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BEACH BY DESIGN - BEACH REVITALIZATION AND PARKING STRATEGY i '-- " ,::3 ~ 1 ~ " f.:\ 'uJ . /J?Ju) I;) ~/o,tfl c;,"D -d~ ,~~ f} , T . . CLEARWATER BEACH y . November 2.9/2.001 Preparedfor: . Cit~ of clearwater Florioa Prepared by: SIEMON & LARSEN Strategic Land Planning & Management . BrACH PARK NG )TRATrGY CLEARWATER BEACH .. . EXEC UTIVE?S.U/V\/V\~R'Y For many years, the City of Clearwater has considered increasing the inventory of beach parking, and in conjunction with the revitalization interests on the Beach, to relocate parking from the Beach to facilitate revitalization. Despite numerous studies, plans, preliminary designs, and a development agreement with a private developer relative to beach parking, the City still does not have a specific plan of action which ensures that parking facilities needed to support the major revitalization initiatives will be available in a timely fashion. This report presents a specific strategic, time certain approach to the provision of needed parking facilities and is intended to serve as a basis for a formal decision by the City Commission in regard to the City's implementation of Beach by Design. The report recommends that: . The City Commission formally commit to implementing the realignment of South Gulfview and the construction of Beach Walk. . . The City undertake to acquire an assembly of land between Coronado and Hamden for the replacement of parking removed from the beach as a result of the realignment of South Gulfview and the construction of Beach Walk . The City should be prepared to accept responsibility for an annual operating deficit (assuming interest only financing during the interim parking period) related to the acquisition of the assembled land and demolition and .construction of the temporary surface lot during the life of the temporary lot of less than $100,000 . The City should construct a parking garage with no more than 450 spaces on the Pelican Walk parking lot as soon as possible, assuming that the parking lot can be acquired on financially acceptable terms . . . . A BRIEF HiSTORY OF BEACH PARKING The road to success is dotted with many tempting parking places. Author Unknown In conjunction with the City Commission's decision to proceed with the new causeway bridge, the Commission committed to the provision of additional beach parking facilities by the time the new bridge was opened. Strategies for Revitalization recommended that beach parking to the west of South Gulfview be relocated into parking garages located between Coronado and Hamden. During the Beach by Design preliminary design process, the City's consultant team analyzed the feasibility of 19 beach locations for additional parking facilities in terms of functionality and economic feasibility. In response, the City Commission first selected what was known as "Pier 60 plus" - the existing Pier 60 surface parking lot and the Days Inn property - as a site for a new south beach parking garage. In addition, the City Commission approved the Pelican Walk garage - to be constructed when it was shown that it would be self-sufficient. Likewise the City Commission endorsed a future parking garage at Rockaway when beach parking demand would make a garage at that location self-financing. The Pier 60 plus garage, however, was delayed because of problems encountered in the acquisition of the Days Inn property and was rescinded when the developers of the Seashell Resort proposed to provide a 400 car garage open to the public as a part of their project. CLEARWATER BEACH 1 . Beach by Design Beach by Design contemplates two important redevelopment initiatives: the realignment of South Gulfview and construction of Beach Walk, and the renovation and revitalization of North Mandalay. The development of new parking facilities is central to both initiatives. The South Gulfview/Beach Walk initiative involves the removal of approximately 327 spaces from the beach immediately to the west of the existing right of way of South Gulfview. Those spaces must be replaced in conjunction with implementing the initiative. The widening of North Mandalay likewise involves the removal of parallel parking spaces along the east side of the road and the principal revitalization strategy for the North Mandalay retail district in Beach by Design is the construction of a parkin~J garage on the parking lot of Pelican Walk to enhance the functionality ofthe North Mandalay retail community. . North Mandalay Renovation and Revitalization ~ "-- , ~ ~ .~ . Gulf Front Redevelopment and Realignment of South Gulfview (vehicular and pedestrian promenade) PARKI NG STRATEGY 2 . South Gulfview/Beach Walle Replacement Parking Beach by Design is \\relatively indifferent'l in regard to the specific location of a new parking garage to the south of the Roundabout, \\as long as the parking spaces are located within a reasonable walk from the dry sand beach." Initially, it was anticipated that the South Gulfview/Beach Walk initiative, including a 400 car garage open to the public would be provided as a condition of development of the approved Marriott Seashell Resort project. The developer in fact assumed that obligation in a Development Agreement which was approved by the City Commission on March I, 2001. 1 Intervening events - first litigation by an objecting property owner, then a recession, and now \\9/11" - have substantially diminished the likelihood of implementation of the South Gulfview/Beach Walk as a part of the Seashell Resort project in the foreseeable future.- . In May of 2001, after litigation was filed challenging the Seashell Resort development agreement, the City Administration provided the City Commission with an analysis of the parking options which were available for replacement parking spaces and additional beach parking. The Commission was not satisfied with the level of detail available to support the various alternatives and the Administration was directed to prepare additional analyses, including updated analyses of the financial feasibil ity of the garage options. Parsons completed a series of analyses in October of 2001 which generally confirmed the reliability of the base data that the Administration has been using for its analyses and confirmed the level of risk involved in large scale parking garage initiatives to the south of the Roundabout and at Pel ican Walk. . When the Markopoulos settlement proposal was rejected by the City Commission on October 4, 2001, the uncertainty of developer implementation of the South Gulfview/Beach Walk initiative lead the City Commission to direct the Administration to analyze the steps which would be necessary for the City to assume responsibility for implementation of the Gulfview/Beach Walk initiative which in turn requires the City to address the need for replacement parking.1 The City Administration previously provided the Commission with several south beach parking options including a parking structure on the Seashell Resort site, Pier 60 and the Marina. Each of these options were deemed problematic by the Commission for a variety of reasons. CLEARWATER BEACH 3 . . . CITY OF CLEARWATER OFF-STREET PARKING INITIATIVE PARKING OPTIONS .~;;i~~lmiii~~j!BIIR!~~llaf~'{~~~if~~- The Kimpton/Prime project Approved Developmenl AgIeelllent. Project plO\ides 400 parking .paces within !he gal'age wlnch is a palt of the proposed Seashell Resort. In addition. 60 51.uface parking spaces are included in the conceptual plan for the realiglmlelrt ofSoot11 Gul1\iew. Coronado/Harnden Propo5ed garage of as lIIany a. 1,500 parking space.. NlUllbcr of options discussed illcbuling specific properties~ extellSioll of the site; and closing of a segmelU of the Hamool Street to allow "wrapped" waterfront residentialluUts - a catalvst for l'evitalizatioo . City Marina Proposed parking stmctnre at the City Marina I Strategies for RevitaJ i:atioll) Pier 60 Proposed parking stnlcltu'e of as many as 800 spaces Pelican Walk Pror>>sed parking structure of approximately 650 spaces ill a 5 deckgarage PARKI NG STRATEGY 4 Pi\lklllg spaces rue Icx:ated :immechately a<:ljacenl to the hea~l1 "lid the new Sonth Gulf\.iew >md Beach Walk Pcdcstlinn overpnss aCIOSS the realigni',d SontllGulfview The mixed nse oftiLe pl'operty offer, the opportuni ty tn spread cost thclehy rechlcing ovewll cost per space Lalge gn.lage (800 to 1.200 :;p(\ces) -- rela li.vely low height Garag~ facilitate:; widening of COIomdo loa -I lane tAcllity Cmlvenie111 parkulg (ornlolei" alung Coronado Closing uf Hamdenu positlVe imps<.1: on the integrity of tile eaot side c)fSouth Be-itch Ga[age IS Hot lIccessarily lied to aIIYI~Hticli1ar dev elol'lIlent Cl ty-ownBd bnd Locatwll .-- demand for pSlklJlg at the Jvlmina is high. partIcularly durillg pi~ak se(l:,;>on Citv.owned land and GlllTentlv nsed lor parking . , Locaholl'" Pi,~:r GO (li~llIaHd t)lr pil [krll)! is 11igh pp~l"rred site Jimn a finallcial coslpfespecti~'e LOgJcal and desiruble location Catalyst lor T~'VitllJ.jz.ation of the Neath Mandalay retail rv::igl ,bar hood increases parbng aVailability in the mea UnceJ.tmnty chle to pendUlg legal challenges -. delay will plec1ude the availability of additiOllal spaces ill advance of tile openUlg of tIle new lJJ:idge Net gain inllluuber of spaces is somewhere between 142 and 163 (only 3i.5% of the 400 additional S\Xlces) Site location -- opposite side of Coronado Site requires an elevated cross-over 10 avoid IJaffic conflicts Site require:; land assemblv - problematic - Expensive u unless the Hamden-clamre were u'led to l'educe costs Aesthetic implications of Marina location Limited capacity (approx, -too ,paces) due to the relative narroW1~ of the >lite Site location .. east side of Coronado (pedestJvehiculal' traffic conflicts) Aesthetic implica lions, dimensions are exo'emely imposing Site location u witlun short distance to the Beach Rounabout (pedestl'ian /verucuIar traffic conflicts) Linu ted caJXlCity wld cost due to !he relative uarrowness of the site Land is relan vely expensive Site location.. limited beach parkmglaccess e Pelican Walk . The proposed garage at Pelican Walk has been contemplated for many yearsl howeverl the economics of the proposed garagel as included in Beach by Designl did not satisfy the Citis self- imposed criteria that the garage be self- supporting. There were several reasons why the Pelican Walk garage was problematic. Most importantlYI the size of the garage was defined by the maximum number of spaces which could be constructed on the existing parking lotI plus the air rights over the Eckerd/s parking lot and the Citis existing surface parking lot immediately to the north of Heileman/s. The justification for maximizing the number of parking spaces was based on the idea of using the garage for beach parking during periods of peak demand. The problem with the ideal howeverl was that the limited amount of revenue generated by those limited number of peak days when parking at Pelican Walk would be used for beach parking was insufficient to support debt service on the parking spaces above and beyond the requirements of the North Mandalay retail district. Studies conducted by the Cityts redevelopment consultant and Parsons concluded that the Pelican Walk parking garage contemplated in "Beach by Designll would not be self-financing and woulld require a financial subsidy for at least a number of years. PROPOSED LOCATION . ELEVATION STUDY CLEARWATER BEACH 5 . Financial Feasibility of Parking Garage Options Statistics are like bikinis. What they reveal is suggestive{ but what they conceal is vital. Aaron Levenstein The City has invested substantial time and money analyzing the economic feasibility of constructing parking garages on the beach. The results of those analyses{ products to a great extent of the nature of the questions which were asked{ were and are predictable. That is so because the reality is that the beach parking demand is highly seasonal and extremely variable. A plot of actual parking revenues shows that the lowest weekly demand for parking is 15.4% of the highest weekly demand. Moreover{ the average hourly use of the existing parking spaces is only 53% based on a 7 hour day. . In the south beach areal parking demand exceeds capacity on fewer than 200 days per year{ and then only for relatively short periods of time on any given day. If capacity of 400 spaces were added to the inventory in the south beach areal parking demand would equal or exceed capacity on only 65 days. The same analysis indicates that none of the additional 400 spaces wou Id be used on 190 days of the year. What the analyses{ and all of the studies which have been conducted for the City{ show is that new parking garages are unlikely to generate enough revenue{ at least during early years of operation to cover actual debt{ unless and until additional parkinq demand materializes as a result of the City{s redevelopmentang revitalization initiatives. Moreover{ the unfortunate reality is that the provision of replacement and/or additional beach parking involves the provision of structured PEAl< HOURLY DEMAND BYWEEI< - -7t-=j- -:~.f. .---== _ --~l+- ~~.1. - ~ l - ..;/- · "l.~- \.,,- _ _ 11__11 _ _ II __ _ U ~._~_c.~-- -- - - n ! . _ J 1400 C/) 1200 I.LI u <C 1000 a.. C/) I..L. 800 0 0::: I.LI ell 600 2: :::> z 400 200 0 . OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP SOURCE: CITY PARKING REVENUE DATA AND PARSONS ENGINEERING ANALYSIS PARKI NG STRATEGY 6 . . . parking spaces which cost more than 10 times a surface parking space to construct and maintain. As a result, the economic feasibility of replacement and/or additional beach parking is not likely to be sustained by a parking rate structure established by City Commission fiat based on revenue needs and constituent tolerance levels, unless additional parking demand materializes, particularly during non- peak periods. If, for example, the periods of very low use were increased, the bottom line in annual revenues per average space would be significantly improved, an outcome which is a key part of the destination resort strategy - to better balance season and non-season tourism. All this does not mean that the City should not pursue replacement and additional beach parking, but to make it clear that the City's previously self-imposed requirement that parking garages be self-financing severely limits the ability of the City to provide parking which is responsive to peak season, peak day, peak hour demand for beach parking. And it means that the traditional analyses of economic feasibility are likely to show insufficient net revenues to sustain debt service and coverage requirements unless additional demand, particularly during non peak season, peak day, peak hour periods. Where Do We Go From Here A city without a plan is like a ship without a rudder. Benjamin C. Marsh2 If the City Commission wishes to control its own destiny in regard to the implementation of Beach by Design and realize its promise of a beach revitalized, the City must: 1. fund and construct the realignment of South Gulfview and Beach Walk, including suitable replacement parking; and 2. proceed with a parking garage at Pelican Walk that is sized to meet the needs of the North Mandalay retail district, and if necessary, provide additional collateral to secure debt which is incurred. An Introduction to City Planning: Democracy s Challenge to the American City (1909). CLEARWATER BEACH 7 -- . . PARKI NG STRATEGY 8 e . . A STRATEGY FOR IMPLEMENTATION A Strategy for Implementation of the South Gulfview and Beach Walk Initiative South Gulfview and Beach Walk The implementation of South Gulfview and Beach Walk is a relative straightforward undertaking. All the City needs to do, other than provide for replacement parking, is identify a source of funds currently estimated at $5+ million, complete design development, prepare construction plans, establish a maintenance of function plan, select a contractor and commence construction. However, the financing of the South Gulfview/Beach Walk improvements is somewhat problematic. The Development Agreement with the Marriott Seashell Resort provided that the developer would design and construct the improvements and that the cost of the improvements in excess of the developer's pro rata share of the costs wou Id be recaptured by a rebate of a portion of the additional property and utility taxes that the project would generate. The Seashell agreement also contemplated that the City would require other -- .~...,.,F' I '.: ,......t~;.." ,,,,"'~'r:<",':'. '~;.#:<<,,~."" benefitted properties to contribute a pro rata share of the cost of the improvements which would be repaid to Seashell. Assuming that the Seashell Resort is not going to proceed in the reasonably near future, the City will have to find a way to finance the required improvements. There are several sources of funds which have been discussed and may be available. The fact that the City opts to finance the South Gulfview/Beach Walk improvements does not mean that the City could not still impose a fair share obligation on the benefitted properties. There are a number of ways in which a special assessment or development exaction could be imposed on benefitted properties so that only those properties which are redeveloped and take advantage of the vacation of the east half of the existing right of way of South Gulfview would be obligated to contribute a pro rata share. '7 iii' 111il&) ~' hi '..'!.: _. -- ~.....~.'" ..; ~, ...~. ," p CLEARWATER BEACH 9 . r~T ~ 'I .'~ ~'j""-, ~ . , ;~l . a . r. \ , ;-.-.~\"--- f.c "'''.'\ ~ :~ ': r i l' '~~. "";'1 ~"'! ".1"" " -'ti;~,'t' ..ti,-,,;c' ....:_,;.1, .""~.fi ..... ~.'. ~ ". J<lI.... i,.'. ,;....".J .-~,'~; 'l~J ~ ";'~~ '~4~t, PARKI NG STRATEGY 10 REPLACEMENT OF BEACH PARKING - In order for the City to implement the realignment of South Gulfview and construct the Beach Walk, it is necessary that the City make provision for as many replacement parking spaces as possible for the spaces which would be removed as a part of the South Gulfview/Beach Walk project. The location of the replacement spaces in the south beach area is, as it has been recognized for years, problematic. In the original Strategies for Revitalization for Clearwater Beach, a series of off-street parking garages between Coronado and Hamden were contemplated. The \\Beach by Design" planning process concluded that land acquisition would be controversial and costly and that the City's policy at that time to construct add itional parki ng faci I ities sooner rather than later argued in favor of parcels which were either owned by the City or involved a limited number of owners. The issues of land assembly and cost were, in fact, the reasons why the Pier 60 plus option was the highest ranked site for additional beach parking. There are severa!1 options which are available to provide replacement and additional beach parking. . . CLEARWATER BEACH 11 . Coronado/South Gulfview . ,~ ~ " "'i t. jd 1 1. >:, '.. 11' ,~. J :' \i,' ,f , ~ ',h . ~ ',' ,.t;..a.."1/fi · It' * '--JI'I'}. .;;" ,,\' , ,,(' 'i1j'> .. \...~< i~ _ tL ..r,~, An obvious location for replacement parking are lands between Coronado and South Gulfview, where the Seashell Resort and the Markoupolos project contemplated large parking structures open to the public. The aesthetic and economic implications of large parking garages between Coronado and South Gulfview have, however, always been of great concern. That concern persisted during the brief primacy of the Pier 60 plus garage and during consideration of the Seashell Resort which was promoted as a superior alternative to the Pier 60 plus site. . In addition to general concerns about the attractiveness of parking garages, the public discussion tended to draw back from the rationale that it was sensible to locate a free- standing garage immediately adjacent to the Beach Walk, even if the garage was \\wrapped" at the ground level with retail uses. This hesitation was based, at least to some extent, on a belief that the land between Coronado and South .. ~ . .. ':'\ :1..."1 .. '. Gulfview is the City's best land and best opportunity to revitalize Clearwater Beach as a unique and desirable beachfront \\neighborhood," a community resource and a quality tourism destination. Although the Seashell Resort development agreement was approved with as many as 825 spaces, the approval did not resolve the general discomfort with the mass that resulted from the inclusion of \\public" parking spaces in the Coronado/South Gulfview block. The issue of mass was also a conspicuous concern when a proposed settlement a~lreement between the objecting owner of the Days Inn property and the City was rejected by the City Commission. Finally, the cost of land between Coronado and Harnden, relative to other land on the Beach, makes parking structures an expensive proposition. . MARKOU POLOS PROPERTY PARKI NG STRATEGY 12 . Pier 60 The existing surface parking lot at Pier 60 is municipally owned and, theoretically, could be easily converted into a very large public parking garage. However, the scenic and functional costs of a garage at Pier 60 have always been resisted. Indeed, the source of the Pier 60+ option was a desire to avoid the functional and scenic implications of a garage by allowing the garage to be "stepped back" to the south. . When Pier 60 was last presented to the City Commission as a potential site for a parking garage, the City Commission was not enthusiastic and there is no reason to believe that the various negative aspects of a parking structure on the site will be overcome in the near future. Indeed, it is more likely that recent discussions about improving the scenic and recreational value of the Pier 60 parking lot in conjunction with the proposed Markopoulos settlement agreement have attuned public expectations to less parking and more scenic and recreational value. . City Marina Another long-term candidate site for additional parking is the City marina. The logic behind this site is the apparent need for additional parking to serve the marina and its strategic location; which may also be the principal disadvantage ofthe marina site. There are a number of reasons why the marina is not a priority site for the provision of replacement or additional beach parking. First, and foremost, the marina fronts on the entryway to the Beach and the Beach Roundabout. The concept of the Roundabout complex is an attractive and efficient place of arrival and distribution for traffic coming to and leaving Clearwater Beach. A pal'king garage at the City Marina would likely interfere with the design objectives for the Rounclabout complex as local movements, as drivers queue up to enter the garage, conflict with through movements. Second, the construction of a parking garage which is not part of a long term revitalization and re-use plan for the marina would likely foreclose many revitalization options which are currently avai lable to the City. Third, a parking garage on the marina property would be a substantial distance from the dry sand and would substantially increase the number of pedestrians crossing Coronado in the vicinityofthe Roundabout. Finally, the dimensions of the marina property, in the absence of large scale redevelopment, are not ideal for a parking garage and would not be easy to address the aesthetics of the garage. .lJ. Pier 60 (f> City Marina CLEARWATER BEACH 13 - Coronado/Harnden Beach by Design, as did Strategies for Revitalization, identifies the properties located between Coronado and Hamden as potential locations for replacement and additional beach parking. As with other potential sites, there are advantages and disadvantages with the Coronado/Hamden properties. The advantages, however, seem to clearly outweigh the disadvantages. . The Coronado/Hamden land is a patchwork of small motels and individual properties making land assembly a difficult and costly process. The City could, if it wished, deploy its power of eminent domain to assemble land, however, the City Commission has historically been hesitant to do so. Moreover, land assembly by eminent domain is not "a walk in the park" and generally ends up costing multiples of fair market value once the jury weighs in and attorneys fees on both sides, which under Florida law are paid by the condemning authority, are considered. Private assemblies of land are an alternative, however, recent history on the Beach suggests that unrealistic property owner expectations make private assemblies difficult if not possible. In one recent example, the actual assembly was not the problem, rather the total cost of satisfying the appetites of multiple property owners was economically infeasible - at any realistic density. That is not to say that assemblies are not possible, but rather to say that they are difficult and involve the parable of the "goose that lays the golden eggs" - a single property owner can destroy an assembly which would otherwise improve the lot of all owners. On the other hand, the land between Coronado/Hamden is less valuable than Gulf front land and is at least theoretically more easi Iy assembled. . PARKI NG STRATEGY 14 Another advantage of the Coronado/Hamden land is that it would be less problematic to develop an efficient and attractive garage considering the dimensions of the blocks and the character of the neighborhood. Indeed, the blocks to the north of Brightwater could accommodate a three-bay garage which would be very efficient and a very large number of spaces could be provided, at once or in phases, without requiring a large number of decks. In addition, the assembly of a number of small motels offers a number of potential benefits to the City. Most, if not all of the small motels along the east side of Coronado currently use the public right of way for parking, a problem which is recognized in "Beach by Design" where: the City recognized that it should \\improve Coronado by recapturing a portion of the public right-of-way which is currently used for parkways, sidewalk and off-street parking." If land between Coronado and Hamden were assembled for a garage, the right-of-way problem would be addressed in two ways. First, the right-of-way would be reclaimed for those properties acquired as a part of an assembly. Second, the construction of parking facilities between Coronado and Hamden would provide properties which are not acquired with a reasonable parking alternative so that the impact of removing off-street parking from the east side of the Coronado right-of-way would be substantially mitigated. Still another advantage is the reality that the City in acquiring land assembly would be acquiring an inventory of transferable residential/hotel development rights which could be used by the City to provide redevelopment incentives to non-destination resort redevelopment projects and to provide incentives after the bonus pool has expired. . Perhaps most importantly, the provision of parking between Coronado and Hamden - across the street from land between Coronado and South Gulfview which has been identified as the only real opportunity for the development of quality destination resorts - would allow employee, valet, event and overflow parking to be accommodated in the parking garages as opposed to inclusion in the mass of the resort structures. Although it is not easy to predict the actual parking demand of yet unplanned resorts, it can be reasonably anticipated that the number of spaces in a resort structure could be substantially . . reduced - perhaps by 30% to 50% - if employee, valet, event and overflow parking were located in garages across the street between Coronado and Hamden. On the other hand, the location of beach parking on the east side of Coronado sets up a peak hour conflict between through traffic and pedestrians crossing the road on their way to the Beach. To some extent, the conflict is mitigated by differing peaks -AM commuter traffic (when turning movement conflicts would be the greatest) is generally over by the time of peak parking demand for beach goers. This conflict could also be substantially mitigated if any j CLEARWATER BEACH 15 - garage between Coronado and Hamden were connected to the west side of Coronado by a pedestrian over pass. Assuming that the widening of Coronado, which would be facilitated by recapture and possible expansion of right of way, is sufficient to accommodate reasonable queuing, it is likely that the existing traffic condition would be substantially improved. Not all locations within Coronado and Hamden area are equal in terms of suitability, even though the east-west distance between the Coronado/Hamden sites and the dry sand is roughly equal because beach goers' desire lines have a significant northern bias towards the Pier 60 complex. In addition, the likely sites of future destination resorts are located in the northern 1I3rd of Gulf-front properties. As a result, the northern most block, between First and Third is the optimum block between Coronado and Hamden, based exclusively on parking patron "desire lines./I The block between Third and Brightwater is less advantageous, but still reasonable if sufficient land can be assembled at a reasonable price. Further south, between Coronado and Hamden, is also a possibility, though the likelihood that beach patrons attracted to the Pier 60 complex will park in a garage that far south is doubtful given the distance. . . ACQUISITION PRIORITY PARKI NG STRATEGY 16 . Recommendation It is recommended that the City Commission make a formal commitment to construction of replacement parking on an assembly of land between Coronado and Hamden if, and only if, a reasonably-priced land assembly is presented to the City which is of sufficient size to accommodate a floor plate of at least 75,000 square feet with a minimum dimension of not less than 210 feet. . Based on current asking prices on the Beach, from appraisals assembled as a result of the City's redevelopment activities on the Beach, the cost of 75,000 square feet should be approximately $60 per square foot of improved land. Given the natural proclivity of individual property owners to assume that their property is worth more than anyone else's and the transactionallfriction/legal costs of public assembly and the ability of a parking structure to support these costs, it is recommended that the City take a position that it is prepared to pay a modest premium over fair market value, but that does not mean the City is prepared to grant property windfalls. While this price represents an enormous premium over assessed value and a significant premium over appraised value, it is not difficult to rationalize a premium of 30%, assuming appropriate assembly and no other cost except demolition to the City. Assuming that the existing parking capacity and demand ratios are maintained over time - that is, increased demand is linked to additional capacity in some reasonable way, net operating revenues of a parking garage would provide sufficient cash flow to repay debt service but would not be sufficient to provide a coverage ratio of 140%. Moreover, if the City aligns capacity to demand on the basis of at least 5 hours of parking on at least 250 days a year, a garage should be \\self-financing" at the premium . recommended, but would require some additional revenue source to secure favorable rates and acceptable coverage ratios. It is recommended that the City establish a relatively short time frame for acquisition of a land assembly for two reasons. First, the realignment of South Gulfview and construction of the Beach Walk are time sensitive and the City can not afford to wait to implement a replacement parking strategy. Second, and perhaps more importantly, land assembly is difficult at best and time is not an ally. If the owners of candidate properties wish to sell, the City needs to say directly that this is what we can pay and unless an appropriate assembly of owners are willing to sell at a reasonable premium, the assembly is not going to be successful. And, time will not make the decision different, or easier. In the event that a reasonably priced land assembly is presented to the City, it is recommended that the City approach the provision of replacement and additional Beach parking in phases. Initially, it is recommended that the City demolish the existing improvements on the assembled land and construct a temporary surface parking lot to provide replacement parking. The economics of the temporary parking lot are not self-financing, however, the City's exposure is relatively modest, particularly if the property could be acquired on some sort of fund transfer basis and carried as an asset until a garage is constructed. Assuming demolition and construction of the temporary surface lot at approximately $5.50 per square foot and acquisition at the maximum premium recommended for the annual cash flow deficit (assuming an interest only cost of funds) would C L EA R WATE R. B.EACH 17 e be less than $100,000 depending on the size of the assembled parcel of land. When additional demand for beach parking results from the implementation of the South Gulfview/Beach Walk improvements and/or the development of destination resort facilities, the City should construct a parking garage sufficient to meet projected demand on a self-financing basis. This approach will minimize the City's risk and the scope of the City's initial financial obligation. . In the event that a reasonably priced land assembly is not presented to the City within the 120 day period, the City's commitment to the construction of replacement parking between Coronado and Hamden should expire and be of no further force and effect. In this event, the City should undertake to provide a minimum of at least 250 replacement parking spaces in the form of parallel parking along available right of way, on property available for lease for at least five years and through the reconfiguration of existing surface parking facilities. In particular, the City should immediately give notice to all private property owners with parking or other improvements within the right of way along Coronado to remove those improvements. The right of way should be improved with parallel, pay parking for beach patrons as a part of the Beach relocation strategy. The success of this recommended strategy in providing a stable and predictable environment for private investment is the City Commission's willingness to establish a definitive action plan and to adhere strictly to its terms. . PARKI NG STRATEGY 18 The race is not always to the swift... but to those who keep on running. Author Unknown That is so because the future of Clearwater Beach has been held hostage by indecision for too long and if the City wishes to genuinely commence implementation, it must commit to a course and stick to it. PELICAN WALI< GARAGE SITE . A STRATEGY FOR IMPLEMENTATION A Strategy for Implementation of the Pelican Walk Garage The reality is that the provision of parking is an effective redevelopment incentive. It is well-known, for example, that several major restaurant brands would like to locate on Clearwater Beach. At this time, however, there is insufficient parking for the parking demands of those establishments. Assuming that the North Mandalay retail district would be enhanced by the establishment of these restaurants on the Beach, at Pelican Walk, for example, then the provision of additional, convenient parking would facilitate revitalization investment which is otherwise deterred by the limited marketability of existing space because of parking deficiencies. . If a reasonable price could be negotiated with the owner of Pelican Walk and the number of spaces constructed in a Pelican Walk garage were limited to a total of 450 spaces, then the basic economics of the garage are reasonably feasible. In their report, Parsons concluded that peak parking demand would be 227 spaces during the week and 350 spaces during the weekend. While it is easy to quibble with these projections if the North Mandalay retail district, including Pelican Walk itself, is revitalized, the important point is that the net revenues forecast by Parsons would support debt service - but not coverage - assuming that land acquisition does not exceed approximately $1 million. While there is undoubtedly risk the in the performance of the garage, the risk can be substantially mitigated if property owner~ and businesses in the area would participate by guaranteeing certain minimum revenues during the early years of operation, as one property owner/developer has already pledged. As for the provision of additional beach parking for the northern part of the Beach, the original City Commission parking decision contemplated that a parking garage at Rockaway was a future phase garage and that a garage should be developed as soon as sufficient demand exists to support debt service and debt coverage. Recommendation It is recommended that the City Commission make a formal determination to implement the Pelican Walk garage, as soon as an acceptable land acquisition agreement can be negotiated. It is recommended that the City implement a parking demand monitoring system for north beach and as soon as sufficient demand for 5 hours of parking per day for 250 days per year for an additional 300 parking spaces is evident, the City should implement the Rockaway garage on a revenue bond basis. . CLEARWATER BEACH 19