TO: Mayor and Commissioners
FROM: Anthea Gianniotes, Development Services Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: December 10, 2024
Title
RESOLUTION NO. 80-24: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, UPDATING THE SCHEDULE OF IN LIEU FEES FOR PARKING, PURSUANT TO THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, FLORIDA SECTION 4.6.9, “OFF STREET PARKING REGULATIONS”, SUBSECTION 4.6.9(G), “FEE IN-LIEU OF PARKING;” PROVIDING AN EFFECTIVE DATE AND FOR OTHER PURPOSES.
Body
Recommended Action:
Recommendation
Consider Resolution No. 80-24, amending the in-lieu of parking fee schedule.
Body
Background:
The fee schedule proposed in Resolution No. 80-24 adopts a fee schedule to correspond to the proposed updates to the in-lieu of parking fee regulations (Ordinance No. 14-24). The current fee schedule, adopted via Resolution No. 27-17 on May 2, 2017 is provided as an attachment.
If the City Commission desires to adjust the existing fees to reflect an equal amount in today's dollar's valuation, the fees would adjust as follows:
Area Current Fee Today's Value
Area 1 $23,000 $30,000
Area 2 $10,140 $13,180
Area 3 $ 4,600 $ 6,000
Cost of Structured Spaces: $22,000 to $53,000. The range depends upon the number of levels above ground and the number of subterranean levels.
It is also important to consider the purpose of using in-lieu of parking fees. The Downtown Development Authority (DDA) Executive Director, Ms. Laura Simon, shared historical documents about the origins of the "In-Lieu-Of Policy" saved by Mr. Roy Simon, AIA, from his time leading the DDA. In 1988, a DDA workshop agenda item notes that until the late 1960s, downtown did not have parking requirements. When parking requirements were added to the code, any efforts to expand or redevelop were "stifled and came to a standstill." At the time, businesses were following a national trend of abandoning downtown locations for new shopping centers in suburban locations. "To avoid panic, generate interest, and encourage development in the downtown," the Chamber of Commerce and the City coordinated with the DDA to establish a "nominal" payment to "induce and encourage revitalization." Creatively resolving the parking burden on individual parcels was an important measure in revitalizing the downtown area.
Today, the downtown is a desirable, vibrant area. The issues have shifted within Areas 1 and 2 from encouraging redevelopment to managing the success of the downtown activity, including crowds, traffic, concerns over losing existing buildings, and the scale of redevelopment. Area 3 has begun to see increased redevelopment interest, with new redevelopment projects moving through the approval process, but less construction activity at this time. To date, no in-lieu of parking fees have been requested in Area 3, and the area remains in need of new investment and revitalization, which is consistent with the original purpose behind the program.
Historic preservation has also been heavily discussed recently; both eliminating the use of in-lieu fees to facilitate redevelopment that demolishes historic buildings and reducing the cost of in lieu fees for projects that preserve the historic structures that help define Delray Beach offer new purpose to the in-lieu tool that reflect today's needs. The accompanying ordinance also introduces limits to the use of in lieu of parking fees in all areas to buildings that are no more than two stories total in height, focusing on adaptive reuse and maintaining the moderate scale of the downtown area.
Finally, the cost of providing public parking options serving the downtown and the best method to finance another garage is also a consideration. If the cost of an in lieu payment is intended to equal the cost of building a physical space, then the fees should reflect that cost, which is rising faster than the rate of inflation due to material and labor cost increases. Currently, parking garage construction ranges from $22,000 to $53,000 per space, depending upon the scale of construction. Public parking infrastructure is tool to support downtown businesses. The City Commission must determine whether allowing a payment that is less than the cost of building a physical space is appropriate in some areas to advance certain goals, such as encouraging investment in the West Atlantic Neighborhood or for historic preservation purposes. In setting the fees, the City Commission should also consider that Area 2 is comprised of the Old School Square Historic District and Area 3 has the lowest demand to date.
The attached resolution does not list fees. Direction regarding the fees will be provided at the meeting and the resolution will be updated accordingly for execution.
City Attorney Review:
Resolution No. 80-24 is approved as to form and legal sufficiency.
Funding Source/Financial Impact:
The proposed fee schedule represents an increase from the current in-lieu of parking fee schedule.
Timing of Request:
Resolution No. 80-24 will be effective immediately upon adoption.