HomeMy WebLinkAboutINS-11-088-Transfer of Retail Parking AgreementREPORT TO:Council
DATE OF MEETING:
October 24. 2011
SUBMITTED BY: Pauline Houston, Deputy CAO Infrastructure Services
PREPARED BY:
John McBride, Director of Transportation Planning
Cory Bluhm, Mgr of Downtown Community Development
WARD(S) INVOLVED:
10
DATE OF REPORT:
October 19, 2011
REPORT NO.:
INS-011-088
SUBJECT:
Transfer of Retail Parking Agreement – Kitchener Market
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute the necessary documentation to confirm the
assignment of the Retail Parking Agreement, dated March 20, 2002 with Barrel Works Kitchener
Ltd. to a new purchaser of 310 King St. East and to amend the terms of said agreement to
reflect parking rates and policy more in keeping with the City’s current parking rates and policy;
said documentation to be to the satisfaction of the City Solicitor.
BACKGROUND:
The Kitchener Market was constructed as part of a public-private partnership with Barrel Works
Kitchener Ltd. Barrel Works retained both retail wings of the Market (290 and 310 King St E)
while the City retained the on-site parking for the Market and retail components. In 2002, the
City and Barrel Works entered into a ‘Retail Parking Agreement’ which guarantees Barrel Works
the ability to rent up to three parking spaces per 1,000 square feet of retail area. The
agreement also guaranteed a monthly parking rate of $85 per space, until the end of 2009, with
the rate increasing annually thereafter, at the rate of the Consumer Price Index.
REPORT:
Barrel Works is in the process of selling 310 King Street East (the retail wing at the corner of
King and Cedar). The sale of the building is contingent upon the City allowing the assignment
of the ‘Retail Parking Agreement’ to the purchaser. The City has the right to accept or refuse
the assignment of the agreement.
Staff feels it is appropriate to assign the agreement, subject to modifications to the guaranteed
parking rate which sits at $86.79 plus HST for 2011. This is significantly less than the standard
parking rate for the Kitchener Market Garage which sits at $121.42 plus HST for 2011, and is
proposed to increase to $133.56 plus HST in 2012.
To honour the general nature of the original agreement, it would be appropriate to phase in the
rate increases over time. Assuming the downtown parking rate continues to increase annually
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at 10%, staff propose amending the agreement to increase the purchasers guaranteed rate by
~20% annually as follows:
Anticipated Rate for Market Garage
Rate in the Agreement
2012 - $104.15 2012 - $133.56
2013 - $124.98 2013 - $149.92
2014 - $149.98 2014 - $161.61
2015 - $177.77 2015 - $177.77
As of 2015, the two parking rates would align. Subsequent rate increases would be consistent
with annual rate increases across the Downtown as approved by Council.
In addition, staff propose amending the agreement to revise the transponder deposit from $25 to
$50 plus HST.
In discussions with the acting real estate agent, this change would be acceptable to the
purchaser.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Amending the agreement balances our goal of being an Efficient and Effective Government
while enabling new tenants at 310 King East which will advance our goal of creating a Dynamic
Downtown.
FINANCIAL IMPLICATIONS:
Presently, the majority of 310 King Street East sits vacant. Transfer of the agreement is
necessary to complete the sale of the building to a new owner. The new owner intends on filling
much of the space immediately. This would translate into an increase in parking revenues
generated by the Market. Increasing the parking rates in the agreement will ensure we are
achieving closer to fair market value for those spaces while maintaining the intent of the original
agreement.
COMMUNITY ENGAGEMENT:
None.
ACKNOWLEDGED BY:
Pauline Houston, Deputy CAO
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