3. Establishing a Cash-in-Lieu Fee for Downtown ParkingCity of Kalispell
Planning Department
17 - 2"d Strcet East, Suite 211, Kalispell, Montana 59941
Telephone: (406) 751-1850
Fax: (406) 751-1858
Website: kalispellplanning.com
REPORT TO: Kalispell Mayor and city council
FROM: Tom Jentz, Planning Director
James H. Patrick, City Manager
SUBJECT: Set the cash -in -lieu of parking payment fee for downtown parking and
develop a policy for collecting the fee
MEETING DATE: September 24, 2007 Council Work Session
ESTABLISHING A CASH -IN -LIEU FEE: The Kalispell city council approved an amendment to
the Kalispell zoning ordinance in August, 2006 allowing required parking in the downtown
parking district to be met by a cash -in -lieu payment. Prior to this, the only option available for
downtown owners was the actual construction of parking spaces. The cash payment or value
of a parking space was to be added latter based on staff research or actual costs. Staff is now
recommending that the cash -in lieu payment be set at $8,200 f space.
The downtown parking district where the cash -in -lieu of parking fee is available as an option is
bounded on the east by Third Avenue East, the south by Fifth Street, the wrest by Third Avenue
West and the north by Center Street. The Kalispell center Mall was also included in the
district. Within this area, existing developed space is grandfathered for parking purposes while
any new construction must provide parking at a reduced rate of one space for each 400 square
feet of new construction. The council in amending the zoning ordinance understood the
limitation that available parking has on future development in the downtown area. For all
practical purposes, there are no available parking spaces that can readily be leased and there
is no available land for additional parking without first taking down an existing building to
accommodate new construction. Therefore, the cash in lieu of parking option made sense for
downtown property owners.
Last August, at the zoning amendment hearing, staff projected that the payment in lieu of
parking would be between $5,000 - $10,000 based on other community programs in the state.
In developing the suggested fee for Kalispell, staff used recent appraisals for determining land
costs and then the actual construction costs in Kalispell for developing a parking lot space.
For land costs, staff used the average of two current (2007) appraisals. One appraisal was for a
piece of property on Main Streets the other appraisal was for land on First Avenue wrest one
block off of Main. For construction costs staff contacted the Kalispell Public Works
Department.
The $8,200/space fee would be collected by the building department and transferred to the
parking commission. Initially the parking commission would use the money to assist in
developing and implementing their downtown parking strategy including planning for a parking
structure. Staff recommends the council adopt this figure for implementation of the cash -in -
lieu -of parking fee.
Downtown Parking
September 19, 2007
Page 2
Setting a policy for assessment of fractional parking spaces: The zoning ordinance
currently requires that all fractional portions of a parking space are to rounded up to the next
whole number. For example, if someone were adding 500 square feet of new construction @a
one parking space per 400 square feet of construction in the downtown, he would be required
to provide 1 'A parking spaces which is rounded up to 2 spaces. The logic here is that you can
not effectively split a parking space. However, it is possible to split a cash in lieu payment.
Staff is looking for policy direction on how to address fractional parking spaces when cash -in -
lieu is proposed..
As a real life example of the issue, Mr. Earl Holbeck is re -modeling a business on Second
Street west. He proposed adding 95 square feet to a building to bring the front of his building
out 5 feet to create an even front facade line with the buildings on either side of him. The 95
square foot addition would require 1/4 of a parking space. our zoning ordinance requires the
fraction be rounded upward to the nearest whole number, in this case one space would be
required. Mr. Holbeck has nowhere to get another parking space so he is looking at the cash *n
lieu of parking payment for parking. However, he raised the question, why should he pay the
full $8,200 when he is proposing a small incidental project that only requires 1/4 of a parking
space.
Staff concurs that this is a valid concern and is looking for council direction. Three possible
options are laid out for council consideration:
1. Assess the cash -in -lieu of parking payment the same as is provided for in the zoning
ordinance, round up each fractional amount to the next nearest whole number, in this
case Mr. Holbeck would pay the full assessment for one space, if the council approves
$8,200, then his fee would be $8,200.
2. Round off all fractions of parking space such that .5 or above is rounded up to the next
whole number and .49 and below is rounded down. In this case, Mr. Holbeck would not
pay anything as he only requ ire s .24 spaces and would round down to zero.
3. Pay a proportionate share for all spaces and portions of spaces required. Because Mr.
Holbeck's addition requires only .24 parking spaces, he would pay .24 of the cash -in -
lieu fee. If set at $8,200/space his fee would be $1,947.
Respectfully Submitted,
Q
Tom Jentz
Report compiled: September 19, 2007
c: Theresa white, Kalispell city clerk
James H. Patric