Development Team Meeting Notes (96-99)

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i ~ COURTHOUSE SQUARE DESIGN TEAM MEETING June 12, 1997 Present: Ra.ndy Curtis, Marion County; RG Andersen-Wyckoff, 7ohn Whittingtbn, Salem Area Transit; Dan Berrey, Prudential; Dan Pretrusich, Craig Lewis, Rick Williams, Bryon Courts, Ron Bakker, Melvin Mark Companies; Dave Hays, Curt Pence, Pence/Kelly Construction; Leonard Lodder, Arbuckle Costic Architect; and Kathleen Thorpe, Bill Anneq Centurywest Environmenta,l Engineering. Agenda for today's meeting: 1. Size of parking structure to be built - 425-27 stall count 2. Critical path - time schedule/process of dealing with costs, etc. Deadlines review if still on schedule. Rick Williams of Melvin Mark Companies had an opportunity to look at costs put together by Pence Kelly last week. His assessment was if the marginal cost is less than avera~e costs for per stall basis then two questions need to be a.nswered. Can you afford to spend the additional dollars required to construct a larger parking structure? Ra.ndy answered i~' economically feasible, and it will pay for itself, then we can do it. Based on $6,800 hard costs and $8,000 soft costs for the additional stalls, and g~nerating $600 ~ income per stall on the additional stalls, you would be looking at appro~umately $25,000 gross revenue. By adding a 15% oversell on the stalls you could generate $700 a month income. We don't know how it would affect the marketability on the project. The decision you need to make would be based on marginal costs that are significantly lower and the amount of revenue those stalls could generate. We didn't know what to assume for debt service or what your borrowing rate would be. Assuming you will be getting a low interest rate, the additional spaces would economically be a push. The question is do you want to spend the money to do it? On a 5% interest rate, you would be looking at a break even proposition. Randy responded with that if we build the e~rtra stalls, and it would lower Trans~t's costs and benefit Transit, then we should consider it. The County has to be very careful in not subsidizing retail or transit or give that appearance. Whatever additional spaces are added must generate revenue. I don't think the County can afford to gamble on this. When we get 100!% occupancy two yea.rs down the road, then everything will be okay. There was further discussion on how the parking would be operated. The wap the parking structure is operated will greatly impact these numbers. Melvin Mark used the approach that all spaces will be reserved pazking per a conversation with Randy earlier. County currently operates on a reserved space for either a county vehicle and/or employee and that space is reserved for whole day for that individual or county vehicle. Melvin Mazk staited revenues could be maximized if it was open parking. If given a parking pass and then allowed to park anywhere, you will have a more efficient parking arrangement and can generate revenue easier ~ Page 1 of 5