HomeMy WebLinkAboutDSD-18-022 - Support to Downtown Kitchener BIA - ExtensionREPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: May 28, 2018
SUBMITTED BY: Cory Bluhm, Executive Director, ext. 7065
PREPARED BY: Hilary Abel, Manager of Downtown Development, ext. 7064 & Paul
McCormick, Manager of Parking Enterprise, ext. 7155
WARD (S) INVOLVED: 9&10
DATE OF REPORT: May 2, 2018
REPORT NO.: DSD-18-022
SUBJECT: Support to Downtown Kitchener BIA - Extension
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RECOMMENDATIONS:
Staff recommend that Council continue to offer free parking options within the Downtown BIA
boundary, in support of the businesses impacted during ION Light Rail Transit construction and
delays in implementation, as follows:
a)In lieu of 2-hour free parking programs currently provided in City Garages, staff
develop a modified one time reduction (OTR) program partnership with the BIA as
described in report DSD-18-022,until December 31, 2018, or ION is operational,
whichever is later; and,
b)Weekday and Saturday evening free parking in surface lots between 5pm and 6pm be
extended until March 1, 2019; and further,
That through the 2019 Budget process, the City consider options for providing free parking in
surface lots between 5pm and 6pm to be reviewed annually as part of the annual budget
process.
BACKGROUND:
In 2016, Council approved a parking subsidy for Downtown Kitchener surface lots and garages to
encourage visitors to visit restaurants and businesses in the core during LRT
construction (INS-15-096).
3 options were approved:
2b. Extend weekday and Saturday evening parking in downtown surface lots for one extra hour
from 5pm to 6pm
3c. Provide 2 hours of free parking on Saturdays in City Hall, Duke & Ontario and Charles &
Benton garages; and,
4.Provide 2 hours of free parking on weekdays, with a one time reduction parking pass (OTR),
as distributed by participating businesses.
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The program costs the City (in lost revenue) $85,538.74 in 2016, and $97,803.72 in 2017. In 2015,
staff estimated the annual funding requirement for this initiative would be $77,000.The Economic
Development Reserve was used to fully fund the subsidy. 2017 lost revenues are as follows:
2b = $35,000 (estimated)
3c = $42,701.59
4 = $20,102.12
Initially, these subsidies were approved as a means of supporting downtown businesses during LRT
construction and the commencement of the new system. Downtown businesses have requested that
the parking subsidy be continued until the ION is operational. While they acknowledge construction
has finished, they have not yet experienced the resultant benefits of ION. Continuation of the parking
subsidies would provide support for Downtown businesses as they continue to work to recover from
impacts of construction.As such, staff believe it is appropriate to provide a modified version of the
parking subsidies as follows:
ProgramProposed ChangeNew Proposed Program
2b. Free parking 5pm-6pmLeave as isNone required
3c. 2 hours free on SaturdaysEliminateReplace with Modified OTR
4. 2 hours free with OTREliminateReplace with Modified OTR
A Modified OTR Program (recommendation part a) Estimated Cost $10,000
The City would continue to provide OTRs (parking passes) to participating businesses, facilitated by the
BIA, but on a 50:50 split, whereby the business covers the cost of the first hour, and the City would
subsidize the second hour. The City subsidy would be shared equally between the Parking Enterprise
and the Economic Development Reserve. As the proposed program requires a financial commitment
by the BIA membership (i.e. local businesses), it is expected that uptake would be less than the current
program. Staff estimates the financial impact to the City to be less than $10,000.
Free Parking After 5pm in Surface Lots (recommendation part b) Estimated Cost $35,000
With the growth of restaurants in the core, this subsidy supports proprietors as downtown continues to
establish a growing restaurant scene. Staff is recommending continuation of the program beyond
2018, subject to budget approval as part of the 2019 budget process and annually thereafter. While the
Economic Development Reserve offers a short-term funding source to cover the subsidy, it is not a
long-term solution. Alternative funding options, to be considered as part of the 2019 budget, could
include:
i) Covered by the tax base (ie: increase the Downtown Parking Subsidy by $35,000)
ii)Covered by the Parking Enterprise
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
by
encouraging a strong and resilient economy.
FINANCIAL IMPLICATIONS:
The report section of this report outlines changes to the funding allocations for each program. The
Economic Development Reserve would continue to be used to fund free parking between 5pm and 6pm
in 2018 ($35,000), while the Reserve and the Parking Enterprise would share the costs of the modified
OTR program (estimated at less than $10,000).
COMMUNITY ENGAGEMENT:
INFORM Working with the Downtown Kitchener BIA, the new changes to the parking subsidy will be
communicated to businesses in advance of any program modifications.
CONSULT Downtown businesses raised concerns over the need to continue the subsidy to City staff
Director of the BIA who generally supports the extension of modified subsidies to support businesses
recovering from construction.
CONCLUSION:
That a modified parking subsidy to support Downtown Kitchener businesses be extended, as outlined in this
report.
ACKNOWLEDGED BY: Justin Readman, General Manager
Development Services Department
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