Chapter 16.57 — IN-LIEU PARKING FEE FOR NEW NONRESIDENTIAL DEVELOPMENT

IN THE COMMERCIAL DOWNTOWN (CD) ZONING DISTRICT

The in-lieu parking fee regulations set forth in this chapter shall apply only to nonresidential development within the University Avenue parking assessment district which meets the eligibility criteria set forth in subsection (d) of Section 18.52.070 of this code. In accordance with Section 18.52.070 of this code, provision of a parking space or payment of the fee established by this chapter shall be a condition of the approval of or permit for any new development, any addition or enlargement of existing development, or any use of any floor area that has never been assessed under any Bond Plan G financing pursuant to Title 13 of this code.

(Ord. 5552 § 2, 2022: Ord. 5373 § 3, 2016; Ord. 4528 § 2, 1998: Ord. 4256 § 3 (part), 1995)

For the purposes of this chapter, the following definitions shall apply:

(a) "Assessment district" means the University Avenue parking assessment district.

(b) "City" means the city of Palo Alto.

(c) "EIR" means the Downtown Study Environmental Impact Report, dated December 1985, and certified by the city council on July 14, 1986.

(d) "Fee" means a payment in lieu of the provision of required parking spaces.

(e) "Fund" means the University Avenue parking assessment district in-lieu parking fund.

(f) "Gross floor area" shall be defined as set forth in Section18.04.030 of this code.

(g) "Net new parking space" means a public parking space that is constructed at a particular location in the assessment district, in excess of any existing public parking spaces lost or removed from that same location.

(h) "Public parking space" means a parking space owned and operated by or on behalf of the assessment district.

(Ord. 4256 § 3 (part), 1995)

(a) Initial Fee. The fee for each two hundred fifty square feet of gross floor area in a development shall equal the sum of the construction, land acquisition, if any, and administrative costs attributable to the provision of one new parking space, as established by the city council on the basis of calculations made under this chapter. The fee shall be $30,250.00 per two hundred fifty square feet of gross floor area, and has been calculated based upon the feasibility study.

(b) Recalculated Fee. In the event the city council approves the construction of a public parking structure or structures, the city shall adjust the fee as follows:

(i) At the time the construction contract is awarded, the fee shall be adjusted to reflect the actual “design costs” incurred by the city for the construction project as of the date the construction contract is awarded, plus “construction costs” based on the construction contract award.

(ii) At the time the final payment is made upon completion of the construction project, the fee shall be adjusted to reflect the actual “design costs” and “construction costs” incurred by the city for the construction project.

(iii) The fee as recalculated pursuant to subsection (b)(i) or (b)(ii) may be higher or lower than the initial fee.

(iv) In the event that a construction project involves the construction of more than one parking structure, the recalculation of the fee shall be based on the structure with the highest cost per net new parking space.

(c) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section16.64.110.

(d) For the purposes of this section, the following definitions shall apply:

(i) “Construction costs” shall mean and include the construction costs, as bid, including any authorized contingency or as paid, based upon actual construction. “Construction costs” shall include bond financing costs, if applicable.

(ii) “Design costs” shall mean and include architect fees, engineering fees and other consultant fees, as proposed or as paid, based upon actual performance. “Design costs” shall include bond financing costs, if applicable.

(iii) “Net new parking space” cost shall mean the cost to provide one new parking space in a public parking structure, and shall equal the sum of

the construction, land acquisition, if any, and administrative costs of the structure attributable to each space in the structure.

(Ord. 5400 § 7 (part), 2016: Ord. 4528 § 3, 1998: Ord. 4256 § 3 (part), 1995)

The fee shall be paid as set forth inChapter 16.64 of this code.

(Ord. 5400 § 7 (part), 2016: Ord. 4528 § 4, 1998: Ord. 4256 § 3 (part), 1995)

There is hereby established a special University Avenue parking assessment district in-lieu parking fund (the "fund"), into which all fees, and any interest thereon, shall be deposited. The fund shall be maintained as a separated capital facilities account in a manner to avoid any commingling of the fees with other revenues, funds or accounts of the city. Upon receipt and entry to the accounting records for the fund, such moneys shall be considered committed to the uses prescribed in Section 16.57.060.

(Ord. 4256 § 3 (part), 1995)

The moneys in the fund shall be eligible for expenditure only for construction of public parking spaces within the assessment district to serve the parking needs of the district created by the developments that paid the fees, as determined by the chief transportation official, subject to the approval of city council. If facilities are constructed prior to deposit of sufficient moneys into the fund, then fees may be used to reimburse the city for expenditures made in advance of receipt of fees. In no event shall moneys in the fund be used for regular maintenance of parking facilities or for any parking facilities not available to employees and customers of businesses located in the assessment district. The priorities for expenditures of moneys in the fund as among various types and locations of parking facilities shall be as determined by the city council, after considering the recommendation of the chief transportation official.

(Ord. 4256 § 3 (part), 1995)

The uses proposed for expenditure of the moneys in the fund shall be reviewed annually by the city council along with its review of the city’s capital improvement program, and the moneys from the fund shall be appropriated for such expenditure in the manner provided by the Palo Alto City Charter and Municipal Code for adoption of the annual budget.

(Ord. 5400 § 7 (part), 2016: Ord. 4256 § 3 (part), 1995)

If any provision of this chapter or the applicability thereof to any person or entity is held to be invalid by a court of competent jurisdiction, such invalidity shall not affect any other provision of this chapter which can be given effect without the invalid provisions or application; and to this end the provisions of this chapter are declared to be severable.

(Ord. 4256 § 3 (part), 1995)