|
Burbank Parking AuthorityTuesday, February 21, 2006Agenda Item - 1 |
|
||||||||||||||||
PURPOSE:
The purpose of this report is to request Parking Authority Board approval of a parking permit agreement with Burbank Civic Plaza, LLC for 301 E. Angeleno Avenue (Courthouse Parking Structure).
BACKGROUND:
On March 11, 2003, the Redevelopment Agency Board and City Council approved the sale of Agency-owned property through a Disposition and Development Agreement and land use entitlements for the Burbank Civic Plaza office project. This project is located at Olive Avenue and Third Street and consists of approximately 74,000 square feet of office space and 12,000 square feet of retail/commercial space on the ground floor. The project also includes 270 parking spaces consisting of 80 on-site spaces and a parking lease for up to 190 off-site parking spaces at the top levels in the five-level Courthouse parking structure located at 301 E. Angeleno Avenue. Construction of the Burbank Civic Plaza project was completed in June 2005.
History of the Courthouse Structure - In 1987, the Redevelopment Agency offered to construct a surface parking lot for the Los Angeles County Superior Court (Division 2) at 300 East Olive Avenue. The County accepted the offer and the Agency assembled the site. In 1989, a 125-space surface parking lot was constructed at the present Courthouse Structure site. By 1992, the Agency/City planned for a three-level, 300-space parking structure to provide parking for expansion of the Courthouse. The Agency/City further approved the construction of 200 additional parking spaces for use by future development in the downtown area.
In July of 1992, entitlements for a 500-space parking structure were approved by the Planning Board. In April 1993, the City executed a 99-year lease with the County to use 200 parking spaces in the Courthouse parking structure for court-related uses. In early 1995, construction of the four-story, five-level parking structure was completed with a total of 486 parking spaces. Since the time construction of the parking structure was planned, the City Council and Redevelopment Agency Board intended to use 200 spaces (which were funded by the Redevelopment Agency) for future development.
Existing Burbank Civic Plaza Parking Lease � The development plan for Burbank Civic Plaza included the lease of 190 parking spaces from the Agency. To implement the parking lease, the Agency and City executed a Cooperation Agreement for the 190 parking spaces in the Courthouse Structure which enabled the Agency to execute the parking lease with Burbank Civic Plaza, LLC and which allowed the lease revenues to flow to the City (and ultimately to the Parking Authority) to fund operations and maintenance costs of the leased parking spaces (first) and then to fund other Downtown facilities as parking lease revenues are available.
The 190 parking spaces are located on the two upper floors of the Courthouse parking structure and are separated from the remaining parking spaces in the structure with a parking gate system (which has yet to be activated). Only the employees of the office building will have access to these spaces during business hours (approximately 6 a.m. to 6 p.m. Monday through Friday). However, the gate will be open to the public after 6 p.m. on weekdays and all day on weekends and holidays (subject to normal restrictions regarding overnight public parking). During the term of the parking lease, it was projected that the Agency would generate approximately $4.9 million in nominal terms or $860,000 in present value terms.
Because the structure is located away from the core Village District, the public parking spaces are currently underutilized in this parking structure. The current parking space allocation in the Courthouse parking structure consists of 200 spaces for court parking, 190 spaces for Burbank Civic Plaza parking and 96 public spaces for a total of 486 spaces (Exhibit A).
ANALYSIS:
Staff was recently informed that Burbank Civic Plaza, LLC has signed a seven-year lease (with two five-year options) with Technicolor for approximately 41,158 square feet of office space (of the 74,000 square feet available) in the Burbank Civic Plaza building. The lease also includes options for Technicolor to lease up to 27,882 additional square feet of office space for expansion needs on an �as available� basis (Exhibit B). The lease is expected to commence on August 1, 2006, upon the completion of tenant improvements. In addition, Technicolor will bring as many as 300 new high-paying jobs to help enhance the local Downtown economy and to support existing businesses.
Technicolor is primarily a daytime, five-day a week operation with some staff working evenings and weekends. Since bringing color to motion pictures 90 years ago, Technicolor has evolved into a global and diversified corporation that is now a worldwide provider of services to the media and entertainment industries. Over its nine decades of operation, Technicolor has continued to pioneer advanced methods of delivering visual entertainment to millions of people through film, digital camera, video and optical technologies. The company�s major Hollywood studio clients include Dreamworks, SKG, New Line Cinema, Paramount, Sony Pictures Entertainment Universal, Twentieth Century Fox, The Walt Disney Company and Warner Brothers Pictures.
Burbank Civic Plaza, LLC currently leases up to 190 spaces in the Courthouse parking structure. In order to accommodate Technicolor�s parking requirements, Burbank Civic Plaza; LLC is requesting the right to use up to 75 additional parking spaces through a parking permit agreement in this structure (Exhibit C). As in the original parking lease agreement, these parking spaces would be available to the public after business hours as well as on weekends and during holidays. The provisions of the proposed parking permit agreement are summarized below:
If the additional 75 parking spaces are signed for �reserved� parking, and later the signage is determined to be infeasible by Burbank Civic Plaza or the Parking Authority (i.e. as a result of jurors parking in available spaces, etc.), the parking arrangements may be modified. The Authority shall have the right to determine the parking location for the 75 permit parking spaces for use by Technicolor. All costs associated with relocating the location of the permit parking spaces will be paid by Burbank Civic Plaza, LLC.
As an alternative approach, Technicolor�s employees can purchase City parking permits to park in any public structure in the Downtown where permit parking is allowed, including the Courthouse structure. However, by limiting the location of the additional parking spaces to the Courthouse parking structure, away from the prime parking areas in the Downtown, more parking would be available for public use in the high parking demand areas. If Technicolor employees were to purchase standard City parking permits for $32 per space per month (the current permit parking fee), the Parking Authority would receive less than half as much revenue than it would at $70 per space per month (fair market value). Under the proposed parking permit agreement, the Parking Authority would generate approximately $63,000 per year in additional revenues.
The proposed parking permit agreement was presented to the Downtown Parking Management Committee on October 20, 2005 and received unanimous support with a recommendation for City approval. The Committee�s support included a stipulation that Technicolor, or a similar quality tenant, remain in the Burbank Civic Plaza project and a request that the 75 additional parking spaces be made available for public use after 6:00 p.m. and on weekends, unless Technicolor (or similar tenant) requests the use of these spaces with adequate prior notice.
FISCAL IMPACT:
The Parking Authority would generate approximately $63,000 per year in additional revenues under the proposed parking permit agreement.
RECOMMENDATION:
It is recommended that the Parking Authority Board adopt the resolution approving a parking permit agreement with Burbank Civic Plaza, LLC for up to 75 additional off-site parking spaces in the Courthouse parking structure located at 301 E. Angeleno Avenue for use by Technicolor employees.
EXHIBITS:
Exhibit A Courthouse Parking Map Exhibit B Letter from Cusumano Real Estate Group Exhibit C Proposed Parking Permit Agreement
|
||||||||||||||||
|