13 Staff Report - Transferring Parking CreditstowN 0 MEETING DATE: 9/18/06
ITEM NO:
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COUNCIL AGENDA REPORT
DATE: September 14, 2006
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: DISCUSSION OF TRANSFERRING PARKING CREDITS IN THE
DOWNTOWN PARKING ASSESSMENT DISTRICT
RECOMMENDATION:
If Council determines that this matter is worthy of further consideration, staff should be directed
to initiate appropriate amendments to the Zoning Ordinance. As an alternative, an interested
member of the public could apply to amend the Zoning Ordinance.
DISCUSSION:
In 2002, Mr. McElroy received approval to rezone the property at 227 Almendra Avenue from
office to residential to construct a new single family residence on the vacant parcel. As a result,
the property no longer needs the 15 parking credits. Mr. McElroy retained ownership of these
parking credits after selling the home and continues to pay the annual parking assessment which
will continue until 2011. Mr.. McElroy has recently approached the Town regarding two other
parcels within the Parking Assessment District that he is considering converting from office to
residential. If approved, there will be additional parking credits that are no longer needed.
Mr. McElroy would like to sell these parking "credits" to other property owners in the District
who may need additional parking to satisfy the Town's parking requirements. For example, the
applicants for the approved Forbes Mill Steakhouse had to secure additional parking through
complicated agreements with adjoining property owners in order to satisfy the parking
requirements for additional seating. The owners of Cafe Rogue have indicated an interest in
purchasing Mr. McElroy's unused parking credits.
(Continued on page 2)
PREPARED BY: BUD N. ~LffTZ
Director of Community Development
N:\DEV\CNCLRPTS\2006\parkingcredits. doc
Reviewed by: Assistant Town Manager - Jown Attorney
-CLV
Clerk Administrator Finance V Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PARKING CREDITS
September 14, 2006
This matter is being brought to Council for consideration and direction. Staff will pursue this
matter by preparing the necessary ordinance text changes if Council determines that the Zoning
Ordinance should include provisions to allow property owners in the Parking Assessment
District to transfer unused parking credits from one property to another. As an alternative, a
member of the public could apply to amend the Zoning Ordinance.
CONCLUSION:
Staff does not see any significant policy concerns that prohibit Council from directing that this
matter be pursued. Amending the Town Code to allow the sale of unused parking credits would
provide an additional means of obtaining necessary parking in cases where a property or business
owner may seek to intensify the use of property. The availability, extent and procedure for
obtaining additional parking through the sale of credits are all questions to be considered in the
process of amending the Town Code. Staff recommends that the matter be pursued subject to
these later policy determinations.
If Council determines that this matter should be pursued, staff will evaluate the parking district
requirements and the changes necessary to implement a system allowing the use of unused
parking credits. Staff will explore options for regulating the sale and/or use of unused parking
credits and will likely recommend a system requiring at a minimum that any use of such credits
be subject to a permit issued by the Town. Should. Council direct staff to proceed as
recommended, staff will add this project to its existing work plan.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT: None
Attachments:
1. Letter from Terry McElroy dated September 11, 2006 (1 page).
Distribution:
Terry McElroy, 10 Jackson Street, Ste 203B, Los Gatos, CA 95030
Belghis and Farhad Proushani, 42 Elm Street, Los Gatos, CA 95030
BNL:RT:SLB:kh
McElroy Properties
214 Almendra Ave.
Los Gatos, Ca. 95030
408-399-4460
9/11/2006
Town of Los Gatos
Town Council
East Main Street
Los Gatos, Ca.
RE: Parking Assessment District
To whom it may concern:
v
VT Fr~tK&TOVIINC0U14CF1,
Regarding the parking assessment district, it is disturbing to hear the term, "phantom
spaces" because they do- exist and they have been paid for over thirty years. The real
question is not whether they exist, but who has right or entitlement to those spaces.
Over thirty years ago the assessment district was formed and some owners of parcels
considered it a "rip off' that they had to pay what was formally free. Years later, we can
see that it was a bargain and a valuable developmental right that is appurtenant to the
parcel. Some unhappy owners bought in the absolute minimum number of parking
spaces that they could.
Today, the owners may have changed, but the parcels and entitlement to the parking is
the same. There is also the same number of parking spaces. As long as the business use
for the parcel remains the same, theoretically the demand should equal the supply.
If the Town wanted a business to occupy a space downtown but the thirty year old
parking entitlement was insufficient, the Town would have their hands tied and would
have to deny it. The Town would be much more flexible if the parking entitlements were
transferable. If a parcel is willing to give up it's entitlement to parking spaces and
another parcel is willing to accept the spaces, it should be allowed.
I am encouraging the Town Council to allow the transferring of the developmental right
to parking spaces within the assessment district.
Si ere{}~,
Terry McElroy
Attachment 1