Though the city council wants to encourage downtown development,
they won
’t force commercial projects to build any parking spots or
charge parking fees until at least 2007.
Though the city council wants to encourage downtown development, they won’t force commercial projects to build any parking spots or charge parking fees until at least 2007.
The council had waived parking requirements normally attached to development projects and planned to charge developers fees to build parking at a later date. In late July, however, the council voted unanimously to forgo collecting the fees to build future parking for projects that submit their application before March 1, 2007.
Council members hope waiving the parking requirements will encourage the struggling downtown economy by making it easier for developers to build projects that will attract local residents. Likewise, enticing residents to spend their shopping dollars locally will add sales tax revenue to the city’s general fund – a goal of city staff to overcome a structural deficit in the city’s budget.
“Suspending the fee, at least temporarily sends a positive message to downtown,” Councilman Greg Sellers said. “At this point we need to induce development. It’s more important to remove that barrier.”
Additionally, the council approved waiving the guest parking requirement for residential projects in a defined area in downtown. Creating homes in downtown was identified as another key element in the city’s plan to revitalize the downtown.
Typically, the city requires one parking space created for 250 sq. ft. of commercial development and one guest parking space for every four residences built. The decision roughly affects new projects in the area from Bisceglia Avenue to Central Avenue and Del Monte to Butterfield avenues. The parking fee would have cost developers $5,271 for every parking space required.
During the time the parking requirements and fees are suspended, city and Redevelopment Agency staff can create a funding strategy to build more parking downtown when it is needed, Community Development Director Kathleen Malloy Previsich said. But finding parking downtown could become more challenging as residential development adds more cars and improvements on Third and Depot streets eliminate some current spaces. A parking analysis projects spaces will be lost when the two streets undergo renovations, but the actual number will depend on what plan the city ultimately chooses.
Mayor Dennis Kennedy and Councilman Steve Tate were against suspending the parking fee because they believed the city will eventually need funding to build more spaces.
Kennedy said waiving the developer parking fees may be a “short-sighted approach,” especially if the city needs to add spaces in just a few years.
“If we suspend the fee, we won’t get to that point to build (more public parking),” Tate added.
Councilman Mark Grzan said imposing the parking fees would likely scare potential developers away from downtown and hinder the city’s revitalization goals.
“If we continue to create these disincentives, there may be not much there. There hasn’t been much development downtown,” Grzan said. He pointed to the city of Los Gatos, which, he said, “has very successfully developed its downtown. Morgan Hill has not. We don’t have a successful downtown.”
Morgan Hill Downtown Association Executive Director Dan Craig said the association supported the council’s action.
“We’re glad the council agreed to the parking fees waiver because we’re concerned the fees would serve as an economic inhibitor to development downtown,” he said. “We also have a concern about the parking downtown, but realize the parking ratio at shopping centers is different for downtown, which has a different environment and different hours in mixed-use developments. But future parking needs to be carefully evaluated.”
