Memorandum

City of Lawrence

City Manager’s Office

TO:	Mayor and City Commission
FROM:	City Manager, David L. Corliss
DATE:	September 20, 2012
RE:	Special Assessment Benefit District Hearing September 25 – Additional Parking Garage Spaces

At your September 25, 2012 meeting you will conduct a hearing on the proposed special assessment benefit district for additional parking garage spaces with the planned 700 block of Vermont parking garage. This week staff has conducted two public informational meetings with downtown property owners. We have also prepared a fact sheet on the proposed special assessment benefit district. Some additional correspondence has been received and some additional questions have been posed. The following reflects an attempt to respond to some questions and concerns, in a Frequently Asked Questions format:

1) If the benefit district is approved, when would the special assessments be placed on my property tax bill?

If the benefit district is approved, survives any protest petition, and appropriate bids are received on the add-alternate for the additional parking spaces, staff anticipates that the assessments would be finalized in order for the property taxes due and owed by December 2014. Assessed property owners would have an opportunity during the summer/early fall of 2014 to either pay the entire assessment (estimated in the Notice of Public Hearing) or have the assessment, plus interest, placed on their property tax bills for 10 years. The City’s debt issuance in September 2012 provided an interest rate of 1.6%. It is not known what the interest rate would be in the fall of 2014.

2) How were the proposed benefit district boundaries created?

The benefit district boundaries were created to follow Kansas special assessment law which requires benefit districts to be compact and contiguous. The benefit district includes property in the downtown area which is zoned CD, with the exception of City titled property at the north part of 6^th Street. These parcels were excluded because additional City owned property – Watson park including the outdoor swimming pool was included. Additionally, some residential property along Kentucky was included to keep the proposed district boundaries compact. Additionally, a similar benefit district was created for the improvement of the parking lot on the east side of the 800 block of New Hampshire, so a precedent for this type of financing – all of downtown paying for improvements to parking – has been used by the City in the past.

3) Can the proposed benefit district boundaries by altered by the City Commission?

Yes. The City Commission can reduce properties in the benefit district at or after the public hearing. If the City Commission desires to include additional property not included in the original district, a new resolution calling a public hearing must be adopted and new hearing must occur. The Commission should avoid removing selected properties from the district which alter the district’s compactness, e.g. can’t remove a parcel or parcels in the center of the district etc.

4) Some properties provide their own off-street parking, and some parcels are exempt from property taxes, why were those properties included?

The proposed benefit district was drawn based on the CD zoning classification and relative proximity to the 700 block of Vermont. The current use of the property (including provision of parking, property tax status, etc.) is generally not viewed as a legal criteria in determining benefit district boundaries.

5) If the benefit district is not approved, what happens to the proposed parking garage in the 700 block of Vermont?

The parking garage planned as part of the library expansion and renovation will begin construction later this fall, regardless of the outcome of the benefit district. The parking garage is planned for 250 spaces. The benefit district – if approved – adds an additional 72 spaces beyond the 250 spaces which will be built. The additional parking spaces – if approved - will not significantly impact the planned construction schedule.

6) What will the parking charges be in the planned parking garage?

The City Commission will establish rates for the parking garage, which may change over the years. A mix of short and long term use of the parking garage is envisioned. The City is working with Senior Services and our Fire/Medical department personnel to ensure that their parking needs are also addressed in the new facility. Staff is recommending that the City install a pay system similar to those used at KU parking garages, whereby a driver entering the garage receives an entry ticket and then upon leaving the garage pays via either a credit card, purchased ticket, or pass. This type of system would allow for short term use (such as the current two hour standard) to be free, with appropriate fees for long term use or use of a long term permit pass, etc. This type of system will not require additional patrols by parking control officers. Additionally, it reflects the increasing tendency of the use of credit cards for payment versus coins.

7) Why is this benefit district and additional parking being proposed?

Staff believes that this is the appropriate time to ask whether additional parking – beyond that planned to accommodate the expanded public library – should be built. The City does not get very many opportunities – either from a financial standpoint or project convenience standpoint – to add public parking spaces to our downtown. (The existing parking garages (Riverfront circa 1989) and the 900 block of New Hampshire (circa 2001) were constructed some years back). The northwest quadrant of downtown has among the highest utilization rates for downtown parking. Staff believes that this proposal likely reflects the lowest cost and least disruptive opportunity to construct additional parking for some time to come. Some property owners have noted that the parking garage is several blocks away from the property or business which is a valid point in these discussions. Because we have a walkable downtown, there is support for the view that parking in one portion of downtown helps support all businesses because patrons and customers can walk to other businesses and parkers free up other locations in the downtown area.