Loading...
HomeMy WebLinkAbout2021-10-21 DTPC MIN DOWNTOWN PARKING COMMISSION MEETING October 21, 2021 Chair McAllister called the meeting to order at 8:31 a.m. Present: Chair McAllister, Commissioners Bates, Glynn, Lepage, Rheinberger, Council Liaison Junker Absent: Commissioner Anderson Staff present: Community Development Director Gladhill, Zoning Administrator Tait APPROVAL OF MINUTES Possible approval of September 16, 2021 special meeting minutes Motion by Commissioner Rheinberger, seconded by Commissioner ___________, to approve the minutes of the September 16, 2021 special meeting. All in favor. OPEN FORUM There were no public comments. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Short Term Home Rental Parking Mitigation – 224 Main St S Zoning Administrator Tait reported that the property at 224 Main Street South is operating a Type C Short Term Home Rental (STHR) that was approved for two bedrooms, requiring one parking space. The property owners would like to offer an additional bedroom to guests, necessitating an additional on-site parking spot. The property has no on-site parking spaces and currently mitigates for one parking space. The property owners are requesting to mitigate two downtown parking spaces. Because the City is still below the 20% “non-transient” vehicle threshold, staff recommends approving the mitigation of one more parking space at a cost of $10/month for a total monthly mitigation cost of $20 for this property ($240/year). Chair McAllister noted that the applicants are responsible for providing the overnight parking permits and informing their guests where to park. Councilmember Junker pointed out that parking mitigation for STHRs, which requires a mitigation fee based on number of bedrooms, differs from business parking mitigation, where if a business use changes, resulting in less than three parking spaces difference, there is no additional parking mitigation fee because there is a threshold of four or less. Motion by Commissioner Rheinberger, seconded by Commissioner Lepage, to approve mitigation for one additional parking space for the STHR at 224 Main St S provided the applicants inform guests where they can park and supply the permit. All in favor. Lora Event Center Parking Mitigation Downtown Parking Commission Meeting October 21, 2021 Page 2 of 4 Mr. Gladhill explained that Elevage Group has submitted a Design Permit application to convert the rear of the Grand Garage building, formerly Lion’s Tavern, into the Lora Hotel Event Center. There are two major components of the project: reconstruction of the Nelson Street Entrance (south façade); and reconstruction of the outdoor patio. Considering the previous use and the joint nature with the Lora Hotel, staff recommends a compromise of mitigation of 15 parking spaces at the current mitigation fee of $10/month ($150/month total). As the Downtown Parking Commission is aware, the City is evaluating a better way to handle mitigation fees in the future. Commissioner Glynn asked how the suggested parking mitigation of 15 spaces versus 33 was calculated. Mr. Gladhill explained that staff figured one parking space per three seats based on the floor plan provided, then backing out the 20 space credit which is 1 space/120 square feet for the restaurant that was there before, with a potential compromise considering how many attendees of the event center might also be hotel patrons, and considering the full credit for the outdoor seating. Staff felt giving the credit for 50% for the outdoor space and the joint use seemed appropriate. Mark Ogren, one of owners of the Grand Garage and investor in the Lora Hotel, stated that the Grand Garage has struggled to fill the back space. Using it as an event center in coordination with the hotel will provide a more predictable revenue stream especially in the winter. Corey Burstad, partner in the Lora, said the space will be rented for private events with 100-150 max capacity, mainly to people who are already staying at the hotel. It likely will not be open seven days a week, but probably 90-100 days a year. He added that parking in the existing lot is difficult due to the steep hill and rocks falling from above. Commissioner Glynn commended the team for cleaning up the property and asked how valet parking is working. Mr. Burstad said they had to stop valet parking due to COVID. They have slowly brought it back as an option. Valet parking is an important service of the hotel. Councilmember Junker remarked that the City has allowed parking mitigation for businesses since 2006. This is probably the most unique request because it is a multi-tenant building. He understands there will be some common use of the event center from hotel guests, but no matter what, the event center will still impact parking and warrants some type of parking mitigation, allowing for a creative solution that gives credit for the existing business. Mr. Ogren stated that because weather is unpredictable, they would never plan on seating people both outside and inside, so the full capacity will never include both the patio and inside seating. Mr. Gladhill reminded the Commission that mitigation must be based on the current code, as it has not yet been updated. The recommended mitigation is based only on the interior floor plan, knowing they would not have events in both the patio and inside at same time. Councilmember Junker said after the joint meeting, the DTPC and City Council are considering increasing the parking mitigation fee. A parking garage is planned, likely on the old Shorty’s property, but realistically it probably will not be built for another seven years or so. Mr. Burstad said the Lora Hotel is probably the most expensive per room redevelopment in the Twin Cities and the Midwest, with property taxes $240,000/year for a 40 room hotel. Last quarter they collected over $20,000 lodging taxes. He asked the Commission to consider at what point to keep burdening businesses. The parking ramp issue needs to be addressed immediately. The City stepped up to help businesses during COVID but it has to be balanced throughout the year to be successful. They don’t want to keep being eroded by taxes and fees. They need this space to host the people who will spend money in town. Downtown Parking Commission Meeting October 21, 2021 Page 3 of 3 Councilmember Junker remarked the City made progress by acquiring the Shorty property. The parking ramp will be a $13 million project and the City is still paying off the other ramp. Chair McAllister noted the DTPC serves a lot of stakeholders. It has a multi-pronged strategy and a lot of work ahead. There is a three to five year plan approved through the Council that includes changing the way the parking system works, improving wayfinding, inversion so that pay parking is in the center and free parking is further away, and influencing behavior. As businesses pay into the system, they also add demand onto the system and the Commission accommodates that the best way possible. Businesses and the City have to work together. Mr. Burstad noted that guests who visit the Lora likely visit three to four other businesses too. As someone who is investing in the downtown, he would like to know what is the plan, and to have reassurance that everyone on Main Street is bearing the burden. Councilmember Junker said for 16 years, parking mitigation has been consistent with every business that has come in, but the businesses existing prior to that are not paying mitigation fees. The Lora and the Crosby are tremendous assets to Stillwater. Because of everything happening downtown, the City’s budget has gone up tremendously due to the dynamics of a vibrant downtown, yet the City is not getting anything from that other than lodging taxes. The City receives no other business tax. Commissioner Rheinberger asked what the applicants think is a reasonable compromise. Mr. Burstad answered they will be lucky to complete the renovation in three to four months. They would like to wait to be charged parking mitigation until they open. They don’t think the staff recommendation is unfair, it’s just more or less. The Lora will be paying $5,000+ a year for parking mitigation between the two properties. Mr. Gladhill remarked that is still less expensive than building a surface lot. Mr. Burstad said he would like to know the big vision, what is needed for the City to operate, rather than having several different fees and taxes that businesses pay even before they even open the door. Mr. Ogren said the Grand Garage has difficulty keeping tenants and loses money every year due in part to real estate taxes. He is to figure out a way to make it a viable building. He would be concerned if an amount is agreed to, and then all of a sudden it’s not $10, it goes to $20 or $30. Councilmember Junker pointed out the $10 parking mitigation fee has not changed in 16 years. Motion by Chair McAllister, seconded by Commissioner Rheinberger, to approve parking mitigation of 15 spaces for the Lora Event Center, at $10 per space, beginning when the business is operating. All in favor. DISCUSSION FYI/STAFF UPDATES Discuss Next Steps on Work Plan Priority Item – Downtown Parking Pricing Strategy Stakeholder Engagement Process Mr. Gladhill reported that staff has met with the Chamber regarding the downtown parking system. A kickoff meeting will take place at the end of this year or early next year as well as a workshop with downtown businesses to discuss strengths, weaknesses and tools available. Commissioner Lepage brought up the discussion at the joint meeting with the City Council, about reorganization of parking fees downtown to push free parking out of the most desirable areas, in a way that doesn’t negatively impact the businesses. He is not sure the concept was distilled in the meeting to simply say, change the parking structure and make sure the businesses are protected. Mr. Gladhill said staff will make sure that is heard as the general direction for the next workshop. Chair McAllister noted that identifying the buy-in process for businesses should be the next step. Downtown Parking Commission Meeting October 21, 2021 Page 4 of 4 Councilmember Junker stated at the joint meeting, the Council seemed receptive to changing three- hour parking. The last time the City changed the parking landscape was seven or eight years ago and the businesses were adamantly against having pay parking throughout the downtown. Obviously, Stillwater has changed in eight years, and businesses’ input is needed. What the City must “sell” to the businesses is, what is the benefit to their business to changing the parking structure. Mr. Gladhill agreed the City needs to build consensus and do better public engagement in addressing parking changes. Public Comments regarding parking ramp received since last meeting Chair McAllister shared a personal example of how parking signage is not clear at all. She really would like to bring signs back on the table. Mr. Gladhill said he and Zoning Administrator Tait will address signage as workload permits. He also will give an update on winter events being planned, including the World Snow Sculpting Championship which will be in Stillwater for the next three years. Chair McAllister asked staff to include a standing event calendar at the back of the agenda packets. ADJOURNMENT Chair McAllister adjourned the meeting at 9:35 a.m. ______________ Heidi McAllister, Chair ATTEST: ________________ Tim Gladhill, Community Development Director