HomeMy WebLinkAboutResort Parking Opportunity 35 Street Garage 06102025Resort Parking Opportunity – 35
th Street Garage
Kathy Warren, Director, Planning & Community Development
City Council Briefing, June 10, 2025
Disclosures
Owners: Suburban Capital, Inc.
A & E: Kahler Slater
Financial: Towne Bank
Contractor: Hourigan Construction Corp.
Legal: Pender & Coward
Accounting: BDO
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Presentation Overview
•For Consideration
•History of Proposal
•City Parking Assets in the Resort
•Priority Parking Areas
•35th Street Lot Proposal
•RASAP and RAMP
•For Consideration and Discussion
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For Consideration
•Proposal to build a City-owned and managed public parking garage at
35th Street in partnership with Suburban Capital
•Resort Parking CIP currently has a balance of $26M
•Pursue development of the garage at 35th Street at NTE $12.35M?
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History of Proposal
•In FY2020, the Resort Parking District CIP was created for the purpose
of developing more public parking in the Resort.
•In 2021, the City approached Suburban Capital about partnering in
the development of a parking garage on their 35th Street parcel to
provide more public parking in this area of the Resort.
•There are no public parking lots/garages north of 31st Street.
•At that time, the cost to build the garage would have been
$25,000/space.
•The original proposal was for Suburban Capital to own the land and
their parking spaces and VBDA would own their spaces under a condo
regime.
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History of Proposal cont’d
•City Council adopted an Ordinance on December 14, 2021, directing $7M out of the Resort Parking District CIP toward the development of public parking (200 public spaces) at 35th Street and directed staff to continue to work with Suburban Capital to develop a term sheet and development agreement.
•In 2022, the Hyatt Place opened.
•As time progressed, construction pricing continued to escalate above $30,000/space (Atlantic Park agreement) and the project was put on hold.
•City Staff continued to work with Suburban Capital by updating pricing every year.
•Construction pricing continued to increase so the construction was put on hold.
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City’s Existing
Parking Assets
•358 spaces surface lot spaces
•5 Garages: 2,613 public spaces
•644 on-street metered spaces
•3,615 total public parking spaces
south of 31st Street
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Priority Areas (Handout)
•Blue = Existing Public Parking
•Yellow = Future Municipal
Parking
•Red = Areas of Opportunity
•Goal is to have public parking
every 5 blocks
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Hyatt Place Hotel
•140 rooms
•Parking lot - 0.66 acres and
can accommodate seven-story
garage with 400+ spaces
•Hotel opened summer 2022
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35th Street Lot
•.66 Acres
•Zoned OR
•$3.5M Current
Assessment
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35th Street Proposal 2025
•Developer conveys land to City at no cost
•348 Spaces (148 Private/200 Public)
•City pays for cost to construct garage $11.2M ($32,184/space)
•Soft Costs @ 5% = $560,000
•Developer Fee @ 5% = $590,000
•Total Cost to City NTE $12.35M ($35,488/space)
•Does not include Carry Costs for 9-month construction
•Work could commence September 2025, to be complete by June 2026
•VBDA would own the garage and Parking Enterprise Fund will manage garage
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Dominion Power Lines Relocation
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RASAP/RAMP and Parking Strategy Support
•The Resort Area Mobility Plan (RAMP), with Resort Stakeholder
support, is recommending the development of additional public
parking spaces throughout the Resort with a focus on the area north
of 31st Street.
•The 2013 Kimley-Horn Parking Strategy supports the continued
dispersal of public parking throughout the Resort to support higher
parking demands and work with private developers to develop public
parking as part of larger private developments.
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For City Council Consideration
•Proposal to build a City-owned and managed public parking garage at 35th
Street in partnership with Suburban Capital
•Resort Parking CIP currently has a balance of $26M
•Pursue development of the garage at 35th Street?
•Not to Exceed $12.35M – Resort Parking CIP
•2021 Ordinance would need to be modified from NTE $7M to $12.35M
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Questions?
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