City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve a Parking License Agreement (License)
with Century Wilshire Inc. (Century) that provides the Culver Hotel (Hotel) guest,
valet, and employee parking at certain City-owned parking facilities at a discounted
rate.
BACKGROUND:
On January 15, 2011, the former Culver City Redevelopment Agency (Former
Agency) approved a 15-year Owner Participation Agreement (OPA) with Century
that provided discounted parking and an $87,000 forgivable loan for improvements
to the public right-of-way adjacent to the Hotel.
In exchange, Century is to complete $2.1 million in capital improvements to the Hotel
and remit a minimum of $130,000 in Transient Occupancy Taxes (TOT) annually.|1010| If
the Hotel remits the $130,000 in TOT, a portion of the $87,000 loan will be forgiven
annually until the balance is eliminated.|1010|
On February 22, 2011, the Former Agency’s obligations pursuant to the OPA were
assigned to the City.
In May 2012, the Hotel’s three star rating was increased to four stars by
TripAdvisor.com. The Hotel is now requesting additional parking for its employees
and guests.
Meeting Date: 09/10/12 Item Number: C-6
CITY COUNCIL AGENDA ITEM: Approval of a Parking License Agreement with
Century Wilshire Incorporated for the Culver Hotel’s Use of Parking Spaces at
Certain City-Owned Parking Facilities.
Contact Person/Dept.:
Joe Susca / Community Development
Todd Tipton / Community Development
Phone Number:
(310) 253-5763
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (09/05/12); (E-Mail)
Century Wilshire Inc. and the Culver Hotel (08/31/12); (E-Mail) The Downtown Business
Association (08/31/12); (E-Mail) Culver City Chamber of Commerce (08/31/12).
Department Approval:
Sol Blumenfeld: (08/29/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (08/29/12)
Chief Financial Officer Approval:
Jeff Muir (09/05/12)
City Manager Approval:
John M. Nachbar (09/05/12) City of Culver City, California
Agenda Item Report
DISCUSSION:
The Hotel’s request includes the following:
Employee Parking: That the total number of employee parking spaces provided by
the OPA be increased from 10 to 28. As a result of increasing the number of
discounted spaces provided, the existing rate of $30 is being increased to $45 per
month. To obtain the discount, the Hotel agrees to subsidize a minimum of $15 of
the cost for each of their employees. The additional spaces are being provided at
the City’s Canfield and Venice parking lots.
After-Hours Parking: That Hotel guests be allowed to park on the 9300 Culver
Boulevard parking lot (Parcel B) as-needed in order to accommodate guest parking
needs when the City’s parking structures are closed (prior to 8:00 a.m. and after
1:00 a.m. daily). When using Parcel B, the Hotel will pre-purchase placards at a rate
of $3.00 each for up to 3 hours of continuous parking for their guests, who in turn will
place the placard on their dashboards.
Reserved Valet Parking: That the Hotel receive 10 additional spaces on Parcel B to
provide an additional valet staging area as the existing sidewalk cutout adjacent to
the Hotel does not store enough vehicles. Creation of an additional valet staging
area would reduce guest waiting time to retrieve their vehicles. The License
increases the total number of reserved valet parking spaces from 20 to 30 at the
existing monthly rate of $40 each.
The License co-terminates with the OPA for use of the Venice and Canfield parking
lots. The use of Parcel B will terminate if the property is sold or the use changes.
FISCAL ANALYSIS:
Century has submitted a preliminary report and provided some documentation that it
has expended approximately $2.6 million in capital improvements to the Hotel and
completed the Former Agency-funded public improvements, which fulfills the
requirements of the OPA. Staff is in the process of evaluating the report and its
supporting documents.
Pursuant to the existing terms of the OPA, in consideration of the City executing the
License, the Hotel agrees to increase the minimum TOT it is required to generate
from $130,000 to $170,000 annually in order to receive the additional discounted
parking. The TOT paid by guests of the Hotel for calendar year 2011 has exceeded
the minimum required by the OPA.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
None.
MOTIONS:
That the City Council:
1. Approve a Parking License Agreement with Century Wilshire Inc. for the Culver
Hotel; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
Notes:
|1010|Summary of Existing OPA Terms and Conditions:
The Hotel is provided up to 46 guest self-parking spaces daily at 75% off the 7-day rate.
The Hotel is provided up to 20 reserved valet parking spaces in the Ince Parking Structure at
50% off the 7-day rate.
The Hotel receives up to 10 employee parking spaces at 50% off the 5-rate.
By July 15, 2012, the hotel is to complete $87,000 in former Agency-funded improvements
comprised of illuminated bollards, guest way-finding signage and new Culver Blvd. entrance
awning. (These improvements have been completed)
The former Agency agreed to reimburse the Hotel for $87,000 in improvements in 5 equal
annual payments, provided a minimum of $170,000 in TOT is remitted to the City annually.
Century is to complete $2.1 million in capital improvements to the Hotel. (These
improvements have been completed.)
|1010|If the Hotel does not achieve the minimum TOT for any given year, the amount of the reimbursement
for that year will be reduced as follows:
TOT RECEIVED BY CITY DURING PRIOR
ANNIVERSARY YEAR
ANNUAL REIMBURSEMENT
AMOUNT
$170,000 or more $17,400 (full amount)
$160,000 to $169,999 $13,920
$150,000 to $159,999 $10,440
$140,000 to $149,999 $ 6,960
$130,000 to $139,999 $ 3,480
Less than $130,000 $ 0