Desk Item
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/20/2018
ITEM NO: 10
DESK ITEM
DATE: MARCH 20, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO
BRING FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO
PROVIDE A COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
REMARKS:
After the distribution of the staff report, staff received the following questions from a
Councilmember. Staff responses follow in italic font.
Attachment 5 contains Public Comment received after the distribution of the staff report and
addendum and before 11:00 a.m. on Tuesday, March 20, 2018. In addition, staff realized that
Attachment 1 is missing the exhibit. Attachment 6 contains this Ad Hoc Committee report with
its exhibit.
Do the financing options include the $4M we have saved? In other words, the $17M for the
whole project that is financed does that is include paying down a $21M cost or is the cost
really $17M?
While the financing scenarios provided in this staff report are strictly illustrative of issuing bonds
for constructing the garage as either a standalone project or a garage incorporating a housing
component, previous staff reports have illustrated how monies would be allocat ed for the entire
project. The $4.0 million in available Town Below Market Price (BMP) funds and approximately
$5.0 million in air rights would be used to offset the housing construction costs. The remaining
balance of associated housing costs would be paid from the sale of market rate units with any
proceeds above per unit project costs being used to pay down the outstanding garage debt.
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 20, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Desk Item Final.docx 3/20/2018 4:08 PM MM
Can I assume if we went with the private equity financing we are short about $8.5M, is the
financing 1/2 the $17M financing of (20 year) at $13M+ total over 20 years and $650K per
year?
The private equity financing scenario yielded a net project deficit of approximately $8.8 million
with a cost of capital of between 15% and 20%. The Town financing scenario 1 has an
approximate funding gap of $6.0 million with a cost of capital of approximately 4.0%.
The paid parking discussion seems to be indicating we could easily pay for the garage debt
service with it? True?
Initial calculations by staff show a potential ongoing return from paid parking. Because this is
not a source of revenue with an established track record, staff does not recommend committing
it at this time to fund a garage. The recommended parking study would provide an independent
review of potential revenue by an expert in the field.
Attachments previously received with Staff Report:
1. Ad Hoc Committee Meeting Staff Report Dated January 30, 2018
2. Parking Lot Map
3. Garage Financial Analysis
Attachments received with this Addendum:
4. Public Comments received between 11:01 a.m., Thursday, March 15, 2018 and 11:00 a.m.,
Monday, March 19, 2018.
Attachments received with this Desk Item
5. Public Comments received between 11:01 a.m., Monday, March 19, 2018 and 11:00 a.m.,
Tuesday, March 20, 2018.
6. Ad Hoc Committee Meeting Staff Report Dated January 30, 2018 with its attachment.