Subject:
Title
Consideration of Intent to Purchase Public Parking Condominium on 223-241 Mill Street NE
Body
EXPLANATION AND SUMMARY:
The Town has been exploring the possibility of establishing a public parking facility or facilities in the Church Street C-1B Pedestrian Commercial Zone for some time. Recently the Town was approached by a developer who had purchased a parcel at 223-241 Mill Street NE, approximately a half block off of Church Street NW. The developer has proposed selling the Town the second floor of a new four-story development for public parking; the sale would be structured as a condominium ownership. Town and developer representatives have discussed the Town's parking requirements as well as design integration of a parking floor into the proposed building and have come to an understanding of general design terms as well as a proposed turnkey contract price of $4.6 million for approximately 121 parking spaces.
In the interim, the Town was informed by the Northern Virginia Transportation Authority (NVTA) of the existence of transportation grants that support public parking. The Town would be required to restrict 50% of spaces in a funded parking facility for a portion of the day for Metro/bike path/carpool parking in order to be eligible for an NTVA grant of 50% of project costs. The Town applied for a 50% grant for this parking structure and will learn by June 2018 if the grant has been awarded.
The project will be funded by a separate bond issue in the summer of 2018 for costs not covered by the NVTA grant, should the Town receive that grant.
Town Council solicited public comment on the proposed project at the February 26, 2018 Council meeting.
At this time the contract is in place but the condominium documents are not complete. We are requesting that Council declare an intent to purchase the public parking condominium contingent on completion of the contract and condominium documents.
Departmental Recommendation: Recommend approving intent to purchase the public parking condominium.
Finance Recommendation: Recommend approving intent to purchase the public parking condominium.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Town Council may approve the proposed purchase of a public parking condominium/floor in its discretion. The general building and lot design, attached to this agenda, will be incorporated into the purchase agreement.
Town Manager's Recommendation: I recommend the Town Council approve the proposed purchase of a condominium interest, specifically a second floor public parking garage with 121 parking spaces in the building to be built by Mill Street Development One, LLC at 223-241 Mill Street NE as presented.
Cost and Financing: Not to exceed $4.6 million
Account Number: Future debt financing, account TBD
Decision Needed by This date: May 21, 2018
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the proposed purchase of a condominium interest, specifically a second floor public parking garage with 121 parking spaces in the building to be built by Mill Street Development One, LLC at 223-241 Mill Street NE, for the total purchase price of $4,600,000.00. I further move that the Town Manager and Town Attorney are directed to finalize the contract documents, consistent with the terms and conditions of the documents attached to this Agenda Item, and authorize the Mayor to execute such documents on behalf of the Town of Vienna."
Or
Other action deemed necessary by Council.