The Danville Town Council is set to consider approving increases Tuesday to fees charged for new development projects in parts of downtown where businesses rely on public lots to provide parking for their patrons.
The parking in-lieu fees, required for new downtown development or projects that change the use of a property that increases the parking need, are paid to the town to partially offset costs associated with providing off-site municipal parking, according to Town Manager Joe Calabrigo.
The current fee structure has been on the books for three decades, and it now "falls well short of 2017 costs and of fees charged by other Bay Area jurisdictions," Calabrigo wrote in his staff report to the council.
"In light of the state's 2011 dissolution of redevelopment, the cost of building additional public parking downtown has now fallen almost entirely on the town's general fund. This is not a sustainable ongoing approach in light of the high costs and competing capital needs," he added.
The existing fee stands at $3,500 per parking spot for retail and $7,000 for non-retail. Town staff recommends raising the fee to $15,250 per parking space for non-retail uses while leaving the fee at $3,500 for retail uses -- a plan that would keep Danville's fees "at the low end" when compared to other Bay Area cities, Calabrigo said.
Under the proposal, the parking in-lieu fee would also be adjusted annually based on the consumer price index (CPI) to keep pace with inflation, with a maximum annual increase of 2%.
The fee increases, which would go into effect 60 days after receiving council approval, apply to the so-called "Downtown Core" -- areas located along Hartz and Railroad avenues from Linda Mesa Avenue south to Hartz Way.
Calabrigo noted that the town requires those businesses to provide at least one-quarter to one-half of their mandatory parking supply in off-site municipal lots, a rule he said that "improves pedestrian retail continuity and allows for more efficient use of property as well as shared use of parking resources."
Town officials think the current parking supply in the Downtown Core area appears to be meeting the current demand, but "the town must plan for how to meet future demands resulting from new development or intensification of existing uses," Calabrigo said.
Based on the remaining development and redevelopment potential of the area, the town anticipates needing up to 380 new public parking spaces, according to Calabrigo. Costs range between $45,000 and $69,000 per new spot, with the main difference being if the land is already owned by the town.
To address the estimated demand increase, the town proposes to add 380 new public parking spots downtown -- 210 spaces for the Rose Street and Village Theatre sites and the remaining 170 spaces in a parking structure on a town-owned site.
Those additions are estimated to cost $21.79 million, so if the town were to collect in-lieu fees for all 380 spots, fee revenue would cover about $5.79 million or 26.6% of the overall costs, Calabrigo said. The rest of the costs would be funded by the town or other sources.
"Since the town is unlikely to collect parking in-lieu fees for all of the additional spaces needed, the cost recovery will be less, and the town will need to identify other funding sources to cover the balance," he added about the need for long-range funding planning.
Tuesday's council meeting is scheduled to start at 7:30 p.m. inside the Town Meeting Hall at 201 Front St. in downtown Danville.
In other business
The council will present the town's Design Awards, which recognize outstanding architectural design and promote excellence in project design around Danville, according to town officials.
The recommended winners are:
Outstanding Custom Residential Design: The Rehrmann residence at 436 Starview Drive. Owner, George and Donna Rehrmann; architect, Mark Landolf; builder, Clawson Construction, Inc., John Clawson.
Outstanding Heritage Resource Design: The Danville Hotel redevelopment project, Danville Hotel and the McCauley House at 411 Hartz Ave. Architect, William Hezmalhalch Architects, Mohsen Heidari, architect; owner/builder: Castle Companies, Lou Baldacci and Thomas Baldacci.
Outstanding Commercial Remodel Design: 1. 822 Hartz Way. Owner, Cal North Properties, Mark Bergstad; architect: Lowney Architecture, Tony Valadez, architect; builder, W.E. Lyons Construction, Inc., Greg Lyons.
2. Locanda Ravello at 172 E. Prospect Ave. Business owner, Enzo Rosano; designer, Alessandro Miramare; builder, Boynton Construction, Inc., Jerry Boynton.
Outstanding Multi-Family Residential Design: BrookStone Lane at 943 Camino Ramon. Owner, Glennmont, LLC, Glenn Novotny; designer, Steven F. Kubitschek Residential Design; developer/builder, The Address Company, Eric J. Chevalier.
Also Tuesday, the council will receive regular update reports on the town's Arts Commission and Development Services Department as well as on the TRAFFIX program -- a joint venture among the town, city of San Ramon, Contra Costa County and the school district aimed at addressing congestion caused by school-related traffic in the area's busiest intersections.