To: Honorable Mayor and Members of Town Council
From: David L. Corliss, Town Manager
Title
Resolution Approving a Parking Lease Agreement with Douglas County School District RE-1 [55 surface parking lot spaces to the east of the School District headquarters building, 620 Wilcox Street]
Body
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Executive Summary
In response to growing need for parking and as potential parking use for the proposed City Hotel redevelopment, Town staff and Downtown Development Authority (DDA) staff have worked with Douglas County School District (DCSD) staff to present a lease for fifty-five surface parking lot spaces to the east of the DCSD headquarters building at 620 Wilcox Street. Staff recommends that the lease and maintenance payments associated with the lease be paid from the DDA special fund.
Background
As Council knows with a successful downtown, parking for employees, customers and visitors will be a continuing challenge. The Town has in recent years acquired 308 public parking spaces in the parking garage at the Encore project, acquired 100 public parking spaces that will be opened with the completion of the View project at 6th and Jerry, and continues to look for additional public parking opportunities. The early 2023 citizen survey identified parking as a top concern of citizens for the downtown area. 42% of the survey respondents indicated that parking was their top priority in responding to the question: What could be done to improve downtown Castle Rock? (The next highest response was 20% indicating the managing growth to maintain character.)
The recommended lease would provide that the fifty-five (55) most eastern DCSD owned parking spaces would be available for public parking. Additionally, the lease allows the Town to sub-lease all or a portion of these spaces. Separately, the Town and DDA have been working with the owners of the old City Hotel at 421 Perry. The owners are proposing a restoration of the old historic structure and the construction of new boutique hotel at the site. The Town parking requirements for the redevelopment are approximately 25 additional spaces and the applicant has been unable to secure an adjacent location for the parking. The applicant is proposing valet service for the hotel which is allowed by Town Code, and the DCSD leased spaces may be appropriate for this parking use.
The lease is set out for one (1) year terms which automatically renew for a total ten (10) year period. The rent amount is $50.00 per space per month, for a total of $33,000 annual rent. Additionally, the Town will be required to pay pro-rata cost for maintenance. Staff recommends the use of the DDA special fund (incremental property tax and sales tax generated in the downtown) for the payment of both the rent and maintenance requirements of the agreement. The Town shall also be responsible for the installation and maintenance of signage for the 55 parking spaces and these costs will also be borne by the special fund.
The School District approved this lease (attached) at their meeting of June 20, 2023. The DDA recommended approval at their meeting on May 11, 2023. Town staff recommends approval of the lease agreement as well.
Recommended Motion
“I move to approve the Resolution authorizing the Mayor to execute a lease agreement with Douglas County School District for 55 surface parking spaces at 620 Wilcox Street .”
Attachments
Attachment A: Parking Lease Agreement