July 7, 2022 Breaking News, Latest News, and Videos

Proposed Developer In-Lieu Parking Fee May Double Santa Monica’s Revenue:

Within a span of 24 hours last week, a pair of study sessions was held at Santa Monica’s City Hall that would impose onto developers who want to build here a series of fees that, officials hope, would ultimately alleviate traffic congestion throughout the coastal municipality.

One day after the City Council discussed the imposition of a Transportation Impact Fee on developers to help fray the costs of projects that would promote alternate means of getting around Santa Monica, the Planning Commission convened a study session to discuss the possibility of assessing upon an in-lieu parking fee on Wednesday.

Such a fee, if ultimately approved by the council, would be assessed upon developers who build a structure in the downtown but do not include parking accommodations in its plans.

Developers would be assessed an in-lieu parking fee of $20,000 per space not built for all land uses within the downtown under the new proposal. The fee could be paid over the course of four years.

“The boundaries for the new proposed parking in-lieu fee program would be expanded in order to cover the LUCE Downtown District (approximately Ocean Avenue to Lincoln Boulevard, Wilshire Boulevard to the Santa Monica Freeway),” City staff said. “The proposed parking in-lieu fee could be applied to all projects within the proposed district that represent a change in use, including additions or renovations.”

There is already an in-lieu parking fee in place for developers who built in the area formerly known as the Bayside District – which City staff explains as “the area bounded by

Second Court to the west, Fourth Court to the east, Broadway to the south, and Wilshire

Boulevard to the north” – since 1986.

That fee – which is $1.50 per square foot of building added after 1986 for which parking is not provided – is set to expire June 30, 2016.

City staff added City Hall “collects approximately $600,000 annually from a total of 44 parcels” and, as of Fiscal Year 2011-2012, has resulted in “an accumulated balance of approximately $7.0 million which is being applied toward the reconstruction of Parking Structure No. 6.”

Under the new fee, City Hall’s revenue would nearly double.

“An in-lieu fee of $20,000 per parking space, indexed to future construction costs, would generate approximately $36.1 million, thereby generating approximately $1,152,000 annually,” City staff said, about $552,000 more than City Hall is receiving from the current in-lieu parking fee.

If approved, the new in-lieu fee would be in effect for 30 years.

The fees collected are all directed into a fund intended to build new public parking in the downtown area. Transportation Demand Management (TDM) programs would also be funded by the fee.

According to City staff, the City pays as much as $53,000 per subterranean parking space and more than $35,000 per above-grade parking space.

Commissioner Jim Ries pondered whether the fee should be higher. After all, a developer may opt to pay City Hall a $20,000 fee instead of doling out more than $53,000 for a subterranean parking space.

City staff pointed out that the consultant team from Nelson/Nygaard and AECOM addressed this issue.

“The fee of $20,000 was selected because it was determined to be an amount that is less than the private developer’s cost to construct either above- or below-grade parking, and thus would be an inducement for a developer to participate,” City staff said. “Downtown stakeholders indicated that anything above $20,000 to $30,000 per parking space would be excessive and would deter participation in the program.

“However, the $20,000 is far less than the City’s cost to construct new parking, and if the fee is set too low, there is a concern that developers will rely on it exclusively and the City will be obligated to produce parking without having a sufficient revenue source.”

Two members of the public – Zina Josephs and council candidate John Smith – spoke during the public comment portion of the study session. Both pondered the discrepancy between the fee assessed to the developer and the real construction cost to the City.

Commissioner Jason Parry supported the proposed in-lieu fee and hoped a maximum number of developers would participate, even if it meant lowering the assessed fee to make participation more lucrative.

However, Commissioner Richard McKinnon expressed some skepticism and cautioned against unintended consequences, in that the fee could result in an increased demand for above-grade parking structures. McKinnon pointed out that such structures may cost as much as $60 million.

Still, there was definitely some sentiment that the fee could be higher than the proposed $20,000 per space not built.

in News
Related Posts

Newsom Signs Sen. Ben Allen’s Pollution Bill That Places Recycling Costs on Producers Rather Than Municipalities

July 6, 2022

July 6, 2022

Senate Bill 54 calls on the producers of specific materials to form a Producer Responsibility Organization  By Sam Catanzaro California...

LA City Council Approves Emblem Program to Identify Legal Cannabis Business

July 6, 2022

July 6, 2022

Placards will serve as notice to the public and enforcement agencies that the business is licensed Last week, Los Angeles...

VP Kamala Harris Visits Santa Monica Fire Station

July 6, 2022

July 6, 2022

Vice President and husband Doug Emhoff stop by Santa Monica Fire Station #2 on Monday By Sam Catanzaro Vice President...

City Council Approves Permanent Parklet Program For Local Businesses: Santa Monica Beat – July 4th, 2022

July 5, 2022

July 5, 2022

Local news and culture in under 5 minutes.* Sony Calls For ‘respect’ After Gaming Developers Receive Online Bullying * City Council...

Landscaping 50 Percent Complete for George Wolfberg Park at Potrero Canyon

July 3, 2022

July 3, 2022

Officials provide update for park under construction By Dolores Quintana A recent update from the City of Los Angeles’ Department...

John McEnroe and Patty Smyth Sell Malibu Home for $29 Million

July 2, 2022

July 2, 2022

Malibu Colony home sold to unknown buyer in private sale By Dolores Quintana John McEnroe, a retired former tennis star,...

SMa.r.t. Column: A Tale of Two Cities

July 2, 2022

July 2, 2022

The City of Santa Monica is surrounded on three sides by the City of Los Angeles. Therefore, while the jurisdictions...

Santa Monica City Council Approves Ballot Measure That Would Increase Hotel Bed Tax

July 1, 2022

July 1, 2022

Santa Monica’s bed tax has been raised since 2004 By Dolores Quintana In a vote on June 28, the Santa...

PETA Attempts to Stop the Beach Club From Holding Annual Fireworks Display

July 1, 2022

July 1, 2022

Parking lot where display is held is on City of LA land, not Santa Monica, allowing Club to obtain permit...

Santa Monica-Malibu Unified School District Prepares for SMASH/Muir Campus Mold Removal

June 30, 2022

June 30, 2022

Exact costs for repairs still unknown By Dolores Quintana and Sam Catanzaro  It is unknown exactly how much the total...

Watering Restrictions for Santa Monica Residents Take Effect Soon

June 30, 2022

June 30, 2022

New restrictions will go into effect on July 5, limiting watering to twice a week By Sam Catanzaro New restrictions...

Daily Harvest Recalls Meal Kits Handed out at Venice Event Following 470 Cases of Mysterious Illness

June 30, 2022

June 30, 2022

Direct-to-consumer meal kit company under fire for handling of outbreak tied to lentil and leek meal kit By Sam Catanzaro...

Central Coast Brewery Makes Westside Acquisitions

June 29, 2022

June 29, 2022

Figueroa Mountain Brewing acquires Broxton Brewery, The Stalking Horse and more. Staff, current beer taps to remain on board at...

Mexican Restaurant Possibly Expanding Into Former Swingers Space

June 29, 2022

June 29, 2022

Bar Hermanito applies for an alcohol exemption sales permit for space at 802 Broadway in Santa Monica By Dolores Quintana...

Six Family-Fun Westside Fourth of July Events

June 29, 2022

June 29, 2022

Fireworks, parades, runs and more taking place across the Westside  By Ashley Sloan  Pacific Palisades  The Pacific Palisades will be...