#3 Approve leasing parking spaces in Parker Drive/Wall Street parking garage (File Res. #2010-666)
Community Development Department Memorandum
Date: December 29, 2009
TO: Janesville City Council
FROM: Bradley A. Cantrell, Community Development Director
SUBJECT: Action on a proposed resolution approving the lease of parking spaces in
the Parker Drive/Wall Street Parking Garage (File Resolution No. 2010-
666).
_____________________________________________________________________
SUMMARY
The City Administration has received a request from Bob & Nancy Kimball to lease parking
spaces within the Parker Drive/Wall Street parking garage in order to accommodate
parking needs for a condominium project which the Kimballs are constructing at 117 East
Milwaukee Street. Specifically, the Kimballs would like to have the condominium
association which they are establishing have an opportunity to lease six parking spaces for
a period of 10 years. Currently, the Kimballs are renovating 117 East Milwaukee Street
into 12 two-bedroom condominiums. Only six parking spaces can be accommodated on
land owned by the Kimballs and under the future condominium association. Therefore, in
order to provide at least one parking space for each of the condominium units, they have
approached the city to lease up to six parking spaces within the parking garage which is
currently under construction and scheduled to open in May of 2010. The parking garage is
directly behind the property at 117 East Milwaukee Street.
DEPARTMENT RECOMMENDATION
The Plan Commission and Community Development Department recommend that the City
Council support a motion to approve Resolution No. 2010-666, allowing the lease of six
parking spaces in the Parker Drive/Wall Street parking garage to One Seventeen East
Condominiums Association, Inc., noting that the Plan Commission has not reviewed the
financial aspects of this transaction.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Community Development Department and Plan
Commission recommendations.
SUGGESTED MOTION
Move to adopt Resolution No. 2010-666 authorizing the lease of six parking spaces in the
Parker Drive/Wall Street parking garage to One Seventeen East Condominiums
Association, Inc.
ANALYSIS
A. Bob and Nancy Kimball are currently the owners of 117 East Milwaukee Street
which is a 4-story building that has been utilized for several years as an extended
stay residence. The Kimballs have been interested in converting this building into
12 two-bedroom condominium units for some time. The property is zoned B6,
Central Service District, and is 6,288 s.f. in size. The property is located within the
East Milwaukee Street National Registry District and was constructed around 1900.
To the rear of the building are six off-street parking spaces which are used by
tenants of this building and accessed through the public alley from North Parker
Drive.
B. The property was rezoned to B6, Central Service District, in 1988 in order to
accommodate a 12-unit CBRF for elderly. In addition to the rezoning, the Plan
Commission also approved a conditional use permit which allowed residential units
to be occupied on the first floor. Over the years, the owner’s plans for this building
have evolved and it is currently utilized as a 12-unit extended stay residence. The
Kimballs are now interested in converting the entire building to 12 two-bedroom
condominiums. Each building floor would accommodate three residential units,
however, in order to accommodate off-street parking which they believe will be a key
to attract individuals desiring to purchase a unit, six additional off-street parking
spaces will be necessary.
C. Currently the City is constructing a 235-car parking structure at the corner of North
Parker Drive and Wall Street. This site was formerly occupied by a surface parking
lot containing 84 parking spaces. The parking garage will comprise four levels. The
ground level will have access from Wall Street and North Main Street. The upper
three levels will have access from North Parker Drive. Attached is the layout of the
multi-level parking structure. The Kimballs are interested in leasing six parking
spaces on the second level of the parking structure. Staff has identified the
approximate area where these spaces would be located. The City is limited under
the terms of the borrowing to lease up to 5% of the total number of spaces within the
parking garage; thus 12 spaces can be leased to individuals if the City so desires.
The Kimballs have requested to lease six of those spaces.
The City is currently considering designating the ground floor of the parking structure
for short term two-hour parking. The second floor may be split between two-hour
and all-day parking and the upper floors would be designated for all-day parking.
The Community Development Department believes that there will be ample parking
within this area when the parking garage is completed. Staff would not be
supportive of leasing a large number of the spaces within the parking garage to
office and retail tenants even if it were possible. However, Staff is supportive of
leasing spaces to promote condominium development within the downtown because
parking is a critical component of downtown living. The Kimball project has six
spaces on their property to accommodate six of the twelve units, however, the
remaining six units would not have assigned parking which we believe is problematic
for owner-occupancy in the downtown area.
Our support for condominium parking is based on staff’s opinion that residents need
parking convenient to their unit i.e. carrying in groceries, having space available at
night and on weekends and in snow emergencies when parking is not allowed on
the street system. An argument could be made that rental unit tenants should be
provided the same opportunity, however, individuals who rent do not have an
ownership stake in the property and could leave at any time if they feel the parking
situation is not convenient. Individuals owning a condominium don’t have that same
option.
This will be the first condominium project in the Downtown. It is an untested market
and somewhat risky, however, the units are affordable and could be attractive to first
time homebuyers and young professionals wanting to get into the housing market
especially considering the federal tax credits currently being offered. The project
provides an adaptive reuse of an existing building which is a sustainable factor. The
project is positive on a number of fronts but in order for it to be successful, providing
a limited number of leased parking spaces is a critical element.
D. The lease terms include the following:
1. That the lease is between the City of Janesville and One Seventeen East
Condominiums Association, Inc.
2. That the term of the lease is for 10 years with one 10 year renewal.
3. That the lessee shall pay to the City a yearly rent of $600 for the parking spaces.
That the renewal lease rate is increased by the yearly increase in the CPI from
the date of the original lease.
4. The lessee shall use the parking spaces only for parking of licensed/operable
motor vehicles.
5. That the lease is not assignable except that the lessee may lease such parking
spaces to the owner of the condominiums residing at 117 East Milwaukee Street.
6. That the City has access rights to the parking spaces at any and all times
throughout the term of the lease.
7. That the lessee shall have the rights to terminate the lease, however they shall
notify the City not less than 120 days prior to such termination.
E. The State Statutes require that the Plan Commission review long-term leases in
order to determine if they are consistent with City plans. Therefore, the Plan
Commission reviewed the proposed lease at their December 21 meeting and agreed
to forward it to the City Council with a favorable recommendation. The Community
Development Department believes that leasing parking to support a condominium
project at 117 East Milwaukee Street is consistent with the Downtown Vision and
Strategy Plan. The proposed project promotes the overall vision of creating the
downtown as a destination - a hub of civic life; employment; art, culture &
entertainment; local business and services; parks and open space; residential living;
and health care. The Downtown Plan recognizes the importance of re-use of
historically significant buildings and rehabilitation within the downtown which this
project plans to do. The Downtown Plan also recognizes that catalytic revitalization
projects in the downtown, which this project is an example, can assist other
development and spur further improvements in the downtown.
The City’s newly adopted Comprehensive Plan sets forth an overall goal of housing
and neighborhood development which states: “Ensure a wide range of housing
options to meet the changing needs and demographics of the City.” The
Comprehensive Plan also identifies specific objectives which include: 1) provide
housing to accommodate a wide range of interests, ages, incomes and needs within
the community; 2) continue to preserve the character of historic neighborhoods
which could include the downtown. In addition, the plan specifically identifies
policies and programs which should be undertaken to: “Encourage the development
of market rate housing downtown – new condominium or apartment projects, or
upper story housing”. Potential target groups for such housing would be “young
professionals” and the 55+ age cohorts.
The Community Development Department believes that the Downtown Vision and
Strategy Plan and the Comprehensive Plan, while not specifically addressing the
actions of this request, do indicate that the city should promote a wide-range of
housing, condominium living within the downtown area and historic preservation
which this lease agreement would facilitate. The residential condominium proposal
represents the first and only attempt to offer this type of housing alternative in
downtown Janesville. By allowing this lease agreement to occur, the proposed
condominiums should become marketable, it will increase the project’s success and
thus improve the downtown’s vitality.
PLAN COMMISSION ACTION – DECEMBER 21, 2009
Brad Cantrell, Community Development Director, presented the written staff report.
Commissioner Zolidis questioned if the association would be charging the condo
owners to lease the spaces. Attorney Fred Wesner stated that the association would
consist of the 12 unit owners and that the association would pay for the lease as a
whole and that individual owners would not be charged.
Commissioner Werner questioned the proposed lease fee and Cantrell stated that staff
arrived at that amount after looking at the range of other lease fees within downtown
area. Cantrell continued that the fee might be less than a market rate lease fee, but he
believes it will encourage the project in this location and hopefully make it successful.
Commissioner Werner asked if other property owners in this area had ever expressed
interest in leased parking. Cantrell stated that none of them had ever approached the
City but that Sara Investment had asked about leased parking prior to the determination
that the City can only lease 5% of stalls within that parking area. Cantrell stated that the
need to add lease spaces will not be necessary when the parking garage opens as it
should provide ample parking to serve the whole area.
There was a motion by Commissioner Zolidis with a second by Commissioner Perrotto
to forward this item to the City Council with a favorable recommendation noting that the
Plan Commission has not reviewed the financial aspects of this transaction.
The motion carried on a 5-0-0 vote.
RESOLUTION NO. 2010-666
A resolution authorizing the lease of six (6) City-owned parking spaces located in the
Parker Drive/Wall Street parking garage for ten (10) years at an annual rent of six-
hundred dollars ($600.00), for other good and valuable consideration, and upon certain
other terms and conditions.
WHEREAS, the Common Council of the City of Janesville owns certain real property
consisting of six (6) public parking spaces located in the Parker Drive/West Wall Street
parking garage in the City of Janesville, County of Rock, State of Wisconsin, more
particularly described in Attachment “A” to the attached PARKING LEASE proposed
between the CITY OF JANESVILLE and ONE SEVENTEEN EAST CONDOMINIUMS
ASSOCIATION, INC., and desires to lease said parking spaces and enter into said ten
(10) year PARKING LEASE with ONE SEVENTEEN EAST CONDOMINIUMS
ASSOCIATION, INC. at an annual rent of six-hundred dollars ($600.00), for other good
and valuable consideration, and upon certain other terms and conditions as set forth in
the attached proposed PARKING LEASE; and
WHEREAS, the Common Council is empowered to enter into said PARKING LEASE,
pursuant to Sections 62.22(1), 62.23(17), and other applicable statutes, and hereby find
that said PARKING LEASE is in the best interest and to the benefit of the CITY and its
residents; and
WHEREAS, the Plan Commission, pursuant to Section 62.23, Wis. Stats., reviewed and
considered the proposed PARKING LEASE at a public meeting on December 21, 2009,
unanimously voting to recommend that the CITY enter into said PARKING LEASE with
ONE SEVENTEEN EAST CONDOMINIUMS ASSOCIATION, INC. upon the terms and
conditions set forth therein, but not considering the financial aspects of the transaction.
NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of
Janesville that the Parking Lease to ONE SEVENTEEN EAST CONDOMINIUMS
ASSOCIATION, INC. of certain real property owned by the CITY consisting of six (6)
public parking spaces located in the Parker Drive/Wall Street parking garage more
particularly described in Attachment “A” to the attached proposed PARKING LEASE,
for ten (10) years at an annual rent of six-hundred dollars ($600.00), for other good
and valuable consideration, and upon certain other terms and conditions as set forth
in the attached proposed PARKING LEASE, is hereby authorized and approved; and
BE IT FURTHER RESOLVED, that the City Manager and City Administration are
hereby directed to enter into and execute, on behalf of the City of Janesville, the
attached proposed PARKING LEASE between the City of Janesville and ONE
SEVENTEEN EAST CONDOMINIUMS ASSOCIATION, INC., prepare and file such
other documents, forms and papers pertaining to this transaction as may, from time to
time, be necessary or desirable to effectuate the intent of this resolution and/or lease;
and
BE IT FURTHER RESOLVED, that the City Manager is hereby further authorized to
take whatever actions and to make whatever other minor changes to this LEASE and
related documents that the City Manager may, from time to time, find necessary or
desirable to effectuate the intent of this resolution and PARKING LEASE.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Community Development Department
Prepared by: Community Development Department
PARKING LEASE
Between
CITY OF JANESVILLE
(“Lessor”)
And
ONE SEVENTEEN EAST CONDOMINIUMS ASSOCIATION, INC.
(“Lessee”)
BY THIS PARKING LEASE, entered into between the CITY OF JANESVILLE, a
Wisconsin Municipal Corporation located in the County of Rock and conducting its principal
business at 18 North Jackson Street (“LESSOR”), and ONE SEVENTEEN EAST
CONDOMINIUMS ASSOCIATION, INC. conducting its principal business at 928 Todd
Drive, Suite 1, in the City of Janesville, County of Rock, State of Wisconsin (“LESSEE”), for
good and valuable consideration, the sufficiency of which is hereby acknowledged by both
parties, each in consideration of the promises to be performed by the other as set forth
herein, agree and promise as follows:
1. The LESSOR hereby leases, demises, and lets unto LESSEE real property
consisting of six (6) public parking spaces owned by the LESSOR located in the Parker
Drive/Wall Street parking garage in the City of Janesville, County of Rock, State of
Wisconsin (the “Parking Spaces”), which Parking Spaces are more fully described in
Attachment “A”.
2. This LEASE shall be for a term of ten (10) years, commencing at 12:01 o-
clock A.M. on the ______ day of ___________, 20___ and ending at 12:01 o’clock A.M. on
the _____ day of _________________, 20___. If LESSEE is not in default under any
provisions of this LEASE, LESSEE may renew and extend this LEASE for one (1)
additional terms of ten (10) years upon the same terms and conditions excepting only the
rent to be paid during the renewal/extension terms shall be as stated in Paragraph 3 below.
Notice of LESSEE’S intention to exercise any right or option to renew or extend must be
given in writing to LESSOR as least ninety (90) days prior to the end of the current term. If
LESSEE neglects to exercise any right or option to renew or extend on the date specified,
LESSEE’S right to exercise that option shall not expire until thirty (30) days after written
notice by LESSOR to LESSEE of LESSEE’S failure to exercise the option.
3. The LESSEE shall annually pay to the LESSOR, as rent for the Parking
Spaces during the initial term of this LEASE, the sum of six-hundred dollars ($600.00) per
year on or before the ______ day of _____________________.
If LESSEE properly exercises the option to renew or extend set forth in Paragraph 2
above, LESSEE shall pay the LESSOR as rent for the PARKING SPACES during the
extended lease term the amount of six hundred dollars ($600.00) per year (the “Annual
Rental”), which amount shall be adjusted at the commencement of the extended lease term
(the “Adjustment Date”) as follows:
The base for computing the adjustment is the Consumer Price Index (the
“CPI”) for All Urban Consumers in the Milwaukee-Racine Area, published by
the United States Department of Labor, Bureau of Labor Statistics (the
“Index”), which is in effect on the date of the commencement of the initial term
of this LEASE (the “Beginning Index”). The Index published most recently
preceding the Adjustment Date in question (the “Extension Index”) is to be
used in determining the amount of the adjustment. If the Extension Index has
increased over the Beginning Index, the Annual Rental for the extension term
of the LEASE shall be set by multiplying the Annual Rental by a fraction, the
numerator of which is the Extension Index and the denominator of which is
the Beginning Index.
In no case shall the Annual Rental for the extended lease term be less than the annual
rental paid for the prior lease term.
If the Index is changed so that the base year differs from that in effect when the initial term
commences, the Index shall be converted in accordance with the conversion factor
published by the United States Department of Labor, Bureau of Labor Statistics. If the
Index is discontinued or revised during the initial term or any extension term, such other
government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued
or revised.
4. LESSEE shall use and permit the use of each of the Parking Spaces only for
parking purposes by licensed and operable motor vehicles, all other uses and purposes
being expressly prohibited without the prior written authorization of the CITY MANAGER.
The LESSEE may not sell in any manner any of the Parking Spaces.
5. This LEASE is not assignable nor can any part, portion or whole of the
Parking Spaces be sublet by the LESSEE without the prior written authorization of the
CITY MANAGER. The only exception hereto is that the LESSEE may sublease the
Parking Spaces to and/or authorize the use of the Parking Spaces by the owners and/or
occupants of the condominium units of One Seventeen East Condominiums located at 117
East Milwaukee Street, Janesville, Wisconsin.
6. Except as provided in Paragraph 5 above no Parking Space may be sold,
leased, subleased, gifted, alienated, or conveyed in any manner by the LESSEE at any
time for any reason. Each Parking Space shall always remain in the ownership of the City.
7. LESSEE at all times shall maintain the parking spaces in clean condition and
proper order.
8. LESSEE shall not damage or allow the Parking Spaces or parking garage to
be damaged by its members, subtenants or authorized users in any manner and shall
promptly repair any and all damages caused by LESSEE or its members, subtenants or
authorized users during the term of this LEASE, solely at its own expense.
9. If any annual rent or payment required by this LEASE shall not be paid within
fifteen (15) days of the date due, the LESSOR, in addition to all legal and equitable
remedies provided by law, shall have the cumulative and not exclusive options and
remedies to:
(A) Terminate this LEASE, take immediate possession and re-lease or
re-rent the Parking Spaces to whomever it desires upon whatever
terms and conditions it desires,
(B) The LESSOR shall also recover all expenses incurred by reason of
the breach, including reasonable attorney’s fees.
(C) The foregoing rights of the LESSOR are cumulative and not
exclusive, are in addition to all other legal and equitable rights and
remedies provided to the LESSOR by law, and do not act as any
waiver of any such additional rights or remedies hereunder.
10. In the event that the LESSEE shall fail to perform or shall breach any promise
of this LEASE, other than the promise of the LESSEE to pay rent, for fifteen (15) days after
a written notice specifying the performance required shall have been sent to the LESSEE,
the LESSOR may institute action in a court of competent jurisdiction to terminate this
LEASE or to compel its performance, in which event the LESSEE shall pay all expenses of
such litigation, including reasonable attorney’s fees.
11. At the end of the LEASE term and/or at any time the LESSOR and/or
LESSEE terminate(s) this LEASE, the LESSEE shall forthwith, quietly, peacefully, and in
such manner as the City Manager may request or require, return possession of the Parking
Spaces to the LESSOR in the same condition that the Parking Spaces were at the
commencement of this LEASE, normal wear and tear excepted.
12. The LESSOR shall have and hereby retains, and the LESSEE hereby grants
to the LESSOR and its employees, officers, officials, agents and representatives, access,
without prior notice, to the Parking Spaces at any and all times throughout the term of this
LEASE for any and all public and municipal purposes including, but not limited to,
maintenance, repair, improvement, cleaning, inspection, and all other health, welfare,
peace, tranquility, and safety government purposes of whatsoever kind or nature.
13. LESSEE may terminate this LEASE at any time, without cause, but shall
notify the LESSOR not less than one hundred twenty (120) days prior to such termination.
In the event the LESSEE terminates this LEASE, or abandons or vacates the Parking
Spaces prior to the expiration of the LEASE’s ten (10) year term, the LESSOR shall have
the right to forthwith assume possession, dispose of, relet, lease, and/or otherwise use the
Parking Spaces as it may decide from time to time thereafter, any and all rights thereto of
the LESSEE being forever terminated and waived. In the event that the LESSEE provides
LESSOR with less than one hundred twenty (120) days prior notification of termination, the
LESSEE shall pay to the LESSOR Five Hundred Dollars ($500.00) to cover the additional
clerical expenses that the LESSOR would incur under such circumstances.
14. LESSEE shall abide by and promptly perform each and every reasonable and
necessary matter directed or requested by the CITY MANAGER, from time to time and at
any time, pertaining to the Parking Spaces and this LEASE.
15. LESSEE shall not make any structural, painting, signage, or other physical
changes or modifications to any of the Parking Spaces or parking garage in any manner
whatsoever without the prior written authorization of the City Manager or the Common
Council of the City of Janesville, whichever is necessary depending upon the nature and
extent of the changes or modifications proposed by LESSEE.
16. LESSOR makes no representations or warranties about the Parking Spaces
or their condition to LESSEE or to any other person. LESSEE takes and hereby
acknowledges that it takes the Parking Spaces on an “as is” basis.
17. This LEASE may not be amended or modified except by written agreement
signed by both parties.
18. LESSEE shall require each and every of its Parking Space sublessees and/or
authorized users to abide by the care and use provisions set forth in this AGREEMENT.
19. All notices required or to be given pursuant to this LEASE shall be in
writing and delivered personally or mailed by United States certified or registered
mail, postage prepaid, addressed as follows:
If to LESSOR: Eric Levitt
City Manager
City of Janesville
Municipal Building
18 North Jackson Street
Janesville, WI 53548
If to LESSEE: One Seventeen East Condominiums Association, Inc.
Attn: Robert M. Kimball, President
928 Todd Drive, Suite 1
Janesville, WI 53546
Notices shall be deemed effective and properly delivered and received when and if either
(a) personally delivered; or (b) two (2) business days after being deposited in the U.S.
Mail, by certified or registered mail return receipt requested, postage prepaid. Either
party may change the names and addresses of the persons to whom notices shall be
delivered, by written notice to the other party in the manner herein provided for the
service of notice.
21. This LEASE constitutes the entire agreement between the parties.
22. The City Manager of the LESSOR is authorized to enter into this LEASE with
the LESSEE pursuant to Chapter 349, Wis. Stats., Chapter 64, Wis. Stats., and Janesville
General Ordinance Chapter 10.12 including, but not limited to, JGO Sections 10.12.030
and 10.12.040.
23. Time is of the essence in the performance of each of LESSEE’ obligations set
forth in this Agreement.
LESSOR
CITY OF JANESVILLE
By:___________________________
Eric J. Levitt, City Manager
By:___________________________
Jean Ann Wulf, City Clerk-Treasurer
ACKNOWLEDGEMENT
STATE OF WISCONSIN )
) ss.
COUNTY OF ROCK )
Personally came before me this _____ day of ___________, 20___, the
above named ERIC J. LEVITT and JEAN ANN WULF, to me known to be the persons
who executed the foregoing instrument and acknowledge the same.
_______________________________
Notary Public, State of Wisconsin
My Commission Expires:___________
LESSEE
ONE SEVENTEEN EAST CONDOMINIUMS
ASSOCIATION, INC.
By:___________________________
Robert M. Kimball, President
ACKNOWLEDGEMENT
STATE OF WISCONSIN )
) ss.
COUNTY OF ROCK )
Personally came before me this _____ day of ___________, 20___, the
above named Robert M. Kimball, in his capacity as the President of One Seventeen
East Condominiums Association, Inc., to me known to be the person who executed the
foregoing instrument and acknowledge the same.
_______________________________
Notary Public, State of Wisconsin
My Commission Expires:___________