HomeMy WebLinkAboutStaff Report 2535
City of Palo Alto (ID # 2535)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/21/2012
May 21, 2012 Page 1 of 2
(ID # 2535)
Summary Title: Approval of Amendment to Agreement with Casa Olga
Title: Approval of Amendment No. 2 to an Agreement Between the City of Palo
Alto and Casa Olga Relating to the University Avenue Area Off-Street Parking
Assessment District
From: City Manager
Lead Department: Administrative Services
Background
In Fiscal Year 2000-01, a downtown parking assessment district was formed to
build two new, multistory garages in the downtown area and to refinance prior
district debt. The garages (one on High Street and one on Bryant Street) were
built to accommodate additional parking demand in the downtown from
employees and shoppers and to alleviate parking in residential areas. Property
owners within the assessment district voted to self-assess themselves under
Proposition 218 guidelines in order to pay for the bonds to construct the garages.
One property owner, Casa Olga, made a reasonable claim at that time that the
formula used for allocating assessment costs (requirement of 1 parking space per
250 square feet) did not properly reflect parking needs since its building was
structured as a convalescent care facility. In order for the assessment district to
move forward, an agreement was reached with Casa Olga that of the 195 spaces
assessed, Casa Olga would be reimbursed on an annual basis for 117 spaces and
Casa Olga would pay for 78 spaces. This agreement was approved by Council on
March 19, 2001 (CMR: 177:01). With Bond Counsel approval, the annual
reimbursement to Casa Olga has been paid using proceeds from the 2001 bond
issue.
May 21, 2012 Page 2 of 2
(ID # 2535)
Discussion
Recently, Casa Olga has entered into a 50 year lease agreement with a hotel
company, Joie de Vivre. There is an opportunity to terminate the current
agreement with Casa Olga by using available proceeds to pay the net present
value of the future stream of payments to Casa Olga. This value is $466,452. This
payment will eliminate the burden of administering the agreement since Joie de
Vivre would then pay the full annual assessment for 195 spaces. Staff
recommends that the old agreement with Casa Olga be ended by approving the
attached document.
Attachments:
Attachment A: Agreement for Casa Olga Off Street Parking Assessment (PDF)
Prepared By: Joe Saccio, Assistant Director of Administrative Services
Department Head: Lalo Perez, Director
City Manager Approval: ____________________________________
James Keene, City Manager