HomeMy WebLinkAboutStaff Report 3810
City of Palo Alto (ID # 3810)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/10/2013
City of Palo Alto Page 1
Summary Title: Lot P Parking Garage
Title: Consideration of Public-Private Parking Garage on High Street (Lot P)
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends a Council MOTION to direct staff to develop a memorandum of
understanding with 135 Hamilton LLC, consistent with the terms outlined in Attachment A, and
direct the owner to develop plans and submit an application for review of the Lot P Parking
Garage project.
Executive Summary
Chop Keenan, the owner of 135 Hamilton (135 Hamilton LLC) has proposed to the City a joint
public-private parking garage on surface parking Lot P on High Street. The proposal would
include payment of almost $7 million of the construction costs by 135 Hamilton LLC and about
$1.5 million by the City of Palo Alto. The garage would result in a total of 145 parking spaces, a
net increase of 94 spaces over those existing in the surface lot today. The fourth and fifth floors
(63 spaces) of the garage would be dedicated during the day to parking for the 135 Hamilton
project, and the owner is to provide another 30 “attendant” parking spaces. All spaces would
be available to the public at night and on the weekends. Staff believes there are multiple
reasons to support such a proposal, and has developed a list of parameters (Attachment A) to
assure benefits of the project are realized, with a financial advantage to the City. In particular,
the proposal would allow for new parking spaces to support both existing and proposed
development, at a reduced per-space cost, and in a timeframe considerably shorter than if the
City financed the project completely.
The next steps would include development of a memorandum of understanding between the
City and 135 Hamilton LLC and review of the specifics of the proposal through review by the
Architectural Review Board, Planning and Transportation Commission, and City Council, as well
as required environmental review. A final contract with 135 Hamilton LLC would be developed
City of Palo Alto Page 2
prior to construction, if and when it is approved.
Background
Downtown Palo Alto is a vital and successful commercial area, with a combination of retail,
office, housing, civic, and entertainment uses. In recent years, however, the success of
downtown has resulted in deficiencies in downtown parking and consequent intrusion of on-
street parking into adjacent residential neighborhoods, both to the north and south of the
commercial district.
On March 18, 2013, staff reported to Council about ongoing and short-term (3-6 months)
measures to alleviate parking impacts in downtown and the neighborhoods. Among the actions
outlined were a) an ongoing Parking Garage Study of the potential for construction of new
parking structures on one or more of five existing parking lots in downtown, and b) evaluation
of a potential public-private development for a new parking structure on Lot P on High Street
between University Avenue and Hamilton Avenue. Other measures included the initiation of a
Downtown Development Cap study, exploring “attendant parking” to create more spaces in the
garages, and evaluation of parking restrictions and/or a residential permit parking program to
limit intrusion into Downtown North and Downtown South neighborhoods.
The study of potential new parking garage sites is addressed as a separate item on this Council
agenda. On March 5, 2013, Keenan Land Company presented (after prior discussions with staff)
a specific proposal for a public-private garage on the existing Lot P parking lot. The private
portion of the garage would serve as parking for the approved 135 Hamilton Avenue project,
comprised of about 20,000 square feet of office use and two residential units above, and 24
below-grade parking spaces, and a requirement to provide in-lieu fees or other compensation
for 40 additional spaces. Transfer of development rights (TDRs) for 5,000 square feet of the
total are proposed, exempting the applicant from providing 20 parking spaces. The proposed
garage is intended to “park” all spaces for the project, except that four spaces would still be
provided onsite for the residential units. The Council, at its March 18 meeting, directed that
staff should evaluate the garage proposal in greater detail and return to Council with
recommendations as to its feasibility, advantages and disadvantages. The Keenan Land
Company’s letter and plans are included as Attachments D and E to the staff report.
Discussion
Staff has reviewed the proposed Lot P plans and terms suggested by the owner of the 135
Hamilton site (referred to as 135 Hamilton LLC). The City’s Parking Garage Study has identified a
garage, similar to that proposed, as feasible on Lot P and estimated to cost about $9 million,
very much consistent with the 135 Hamilton LLC proposal. The primary constraints to the site
are the need to preserve access around the site to serve adjacent businesses on Emerson Street
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and Hamilton Avenue, and the relatively small size of the site, which limits access points to the
garage and the potential for subterranean parking.
Potential Terms of Agreement
The Keenan Land Company has outlined a set of terms (Attachment D) for development of the
site, premised on the developer’s paying almost $7 million of the $8 million cost. The proposed
parking structure would include 145 total spaces, as compared to the 51 spaces currently
provided in the parking lot. The developer has also committed to “attendant” parking for
another 30 spaces for the use of 135 Hamilton. The breakdown of spaces by floor is shown on
the first page of the plans (Attachment E), as follows:
Floor
Proposed
Spaces
Attendant
Spaces*
Total
Spaces
Fifth 32 19 51
Fourth 31 11 42
Third 31 11 42
Second 27 8 36
Ground 24 0 24
Total 145 49 194
*Fourth and fifth floor attendant parking committed by developer; other floors optional by City
Attachment A outlines staff’s suggested terms for an agreement to pursue construction of this
project for Lot P. The outline includes most of the points proposed by Keenan Land Company,
with a few differences and additions. The key elements of the outline for an agreement include
the following:
1. The City will contribute $1.0 million from the City’s In-Lieu Parking Fund towards the
construction of the garage, plus the cost of all permits for the project, estimated at
$500,000 (also paid from the In-Lieu Parking Fund);
2. The owner/applicant of the 135 Hamilton Avenue Project (135 Hamilton LLC) will
pay for the remainder (estimated at $6.989 million) of the project cost;
3. 135 Hamilton LLC will purchase 5,000 square feet of transferable development rights
(TDRs) from the City at $90 per square foot ($450,000) to be used at 135 Hamilton;
4. 135 Hamilton LLC shall contract with the general contractor and oversee
construction through completion;
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5. The garage spaces will be dedicated for use as follows:
a. The top two floors (63 spaces, up to 93 with attendant parking) will be dedicated
with an appropriate easement for the applicant’s use to support the
development of the project at 135 Hamilton Avenue during weekday work hours
(6:00 AM– 6:00 PM).
b. The bottom two floors will be dedicated to public parking to retain at least as
many visitor spaces as the existing Lot P (51 spaces).
c. The City may dedicate the third floor (31 spaces) as either visitor or permit
parking for weekday daytime parking.
d. All spaces will be available to the public in the evening and on weekends.
6. If the City determines that additional spaces could be attained by constructing
subterranean parking, the increment of that cost will be assumed by the City. Any
public spaces beyond those committed to be retained by the Parking Assessment
District parking (51 surface spaces existing) may be made available in any manner
and cost, at the discretion of the City. The City may also provide attendant parking
for any or all of the first three floors at its cost;
7. 135 Hamilton LLC shall provide a legal commitment to provide for “attendant”
parking on the top two floors to increase the parking capacity on those floors to a
minimum of 84 spaces. Access to and use of the parking area shall be an easement
appurtenant to the 135 Hamilton project and available to the building's non-
residential tenants. Use of the easement area shall be included in the project's base
rent and not be an additional charge to its tenants. 135 Hamilton LLC shall also be
required to include in its leases a provision that calls for tenant employees to park in
the easement area and not park on City streets or in other City lots. The
Transportation Management Plan (TMP) for the 135 Hamilton project shall provide
on an annual basis the number of tenant employees working in the building.
8. If requested by the City, 135 Hamilton LLC will coordinate with third-party lessee
entities the installation of a photovoltaic (PV) system where the City would receive
the net revenues generated by the system. It is assumed the height of the system is
excluded from the City's 50' height limitation and terms and conditions are
acceptable to the City.
9. Parking structure plans shall substantially conform to the concept plans submitted
by 135 Hamilton LLC, dated May 7, 2013. The structure will be made of natural
concrete and wall sections in context with the surrounding area. The structure will
be inviting and brightly illuminated with all interior walls and ceilings painted white.
The first floor level will feature floor-to-floor dimensions ranging from a minimum of
11’ to a maximum of 16’ to allow garbage/refuse trucks to service adjacent buildings
behind the structure.
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10. The parking garage will require design review by the City’s Architectural Review
Board, Planning and Transportation Commission, and City Council, pursuant to site
and design review requirements of the Zoning Code;
11. The City shall be responsible for the general operation of the parking structure,
including all maintenance, repairs and replacements. 135 Hamilton LLC shall pay its
pro-rata share of such operating expenses including water, electricity, sweeping,
elevator maintenance, general maintenance, repair, and insurance (earthquake
insurance is not included, but the applicant may provide such insurance at their cost
or alternatively, reimburse the City the cost of this insurance if it needs to be
procured the City). 135 Hamilton LLC’s share of operating expenses shall also include
trash pick-up and police patrol;
12. All permit and other City fees associated with the construction of the garage
(planning; building; public works; utilities connection, capacity & metering fees;
impact fees, and cost of environmental review) shall be waived or paid by the City.
13. All impact and permit fees for the 135 Hamilton Avenue project shall apply. The
traffic impact fees, however, shall be directed to funding parking technology
projects in the downtown area;
14. 135 Hamilton LLC shall be responsible for providing presentation materials for
outreach to the surrounding business community, as well as to the various board
and commission reviews;
15. Upon approval and construction of the parking structure, 135 Hamilton LLC shall not
be required to build the 23 on-site parking spaces shown for the 135 Hamilton
Project, but must still provide 4 spaces on-site for the 2 residential units;
16. If future assessments are approved for Palo Alto's Downtown Parking District, they
shall apply only to the 135 Hamilton project site and not to Lot P; and
17. The City Attorney shall prepare a memorandum of understanding to incorporate the
above parameters and other measures necessary to proceed with the project.
Following final project approval by the City Council, a contract agreement will be
finalized prior to construction.
If directed by the Council, staff would work with the developer to draft a memorandum of
understanding (MOU) for implementation of the project.
Value and Costs to the City
Staff has estimated values of benefits and potential costs to the City under the proposal
(Attachment B), including:
Full valuation of the net new (31 parking spaces) full-time public spaces provided at the
current rate of $60,750 per space (in-lieu parking fee)
City of Palo Alto Page 6
Partial (50%) valuation of the net new spaces (63) shared by the developer during the
day and the public in the evening and weekend
The value of the sale of the transferable development rights, with no associated
reductions in parking requirements (5,000 sf at $90/sf)
A cost of $1 million from the City’s in-lieu fund for construction
A cost of $500,000 from the City’s in-lieu fund for estimated fees, charges and
environmental review paid or waived by the City
Based on this simplified analysis, Attachment B shows a net value to the City of about $2.74
million for the project. Values that were not quantified but could also be argued in the City’s
benefit include the potential for attendant parking for the City and the developer spaces, the
shortened timeframe (approximately 2 years rather than 5 or more years if the City fully funded
the structure) for construction, and the reduced neighborhood impact of parking 60 additional
cars in the garage rather than in the surrounding area, as is likely to be case if the developer
proceeds alone (though about $2.5 million would be provided in in-lieu fees). On the cost side,
the primary drawback for the City is the “opportunity” costs of building a fully public-funded
garage on the site, or some combination of garage and other uses, including potential leasing of
either garage spaces at market rates or leasing of office/retail or other “air rights” for the
fourth and fifth floor.
Value and Costs to 135 Hamilton LLC
The owner, 135 Hamilton LLC, stands benefit from potentially higher lease rates at 135
Hamilton, given an assured source of parking for tenants. Staff has estimated that increase
($1.25-$1.50 per square foot on a net 18,000 leasable sf) in rents over a 50-year timeframe with
a 5% discount rate at approximately $6.0 million (@$1.25) to $7.2 million (@$1.50) present
value benefit to the owner (Attachment C). Staff further estimates that the owner would save
the cost of building or paying in-lieu fees for 60 spaces, a benefit of approximately $3,645,000.
The primary costs to the developer would be the $6.9 million for design and construction of the
garage, and about $2.3 million present value for the cost of attendant parking for the fourth
and fifth floor, estimated at approximately $100,000 per year over the next 50 years. The
owner has also argued that a cost of $200,000 should be assigned for his purchase or
reimbursement for earthquake insurance, but staff has not included this figure since that is a
choice of his, not a requirement by the City. The net value to 135 Hamilton, LLC is therefore
estimated at approximately $390,000 (@ $1.25/sf) to $1,628,000 (@$1.50/sf), as outlined in
Attachment C.
Options for City and for 135 Hamilton LLC
The City and the applicant both have options other than building a joint garage together, and
each of those options has implications financially and for parking in the downtown.
City of Palo Alto Page 7
A. City Options
The City could proceed to pursue a parking garage (or multiple garages) elsewhere in the
downtown, with the following implications:
The City could use its current $2.5 million of In-Lieu Parking fees, plus the required $2.5
million from the 135 Hamilton project, to fund about half of a parking garage and
explore how to fund the remainder, either through bonds or by studying the potential
for financing with future parking revenues. This is likely to take a longer time to develop
revenues and implement, likely from 5-10 years.
The City could look at options for the site that incorporate other uses, such as ground
floor retail or office or residential above. Staff believes that, given the relatively small
and confined space on Lot P, to do either of those cost-effectively would require
allowing increased height above 50 feet. Subterranean parking is also a possibility, but is
likely to significantly increase the cost and time and would create further constraints on
access around the garage. Those options might be more effective on some of the larger
sites identified in the City’s current downtown parking garage study.
Any of the above options are likely to take longer to have an impact on reducing
neighborhood parking intrusion, and will not compensate (financially or otherwise) for
the 20 spaces exempted from the 135 Hamilton project with the use of TDRs. The
development of a Residential Permit Parking program would become even more critical
to protecting the neighborhoods.
B. 135 Hamilton LLC Options
The applicant could construct the required 19 spaces (plus four for the two residential units)
on the site, pay $2.5 million in in-lieu parking fees (assuming no 1:1 FAR exemption is
granted), and proceed with the project as approved. It is likely that 60 vehicles would be
parked on the streets or elsewhere upon construction of the building, until such time as the
$2.5 million financed an additional 40 spaces. The 20 spaces exempt due to TDRs would
only be provided at City cost for a future structure.
Staff believes that, given the options available, the proposed joint public-private garage makes
financial and land use sense at this time. The spaces gained will relieve downtown parking
regardless of whether they are committed to a private development, and the impact on the
City’s parking funds is minimal. The alternatives appear to result in a longer period of time until
any new parking supply can be generated and more immediate impact on both neighborhood
areas and businesses that need parking.
Resource Impact
The proposed project would commit approximately $1.5 million of the City’s in-lieu Parking
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District fees for construction and permitting. The joint venture is estimated to provide a value
to the City of about $2.7 million, which would otherwise be required as City contributions.
Alternatives to financing with this applicant would require either finding another private party
for a joint venture, delaying a garage until adequate funding is available (likely 5-10 years), or
developing a mechanism for funding a garage sooner and pledging future market-rate parking
revenues against up-front bonds or other financing mechanisms.
Policy Implications
The proposed public-private garage would preserve and enhance downtown parking by
providing additional parking for businesses and visitors. The additional parking resource would
also help to protect residential neighborhoods by reducing the need to park outside downtown.
These are both key goals of the City’s Comprehensive Plan.
Environmental Review
Environmental review is not required at this point but will be required prior to project approval
by the City’s boards and commissions and Council. Review would also be necessary prior to
entering into a contract agreement with the 135 Hamilton LLC.
Attachments:
Attachment A: Proposed Terms of Agreement for Lot P Garage (DOCX)
Attachment B: Value and Cost to City of Palo Alto (DOC)
Attachment C: Value and Cost to 135 Hamilton LLC (DOC)
Attachment D: March 6, 2013 Letter Proposal from Keenan Land Company (PDF)
Attachment E: Lot P Concept Plans March 5, 2013 (PDF)
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Attachment A
Lot P Public-Private Garage
Staff Proposal
June 4, 2013
1. The City will contribute $1.0 million from the City’s In-Lieu Parking Fund towards the
construction of the garage, plus the cost of all permits for the project, estimated at
$500,000 (also paid from the In-Lieu Parking Fund);
2. The owner/applicant of the 135 Hamilton Avenue Project (135 Hamilton) will pay for
the remainder (estimated at $6.989 million) of the project cost;
3. 135 Hamilton will purchase 5,000 square feet of transferable development rights
(TDRs) from the City at $90 per square foot ($450,000);
4. 135 Hamilton shall contract with the general contractor and oversee construction
through completion;
5. The garage spaces will be dedicated for use as follows:
a. The top two floors (63 spaces, up to 93 with attendant parking) will be dedicated
with an appropriate easement for the applicant’s use to support the
development of the project at 135 Hamilton Avenue during weekday work hours
(6:00 AM – 6:00 PM).
b. The bottom two floors will be dedicated to public parking to retain at least as
many visitor spaces as the existing Lot P (51 spaces).
c. The City may dedicate the third floor (31 spaces) as either visitor or permit
parking for weekday daytime parking.
d. All spaces will be available to the public in the evening and on weekends.
6. If the City determines that additional spaces could be attained by constructing
subterranean parking, the increment of cost will be assumed by the City. Any public
spaces beyond those committed to be retained by the Parking Assessment District
parking (51 surface spaces existing) may be made available in any manner and cost,
at the discretion of the City. The City may also provide attendant parking for any or
all of the first three floors at its cost;
7. 135 Hamilton shall provide a legal commitment to provide for “attendant” parking
on the top two floors to increase the parking capacity on those floors to a minimum
of 84 spaces. Access to and use of the parking area shall be an easement
appurtenant to the 135 Hamilton Project and available to the building's non-
residential tenants. Use of the easement area shall be included in the project's base
rent and not be an additional charge to its tenants. 135 Hamilton shall also be
required to include in its leases a provision that calls for tenant employees to park in
the easement area and not park on City streets or in other City lots. The
2
Transportation Management Plan (TMP) for the 135 Hamilton project shall provide
on an annual basis the number of tenant employees working in the building.
8. If requested by the City, 135 Hamilton will coordinate with third-party lessee entities
the installation of a photovoltaic (PV) system where the City would receive the net
revenues generated by the system. Assumes the height of the system is excluded
from the City's 50' height limitation and terms and conditions are acceptable to the
City.
9. Parking structure plans shall substantially conform to the concept plans submitted
by 135 Hamilton dated May 7, 2013. The structure will be made of natural concrete
and wall sections in context with the surrounding area. The structure will be inviting
and brightly illuminated with all interior walls and ceilings painted white. The first
floor level will feature floor-to-floor dimensions ranging from a minimum of 11’ to a
maximum of 16’ to allow garbage/refuse trucks to service adjacent buildings behind
the structure.
10. The parking garage will require design review by the City’s Architectural Review
Board, Planning and Transportation Commission, and City Council, pursuant to site
and design review requirements of the Zoning Code;
11. The City shall be responsible for the general operation of the parking structure,
including all maintenance, repairs and replacements. 135 Hamilton shall pay its pro-
rata share of such operating expenses, including water, electricity, sweeping,
elevator maintenance, general maintenance, repair and insurance (earthquake
insurance is not included, but the applicant may provide such insurance at their cost
or alternatively, reimburse the City the cost of this insurance if it needs to be
procured the City). 135 Hamilton’s share of operating expenses shall also include
trash pick-up and police patrol;
12. All permit and other City fees associated with the construction of the garage
(planning; building; public works; utilities connection, capacity & metering fees;
impact fees, and cost of environmental review) shall be waived or paid by the City;
13. All impact and permit fees for the 135 Hamilton Avenue project shall apply. The
traffic impact fees, however, shall be directed to funding parking technology
projects in the downtown area;
14. 135 Hamilton shall be responsible for providing presentation materials for outreach
to the surrounding business community, as well as to the various board and
commission reviews;
15. Upon approval and construction of the parking structure, 135 Hamilton shall not be
required to build the 23 on-site parking spaces shown for the 135 Hamilton Project,
but must still provide 4 spaces on-site for the 2 residential units;
3
16. If future assessments are approved for Palo Alto's Downtown Parking District, they
shall apply only to the 135 Hamilton project site and not to Lot P; and
17. The City Attorney shall prepare a memorandum of understanding to incorporate the
above parameters and other measures necessary to proceed with the project.
Following final project approval by the City Council, a contract agreement will be
finalized prior to construction.
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Lot P Public-Private Garage
City of Palo Alto Benefits and Costs
June 4, 2013
BENEFITS Total
1. Net 31 Daytime Public Spaces Added Above Existing (w/o Parking
Attendant) - 31 Spaces x $ 60,750
$1,883,250
2. Additional 63 Evening and Weekend Public Spaces (In Addition to 31
Spaces Above) - 63 Spaces x $ 30,375 (50% of full availability)
1,913,625
3. Value of City TDR's Purchased - 5,000 SF x $ 90/SF* 450,000
4. Impact of Additional 60 Cars Parking in the Neighborhood Avoided Not Quantified
5. Potential to Add Photovoltaic System with Net Revenues Benefitting the
City Not Quantified
6. Potential to Create a Parking Structure within the Next Two Years as
Compared to a Probable 5 Year Timeframe Otherwise Not Quantified
Total Benefits $4,240,000
COSTS
1. Contribution from In-Lieu Parking Fund $1,000,000
2. Approximate Cost of Exempting Planning and Other Departmental Permit
and Environmental Review for New Garage (also from In-Lieu Fund)
500,000
Total Costs $1,500,000
Benefits in Excess of Costs to City: $2,740,000
+PV System
+2 Yr. Install
+ 60 Cars Off
Street
*note: also could value the cost of constructing 20 spaces to compensate for exemption from
parking requirements if TDRs used by others = 20 x $60,750 = $1,215,000
Attachment B
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Lot P Public-Private Garage
Benefits and Costs to 135 Hamilton
June 4, 2013
BENEFITS Total
1. Construction/In Lieu Fee Saved: 60 Spaces x $ 60,750 $3,645,000
2. Present Value Increase in Rent: 18,000 SF Rentable (20,000 SF Gross) x $
1.25/SF/Mo. x 12 Mo./Yr. = $ 270,000/Yr.@ 5% discount, 50 years, 2%
annual increase
6,017,000
3. Present Value Increase in Rent: 18,000 SF Rentable (20,000 SF Gross) x $
1.50/SF/Mo. x 12 Mo./Yr. = $ 270,000/Yr.@ 5% discount, 50 years, 2%
annual increase
7,255,000
Total Benefits @ $1.25/sf $9,662,000
Total Benefits @ $1.50/sf $10,900,000
COSTS*
1. Contribution to Lot P (Net of City's $ 1M contribution) $6,979,000
2. Reduction in Value Attributable to Parking Attendant - $ 100,000/Yr.@ 5%
discount, 50 years
2,293,000
3. Coordination of Solar System Installation - Cost Neutral -0-
Total Costs $9,272,000
Benefits in Excess of Costs to 135 Hamilton @ $1.25/sf $390,000
Benefits in Excess of Costs to 135 Hamilton @ $1.50/sf $1,628,000
*Reduction in value attributable to providing earthquake insurance for full parking structure:
$10,000/year @ 5% discount for 50 years = $229,000; not included by staff as the City is not
requiring this.
Attachment C
March 06, 2013
Mr. Curtis Williams
Director Planning
of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Community Environment
Re: Proposed lot P Public/Private Parking Structure
Dear Curtis:
I would like to propose a public/private partnership for the development of a parking structure on Lot P.
This development would provide an on-site capacity of 145 self-park or 194 stacked/tandem spaces;
increasing the e)(fsting day-time capacity of S1 stalls by 60% (31 stalls) and night-time capacity by 184 %
(94 development is based on the following terms conditions:
1. City contributes $ 1M toward the construction costs.
2. 135 Hamilton (Hamilton & llC or other Keenan shall contribute balance of all
costs (hard soft) to be $ 7.989M.
3. City to sell 135 Hamilton up to 7,500 square feet its TOR's at $ 90 per square foot.
4. 135 Hamilton shaJl contract with general contractor and oversee construction
completion.
5. 135 Hamilton
and 5 (63
easement in for Floors 4
of 6:00 AM to 6:00 PM
on Floors 4 and 5
easement is to provide a stack/tandem operation
the commercial at 13S Hamilton Avenue. A stack/tandem parking operation allows
users to self-park until the zone is full. Subsequent users park in the drive aisles and leave their
keys with an attendant.
6. parking structure will made of natural concrete with screened open areas and wall
in context with surrounding neighborhood. The structure will inviting and
brightly illuminated with all interior walls and ceilings painted white. The floor level will
feature floor-to-floor dimensions ranging from a minimum 11' to a maximum of 16' to allow
to service adjacent buildings behind the structure.
7. for the operation the parking including
maintenance) repairs 135 Hamilton shall pay pro-rata share of operating
expenses including water, maintenance,
and insurance (including estimated to be $ 10,OOO/yr.) for Floors 4 and S. 135
Hamilton's share of operating expenses shall not include pick-up, administration or
police patrol.
700 E:MERSON STREET· PALO ALTO, CALIFORNIA 94~OI • TELE:PHONE (650) 614·6<:46 ' TE:LECOPY (650) 3aS-2920
8. In the event this parking structure proposal is approved by the City Council, then the
subterranean parking at 13S Hamilton shall not be constructed other than four on-grade parking
spaces to serve the residential units where the subterranean ramp was to be built.
9. Regarding lot P, the city shall waive all city fees, surcharges, costs, taxes, levies and
assessments.
Very truly yoursu tt e. "e~~
Chop Ke~an