking space to be purchased.
UPON MOTION OF Council Member , seconded by Council Member the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 19tn day of November 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on
Erica Inderlied, City Clerk
Council Agenda 11-19-2024 9.J-4
Attachment 1
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Attachment 2
Existing In-Lieu Fee 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 11-19-2024 9.J-6
Attachment 2
Existing In-Lieu Fee 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 11-19-2024 9.J-7
Attachment 2
Existing In-Lieu Fee Resolution
ABSTAIN: 0
RECUSED: 0
Approved: Attest: ,
Ed Waage, Mayor a Inderlie ' y Clerk
L
PAGE 3 OF 4
R-2019-010
Council Agenda 11-19-2024 9.J-8
Attachment 2
Existing In-Lieu Fee Resolution
Exhibit A
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PAGE 4OF4
R-2019-010
Council Agenda 11-19-2024 9.J-9