HomeMy WebLinkAboutINS-15-028 - Assignment Parking Agreement
REPORT TO: Committee of the Whole
DATE OF MEETING: March 23, 2015
SUBMITTED BY: Justin Readman, Director Transportation Services (519) 741-
2200 x 7038
Rod Regier, Director Economic Development (519) 741-2200
x7506
PREPARED BY: Paul A. McCormick, Manager Parking Enterprise (519) 741-
2200 x7155
WARD(S) INVOLVED: 10
DATE OF REPORT: February 11, 2015
REPORT NO.: INS-15-028
SUBJECT:Assignment of Retail Parking Agreement – Kitchener Market
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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 290 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:
In 2011, Council approved an assignment of the modified Retail Parking Agreement,
dated March 20, 2002 with Barrel Works Kitchener to a new purchaser of 310 King
Street East (INS-011-088)
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 guaranteed 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.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
Barrel Works sold 290 King Street East (the retail wing at the corner of King and Eby) to
a new purchaser. At the time of the sale, the new purchaser did not request the City to
assign the ‘Retail Parking Agreement’ to them. They have subsequently requested the
assignment. The City has the right to accept or refuse the assignment of the
agreement.
Staff recommends the assignment of the agreement, subject to modifications to the
guaranteed monthly parking rate which is $91.46 plus HST for 2014. This is
significantly less than the standard parking rate for the Kitchener Market Garage
currently at $154.87 plus HST for 2014.
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 at 0% for the next three years, staff propose amending the
agreement to increase the purchasers guaranteed rate by ~15.0% annually as follows:
New Rate - Assignment Anticipated Rate for Market Garage
2014 - $ 91.46 2014 - $154.87
2015 - $105.18 2015 - $154.87
2016 - $120.96 2016 - $154.87
2017 - $139.10 2017 - $154.87
2018- Market Rate 2018 - $159.52 (Proposed Market Rate)
*Plus HST for all rates noted above.
As of 2018, 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 purchaser, 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 290 King East. This will advance our goal of
creating a Dynamic Downtown.
FINANCIAL IMPLICATIONS:
Presently, the majority of 290 King Street East sits vacant. The new owner intends on
filling the space as soon as possible. New tenants would translate into an increase in
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parking revenues generated by the Market Garage. An increase of 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.
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
ACKNOWLEDGED BY:
Dev Tyagi, Deputy CAO
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