MEMORANDUM

TO: Mayor Lawrence and Members of the Town Council

FROM: Scott E. Hildebran, Town Manager

SUBJECT: In Lieu Parking Fee

DATE: February 13, 2007

______________________________________________________________________

On August 9, 2005, Town Council (based on N.C. General Assembly legislation) adopted an ordinance establishing an off-street parking fund via payment in lieu of providing required parking spaces. The ordinance allowed the town to establish a parking fund to be used to organize, develop, enlarge, and maintain municipal off-street parking facilities in the CB and O-I zoning districts. The ordinance permitted the Town to set forth a fee that would allow developers to forego the construction of parking spaces otherwise required on the developer’s property and contribute towards a fund based on the number of required spaces that cannot be provided on his/her property. Due to the limited amount of land available in the downtown area, a developer may choose at their option to pay the “in lieu parking fee” in order to provide enough parking to satisfy town code requirements.

On November 18, 2005, Council approved an initial parking space fee of $10,000 per space.

Based on rough engineering estimates (material cost – concrete/asphalt, stormwater detention, etc.), a surface lot costs around $6,200 per paved parking space and a deck costs around $25,000 per paved parking space, both excluding the cost of property.

Pursuant to discussion at the 2007 Annual Planning Retreat, it was the Council consensus to consider an increase in the fee to $15,000 per space to come closer to cost recovery.