March 4, 2024 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

Instagram Executive Puts Spanish-Style Venice Home on the Market

March 4, 2024

March 4, 2024

Nestled in the heart of the East of Lincoln neighborhood, the bungalow includes coved ceilings According to a report by...

Seven-Bedroom Beachfront Home Lists for $12.5M

March 3, 2024

March 3, 2024

Built in 1929, Amenities Include a Sparkling Pool, Home Theater and Elevator  This beachfront residence, boasting panoramic views from Palos...

LA City Council Greenlights Master Leasing Program to Tackle Homelessness Crisis

March 3, 2024

March 3, 2024

Unanimous Vote Sets Stage for Different Approach to Expand Housing Options The Los Angeles City Council came one step closer...

LAHSA Report Exposes Failures of Anti-Camping Ordinance, Allegedly Kept Secret Since November

March 3, 2024

March 3, 2024

City Controller and Council Members Speak Out Against Withheld Report  LA City Controller Kenneth Meija posted comments on social media...

Construction Alert: Topanga Canyon Boulevard Faces Nightly Closures Starting March 4

March 1, 2024

March 1, 2024

Caltrans Announces 18-Mile Project Spanning Chatsworth to PCH Commuters in the Los Angeles area should prepare for significant delays as...

Film Review: Nyad

February 29, 2024

February 29, 2024

FILM REVIEWNYADRated PG-13121 MinutesReleased November 3rdOscar Nominations: Best Leading Actress, Best Supporting Actress “I failed many times, but I can...

Security Officers Being Deployed at Big Blue Bus Stations and Routes

February 29, 2024

February 29, 2024

The Guards will be provided by a firm with other security contracts with the city of Santa Monica  By Zach...

Leap Day Brings Once-in-Four-Year Deals at Popular Restaurants All Day Long

February 28, 2024

February 28, 2024

Krispy Kreme, Dunkin’, and More Roll Out Special Offers to Mark the Occasion Leap Day, that rare additional day occurring...

Sweet Lady Jane’s Social Media Tease Continues As Locations Sport Hiring Notices

February 28, 2024

February 28, 2024

Mysterious Posts Leave Fans Eager for the Return, But Questions Linger By Dolores Quintana After resurfacing on social media, the...

Upcoming Ice Cream Shop on Montana Ave. Will Serve Multitude of Vegan Flavors

February 28, 2024

February 28, 2024

The Company Has Come a Long Way Since Its Humble Beginnings as a New York City Food Truck By Zach...

(Video) Pro-Palestine Protest at the Beverly Wilshire Hotel

February 28, 2024

February 28, 2024

Protesters were there to protest the arrival of U.S. Representative Nancy Pelosi Counter-protesters drove by in a car. @smmirrornews Pro-Palestine...

(Video) Restaurants Replace Glass Front Doors After Late Night Robbery Spree in Del Ray

February 28, 2024

February 28, 2024

Seven restaurants and small businesses in Del Rey and Venice, including Nick the Greek and Dudley Market, were robbed. Council...

SMMUSD Appoints New Asst. Superintendent of Education Services

February 27, 2024

February 27, 2024

Dr. Williamson Will Assume Her Role on March 8, Bringing 17 Years of Education Experience In a special board meeting...

Hollywood Royalty to Shine at 96th Oscars: First Wave of Star-Studded Presenter Lineup Unveiled

February 27, 2024

February 27, 2024

Incredible Lineup of Actors and Previous Oscar Winners Announced Executive producer and showrunner Raj Kapoor, along with executive producers Molly...

Vote Smart, Vote Early: Streamlining Your 2024 Presidential Primary Experience in L.A. County

February 27, 2024

February 27, 2024

Skip the Lines and Save Time – Your Guide to Early Voting Options  In preparation for the upcoming 2024 Presidential...