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Recommendation to authorize City Manager to execute any and all documents necessary for a lease with the Long Beach Community College District for the short-term use of the Veterans Memorial Stadium parking lot from December 22, 2008 through and including January 2, 2009, at a cost of $2,400 for the entire term. (District 5)
DISCUSSION
Currently, the Long Beach Airport (Airport) has approximately 2,000 parking spaces available in its parking structure and adjacent lots that are often filled to capacity. In addition, the Airport leases approximately 2,200 parking spaces from the Boeing Company at the southeast corner of Lakewood Boulevard and Conant Street, known as Airport Lot D. This provides a total of approximately 4,200 parking spaces to serve both short-term and long-term parking needs for the Airport.
The Airport experiences a parking shortfall during the peak holiday travel period of December 22 through January 2 (Peak Period), due to increased flight activity. During the upcoming Peak Period, the Airport anticipates a total parking demand of approximately 5,200 spaces, resulting in a shortfall of approximately 1,000 spaces. Some of the shortfall is accommodated through the use of vacant tenant parking spaces at the Airport due to holiday-period/vacations. However, there remains a need for approximately 750 additional parking spaces to meet the anticipated demand during the Peak Period. In order to minimize impacts on the surrounding community and to curtail street parking in the adjacent neighborhoods, the Airport proposes to work with Long Beach Community College (LBCC) to utilize the adjoining Veterans Memorial Stadium parking lot (Vets Lot) to accommodate the parking shortfall.
The Vets Lot, which contains approximately 4,000 parking spaces, is located directly across Conant Street from Airport Lot D, between Faculty Avenue and Clark Avenue. Since LBCC will not be in session during the Peak Period, LBCC has agreed to lease 750 parking spaces (see Attachment A) to the Airport during the Peak Period to accommodate the parking shortfall. Access to the leased area will be from Conant Street, with shuttle services being provided by the Airport. As such, impacts to the surrounding neighborhoods will be minimized. Additionally, the Airport's use of these parking spaces is not anticipated to affect any activities occurring at Veterans Memorial Stadium during the Peak Period. This mirrors last year's program to address parking shortfalls during the Peak Period. This program was successful in meeting the needs of both the Airport and the community.
In an effort to facilitate the parking arrangements at the Vets Lot, a short-term Lease has been negotiated with LBCC. The proposed Lease contains the following major terms and provisions:
• Lessor: Long Beach Community College District.
• Lessee: City of Long Beach.
• Leased Premises: Approximately 750 parking spaces located in the Veterans Memorial Stadium parking lot.
• Term: The term of the Lease shall commence on December 22,2008 and shall continue through and be inclusive of January 2, 2009.
• Use: The Premises shall be used by passengers at the Long Beach Airport for parking during the Airport's Peak Period.
• Rent: The base rent shall be $8 per parking stall per month and prorated for the number of days in the Term. The anticipated 750 parking spaces provides for a total base rent of approximately $2,400 for the term of the Lease. In addition, the City's Airport Fund and LBCC will share equally in any net revenue generated by the use of the Premises.
• Utilities: Lessor shall provide all utilities to the Premises.
Security, shuttle services and parking management of the Premises will be provided by the Airport through existing vendor contracts for similar operations at Airport Lot D.
This report was reviewed by Deputy City Attorney Richard F. Anthony on November 11, 2008, and Budget Management Officer Victoria Bell on November 17, 2008.
TIMING CONSIDERATIONS
City Council action is requested on December 2, 2008, in order to allow sufficient time to execute the Lease to accommodate the Airport's Peak Period parking needs.
FISCAL IMPACT
Sufficient funds are currently appropriated in the Airport Enterprise Fund (EF 320) at the Long Beach Airport (AP). It is anticipated that the costs associated with the operation of the Premises will be offset by revenues. Lease and parking management costs are estimated at $22,000 for the term of the Lease. Assuming that the Premises will be filled at 75 percent capacity at the $11 parking rate per day, the estimated net revenue for the Airport Enterprise Fund (EF 320) during the term of the lease will be approximately $26,000. There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Dennis J. Thys
Director, Department of Community Development
Chris Kunze
Acting Director, Long Beach Airport
NAME |
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PATRICK H. WEST |
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CITY MANAGER |