HomeMy WebLinkAboutSS3 - Potential Parking Structure at 23rd Street & Balboa BoulevardCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Study Session Agenda Item No. SS3
January 25, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Sharon Wood, Assistant City Manager
644 -3222, swood @city.newport- beach.ca.us
SUBJECT: Potential Parking Structure at 23`d Street and Balboa Boulevard
(109, 111, 115, 117, 119, 123, and 125 23`d Street and
2301, 2307 and 2309 Balboa Boulevard)
ISSUE:
Should the City explore the development of a municipal parking structure at 23`d Street
and Balboa Boulevard?
RECOMMENDATION:
Provide direction to staff.
DISCUSSION:
Council Member Ridgeway requested that the City Council discuss the potential for
developing a new municipal parking structure in the McFadden Square area of the
Balboa Peninsula. The exact location on which staff has done preliminary study for this
report is shown on the attached aerial photograph, Attachment 1. The potential project
site is northwest of 23`d Street and west of Balboa Boulevard, and would include the
properties at 109, 111, 115, 117, 119, 123, and 125 23`d Street and 2301, 2307 and
2309 Balboa Boulevard. All of these properties are currently privately owned and
developed.
This location is convenient to the beach, as well as to commercial activity in McFadden
Square and on the opposite side of Balboa and Newport Boulevards. A new parking
structure would benefit the public visiting beaches on the Balboa Peninsula, benefit
businesses and residents in the area, and relieve some of the congestion in the Ocean
Front parking lot.
Staff estimates the land acquisition cost at $1.6 million, and the basic construction cost
at $3 million. This would be for a structure with three levels plus rooftop parking,
Potential Parking Structure at 23rd Street and Balboa Boulevard
January 25, 2005
Page 2
without an enhanced fagade treatment. The structure would provide approximately 135
spaces. If the City were to finance the full cost of $4.6 million at 6.5% interest, annual
debt service would be about $325,000 for forty years. This could be offset by parking
revenue from the new structure. Based upon current revenue from the Ocean Front
parking lot, staff would expect the new parking structure to generate approximately
$250,000 per year. Another potential source of funds is the Off - Street Parking Fund,
which has a current balance of approximately $300,000 and annual income of
approximately $60,000.
The City might not need to pay the full cost of the structure, if commercial property
owners would agree to an assessment for it. This would be more likely if the presence
of additional parking would allow properties to be redeveloped with more building area
than exists today.
Staff assessed the future development potential in the vicinity of the proposed parking
structure. The area assessed is shown on Attachment 2. This exhibit also shows that
many properties in the area have existing development that exceeds General Plan and
Zoning development limits, having been developed prior to current regulations. Land in
this area that is not fully developed is used predominantly for parking. The main
exception to this is the South Coast Shipyard property (east of Newport Boulevard),
which is the largest underdeveloped property in the area. However, there is an active
development application for this property, which shows all required parking being
provided on site. Accounting for the amount of commercial floor area being proposed in
this application, staff estimates the remaining un -built entitlement at approximately
32,000 square feet. If the area of benefit were expanded, the development potential
might be a bit higher, but the parking structure becomes less useful as the distance
from it increases.
Environmental Review:
If the City Council were to decide to develop a parking structure, environmental review
would be required when a specific project is designed.
Submitted by:
Sharon Wood
Assistant City Manager
Attachments: 1. Aerial Photograph of Potential Parking Structure Site
2. McFadden Square Potential Development
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SUPPLEMENTAL INFORMATION
POTENTIAL PARKING STRUCTURE
23RD STREET AND BALBOA BOULEVARD
Land acquisition cost $3,000,000
Construction cost 3.000,000
TOTAL COST $6,000,000
ANNUAL DEBT SERVICE $423,000
(6.5% interest, 40 years)
1 -35-05