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City Council Meeting: January, 2010
Agenda Item: ~~
To: Mayor and City Council
Chairperson and Parking Authority Members
From: Andy Agle, Director of Housing and Economic Development
Subject: 100 Wilshire -Fourth Amendment to Lease No. 1828
Recommended Action
Staff recommends that the City Council and Parking Authority authorize the City
Manager/Executive Director to negotiate and execute a Fourth Amendment to Lease
No.1828 with Douglas Emmett Realty Fund 1998 for parking in Parking Structure No. 2.
Executive Summary
The City and Parking Authority lease 155 parking spaces to the owners of the building
at 100 Wilshire Boulevard during weekdays in a reserved area of Parking Structure
No. 2. However, permit holders generally do not park in the reserved area, leaving most
of the 155 parking spaces vacant. Given the difficulty the City and Lessee have getting
permit holders to park in the reserved area, resulting in spaces being vacant but
unavailable to the general public, the Walker Parking Study recommended that the City,
Parking Authority and Lessee modify the Lease to allow permit holders to park
anywhere in the Structure and for the City to remove the interior reserved parking signs.
The Lessee is agreeable and staff recommends that the proposed approach for
management of the 155 spaces be memorialized in a Fourth Amendment to the Lease.
Background
On April 23, 1968, the City and Parking Authority entered into a 30-year lease to provide
parking spaces in Parking Structure No. 2 to benefit the building located at 100 Wilshire
Boulevard: The Lease was assigned six times and is now with Douglas Emmett Realty
Fund 1998.
The Lease, which extended from August 27, 1971 through August 26, 2001, provided
up to 320 parking spaces in Parking Structure No. 2. Approval to satisfy a portion of the
building's parking requirement with off-site parking was given on August 29, 1968
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through Variance Case No. 3014-Y. The parking spaces were made available to the
public on weekends, holidays and after 6:00 pm on weekdays. The Lease provided the
Lessee with the right to five 5-year options, extending through August 26, 2026. During
the Option Periods, the Lessee had the right to use 265 parking spaces.
The Lease was first amended on April 22, 1986, to make the following changes:
1. Added three additional five-year options which extended the use of the parking
spaces until December 31, 2040. During these three additional option periods,
the Lessee was entitled to use 265 parking spaces;
2. Allowed the Lessee permission to substitute parking in the City's parking
structure with other private parking; and
3. Clarified that the City is not obligated to make structural repairs to Parking
Structure No. 2 or reconstruct the Parking Structure in the event of damage or
destruction.
The Lease was amended a second time on May 18, 1990, to provide for:
1. Up to 47 percent of the parking spaces provided by the City to be compact;
2. An increase in the number of spaces to be provided by the City during the term of
the Lease from 320 to 380, subject to the Lessee restriping the area used for
parking; and
3. An amendment of the parking rate for the parking spaces.
On December 30, 1998, Council authorized preparation and execution of a Third
Amendment. The Third Amendment, executed July 30, 2002, allowed the Lessee to
reduce the number of leased parking spaces in Parking Structure No. 2 to 155 upon
completion of construction of an adjacent building and repair of the subterranean
garage under the building located at 1221 Ocean Avenue. The 155 parking spaces
were to be located on the upper levels of Parking Structure No. 2.
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Discussion
In accordance with the Third Amendment, the City issues 185 parking passes to the
Lessee, who pays for and is able to use 155 parking spaces in Parking Structure No. 2
at any one time. (The extra 30 parking passes help the Lessee administer its parking
program.) Permit holders are supposed to park on the upper levels of Parking Structure
No. 2 and there are signs advising the general public that parking in these spaces is by
permit only, except weekends, holidays and after 6:00 pm on weekdays. The permit
cards are supposed to be programmed so that the permit holder is not able to exit the
Structure unless he/she swipes the entry gate to the nested area. However, it has been
difficult to administer the "nesting" area and permit holders generally park on lower
levels, leaving the 155 spaces in the upper levels largely unused during weekdays.
Some parkers are hesitant to use the spaces during evenings and weekends because
of the "reserved" signs.
In order to better utilize existing parking resources, the Walker Parking Study
recommended that 100 Wilshire permit holders be allowed to park anywhere within
Parking Structure No. 2 and the City remove the reserved signage.
Staff and the Lessee have discussed the Walker Parking Study recommendation and
support a Fourth Amendment to the Lease that would provide for the following:
1. The Lessee would pay monthly only for the parking passes used, not to exceed
155. Currently, the Lessee only purchases 55 permits.
2. To facilitate administration of the permit cards, the City would continue to issue.
up to 19% more cards than the Lessee purchases, but the City's parking system
would restrict the number of cars allowed into the parking structure to the number
of cards purchased.
3. The City would adjust the electronic signage so that the total spaces shown as
available are net of the number of spaces purchased by the Lessee tb ensure
that permit holders can find a space even when the sign for the Structure
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indicates that it is full. The number of available spaces to be displayed may be
adjusted in response to actual usage.
4. The City will remove all interior signage from Parking Structure No. 2 that
indicates reserved parking for 100 Wilshire Boulevard.
Financial Impacts & Budget Actions
As agreed to in the Third Amendment, the Lessee currently pays $16.501month per
space, or $2,557 per month for 155 parking spaces. With approval of the Fourth
Amendment, the amount paid will vary depending upon Lessee's use of the passes.
Currently the City issues the Lessee 55 permits per month, which would total $908 per
month, or $10,890 per year, a potential decrease of $20,000 per year from this Lessee.
However, the spaces that the Lessee would not be using would be available for use by
the general public. In 2009, each parking space generated on average $300 per month
in revenue to the City.
Prepared by: Miriam Mack, Economic Development Manager
Forwarded to City Council/
Parking Authority:
Andy Agle, Director U P C ifiont Ewell
Housing and Economic Development ~~Manager
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