City of Sacramento
City Council Report
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Sacramento, CA 95814
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File ID: 2022-01581 9/20/2022 Consent Item 11.
Second Amendment to Parking Agreements for H16 Midtown Apartments and Eleanor Apartments
File ID: 2022-01581
Location: 16
th & H Streets and 16th & E Streets, District 4
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute a second amendment to Parking Agreement 2017-1232 for the H16 Midtown Apartments, allowing the owners the flexibility to increase or decrease the number of monthly parking permits issued to their apartment complex; and 2) authorizing the City Manager or the City Manager’s designee to execute a second amendment to Parking Agreement 2018-0840 for the Eleanor Apartments, allowing the owners the flexibility to increase or decrease the number of monthly parking permits issued to their apartment complex.
Contact: Matt Eierman, Parking Services Manager, (916) 808-5849, [email protected], Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Amendment No. 2 to City Agreement 2017-1232
3-Amendment No. 2 to City Agreement 2018-0840
Description/Analysis
Issue Detail: In October 2017, the City and GG H16 Apartments, LLC, owner of the H16 Midtown Apartments, entered into Parking Agreement No. 2017-1232 (“H16 Agreement”) for the purchase of up to 60 monthly parking permits at Memorial Garage. In May 2018, the City and GG E16 Apartments, LLC, owner of the Eleanor Apartments, entered into Parking Agreement No. 2018-0840 (“E16 Agreement”) for the purchase of up to 45 monthly parking permits at Memorial Garage. Permits issued under these two agreements are for use by tenants and employees of each apartment complex. The term of each agreement is 30 years with four, five-year options to extend. At the end of the second year of each agreement, the number of parking permits issued to the apartment complex City of Sacramento Page 1 of 3
File ID: 2022-01581 9/20/2022 Consent Item 11.
would be the total number of parking permits the apartment complex would be required to purchase on a monthly basis for the remainder of the term.
On August 11, 2022, the H16 Midtown Apartments were sold to MG H16 Apartments LLC, MG H16 Apartments CRS LLC, and MG H16 Apartments CN3 LLC (collectively “H16 Owners”) and the Eleanor Apartments were sold to MG E16 Apartments LLC, MG E16 Apartments CRS LLC, and MG E16 Apartments CN3 LLC (collectively “E16 Owners”). The H16 Agreement and E16 Agreement were assigned to the new respective owners.
The H16 Owners and E16 Owners have requested their respective parking agreements be amended to allow each apartment complex the flexibility to add or surrender monthly parking permits within a specific range to meet changing demand. The range for the H16 Apartments will be 30-60 monthly parking permits and the range for the Eleanor Apartments will be 30-45 monthly parking permits.
Changes to allocations of monthly parking permits to each apartment complex will be limited to two times in a 12-month period.
Policy Considerations: This recommendation supports the Central City Parking Master Plan goal to make parking safe, secure, attractive, and convenient.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This agreement is exempt from the CEQA under Section 15301, “Operation of existing public structures or facilities involving no expansion of use.”
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Amending the H16 Agreement and E16 Agreement will give each apartment complex more operational flexibility to meet changing demands and not have to pay for parking permits each complex may not need at a particular time.
Financial Considerations: Permits issued under each agreement will continue to be billed at 120 percent of the prevailing market rate. Based on the current monthly rate for Memorial Garage of $140, parking permits issued to the H16 and E16 are billed at $168 per month. Each apartment complex will pay a 10 percent monthly “Permit Holding Fee” on each monthly parking permit it surrenders below the maximum amount it may purchase. The Permit Holding Fee will be calculated based on the monthly parking permit fee billed to each apartment complex. All revenue collected will be credited to the Parking Fund (Fund 6004).
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File ID: 2022-01581 9/20/2022 Consent Item 11.
Local Business Enterprise (LBE): Not applicable.
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