3. Downtown Parking OrdinancePost Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: PJ Sorensen, Zoning Administrator
Chris Kukulski, City Manager
SUBJECT: Downtown Parking Ordinance
MEETING DATE: March 22, 2004 (workshop)
BACKGROUND: The general rule under the zoning ordinance regarding parking is that a
minimum number of parking spaces must be supplied in conjunction with new construction or a
change of use within an existing building. In the core downtown area, the use of a building can
change without adding additional parking, but new construction (including new additions) must
provide one parking space for every 400 square feet of new floor area. Due to a lack of land, the
practical effect is a significant limitation on the ability to construct or enlarge buildings
downtown. While amending the downtown parking provisions of the ordinance will help open
the door for new development, building/fire code issues, particularly relating to water supply,
will also need to be addressed.
There are generally three methods employed in the region for handling downtown
parking: (1) exempt downtown businesses from minimum parking requirements; (2) payment -
in -lieu for parking spaces not provided on -site; and (3) annual assessments.
CITY
METHOD
Billings
Exempt
Bozeman
Payment -in -lieu
Butte
Payment -in -lieu
Coeur d'Alene, ID
Pa ent-in-lieu
Great Falls
Payment -in -lieu
Helena
Payment -in -lieu
Missoula
Exempt
Salem, OR
Annual assessment
Whitefish
Exempt
Generally, these alternative methods have involved a Special Improvement District. The
SID may be used to initiate the process of developing parking downtown. The payment -in -lieu
program in Butte and Bozeman, for example, grew out of SID districts established in the 1970s
and 1980s. Cash received as an in -lieu payment has served to supplement the funds raised
through the SID assessments. Others, such as Great Fails, have an assessment program in
addition to the payment -in -lieu in order to fund their parking garage.
If a payment -in -lieu program is pursued, the dollar amounts should be tied to the cost of
developing a parking space in the downtown area. Cities have development various methods of
establishing that figure. Some provide for a case -by -case analysis, but most fix a certain dollar
amount by Resolution and then update the amount every few years. Some examples of the
payment per space are: (1) Bozeman, $5,000/space; (2) Great Falls, $1/square foot/year; and (3)
Helena, $2,000/space. In Kalispell, construction of parking spaces has run the City about $1500
per space in addition to land costs, which can vary greatly depending upon location and whether
there is a building on the property. If a parking structure is built, we would likely be looking at
anywhere from $7500 - $16,000 per space based on estimates developed in Bozeman.
It should be noted that several officials in other cities have expressed some frustration
with tracking and collecting payments. Given that we do not have business licenses, tracking
would be even more difficult_ We may want to consider utilizing a single parking ratio, as we do
now, for new construction with actual collection of the payment when a building permit is
issued.
There are two general approaches the Council may choose if an amendment is in order.
First, the Council may simply exempt the downtown core area from minimum parking space
requirements (utilizing existing boundaries of our present rule, P Ave West to 3`d Ave East
from Center to 5`s St). This approach can be implemented fairly quickly, and is far less complex
than payment -in -lieu or assessments. However, the perceived lack of downtown parking will
only be worsened if demand is increased without providing parking in some manner.
A program utilizing payment -in -lieu or assessments is more complex, but it does not
ignore the practical need for parking. If Council wishes to pursue this option, it may direct staff
to develop a comprehensive program. In addition to amending the zoning ordinance, such a
program may identify sites, the potential for a parking structure, and the best method of funding.
RECOMMENDATION: The Council direct staff to develop a zoning text amendment based
upon one of the two general approaches described above.
ALTERNATIVES: As suggested by the Council.
Respectfully submitted,
PJ Sorensen
Zoning Administrator
Chris Kukulski
City Manager
Report compiled March 17, 2004