Fiscal Note
The Parking Utility estimates lease revenues ranging from $55,000 to $125,000 annually, depending on the number of stalls that are leased (ranging from 40 to 90 stalls annually), with stalls leased at the proposed rate of 105% of the effective residential rate (currently $110/month).
Title
Authorizing the Mayor and City Clerk to execute a long-term use agreement with Hovde Building Co., LLC, for 40-90 parking stalls at Overture Center parking garage.
Body
WHEREAS, Hovde Building Co., LLC is building a new facility in the Central Business District of downtown Madison and needs available parking for their employees and customers; and
WHEREAS, the City of Madison Parking Utility has a parking garage (Overture Center) in very close proximity to this business address, and is operating significantly under capacity and has available parking stalls to lease; and
WHEREAS, Hovde Building Co., LLC has requested a long-term use agreement for at least 40 undesignated stalls and at most 90 undesignated stalls; and
WHEREAS, the Parking Utility management and the Transit and Parking Commission have decided that no Transportation Demand Management Plan need be on file due to the low occupancy at Overture Center garage; however they do encourage Hovde Building Co., LLC to formulate an internal TDM plan and use it to lower the demand for parking for single occupancy vehicles; and
WHEREAS, the terms of a lease have been negotiated between Hovde Building Co., LLC and Parking Utility management.
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are authorized to execute a lease with Hovde Building Co., LLC, for a minimum of 40 and a maximum of 90 parking stalls at Overture Center garage subject to the following terms and conditions:
1. The term of the lease will be five (5) years with an automatic renewal for one five (5) year term if both parties agree. The lease will begin on January 1, 2013.
2. The monthly rent per leased stall shall be the current RESIDENT rate x 1.05. These rates are subject to review on a periodic basis with other rates published by the Parking Utility.
3. The leased stalls on a regular parking permit will be available for use from 6:00 AM to 6:00 PM, Monday through Friday.
BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized to execute any and all documents that may be required to complete this lease transaction.